1. We depend on the success of our relationships with our customers and we do not have long term contracts with them. Any loss of one or more of our top customers, or the deterioration of their financial condition or prospects, or a reduction in their demand for our products, could adversely affect our business, results of operations, financial condition and cash flows.
2. A significant portion of our business operations and revenue generation is concentrated in the Southern India. This regional concentration could expose our Company to economic, cultural, geopolitical and local market risks.
3. Our business is highly concentrated on the sale of 22kt CZ jewellery and is vulnerable to variations in demand and changes in consumer preference, which could have an adverse effect on our business, results of operations and financial condition.
4. Our dependence on gold may expose us to market and demand fluctuations. Further, the non-availability or high cost of quality gold, may have an adverse effect on our business, results of operations, financial condition and prospects.
5. Our income and sales are subject to seasonal fluctuations and lower income in a peak season may have a disproportionate effect on our results of operations.
6. Our Company has experienced negative net cash flow from operating activities in the past three Fiscals and six months period ended September 30, 2024 and may continue to do so in future, which could have a material adverse effect on our business, prospects, financial condition, cash flows and results of operations.
7. Our business is dependent on our manufacturing capabilities at our Andheri Manufacturing Facility. Unplanned slowdowns, unscheduled shutdowns or prolonged disruptions in our manufacturing operations and an inability to effectively utilize our production capacity could have an adverse effect on our business, results of operations, cash flows and financial condition.
8. We intend to further expand our operations through setting up the Proposed Jaipur Facility and such expansion will be subject to the risks of unanticipated delays in implementation and cost overruns.
9. The nature of our business requires us to maintain sufficient inventories resulting into high inventory costs. If we are unable to maintain an optimal level of inventory, including due to changes in consumer demands, our business, results of operations and financial condition may be adversely affected.
10. Our business and the demand for our product is reliant on the success of our customers' products with end consumers, and any decline in the demand for the end-products could have an adverse impact on our business, results of operations, cash flows and financial condition.