Kabra Jewels

Innovation in Designing.

Deepen and penetrate our existing customer relationships.

Strengthen our Inventory Management practices.

Enhance our product portfolio.

Continue to invest in our marketing and brand building initiatives.

Enhancing Operating Effectiveness and Efficiency.

The Company, Promoters and Directors are involved in certain legal proceedings. Any adverse outcome on such proceeding may affect its business, financial condition and reputation.

The Company requires significant amount of working capital for continued growth. Its inability to meet the company working capital requirements, on commercially acceptable terms, may have an adverse impact on its business, financial condition and results of operations.

If the company is unable to effectively manage its retail network and operations or pursue the company growth strategy, its may not achieve the company expected levels of profitability which may adversely affect its business prospects, financial condition and results of operations.

Business Risk Due to Geographic Concentration.

The company does not own the registered office and showrooms from which its carry out the company business activities. Any dispute in relation to use of these premises would have a material adverse effect on its business and results of operations.

The company has not entered into any agreements with its vendors and job workers (Karigars). Thus, any dispute or delay in getting the work done from the vendor and jobworkers could have a material adverse effect on its business, results of operations and financial condition.

Orders placed by customers may be delayed, modified, cancelled or not fully paid for, which may have an adverse effect on its business, financial condition and thereby on the company results of operations.

Its gold and jewellery business faces risks from market volatility and changing consumer preferences. Fluctuations in commodity prices like gold could impact its costs and profitability. Evolving consumer tastes influence product demand, necessitating continuous adaptation to remain competitive.

The company income and sales are subject to seasonal fluctuations and lower income in a peak season may have a disproportionate effect on its results of operations.

The company undertake sales on credit terms to a limited number of customers and defaults in payment of the dues by such customers could have an adverse effect on its business, results of operations and financial condition.

Its Jewellery business is dependent on factors affecting consumer spending habit that are out of the company control.

If the company fails to anticipate, identify or react appropriately or in a timely manner to the changing trends in the jewellery industry, its could experience reduced consumer acceptance of the company products, a diminished brand image, higher markdowns and costs to recast overstocked jewellery.

Fraud, theft, employee negligence or similar incidents may adversely affect its results of operations and financial condition.

Its insurance may be insufficient to cover all losses associated with the company`s business operations.

Its offices and showrooms are located only in Ahmedabad, Gujarat, India. Any adverse development affecting such region may have an adverse effect on its business, prospects, financial condition, and results of operations.

The company faces significant competition in the Indian jewellery market, its risk losing substantial portion of the company customers and its market share which will adversely affect the company business, financial condition, results of operations and prospects.

Its may not be able to protect the company trademark from infringement.

The trademark of ATARASHT was registered under the name of the Promoter and Director Mrs. Jyoti Kabra and was subsequently transferred through an assignment deed.

In the past, there have been discrepancies in filings with the Registrar of Companies (RoC) and other noncompliances under the Companies Act, which may result in penalties. Further, the company has filed a compounding application with the MCA for such non-compliance.

Its independent directors does not have any prior experience of directorship in any of the listed entities.

The Company`s high debt-to-equity ratio may limit financial flexibility, increase borrowing costs, and expose it to heightened risks during adverse economic conditions.

Lack of Track Record of the Book Running Lead Manager (BRLM) in managing or handling public issues.

The company does not register its jewellery designs under the Designs Act, 2000 and its may lose income if the company designs are duplicated by competitors.

The company has entered into, and will continue to enter into related party transactions. Its cannot assure you that such transactions, individuals or in the aggregate, will not have an adverse effect on its business, financial condition, cash flows and results of operations.

The company has availed unsecured loans from Promoters and third parties that are recallable, at any time.

The company has experienced negative cash flows in the past, and its may have negative cash flows in the future.

The company could face customer complaints or negative publicity about its customer service.

Failures to manage its inventory could have an adverse effect on the company net sales, profitability, cash flow and liquidity.

In addition to its existing indebtedness for the company existing operations, its may incur further indebtedness during the course of business. The company cannot assure that its would be able to service the company existing and/ or additional indebtedness.

The strength of its brands is crucial to the company growth and success and its may not succeed in continuing to maintain and develop the company brands.

If the company fails to convert existing customers into repeat customers or to acquire new customers, its business, financial condition, and results of operations would be harmed.

Change in technology may affect its business and financial condition.

Any failures of or disruption to its information technology systems could adversely impact the company`s business and operations.

The company is heavily dependent on its Promoters and Key Managerial Personnel for the continued success of its business through their continuing services and strategic guidance and support.

Its may not be successful in implementing the company business strategies.

Its culture and values have been critical to the company success and if its cannot maintain this culture and the company values as its grow, the company`s business and reputation could be adversely affected.

In case of its inability to obtain, renew or maintain the statutory and regulatory licenses, permits and approvals required to operate its business it may have a material adverse effect on the company`s business.

Its Promoters will continue to retain significant shareholding in us after this Offer, which will allow them to exercise significant influence over it and any substantial change in its Promoters` shareholding may have an impact on the trading price of the company Equity Shares which could have an adverse effect on its business, financial condition, results of operations and cash flows.

The average cost of acquisition of Equity Shares by its Promoters, could be lower than the issue price.

Its Promoters, Directors and Key Management Personnel may have interests other than reimbursement of expenses incurred and receipt of remuneration or benefits from the Company. Certain of its Promoters and Directors may have interest in entities, which are in businesses similar to its and this may result in conflict of interest with the company.

Penalty or demand raised by statutory authorities in future will affect its financial position of the Company.

There is no monitoring agency appointed by the Company and deployment of funds are at the discretion of its Management and the company Board of Directors, though it shall be monitored by the Audit Committee.

Delay in raising funds from the IPO could adversely impact the implementation schedule.

Its actual results could differ from the estimates and projections used to prepare the company financial statements.