Khazanchi Jewell

Risks

• The company is involved in certain legal proceedings which are pending at different levels of adjudication before various courts, tribunals, enquiry officers, and appellate authorities.

• The non-availability or high cost of quality gold bullion, silver, diamonds and other precious and semi-precious stones may have an adverse effect on its business, results of operations and financial condition.

• The company Promoters and certain of the directors may have interest in entities, which are engaged in lines of business similar to that of the Company. Any conflict of interest which may occur between its business and the activities undertaken by such entities could adversely affect the company business and prospects.

• The company business depends on the Promoters and senior management and its ability to attract and retain sales personnel. Any attrition rate of the company senior management may affect its business growth.

• The company has entered into loan agreements, which contain conditions and restrictions on its operations, additional financing and capital structure.

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

• The Company has experienced negative cash flow in the past and may continue to do so in the future, which could have a material adverse effect on its business, prospects, financial condition, cash flows and results of operations.

• The Company has availed unsecured loan from the Promoters and others, which is repayable on occurrence of certain conditions.

• The company Promoters and members of the promoter group have provided personal guarantees to secure certain of the loan facilities, which if revoked or invoked may require alternative guarantees, repayment of amounts due or termination of the facilities.

• The company is dependent upon few suppliers for purchase and sale of bullion, supply of the raw material and a few customers for the supply of the finished products. In an eventuality where the company suppliers are unable to deliver it the required materials in a time bound manner as its lose one or more customers, it may have a material adverse effect on the compay business operations and profitability.

• 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 and may have a negative impact on the company business.

• The company has relied on the affidavits provided by the promoter for their education qualifications and experience.

• The company has significant working capital requirements and may require additional capital and financing in the future. The operations could be curtailed if the company is unable to obtain required additional capital and financing when needed.

• The company is required to maintain various licences and permits for its business.

• The company operations are concentrated only in one (1) area in India i.e., Chennai, Tamil Nadu. Its results of operations could be materially and adversely affected if facility is disrupted.

• The company may be subject to fraud, theft, employee negligence or similar incidents.

• The objects of the Offer have not been appraised by any bank or financial institution. The company funding requirements and proposed deployment of the Net Proceeds are based on management estimates and may be subject to change based on various factors, some of which are beyond the control. Any variation in the utilization of the Net Proceeds or in the terms of the conditions as disclosed in this Prospectus would be subject to certain compliance requirements, including prior shareholders` approval.

• The company has in the past entered into related party transactions and may continue to do so in the future.

• The company operate in a competitive market and face competition from other jewellery retailers. Any increase in competition may adversely affect its business and financial condition.

• Jewellery purchases are discretionary and are often perceived to be a luxury purchase. Any factor which may bring discretionary spending by consumers under pressure may adversely affect its business, results of operations and financial condition.

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

• The company do not register the jewellery designs under the Designs Act, 2000 and its may fail to protect the jewellery designs that may be unique and relative to its brand.

• The company insurance may be insufficient to cover all losses associated with its business operations.

• If the Company is unable to protect its intellectual property, or its infringes on the intellectual property rights of others, the company business may be adversely affected.

• The company has not commissioned an industry report for the disclosures made in the chapter titled "Industry Overview" and made disclosures on the basis of the data available on the internet and such data has not been independently verified by it.

• The company Promoters, certain of the Directors and Key Managerial Personnel hold Equity Shares in the Company and are therefore interested in the Company`s performance in addition to their remuneration and reimbursement of expenses.

• The company do not own the Registered Office from where its operate.

• The deployment of funds raised through this Issue shall not be subject to any Monitoring Agency and shall be purely dependent on the discretion of the management of the Company.

• The company has issued Equity Shares during the last 12 months at a price which may be below the Issue price.

• The average cost of acquisition of Equity Shares by the Promoters is lower than the price determined at time of registering the Prospectus.

• The outbreak of COVID-19, or outbreak of any other severe communicable disease could have a potential impact on its business, financial condition and results of operations.

• The company Equity Shares have never been publicly traded, and may experience price and volume fluctuations following the completion of the Issue. Further, its Equity Shares may not result in an active or liquid market and the price of the company Equity Shares may be volatile and you may be unable to resell your Equity Shares at or above the Issue Price or at all.

• Investors may be subject to Indian taxes arising out of capital gains on the sale of the Equity Shares.

• Holders of Equity Shares may be restricted in their ability to exercise pre-emptive rights under Indian law and thereby may suffer future dilution of their ownership position.

• Rights of shareholders of companies under Indian law may be more limited than under the laws of other jurisdictions.

• There is no guarantee that the company Equity Shares will be listed in a timely manner or at all.

• The requirements of being a listed company may strain its resources.

• Any future issuance of Equity Shares, or convertible securities or other equity-linked securities by it may dilute your shareholding and any sales of the Equity Shares by the company major shareholders may adversely affect the trading price of the Equity Shares.