Pushpa Jewellers

Risks

• The company is supplying to certain key customers, from whom the company derives a significant portion of its revenues. The loss of any significant customer may have a material and adverse effect on its business and results of operations.

• Orders placed by customers may be delayed, modified or cancelled, which may have an adverse effect on its business, financial condition and results of operations

• The company is highly dependent on its suppliers for uninterrupted supply of Raw-Materials. Any shortfall in the supply of our raw materials, or an increase in its raw material costs and other input costs, may adversely affect the pricing and supply of the company products with subsequently having an adverse effect on the business, results of operations and financial conditions of the company.

• A significant portion of its manufacturing relies on artisans or Karigars who operates independently, which could introduce it to potential risks stemming from any challenges or changes affecting their operations.

• Receiving orders verbally can raise the risk resulting in order discrepancies, customer dissatisfaction, and difficulties in scaling operations efficiently.

• Significant portion of its revenue has been generated from Southern states of India, any loss of business from these states may adversely affect the company revenues and profitability.

• Fluctuations in the market price of gold could influence its income, profitability and operational scale.

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

• The company is dependent on its promoters and senior management and other key personnel, and the loss of, or the company inability to attract or retain, such persons could affect our business, results of operations, financial condition and cash flows.

• The company is dependent on third party transportation providers for the delivery of its raw material and products. Accordingly, continuing increase in transportation costs or unavailability of transportation services for them, as well the extent and reliability of Indian infrastructure may have an adverse effect on its business, financial condition, results of operations and prospects.

• Some of its Directors (including the company Promoters) and Key Management Personnel are interested in the Company to the extent of their shareholding and dividend entitlement in the Company, in addition to normal remuneration, other benefits and reimbursement of expenses.

• Cyber- attacks or other security breaches could have a material adverse effect on its business, results of operation or financial condition.

• Most of the Company Operated Showrooms/offices are located on premises leased to us by third parties. If the company is unable to renew its existing leases or secure new leases on commercially acceptable terms, or if the company fails to comply with the terms and conditions of the company leases, resulting in termination of its leases which may affect our business, financial condition and results of operations.

• Unsecured Loans.

• Its cost of production is exposed to fluctuations in the prices of the company major raw material.

• Fluctuations in foreign exchange rates can impact the cost of raw materials, exchange rate volatility can also affect revenue conversion and pricing competitiveness in foreign markets.

• The Company operations requires significant amount of working capital for a continuing growth. Its inability to meet the company working capital requirements may adversely affect its results of operations.

• The company has taken guarantees from Promoters and members of Promoter Group in relation to debt facilities provided to it.

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

• Its contingent liabilities as stated in the company Restated Financial Statements could adversely affect its financial condition.

• Past allotments are below the issue price.

• The Company has negative cash flows from its operating activities majorly in the prior period, details of which are given below. Sustained negative cash flow could impact its growth and business.

• There have been several instances of delay in filing of GST, EPF and ESIC returns by the Company in the past.

• Trade Receivables forms a major part of its current assets. Failures to manage the company trade receivables could have an adverse effect on its sales, profitability, cash flow and liquidity.

• The Objects of the Offer for which funds are being raised have not been appraised by any bank or financial institution.

• 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 from the online source.

• The company generally do business with its customers on short term order basis and does not enter into long- term contracts with most of them.

• Its business requires it to obtain and renew certain licenses and permits from government, regulatory authorities and the failures to obtain or renew them in a timely manner may adversely affect its business operations.