Shoora Designs

Risks

• The company has a limited operating history and may be subject to risks inherent in early-stage companies, which may make it difficult for you to evaluate its business and prospects.

• The company is dependent on third parties for various stages of its operation. As on date of this Draft Prospectus, the company do not have any formal arrangements with the said third-parties, and its may be unable to maintain or establish formal arrangements with such third parties in the future. In the event of any disruptions with such third-party job worker, or failure of such third parties to adhere to the relevant quality standards, or complete the work process, would lead to have a negative effect on its reputation, business, and financial condition.

• Any significant increase in price of rough diamonds and labour costs could adversely impact its profit margins.

• The company is exposed to risks associated with online security and fraud.

• The company e-commerce platform faces distinct risks, and its failure to successfully manage those risks could have a negative impact on the company profitability.

• The company income and sales are subject to seasonal fluctuation and lower income in a peak season may have a disproportionate effect on its result of operation.

• The Company was recognized as a start-up company by the Department for Promotion of Industry and Internal Trade for the purpose of working in the Textiles and Apparel Industry` and apparel and Accessories Sector`. However, post-change in the business of the Company no application has been made for recognizing the Company as a start-up in the field of gems and Jewelry Industry`. Further, no application has been made post-change to public limited company.

• Any kind of negative publicity or misuse of its brand name and corporate logo could hamper the company brand building efforts and its future growth strategy could be adversely affected.

• The Company has availed unsecured loans from its Promoters and/or other parties, which may be recalled by them at any time and the Company may not have adequate funds to make timely payments or at all.

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

• If the company is unable to collect its receivables from the company clients, its results of operations and cash flows could be adversely affected.

• Any failure of or disruption to its information technology systems could adversely impact its business and operations. Further, the company is exposed to risks associated with online security and fraud.

• There have been instances of delayed / incorrect filings in the past with certain Regulatory Authorities. If the Regulatory Authorities impose monitory penalties on us or take certain punitive actions against the company in relation to the same, its business, financial condition and results of operations could be adversely affected.

• The Company requires significant amounts of working capital for a continued growth. Its inability to meet our working capital requirements may have an adverse effect on the company results of operations.

• The Company require certain approvals and/or licenses in the ordinary course of business to operate. Failure to obtain and/or renew in a timely manner may affect the operations of the company.

• The land and premises at which its Registered Office is situated has been taken on rental basis by the Company. If the company is unable to renew existing rental agreement or relocate operations on commercially reasonable terms, there may be an adverse effect on its business, financial condition, result of operations and cash flows.

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

• The company business reputation is critical for growing its business and any adverse publicity regarding it or the company promoters and investors may have a material adverse effect on its business, prospects, financial condition, and results of operations.

• The trademark is owned by its Promoter Director Mr. Satish Kalubhai Kansodariya, who may not be able to protect its trademarks from infringement.

• The company business depends on its Promoters. Any attrition rate of the company senior management may affect its business growth.

• The company ability to pay dividends in the future will depends upon its future results of operations, financial condition, cash flows and working capital and capital expenditure requirements.

• The company has entered into certain related party transactions in the Financial Years ending 2022 and the nine months ended December 31, 2022. The company will continue to enter into related party transactions, and there can be no assurance that its could not have achieved more favorable terms had such transactions not been entered into with related parties.

• The average cost of acquisition of Equity Shares by the Promoters may be less than the Issue Price.

• The company has in the past 12 months issued Equity Shares at a price which could be lower than the Issue Price. The price at which the Company has issued Equity Shares during the last one year from the date of this Draft Prospectus may not be indicative of the future price.

• The Company had negative cash flows in the past years, details of which are given below. Sustained negative cash flow could impact its growth and business.

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

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

• If the company is unable to protect credit card or debit card data or any data related to any other electronic mode of payment, or any other personal information that the company collect, its reputation could be significantly harmed.

• Any variation in the utilization of the Net Proceeds from the Issue as disclosed in this Draft Prospectus shall be subject to certain compliance requirements, including prior Shareholders` approval.

• The company has in this Draft Prospectus included certain non-GAAP financial measures and certain other industry measures related to its operations and financial performance. These non-GAAP measures and industry measures may vary from any standard methodology that is applicable across the industry in which the company operate, and therefore may not be comparable with financial or industry related statistical information of similar nomenclature computed and presented by other companies.

• The company funding requirements and the proposed deployment of Net Proceeds have not been appraised and the Company has broad discretion over the use of the Net Proceeds and may use them in ways with which you do not agree and in ways that may not enhance its operating results or the price of the company Equity Shares.

• The Promoters and members of the Promoter Group will continue jointly to retain majority control over the Company after the Issue, which will allow them to determine the outcome of matters submitted to shareholders for approval.

• The company may not be successful in implementing its business strategies.

• The future funds` requirements of the company, in the form of fresh issue of capital or securities and/or loans, may be prejudicial to the interest of the shareholders depending upon the terms on which they are eventually raised.

• In the event there is any delay in the completion of the Issue, there would be a corresponding delay in the completion of the objects / schedule of implementation of this Issue which would in turn affect its revenues and results of operations.

• The company could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect its financial condition, results of operations and reputation.

• The requirements of being a public listed company may strain its resources and impose additional requirements.

• Investors other than Retail (including non-institutional investors and Corporate Bodies) are not permitted to withdraw or lower their application (in terms of quantity of Equity Shares or the Amount) at any stage after submitting an application.

• Industry information included in this prospectus has been derived from industry reports. There can be no assurance that such third-party statistical, financial, and other industry information is either complete or accurate.