Varyaa Creations

Risks

• There are certain outstanding legal proceeding involving its Promoter and Promoter Entities which may adversely affect its business, financial condition and results of operations.

• Its inability to manage growth could disrupt the company`s business and reduce its profitability.

• 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 may be unable to maintain or establish arrangements with job workers and suppliers through whom its manufacture the company products and procure raw materials, and may experience other disruptions or quality control risks in the operations of such parties.

• Its failure to accurately forecast and manage inventory could result in an unexpected shortfall and/or surplus of products, which could harm its business.

• The company may fail to attract and retain qualified designers and craftsmen as competition for skilled personnel is intense.

• The company is dependent upon few suppliers for the material requirements of its business. Further, the company does not have definitive agreements or fixed terms of trade with most of its suppliers. Failure to successfully leverage the company relationships with existing suppliers or to identify new suppliers could adversely affect its business operations.

• The company have a history of net losses and its anticipate that may continue in the future.

• If the company is unable to attract new clients or retain its existing clients or default in payments, the growth of its business and cash flows will be adversely affected.

• 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 inability to respond to changes in consumer demands and market trends in a timely manner and to maintain optimal level of inventory may impact its operations adversely.

• Any deficiency in its products & services could make the Company liable for client claims, which in turn could affect the Company`s results of operations.

• If the company is unable to introduce new designs of its products in line with the changing consumer preferences and market trends, the company may face decline in demand for its products.

• The company may fail to protect its jewellery designs.

• Its 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`s business.

• Its proposed e-commerce business may face distinct risks, and the company failures to successfully manage those risks could have a negative impact on its profitability.

• Strong competition in the jewellery sector could decrease the market share and compel the company to either reduce the cost charged or increase the payments made to the job workers. This may have an adverse impact on the enrolments, revenues and profitability.

• The company has not registered the trademarks which its using for the company`s business. Its may be unable to protect its intellectual property or knowhow from third party infringement which could harm the company`s brand and services.

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

• The company have contingent liabilities, and its financial condition could be adversely affected if any of these contingent liabilities materializes.

• Its Promoter Group Entities have objects similar to the Company. There are no non-compete agreements between the Company and such Promoter Group Entities. Its cannot assure that the company Promoter will not favor the interests of such entity over its interest or that the said entities will not expand which may increase its competition and may adversely affect business operations and financial condition of the Company.

• The company is dependent on its Promoters, its senior management, directors and key personnel of the Company for success whose loss could seriously impair the ability to continue to manage and expand business efficiently.

• The Company does not own the premises where its registered is situated, and leave & license agreement have been executed for the same. Any termination or dispute in relation to this lease/ rental agreement may have an adverse effect on its business operations and results thereof.

• Negative publicity with respect to its products or the industry in which the company operates could adversely affect its business, financial condition and results of operations.

• Any changes in regulations or applicable government incentives would adversely affect the Company`s operations and growth prospects.

• The Company operates under several statutory and regulatory permits, licenses and approvals. Its failure to obtain and/or renew any approvals or licenses in future may have an adverse impact on its business operations.

• Employee misconduct, errors or fraud could expose it to business risks or losses that could adversely affect its business prospects, results of operations and financial condition.

• The Company has not taken any insurance coverage which may protect it against certain operating hazards and from all losses and this may have an adverse impact on the financial conditions of the business.

• The Objects of the Issue for which funds are being raised have not been appraised by any bank or financial institution. The deployment of funds is entirely at the discretion of its management and as per the details mentioned in the section titled "Objects of the Issue". Any revision in the estimates may require it to reschedule the company expenditure and may have a bearing on its expected revenues and earnings.

• The Company had negative cash flow from certain activity in recent fiscals, details of which are given below.

• The Company has allotted Equity Shares during the preceding one year from the date of the Prospectus which are lower than the Issue Price.

• The company has in the past entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interest with the equity shareholders.

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

• Its Board of Directors and management may change the company operating policies and strategies without prior notice or shareholder approval.

• In addition to normal remuneration or benefits and reimbursement of expenses, some of its Promoters and/or Directors and/ or Key Managerial Personnel`s are interested in the Company to the extent of their shareholding and dividend entitlement thereon in the Company.

• There is no monitoring agency appointed by the Company and the 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.

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

• 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.

• The continuing effect of the COVID-19 pandemic on its business and operations is highly uncertain and cannot be predicted.

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