penalties, have our approvals and permits revoked or suffer a disruption in our operations, any of which could
adversely affect our business and results of operations.

25. We are dependent on third-party transportation providers for the supply of raw materials and delivery of
our products.

As an apparel manufacturing business, our success depends on the uninterrupted supply and transportation of the
various raw materials required in the manufacture of our products and of our products from manufacturing
facilities to our customers, or intermediate delivery points such as our warehouse and stores, that are subject to
various uncertainties and risks. We transport our raw materials and our finished products by road. We rely on our
suppliers, third party logistic companies and freight forwarders to deliver our raw materials and finished products.
We enter into contractual relationships with such logistic companies which are not typically per consignment, but
are of a fixed duration of two to three years. In Fiscal 2019, 2020 and 2021 and in the three months ended June
30, 2020 and June 30, 2021, we incurred % 36.13 million, = 46.99 million, = 27.44 million, = 1.61 million and 2
2.92 million as garment delivery and transportation charges that accounted for 1.45%, 1.43%, 0.96%, 0.35%, and
0.50% of our total expenses. Although, we do not rely on limited vendors for transportation of our raw materials.
or finished products, transportation strikes may have an adverse effect on supplies and deliveries to and from our
customers and suppliers. In addition, raw materials and products may be lost or damaged in transit for various
reasons including occurrence of accidents or natural disasters. There may also be delay in delivery of raw materials
and products which may also affect our business and results of operation negatively. A failure to maintain a
continuous supply of raw materials or to deliver our products to our customers in an efficient and reliable manner
could have a material and adverse effect on our business, financial condition and results of operations. Any
recompense received from insurers or third-party transportation providers may be insufficient to cover the cost of
any delays and will not repair damage to our relationships with our affected customers. We may also be affected
by an increase in fuel costs, as it will have a corresponding impact on freight charges levied by our third-party
transportation providers. This could require us to expend considerable resources in addressing our distribution
requirements, including by way of absorbing these excess freight charges to maintain our selling price, which
could adversely affect our results of operations, or passing these charges on to our customers, which could
adversely affect demand for our products.

26. We are dependent on our Promoters and a number of Key Managerial Personnel and persons with
technical expertise and the loss of or our inability to attract or retain such persons could adversely affect
our business, results of operations and financial condition.

We are dependent on our Promoters, Directors and other Key Managerial Personnel as well as persons with technical
expertise for setting our strategic business direction and managing our business. We believe that the inputs and
experience of our Promoters are valuable for the development of our business and operations and the strategic
directions taken by our Company. We cannot assure you that we will be able to retain these employees or find
adequate replacements in a timely manner, or at all. Our ability to meet continued success and future business
challenges depends on our ability to attract, recruit and train experienced, talented and skilled professionals. The loss
of the services of any key personnel or our inability to recruit or train a sufficient number of experienced personnel
or our inability to manage the attrition levels in different employee categories may have an adverse effect on our
financial results and business prospects. Further, as we expect to continue to expand our operations and develop new
products, we will need to continue to attract and retain experienced management personnel. If we are unable to attract
and retain qualified personnel, our results of operations may be adversely affected.

27. We have had an instance of non-compliance under the Companies Act, 2013. We cannot assure you that
we will not be subjected to any liability on account of such non-compliances in future.

In the past, we have had an instance of non-compliance under the Companies Act, 2013, where there was an
inadvertent delay of 24 days in holding a Board meeting during the financial year 2020-21 which led to non-
compliance by our Company in holding two board meeting within the maximum gap of 120 days as prescribed
under Section 173 of the Companies Act, 2013. An application was filed for compounding of such non-compliance
by the Company and the said non-compliance was compounded by the Regional Director (Southern Region),
Ministry of Corporate Affairs, Chennai upon payment of compounding fees. We cannot assure you that, in future,
we will not be subjected to any liability on account of such non-compliances. If we are subject to any such liability,
it may have a material adverse effect on our reputation, financial condition and results of operations.

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