on demand for our products from the particular demographic at the location. An inability to appropriately identify
suitable locations, or to negotiate commercially reasonable lease terms, or to accurately assess demand for our
products based on our assumptions, may increase our payback periods, result in store-closures, and adversely
affecting our results of operations and financial condition. In addition, new stores could impact the sales of our
existing stores nearby, and there can be no assurance that sales cannibalization will not occur or become more
significant in the future as we increase our presence in existing markets.

The development and roll out of new stores involves substantial risks, any of which could be exacerbated or caused
by the ongoing COVID-19 crisis, including in relation to the following:

. the inability to identify or the unavailability of suitable sites on acceptable leasing terms or to compete

effectively for these suitable sites;

the negotiation of acceptable lease or purchase terms for new locations;

rising real estate prices, particularly in metro cities;

unavailability of financing on reasonable terms;

issues with fit-outs/ renovations, including lack of suitable contractors, delays and costs exceeding

budgeted amounts;

. difficulties in relation to the implementation of the systems, procedures and control measures required at
new and different store locations;

. the inability to obtain all necessary governmental or local authority permits and approvals and other

requisite licenses and permits in time;

underperformance of the newly developed stores;

changing consumer preferences and success of our new stores;

competition in current and future markets;

our degree of penetration in existing markets;

sales and margin levels at existing stores;

our ability to hire and retain qualified store crews;

changes in governmental rules, regulations and interpretations; and

changes in general economic and business conditions.

In Fiscal 2019 and 2020 there have not been any instances that impacted our store development and new store roll
out however, in Fiscal 2021, on account of COVID-19 our new store roll outs were impacted. We intended to
open 150 stores in Fiscal 2021 but on account of the disruption caused by COVID-19, we were able to open only
42 new stores. We cannot assure you that there will not be any such instances in future that will impact our store
development and roll outs.

We cannot assure you that we will be able to expand and grow at the rate at which we may desire to, as we may
not be able to obtain lease at such locations that we believe will be necessary for implementing our expansion
plans and at prices that are viable for our business. If we are not able to obtain the locations at favourable lease
rentals or lease period or at the time and place that we desire, the same may have a material adverse impact on our
results of operation. In addition, we also plan to increasingly utilize modern trade channels such as LFSs and online
platforms. Certain LFSs, MBOs or online retailers may have exclusivity arrangements with our competitors or
they may launch their own competing women’s apparel brands, and may be unable to, or decline to, stock and
distribute our products, which in turn may limit our ability to expand our retail network. We cannot assure you
that we will be able to expand our retail network in accordance with our business plans, or at all, which may
adversely affect our business, results of operations and financial condition.

11. We have had instances in the past where we could not spend the total amount allocated towards CSR
activities for the respective years.

The Companies Act 2013 stipulates the requirement of formulation of a corporate social responsibility policy and
mandates our Board of Directors to ensure that our Company spends, in each Fiscal, at least two percent of the
average net profits of our Company during the three immediately preceding Fiscals, in accordance with its CSR
policy. While our Company had made profits and had accordingly allocated certain portion of such profits towards
CSR activities formulated under our CSR policy, our Company had not incurred the requisite portion of the
expenditure towards such activities in Fiscals 2019 and 2020 being 2 0.50 million and 2 5.71 million, respectively,
due to delays in identifying and finalizing tie-ups with non-government organizations for discharging these CSR.
obligations. However, all unspent amounts for Fiscals 2019 and 2020 were deployed before March 31, 2021
towards our stated CSR objectives. We cannot assure you that, in future, we will be able to successfully spend the

   

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