in a timely manner or at acceptable prices, which may adversely affect our business, financial condition
and results of operations.

We engage job workers to manufacture all our products and do not own any manufacturing facilities. As of
September 30, 2021, we had ongoing arrangements with 42 job workers, a significant majority of whom are located
in Tamil Nadu. Expenditure incurred by us in relation to job workers i.e., subcontracting charges was = 204.52
million, 275.83 million, = 118.19 million, = 7.63 million and = 24.73 million, and represented 7.17%, 7.04%,
4.72%, 7.40% and 7.98% respectively, of our revenue from operations in Fiscal 2019, 2020 and 2021 and in the
three months ended June 30, 2020 and June 30, 2021, respectively. We are dependent on a few key job workers,
and expenses incurred towards our top five job workers were % 67.05 million, = 117.02 million, = 52.70 million, =
3.50 million and 2 10.22 million and represented 2.35%, 2.99%, 2.10%, 3.40% and 3.30% of our revenue from
operations in Fiscal 2019, 2020 and 2021 and in the three months ended June 30, 2020 and June 30, 2021,
respectively. We may be unable to replace our existing job workers at short notice, or at all, and may face delays
in production and added costs as a result of the time required to train new job workers to undertake
manufacturing in accordance with our standard processes and quality control standards.

We enter into purchase orders with such job workers, and do not pre-book any minimum capacity with them.
There can therefore be no assurance that our job workers will, at all times, have sufficient capacity to meet our
orders, or be able to fulfil their obligations, including those in relation to maintenance of quality standards in a
manner acceptable to us, or at all. From time to time we may have to cease working with certain job workers,
for reasons including delay or insufficiency in delivery and quality defects.

Our ability to maintain optimum inventory at our stores and distribution centers to control our working capital
requirements relies on an efficient supply chain channel. Ensuring shelf availability for our products warrants quick
turnaround time and high level of coordination with suppliers. Our inability or failure to maintain a balance between
optimum inventory levels and our product offering at our stores may adversely impact our business. Any shortfall in
supply of products from our job workers, or insufficiency in the quality and consistency of the products supplied
may result in decrease in supply of our products, lower stock at our stores and consequently lower sales. If our
products are not manufactured in accordance with our supply schedule, or at all, we may not be able to procure
alternate sources of supply in time to meet the demands of our customers or maintain our inventory levels. While
there have not been any instances or events in the past that has resulted in any shortfall in supply of our products,
‘we cannot assure you that such incidents will not occur in the future. We may also be unable to control the costs.
of production of job workers, which may increase in the future, including due to increase in the cost of labor and
other utilities. Our inability to obtain sufficient quantities or desired quality of products from job workers in a
timely manner or at acceptable prices may adversely affect our business, financial condition and results of
operations.

18. If we are unable to procure raw materials and finished products of the required quality and quantity, at
competitive prices, our business, results of operations and financial condition may be adversely affected.

We are dependent on third party suppliers for printed fabric, processed fabric and trim materials, which are the
primary raw materials used in the manufacture of our products. We also procure certain finished products from
third-parties in India and outside India. In Fiscal 2021 and in the three months ended June 30, 2021, we sourced
raw materials from approximately 73 suppliers, and finished products from approximately five suppliers. Purchases
from our top five fabric suppliers amounted to % 667.73 million, = 707.33 million, = 287.72 million, = 25.15 million
and % 145.55 million, respectively, and represented 72.03%, 66.19%, 65.92%, 76.32% and 66.51% of our total
raw material costs in Fiscal 2019, 2020, and 2021 and in the three months ended June 30, 2020 and June 30, 2021,
respectively. In addition, purchases from our top raw material supplier were 2 667.73 million, = 707.33 million, %
287.72 million, = 25.15 million and 2 145.55 million, and represented 26.84%, 21.53%, 10.08%, 5.56% and
24.81% of our total expenses in Fiscal 2019, 2020 and 2021, the three months ended June 30, 2020 and June 30,
2021, respectively. Thus, if we experience significant increased demand, or need to replace an existing supplier,
‘we cannot assure you that we will be able to meet such demand or find suitable substitutes, in a timely manner and
at reasonable costs, or at all.

We have not entered into formal arrangements or contracts with third-party traders, mills or weavers from whom
‘we procure our raw materials and issue purchase orders to source our raw materials on an as-needed basis. Since
we have no formal arrangements with our suppliers, they are not contractually obligated to supply their products
to us and may choose to sell their products to our competitors. Further, the amount of raw materials procured and
the price at which we procure such materials, may fluctuate from time to time. In addition, the availability and
price of our raw materials may be subject to a number of factors beyond our control, including economic factors,
seasonal factors, environmental factors and changes in Government policies and regulations, including those

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