brand image for new products and brand extensions. Any damage to our brand could adversely impact the trust
placed in the brand and our reputation and cause existing customers or intermediaries to withdraw their business
and reconsider doing business with us. Furthermore, negative publicity may result in increased regulation and
legislative scrutiny of industry practices as well as increased litigation, which may further increase our costs of
doing business by requiring us to make provisions or consider claims under such litigations as contingent
liabilities and adversely affect our profitability. In the absence of the trademark registration for the trademarks
pertaining to our brand name, such as, ‘GO COLORS’ and GO COLORS! , we may not be able to initiate an
infringement action against any third party. We cannot assure you that we will be successful in such a challenge
nor can we guarantee that eventually the trademark applications will be approved. In the event such trademark
is not approved or if registered in the name of a third-party, it could result in significant monetary loss or prevent
us from selling our products under our brand name. In relation to our other pending applications, third-parties
may seek to oppose or otherwise challenge these registrations. As a result, we may not be able to prevent
infringement of our trademarks and a passing off action may not provide sufficient protection until such time
that this registration is granted. In addition, our current and future trademarks are subject to expiration and we
cannot guarantee that we will be able to renew all of them prior to expiration. Our inability to renew registration
of certain trademarks and loss of such trademarks could have an adverse effect on our business, results of
operations, financial condition and cash flows. For further details, see “Government and Other Approvals” on
page 346.

We are also exposed to the risk that other entities may pass off their products as ours by imitating our brand name,
packaging material and attempting to create counterfeit products. We believe that there may be other companies or
vendors which operate in the unorganized segment using our tradename or brand names. Although there have not
been such incidents in the past, any such activities may harm the reputation of our brand and sales of our products,
which could in turn adversely affect our financial performance. We rely on protections available under Indian
law, which may not be adequate to prevent unauthorized use of our intellectual property by third parties.
Notwithstanding the precautions we take to protect our intellectual property rights, it is possible that third parties
may copy or otherwise infringe on our rights, which may have an adverse effect on our business, results of
operations, cash flows and financial condition.

Further, while we take care to ensure that we comply with the intellectual property rights of others, we cannot
determine with certainty whether we are infringing any existing third-party intellectual property rights. Any claims
of intellectual property infringement from third parties, regardless of merit or resolution of such claims, could force
us to incur significant costs in responding to, defending and resolving such claims, and may divert the efforts and
attention of our management and technical personnel away from our business. The risk of being subject to
intellectual property infringement claims will increase as we continue to expand our operations and product
offerings. As a result of such infringement claims, we could be required to pay third party infringement claims,
alter our technologies, obtain licenses or cease some portions of our operations. The occurrence of any of the
foregoing could result in unexpected expenses. In addition, if we are required to alter our technologies or cease
production of affected items, our revenue could be adversely affected.

10. Our inability to effectively manage or expand our retail network may have an adverse effect on our
business, results of operations and financial condition.

Our ability to expand and grow our sales significantly depends on the reach and effective management of our
retail network. For instance, we intend to open approximately 120 EBOs in the next two Fiscals. We have also
not placed any order for purchase of fit-outs, information technology and utilities related items (amounting to =
217.34 million) for 120 EBOs we plan to open. For further information, see “Objects of the Offer” on page 92. Our
Company has to compete with other retailers to lock in locations for our stores on a continuous basis. We may be
unable to identify suitable locations or properties or enter into agreements with landlords/ mall developers/ lessors,
on favorable terms, in order to open additional EBOs. Our ability to effectively obtain quality commercial property
to relocate existing EBOs or open new EBOs depends on the availability of commercial property that meets our
criteria for customer traffic, square footage, lease economics, demographics and other factors, including our ability
to negotiate terms that meet our financial targets. In addition, rising real estate prices may restrict our ability to
lease new desirable locations.

Any new EBOs that we establish requires significant resources in terms of fixed lease costs, fit-outs and
refurbishments, to align the store with our preferred format, and may not be profitable immediately upon its
opening or may take time to break even, and failure to do so within a reasonable period may adversely affect our
profitability. Our ability to reduce our payback periods depends on our ability to negotiate commercially
reasonable terms, based on the store format and the location for such format, that is subject to various assumptions

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