As per the Technopak Report, the women’s apparel market is estimated to be approximately 36% of the total
apparel market of 2 447,666 million (US$ 59.7 billion) at = 163,291 million (approximately US$ 21.8 billion) in
2020 while the women’s bottom-wear market contributed 8.3% of women’s apparel market amounting to =
135,470 million (approximately US$ 1.81 billion) in Fiscal 2020. Given that our products cater to only female
customers and are in a niche category i.e., only limited to bottom-wear, the sale of our products and accordingly,
our business, results of operations and financial condition may be adversely impacted in the event our brand and
our products do not address the requirements of such customers. Further, we have limited suppliers for our
products which could also adversely impact our ability to meet the demand for our products from customers. For
further information, see “We do not currently own any manufacturing facilities and engage job workers for
manufacturing all our products. We may not be able to obtain sufficient quantities or desired quality of products
from job workers in a timely manner or at acceptable prices, which may adversely affect our business, financial
condition and results of operations.” on page 36.

Maintaining and enhancing our brand may require us to make substantial investments in areas such as store
operations, employee training, marketing and advertising. We plan to continue to enhance the brand recall of our
products through the use of targeted marketing and public relations initiatives, specifically with respect to new
geographies we intend to enter. In Fiscal 2019, 2020 and 2021 and in the three months ended June 30, 2020 and
June 30, 2021, our advertisement and sales promotion expenses were = 53.14 million, = 71.20 million, = 63.61
million, = 5.81 and & 13.74 million, or 1.86%, 1.82%, 2.54%, 5.64% and 4.43%, of our revenue from operations,
respectively, and may increase this proportion in the future. However, these marketing and advertising campaigns
may not be effective to the extent planned or at all and we may, therefore, fail to attract new customers and retain
existing customers. In addition, we may fail to penetrate new target markets if these marketing and advertising
programs are unsuccessful or not appropriately tailored to appeal to the target market or if other competitor brands
increase spending on advertising and promotion or their marketing and advertising campaigns are more effective
than ours. If these marketing and advertising campaigns are not as effective as our competitors, our ability to
increase our brand awareness and our competitive position could be adversely affected, which would have a
material adverse effect on our business, results of operations and financial condition.

3. We have incurred losses in Fiscal 2021. In the event we incur net loss in the future, our business and financial
condition may be adversely affected.

We reported a loss before tax of % 31.35 million in Fiscal 2021 and % 245.16 million and 2 183.74 million in the three
months ended June 30, 2020 and June 30, 2021, respectively. Our losses in Fiscal 2021 and in the three months ended
June 30, 2020 and June 30, 2021 were primarily on account of the impact of COVID-19 on our operations. Our
operating costs and other expenses may be greater than we anticipate, and our investments to make our business and
our operations more efficient may not be successful. Increases in our costs, expenses and investments may reduce
our margins and materially adversely affect our business, financial condition and results of operations. Our failure to
generate profits may adversely affect the market price of our Equity Shares, restrict our ability to pay dividends and
impair our ability to raise capital and expand our business.

4. Current locations of our exclusive brand outlets may become unattractive, and suitable new locations may
not be available for a reasonable price, if at all. In addition, we are exposed to all of the risks associated with
leasing real estate and any adverse developments could materially affect our business, results of operations
and financial condition. Further, we generated a majority of our sales from our exclusive brand outlets
located in Southern and Western India and any adverse developments affecting our operations in these
regions could have an adverse impact on our revenue and results of operations.

Risk associated with location of exclusive brand outlets

The success of any EBO depends in part on its location. We cannot assure you that current locations of our
EBOs will continue to be attractive or profitable as demographic patterns change, or as leases are renewed/
extended on terms less favourable to us. Neighborhood or economic conditions where EBOs are located could
decline in the future, thus resulting in reduced sales in those locations. Alternatively, neighborhoods could
continue to improve and escalate real estate prices, which may not be proportionate to the sales we are able to
carry out. In the event real estate prices increase or if we are unable to renew lease agreements for our existing
stores on terms favorable to us, such store locations may not be profitable for our business, and we may be
compelled to reassess the feasibility of such EBOs.

The tables below sets forth certain performance indicators of our EBOs for the periods indicated:

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