amount allocated in that respective year or at all. We may be subject to imposition of notices or penalties under
the Companies Act, 2013 from the Ministry of Corporates Affairs, Government of India for non-compliance in
relation to our CSR expenditure, which could adversely affect our reputation and business. For further
information, see “Restated Financial Information — Note 33(b): Corporate social responsibility” on page 247.

12. Certain Promoters and Directors are interested in our Company’s performance in addition to their
remuneration and reimbursement of expenses.

In addition to regular remuneration or benefits and reimbursement of expenses, certain Promoters and Directors
of our Company are interested in our Company, to the extent of their shareholding in our Company, their rights.
to the extent of any dividends, bonuses or other distributions on such Equity Shares. Further, our Promoter
Directors, Prakash Kumar Saraogi, Gautam Saraogi and Rahul Saraogi may also deemed to be interested in the
warehouse taken on lease by our Company from one of our Group Companies, Meridian Global Ventures Private
Limited, where they are Directors. In this regard, the aggregate amount paid by our Company to Meridian Global
Ventures Private Limited were % 14.13 million, = 16.13 million, % 18.58 million, = 4.21 million and 2 4.89 million
in Fiscal 2019, 2020 and 2021 and in the three months ended June 30, 2020 and June 30, 2021, respectively. To
the extent of such interest, the profit/loss of the Company and the distributable profits to shareholders (including
to minority shareholders) may get affected. We cannot assure you that our Promoters and Directors will exercise
their rights to the benefit and best interest of our Company. As shareholders of our Company, our Promoters or
Directors may take or block actions with respect to our business which may conflict with the best interests of the
Company or that of minority shareholders. For further information on the interest of our Promoters and Directors
of our Company, other than reimbursement of expenses incurred or normal remuneration or benefits, see “Our
Management” and “Our Promoters and Promoter Group” on pages 193 and 208, respectively.

13. Our continued success is contingent in part on our ability to anticipate and respond to changes in fashion
trends and changing customer preferences in a timely and effective manner. If we fail to do so, demand
for our products may decline, resulting in an adverse effect on our business, results of operations and
prospects.

We are a women’s branded bottom-wear company and our business is characterized by rapidly changing customer
preferences. Our results of operations are dependent on our ability to anticipate, gauge and respond to such changes
in customer preferences and design new products or modify our existing products in line with changes in fashion
trends as well as customer demands and preferences. It is difficult to predict consistently and successfully the
consumption patterns of the customers. If we are unable to do so, we may lose, or fail to attract customers, our
inventory may become obsolete and we may be subject to pricing pressure to sell our inventory at a discount. A
decline in demand for our products or an error in judgment on our part could lead to lower sales, excess inventories
and higher markdowns, each of which may have an adverse effect on our results of operations and financial condition.

Moreover, we incur expenses in the design and development of our products and we cannot guarantee that all
our designs and products will be well received by our customers, or that we will be able to recover costs incurred
in designing and developing such products. If the products that we launch are not as successful as we anticipate,
our business, results of operations and prospects may be adversely affected.

14, There are outstanding litigation proceedings against our Company. Any adverse outcome in such
proceedings may have an adverse impact on our reputation, business, financial condition, results of
operations and cash flows.

There are outstanding legal proceedings against our Company, which are pending at various levels of adjudication
before various courts, tribunals and other authorities.

The summary of outstanding matters set out below includes details of tax proceedings and statutory and regulatory
actions (as detailed in the section “Outstanding Litigation and Other Material Developments” on page 343)
involving our Company.

 

 

 

 

Toneetnreeedine Nuberotence Amount, to ee quantifiable
Criminal proceedings initiated by our 1 0.30
Company
Tax proceedings involving our 20 17.49
Company

 

 

 

 

35.
