other independent agency. For details in regard to risks associated, see, “Risk Factors - Our funding requirements
and the proposed deployment of Net Proceeds are not appraised by any independent agency, which may affect
our business and results of operations’ on page 30. There shall not be any variation in the proposed deployment
of funds in the event there is a delay in obtaining any of mandatory regulatory approvals, as may be required for
the roll out of new EBOs. Given the nature of our business, we may have to revise our funding requirements and
deployment on account of a variety of factors such as our financial and market condition, business strategy,
competition and interest or exchange rate fluctuations and other external factors, which may not be within the
control of our management. This may entail rescheduling or revising the planned expenditure and funding
requirements, including the expenditure for a particular purpose at the discretion of our management, subject to
compliance with applicable law. In case of variations in the actual utilization of funds earmarked for the purposes
set forth above, increased fund requirements for a particular purpose may be financed by our internal accruals.
and/ or debt, as required. If the actual utilisation towards any of the Objects is lower than the proposed deployment
such balance will be used for general corporate purposes to the extent that the total amount to be utilised towards
general corporate purposes will not exceed 25% of the Gross Proceeds from the Fresh Issue in accordance with
the SEBI ICDR Regulations.

In the event of the estimated utilisation of the Net Proceeds in a scheduled Fiscal being not undertaken in its
entirety, the remaining Net Proceeds shall be utilised in subsequent Fiscals, as may be decided by our Company,
in accordance with applicable laws. If the Net Proceeds are not utilized (in full or in part) for the objects of the
Offer during the period stated above due to factors such as (i) economic and business conditions; (ii) the timing
of completion of the Offer; (iii) market conditions outside the control of our Company; and (iv) any other business
and commercial considerations, the remaining Net Proceeds shall be utilized (in full or in part) in subsequent
periods as may be determined by our Company, in accordance with applicable laws.

Further, in case of a shortfall in raising requisite capital from the Net Proceeds towards meeting the objects, our
Company may explore a range of options including utilising our internal accruals and seeking additional debt
from existing and future lenders. We believe that such alternate arrangements would be available to fund any such
shortfalls. Further, in case of variations in the actual utilization of funds earmarked for the purposes set forth
above, increased fund requirements for a particular purpose may be financed by surplus funds, if any, available in
respect of the general corporate purposes for which funds are being raised in this Offer. If surplus funds are
unavailable, the required financing will be through our internal accruals and/or debt, as required subject to
compliance with applicable law. Further, our Company may, during the period of scheduled deployment, consider
to set-up additional EBOs over and above the number of EBOs proposed to be set-up from the proposed utilisation
of the Net Proceeds. The requirement of funds for setting-up of such additional EBOs will be met by way of
internal accruals, by seeking additional debt from existing and future lenders, surplus funds, if any, remaining
after utilization of the Net Proceeds for the aforementioned objects or such other means as available to our
Company. Our Company may also utilise any portion of the Net Proceeds, towards the aforementioned objects of
the Offer, ahead of the estimated schedule of deployment specified above.

Details of the Objects
1. Funding roll out of 120 new EBOs

As of September 30, 2021, we had 459 EBOs located across 118 cities. Our store count has grown from 333 to
449 in terms of number of stores over the last three Fiscals. We have strengthened our existing presence in certain
regions by opening new stores within a radius of few kilometres of our existing stores. We have, in the past,
expanded our stores through a cluster-based expansion model and intend to continue to expand our presence by
setting up new EBOs. We intend to follow the COCO model that will ensure better operational control over our
stores. As part of our growth strategy, we intend to further enhance our presence across pan India by increasing
our market penetration and expanding our store network. The growth of our Company has been facilitated by a
well-defined new store roll out process that enables it to identify locations and build out stores quickly,
consistently and efficiently. For further details, see ‘Our Business — Strategies — Continue to expand retail network
with a focus on EBOs’ on page 171.

Our Company proposes to utilise a portion of the Net Proceeds i.e., ¥ 337.34 million, towards funding roll out of
120 new EBOs in India during Fiscals 2023 and 2024. The details of the funding and the estimated costs proposed
to be funded from the Net Proceeds are described below.

The costs for setting-up 120 new EBOs primarily comprises of the following establishment costs:

(a) Capital expenditure; and

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