our rental obligations during the COVID-19 crisis with a majority of our landlords. However, there can also be
no assurance that we will be able to obtain such waivers or successfully further renegotiate these arrangements in
the future. Further, in accordance with MCA Notification dated July 24, 2020 on Ind AS 116 (the “MCA.
Notification’), the Company has elected to apply the practical expedient of not assessing rent concessions as a
lease modification for all lease concessions which are granted due to COVID-19 pandemic. As a result, rent
concession, shown as an increase in other income, increased to = 243.31 million in Fiscal 2021 from no such
income in Fiscal 2020.

To increase revenue generation opportunities during the initial months of COVID-19, we increased our focus on
sales through our own online channels and leading e-commerce marketplaces. Through e-commerce marketplaces
and our own websites, we have been able to leverage the fixed costs we have invested in integrating our physical
stores and warehouses with our online channels, to serve customers seeking delivery of our products.

In the short- to medium-term, we expect that revenues generated at our stores as a proportion of our overall
revenue from operations may decline while our revenues through online channels as a proportion of our overall
revenue from operations may gradually increase. However, the impact of subsequent waves of the virus on our:
business cannot be ascertained at this time and we cannot currently estimate the duration or future negative impact
of the COVID-19 pandemic on our ability to continue expanding our network of stores, or improve same-store
sales growth. As a retail company, we are significantly exposed to the public health and economic effects of the
COVID-19 pandemic and there can be no assurance that our business will not be adversely affected if the COVID-
19 pandemic were to worsen or last for an extended period, or if subsequent waves and more restrictive measures
were to be implemented.

Expansion of our store network

Our ability to continue our growth across geographies depends upon the strength of our brand, product offering
and store economics. Our ability to effectively execute our expansion strategy further depends on our ability to
open new stores successfully. As of September 30, 2021, we operated 459 EBOs across 118 cities in 23 states and
union territories across India.

As a retailing company, our stores generally need to be in high visibility and high traffic locations. Our ability to
effectively obtain quality commercial property to relocate existing stores or open new stores 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 store that we establish requires significant resources in terms of 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 with
lessors/ landlords/ mall developers, based on the store format and the location for such format, that is subject to
various assumptions on demand for our products from the particular demographic at the location. In addition, new
stores could impact the sales of our existing stores nearby, and there can be no assurance that sales cannibalization
will not occur or become more significant in the future as we increase our presence in existing markets. An inability
to appropriately identify suitable locations, or set-up the most appropriate store-format at a particular location, or
to negotiate commercially reasonable lease terms, may increase our payback periods, result in store-closures, and
adversely affect our results of operations and financial condition. However, with the experience of setting up
stores in various parts of India and, we believe that we are well positioned to leverage on opportunities for
expansion.

Cost of procuring raw materials and manufacturing our products

We have established long-standing relationships with our suppliers, job workers, in order to ensure the delivery
of quality products to our customers. In Fiscal 2021 and in the three months ended June 30, 2021, we sourced raw
materials, such as printed fabric, processed fabric and trim materials from approximately 73 and 73 suppliers (third-
party traders, mills or weavers), respectively, and sourced finished products from five suppliers. We have not
entered into formal arrangements or contracts with such suppliers and issue purchase orders to source our materials
on an as-needed basis. Our cost of goods sold is impacted by the amount of raw materials procured and the price
at which we procure such raw materials, and may fluctuate from time to time. The availability and price of our

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