SECTION II - RISK FACTORS

An investment in equity shares involves a high degree of risk. Investors should carefully consider all the
information in this Prospectus, including the risks and uncertainties described below, before making an
investment in the Equity Shares. The risks described below are not the only ones relevant to us or our Equity
Shares, the industry in which we operate or to India. Additional risks and uncertainties, not currently known to
us or that we currently do not deem material may also adversely affect our business, results of operations, cash
flows and financial condition. If any of the following risks, or other risks that are not currently known or are not
currently deemed material, actually occur, our business, results of operations, cash flows and financial condition
could be adversely affected, the price of our Equity Shares could decline, and investors may lose all or part of
their investment. To the extent the COVID-19 pandemic adversely affects our business and financial results, it
may also have the effect of heightening many of the other risks described in this section. In order to obtain a
complete understanding of our Company and our business, prospective investors should read this section in
conjunction with “Our Business”, “Industry Overview”, “Management's Discussion and Analysis of Financial
Condition and Results of Operations” and “Financial Information” on pages 159, 115, 304 and 218, respectively,
as well as the other financial and statistical information contained in this Prospectus. In making an investment
decision, prospective investors must rely on their own examination of us and our business and the terms of the
Offer including the merits and risks involved.

Potential investors should consult their tax, financial and legal advisors about the particular consequences of
investing in the Offer. Unless specified or quantified in the relevant risk factors below, we are unable to quantify
the financial or other impact of any of the risks described in this section. Prospective investors should pay
particular attention to the fact that our Company is incorporated under the laws of India and is subject to a legal
and regulatory environment, which may differ in certain respects from that of other countries.

This Prospectus also contains certain forward-looking statements that involve risks, assumptions, estimates and
uncertainties. Our actual results could differ from those anticipated in these forward-looking statements as a
result of certain factors, including the considerations described below and elsewhere in this Prospectus. For
further information, see “Forward-Looking Statements” on page 14.

Unless otherwise indicated, the financial information included herein is based on our Restated Financial
Information included in this Prospectus. For further information, see “Financial Information” on page 218.
Unless the context otherwise requires, in this section, references to “we”, “us”, “our”, “the Company” or “our

Company” refers to Go Fashion (India) Limited.

Unless otherwise indicated, industry and market data used in this section has been derived from industry
publications, in particular, the report titled “Report on Women’s Bottom Wear Apparel in India” dated October
28, 2021 (the “Technopak Report”), prepared and issued by Technopak Advisors Private Limited appointed on
May 25, 2021, and exclusively commissioned by and paid for by us in connection with the Offer. The Technopak
Report is available on the website of our Company at https:/www.gocolors.com/investor-relations. Also see,
“Certain Conventions, Use of Financial Information and Market Data and Currency of Presentation — Industry
and Market Data” on page 11.

Risks Relating to our Business

1. The current and continuing impact of the ongoing COVID-19 pandemic on our business and operations
has been significant. The impact of the pandemic on our operations in the future, including its effect on
the ability or desire of customers to visit our stores, is uncertain and may be significant and continue to
have an adverse effect on our business prospects, strategies, business, operations, our future financial
performance, and the price of our Equity Shares.

The outbreak of the COVID-19 pandemic and its continuing impact, as well as government measures to reduce the
spread of COVID-19, have had a substantial impact on our operations since last week of March 2020. The impact of
the pandemic on our business, operations and future financial performance have included and may continue to
include the following:

« Temporary as well as permanent closures of all physical sales channels including stores, kiosks at malls, and
franchise stores, including due to decline in footfalls and sales, and reduced operating hours as mandated by
regional regulatory bodies. For instance, revenue from operations declined by 36.06% from % 3,920.14 million
in Fiscal 2020 to = 2,506.68 million in Fiscal 2021 and was = 103.05 million in the three months ended June 30,

22
