6. 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.

We intend to use the Net Proceeds for the purposes described in “Objects of the Offer” on page 92 of this
Prospectus. Our funding requirements are based on management estimates and our current business plans and has
not been appraised by any bank or financial institution. The deployment of the Net Proceeds will be at the
discretion of our Board. However, the deployment of the Net Proceeds will be monitored by a monitoring agency
appointed pursuant to the SEBI ICDR Regulations. Further, we have not identified locations for setting up EBOs
for which we intend to utilise certain portion of the Net Proceeds. The locations of such EBOs will be decided by
us, post the Offer based on our business plan, management estimates and market conditions. The estimated costs
for setting up these new EBOs (including the fit-outs and rental deposit) of the Average Size are calculated and
certified by the Independent Chartered Accountant and Architect based on quotations received from our
empanelled contractors or from vendors from whom we have purchased similar items for our stores in the recent
past, quotations of on-going projects, industry standards, prevailing market rates, rate contracts, historical costs;
and its internal estimates for specifications and item requirements based on our prior experience of setting-up
EBOs. While the Architect has taken quotations received from our empanelled contractors or from vendors from
whom our Company has purchased similar items for our stores in the past, current quotations, industry standards,
prevailing market rates and historical costs of sample stores based on different areas and locations and different
capital expenditure requirements for an Average Size store, they have estimated 21.81 million as the total capital
expenditure costs for one store of Average Size, there could be cost escalation at the time of deployment of funds.
Also, while the Independent Chartered Accountant, based on certain stores selected on the basis of area, location,
complexity and period of lease or rental period for setting up stores of Average Size, has confirmed %2,000 as
estimated rental deposit for stores per sq. ft., the actual rental deposit payable at the time of deployment of funds
could differ from the estimated. For details, see “Objects of the Offer” on page 92.

The capital expenditure for stores of approximately 500 sq. ft. size in Fiscal 2021 ranged between 21.86 million
to 21.26 million i.e. a variation of 2.94% on the higher side and 30.15% on the lower side respectively from the
average capital expenditure of 21.81 million, as stated in the section “Objects of the Offer”. The Architect has
pursuant to a certificate dated September 09, 2021 certified the sensitivity of variance from the average cost of
21.81 million, as stated in the section “Objects of the Offer” section to be approximately 20% each on the higher
and lower sides for a store of Average Size.

The rental deposit for stores (per sq. ft.) opened in different locations by the Company in Fiscal 2021 ranged
between 23,981 per sq. ft. to 2903 per sq. ft. i.e. a historical variation of 99.07% on the higher side and 54.83%
on the lower side, respectively, from the average rental deposit of = 2,000 per sq. ft., as stated in the section
“Objects of the Offer”. The variance in such rental deposits is subject to area, location and period of lease or rental
period. We will continue to adopt a strategic approach in evaluating and selecting suitable locations for the
establishment of new EBOs, such as local population density, rental lease rates, market potential, spending
capacity, accessibility and proximity to its competitors and will identify the location for the new EBOs in a similar
manner. However,we may have to reconsider our estimates or business plans due to changes in underlying factors,
some of which are beyond our control, such as interest rate fluctuations, changes in input cost, inability to identify
suitable location for our stores at favourable terms and other financial and operational factors. Accordingly,
prospective investors in the Offer will need to rely upon our management’s judgment with respect to the use of
proceeds. If we are unable to deploy the proceeds of the Offer in a timely or an efficient manner, it may affect our
business and results of operations.

7. Our Company will not receive any proceeds from the Offer for Sale portion.

The Offer comprises of an offer for sale of up to 12,878,389 Equity Shares by the Selling Shareholders. The
proceeds from the Offer for Sale will be transferred to the each of the Selling Shareholders, which includes PKS
Family Trust, VKS Family Trust, Sequoia Capital India Investments IV, India Advantage Fund S4 I and
Dynamic India Fund $4 US I, in proportion to its respective portion of the Offered Shares transferred by each
of them in the Offer for Sale and will not result in any creation of value for us or in respect of your investment
in our Company. Our Company will not receive any such proceeds. For further information, see “Objects of the
Offer” on page 92.

30
