visitors in a staggered manner to ensure safe distancing measures are complied with. Although we are
currently in compliance with such measure and guidelines, any failure in the future to fully comply or adhere
to the measures and guidelines or any other similar regulations could lead to the imposition of penalties, fines
or other sanctions, which could have an adverse impact on our business and operations.

In addition, one of our key strategies is the expansion of our store network, which has become increasingly
challenging as we have had to delay such expansion plans due to the impact of COVID-19 pandemic. For further
information on our store expansion plans, see “Our Business — Strategies” on page 171. While we have been able
to defer these plans and focus on alternate distribution channels, there can be no assurance that we will be able to
successfully achieve this strategy in the event of subsequent waves of the pandemic in India that lead to additional
restrictive measures or hamper overall economic recovery. For instance, the second wave of the COVID-19
pandemic in India between March and May 2021 has led to additional restrictive measures such as lockdowns and
curfews in certain parts of India, restricting operations at our stores, and exposing our store operators to the
increased risk of contagion. In the event of subsequent waves that are not controlled in a timely manner, we may
not be able to successfully implement our growth strategy, or operate our stores profitably, or at all.

Our Company has considered internal and certain external sources of information in determining the impact on
various elements of the Restated Financial Information and the Restated Consolidated Financial Information. Our
Company has used principles of prudence in applying judgments, estimates and assumptions and based on the current
estimates, and we expect to fully recover the carrying amount of trade receivables, investments, inventories and other
assets. The eventual outcome of impact of COVID-19 pandemic may be different from those estimated. While we
cannot currently estimate the duration or future negative impact of the COVID-19 pandemic on our business or
on the Indian or global economy, we expect the negative effects to continue into Fiscal 2022. Notwithstanding
measures we have adopted to increase safety and hygiene levels, there can be no assurance that footfalls in our stores
will fully recover from the impact of the COVID-19 crisis, as consumers may prefer e-tailing channels to visiting
physical stores. Also see, “— The growth of online retailers and current trends of discounting and pricing strategies
may adversely affect our pricing ability, which may have an adverse effect on our results of operations and financial
condition.” on page 44. If footfalls at our stores do not recover as a result of the COVID-19 crisis continuing or
worsening, or otherwise, our business and results of operations would be significantly and adversely impacted, which
could also adversely impact our market share. There is no certainty if additional restrictions will be put back in place
or if another lockdown would be imposed to control the spread of the pandemic. In addition, if our Key Managerial
Personnel or a significant percentage of our workforce is unable to work due to COVID-19 illness, quarantine,
limitations on travel or other government restrictions in connection with the COVID-19 pandemic, our operations
may be negatively impacted. An outbreak or perceived outbreak of the COVID-19 pandemic connected to one or
more of our stores could also cause negative publicity directed at our brand and cause customers to avoid visiting
our stores, which could have a material adverse effect on our business, results of operations, financial condition, cash
flows, reputation and prospects.

   

The financial impact of COVID-19 has had, and is expected to continue to have, an adverse effect on our liquidity,
and we continue to monitor and assess our access to appropriate sources of liquidity in order to sustain our business
throughout this crisis, and there can be no assurance that additional liquidity from other sources will be available
to us on favorable terms, or at all. Also see “Restated Financial Information — Note 45 — Impact of COVID-19” on
page 261.

2. Allof our products are sold under a single brand, ‘Go Colors’. An inability to effectively market our products
and brand, or any deterioration in public perception of our brand, could affect customer footfall and
consequently adversely impact our business, financial condition, cash flows and results of operations.

Brand awareness is essential to our continued growth and financial success, and our operations are influenced by
our brand marketing and advertising initiatives. We sell our products under our brand ‘Go Colors’ which we believe
is well recognized, having been developed to serve the needs of customers across the market for women’s bottom
wear. Our ability to attract and retain customers is dependent upon public perception and recognition of the quality
associated with the ‘Go Colors’ brand. Negative reviews from customers regarding the quality of our products,
dissatisfaction amongst our suppliers, inability to deliver quality products at competitive prices and accidents,
injuries or adverse incidents at our stores could adversely affect public perception. While there have not been any
such instances or events in past, there can be no assurance that such events or instances will not occur in future.

Also see “ — We may be unable to adequately protect our trademarks, including ‘GO COLORS’ and GOCOLORS! ,
and an inability to protect or use our intellectual property rights may adversely affect our business.” on page 31.

 

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