The Company's product prices are highly dependent on the prices of gold, diamond polki and precious & semi-precious stones, which constituted 99.85%, 99.66%, 99.95% and 99.76% of total cost of materials consumed for the period ended December 31, 2025 and Fiscal Years 2025, 2024 and 2023 respectively. Any non-availability or significant increase in the cost of these raw materials and the absence of long-term contracts with suppliers could adversely affect the Company's business, results of operations, financial condition and prospects.

The Company's inventory holding increased significantly from ₹1,041.67 Lakhs in Fiscal 2023 to ₹4,491.67 Lakhs in Fiscal 2024 and further to ₹10,723.91 Lakhs in Fiscal 2025, constituting 36.38%, 68.99%, 85.07% and 68.68% of total current assets as at March 31, 2023, 2024, 2025 and December 31, 2025 respectively. The high level of inventory exposes the Company to risks associated with inventory management, demand forecasting, valuation, carrying costs and supply chain disruptions, which may adversely affect working capital, liquidity, profitability and overall financial condition.

The Company's business is significantly dependent on Jaipur City, where its entire manufacturing operations are based and from where 14.95%, 52.79%, 47.63% and 75.03% of total raw material purchases were sourced for the period ended December 31, 2025 and Fiscal Years 2025, 2024 and 2023 respectively. Any disruption, slowdown or shutdown in Jaipur City or surrounding areas could affect manufacturing operations and/or principal raw material supplies, adversely affecting the business, results of operations, financial condition and cash flows.

The Company has recently acquired a registered trademark for the brand name 'Rambhajo' from a Promoter Group member by way of assignment, for which approval of Form TM-P to record the said assignment is pending. Further, applications for registration of the brand names 'Rambhajo' and 'Advit' are also pending. Any inability to protect the brand, business processes or proprietary information may adversely affect the business, financial condition and results of operations.

The Company has a low average employee base of 45 people in FY 2025, 19 in FY 2024 and 15 in FY 2023, with a significant number of employees leaving every year. The attrition rate reached nearly 50% in FY 2025 and the weighted average attrition rate for the last three Fiscal Years stood at 38.95%, which is materially higher than the industry attrition rate and may adversely impact business operations, continuity and financial performance.

The Company relies on a limited number of suppliers and procures 88.27%, 76.55%, 73.15% and 82.93% of its raw materials from its top 5 suppliers, and 93.55%, 86.96%, 79.98% and 88.36% from its top 10 suppliers, for the period ended December 31, 2025 and Fiscal Years 2025, 2024 and 2023 respectively. Any delay or disruption in supply or failure to maintain continued arrangements with such suppliers may adversely affect results of operations and financial condition.

The Company's business is subject to seasonal fluctuations linked to wedding and festival cycles in India. Any decline in sales during peak seasons may disproportionately impact results of operations and cannot be offset in off-peak quarters.

The Company proposes to repay sanctioned working capital facilities of ₹4,075 Lakhs from HDFC Bank Ltd and ₹3,000 Lakhs from ICICI Bank Ltd from the Issue Proceeds. The HDFC Bank facilities were sanctioned in FY 2023 but availed only in limited periods of FY 2024 and fully in FY 2025, while the ICICI Bank facilities were sanctioned and availed in FY 2025 itself. The intention to utilise a portion of Issue Proceeds for repayment of such recently availed working capital facilities may not yield the anticipated benefits and may expose the Company to refinancing and liquidity risks.

The Company's inventory holding days were 199 days, 158 days and 91 days in Fiscal 2025, 2024 and 2023 respectively, representing a 118% increase from Fiscal 2023 to Fiscal 2025. Trade payable days reduced sharply from 39 days in FY 2024 to 7 days in FY 2025. This combination of rising inventory and shrinking supplier credit exposes the Company to liquidity constraints, increased financing costs and potential inventory obsolescence or valuation losses.

The Company has had negative cash flows from operating activities of ₹(3,697.69) Lakhs, ₹(1,049.33) Lakhs and ₹(277.35) Lakhs and negative cash flows from investing activities in Fiscal Years 2025, 2024 and 2023 respectively. Sustained negative cash flows from operating and investing activities could adversely impact the Company's business, financial condition and growth.