A significant portion of revenue comes from the company's showrooms in Gujarat, where operations are heavily focused. Ahmedabad showrooms contributed ₹3,661.58 million (67.97%) of Fiscal 2026 revenue from operations, and the C.G. Road showroom alone contributed 57.16%. Any adverse development in Gujarat could harm business, growth prospects and profitability.

The objects of the Offer, being inventory funding for one new showroom in Maharashtra and expansion of an existing showroom in Gujarat plus repayment of borrowings, have not been appraised by any bank or financial institution. Deployment rests on internal assessments and may be revised due to cost, market or strategy changes. Any variation in utilisation needs prior shareholders' approval by special resolution, which may not be obtained in time.

All operating revenue is derived from direct sales through physical showrooms, with no online or alternate channel to offset a decline in in-store sales. Lower footfall from changes in consumer behaviour, competition or location-specific factors could directly hurt revenue. Showroom operations carry significant fixed costs such as rent and employee expenses that may not fall in proportion to revenue.

The company has entered into related party transactions, mainly remuneration, loans taken and repaid, purchases and rent, and may continue to do so. In Fiscal 2025 it acquired the running business of M/s M. K. Sons Jewellers, the proprietorship of Promoter Ramchand Murlidhar Raimalani, for ₹710.71 million (20.23% of revenue). Though conducted at arm's length, more favourable terms with unrelated parties cannot be assured and conflicts of interest may arise.

Business is significantly influenced by the price and availability of gold, diamonds and other precious stones. A sustained rise in prices may raise procurement and inventory holding costs and dampen consumer demand, while a fall can cause inventory valuation losses. Disruption in supply from manufacturing partners could adversely affect operations and financial condition.

The company relies entirely on third-party manufacturers and Karigars, none of whom work exclusively for it, and generally has no long-term contracts with them. They may prioritise other customers or accept better terms from competitors, causing delays. Working with third parties also exposes the company to the risk of its designs being passed on to competitors.

Operations involve handling high-value jewellery, exposing the company to theft, fraud and employee misconduct. A customer stole a necklace from the Andheri showroom on September 18, 2023; part was recovered and the balance was covered by insurance. Insurance coverage may not be adequate for all such incidents, and a significant incident could hurt customer confidence.

The company recorded negative net cash flow from operating activities of ₹28.36 million, ₹95.31 million and ₹235.55 million in the three months ended June 30, 2026 and Fiscals 2025 and 2024, mainly due to its working capital-intensive nature. Negative investing cash flows reflect capital expenditure. There is no assurance that net cash flows will be positive in future.

The business requires significant working capital, largely directed at procuring finished goods. Outstanding borrowings were ₹705.22 million as at June 30, 2026, with sanctioned and utilised working capital facilities of ₹615 million and ₹400.67 million. Expansion through the new showroom may raise working capital needs, and additional financing may not be available on favourable terms.

All of the registered office, corporate office and showrooms are on leave and license basis, several taken from Promoters and Promoter Group. Several agreements, including for the registered office, corporate office and certain showrooms, are not adequately stamped or registered and may be inadmissible in a dispute. Non-renewal or termination on unfavourable terms could cause disruption and relocation costs.