Grover Jewells Ltd IPO

The Company had negative cash flow in recent fiscals, details of which are given below. Sustained negative cash flow could adversely impact its business, financial condition and results of operations.

The company's Registered Office and one of our Showroom are not owned by the company and the company has only leave and license rights over them. In the event the company loses such rights, the company's business, financial condition and results of operations, and cash flows could be adversely affected.

The company's gold jewellery business faces risks from market volatility and changing customer preferences. Fluctuations in commodity prices like gold could impact the company's costs and profitability. Evolving customer tastes influence product demand, necessitating continuous adaptation, to remain competitive.

The company's business is primarily concentrated in the central and northern part of India, especially around Delhi and its neighbouring states, i.e. Uttar Pradesh, Haryana and Uttarakhand and the company is significantly dependent on these states for revenue generation. Any adverse development affecting such states may have an adverse effect on the company's business, prospects, financial condition and results of operations.

The company's inability to identify market trends, and customer demand accurately, counter the challenges that the industry faces and maintain an optimal level of inventory may impact its operations adversely.

The company derives a significant portion of its revenue from the sale of chains and any reduction in demand or in the manufacturing of such product could have an adverse effect on the company's business, results of operations and financial condition.

The average cost of acquisition of Equity Shares by the company's Promoters is lower than the Issue Price.

Intense competition in the Indian Jewellery Market could result in loss of customers, reduced market share, and adverse impact on our business and financial performance.

Overdependence on B2B Sales with Negligible Direct Consumer Sales.

The company is dependents on and derive a substantial portion of its revenue from a limited number of customers. The Company in the usual course of Business does not have any long-term contracts with its customers and the company relies on purchase orders for delivery of the company's products and our customers may cancel or modify their orders, change quantities, delay or change their sourcing strategy. Loss of one or more of its top Customers or a reduction in their demand for the company's products or reduction in revenue derived from them may adversely affect its Business, Results of Operations and Financial Condition.