Deepa Jewellers Limited IPO

The company's top 10 customers accounted for Rs. 5,745.76 million, Rs. 8,839.29 million, Rs. 6,901.89 million and Rs. 6,592.04 million representing 70.74%, 63.27%, 67.36% and 71.55% of the company's revenue from operations based on the company's Restated Financial Information for the six months period ended September 30, 2025, Fiscal 2025, Fiscal 2024 and Fiscal 2023 respectively. The company's revenue from operations based on the company's Restated Financial Information is concentrated among a few key customers and any decision by these customers to reduce or terminate their business with the company could significantly impact its business, financial condition and results of operations.

The company derives a significant portion of the company's revenue from operations from the sale of the company's vaddanam and CNC machine cut bangles. The company's revenue from operations from the sale of vaddanam for the six months period ended September 30, 2025, Fiscal 2025, Fiscal 2024 and Fiscal 2023 was Rs. 3,814.18 million, Rs. 4,830.59 million, Rs. 3,755.56 million and Rs. 3,515.31 million representing 46.96%, 34.58 %, 36.66 % and 38.16 % of the company's revenue from operations for the indicated periods. The company's revenue from operations from the sale of CNC machine cut bangles for the six months period ended September 30, 2025, Fiscal 2025, Fiscal 2024 and Fiscal 2023 was Rs. 3,062.61million, Rs. 5,842.21million, Rs. 4,075.94 million and Rs. 3,655.04 million representing 37.71%, 41.82%, 39.78% and 39.67% of our revenue from operations for the indicated periods. Any cancellation of the purchase orders of these products, could adversely affect its business, cash flows, financial condition, and overall results of operations.

A significant portion of the company's business operations and revenue generation is concentrated in Southern India. For the six months period ended September 30, 2025, Fiscal 2025, Fiscal 2024 and Fiscal 2023, the company's revenue from Southern India was Rs. 7,980.29 million, Rs. 13,738.07 million, Rs. 10,199.85 million and Rs. 9,165.88 million respectively, representing 98.26%, 98.33%, 99.55% and 99.49% of total revenue for the indicated periods. This regional concentration could expose the Company to economic, cultural, geopolitical and local market risks.

The company's inventories as of six months period ended September 30, 2025, Fiscal 2025, Fiscal 2024 and Fiscal 2023 were Rs. 493.24 million, Rs. 827.87 million, Rs. 722.56 million, and Rs. 453.74 million representing 6.07 %, 5.93%, 7.05 % and 4.93 %, as a percentage of the company's revenue from operations for the indicated periods respectively. The company's results of operations are dependent on the company's ability to effectively manage its inventory. Our inability to accurately forecast demand or effectively manage the company's inventory may have an adverse effect on the company's business, financial condition, results of operations and cash flows.

Timely procurement of gold bullion, the company's key raw material, as well as the quality and the price at which it is procured, play an important role in the successful operation of the company's business. The prices and availability of gold bullion depend on factors beyond its control, including general economic conditions, competition, production levels and regulatory factors such as import duties. The non-availability or volatility in the cost of gold and absence of hedging facilities may have an adverse effect on the company's business, results of operations, financial condition and prospects.

The company depends on certain key suppliers for gold bullion, the company's key raw material. The company's top 10 suppliers accounted for Rs. 6,715.81 million, Rs. 10,845.93 million, Rs. 9,582.83 million and Rs. 8,305.83 million representing 97.11%, 82.32%, 96.89% and 97.20% of the company's total purchase based on the company's Restated Financial Information for the six months period ended September 30, 2025, Fiscal 2025, Fiscal 2024 and Fiscal 2023 respectively. The company procures gold bullions from RBI registered bullion banks, independent bullion dealers, exchanges from customers and import through India International Bullion Exchange (IIBX), with whom the company does not have any long-term contracts. In the event of any adverse regulatory development or failures by independent bullion dealers to perform their obligations in a timely manner, it may have an adverse effect on the company's business, financial condition, results of operations and cash flows.

The company is subjects to strict quality requirements, and sales of the company's products are dependent on the company's quality controls and standards. Any failures to comply with quality standards may adversely affect the company's business prospects, cash flows and financial performance, including cancellation of existing and future orders.

The company is dependents on third party karigars for the production and manufacturing of all the company's products. The company has not entered into formal agreements with some of the karigars. Any discontinuation of services by these karigars, disruptions at their production or manufacturing facilities, or failures of such third parties to adhere to the relevant quality standards may have a negative effect on the company's reputation, business and financial condition.

The company's business and the demand for its products are reliant on the success of the company's customers' products with their respective retail customers, and any decline in the demand for the end products could have an adverse impact on the company's business, results of operations, cash flows and financial condition.

The company's income and sales are subject to seasonal fluctuations and lower income in a peak season may have a disproportionate effect on the company's results of operations.