Joyalukkas India Limited IPO

The current and continuing impact of the ongoing novel coronavirus ("COVID-19") pandemic on its business and operations has been significant. The impact of the pandemic on its operations in the future, including its effect on the ability or desire of customers to visit its showrooms, is uncertain and may be significant and continue to have an adverse effect on its business prospects, strategies, business, operations, its future financial performance and the price of its Equity Shares.

Its may not be successful in maintaining and enhancing awareness of the "Joyalukkas" brand. Any deterioration in public perception of its brand could adversely impact its business, financial condition, cash flows and results of operations.

Its inability to identify customer demand accurately and maintain an optimal level of inventory in its showrooms may impact its operations adversely.

There have been certain deficiencies in compliances with the FEMA regulations in relation to certain unsecured loans received by the Company from its Promoter. The company has filed a compounding application with the RBI in respect of such contraventions, which is currently pending. Consequently, Its may be subject to regulatory actions and penalties/compounding fees for such non-compliance which may adversely impact its business, financial condition and reputation.

The Directorate of Enforcement has initiated investigations against the Company and has issued summons to its Promoter, certain members of the Promoter Group and some of the employees of its Company directing them to provide information in relation to themselves, the Company and certain Promoter Group entities. The DoE may pass adverse adjudication orders against it or its Promoter which may adversely impact its business, the company financial condition and its reputation.

Certain search and seizure operations were conducted by the Income Tax Department at the corporate office and showrooms of the Company, and residential premises of its Promoter and employees. Its may be subject to adverse statutory and regulatory actions from the Income Tax Department or any other statutory or regulatory authority which may adversely impact its business, financial condition and reputation.

Its showrooms are located mostly in south India. Any adverse development affecting such region may have an adverse effect on its business, prospects, financial condition and results of operations.

The company is dependent on third parties for the production and manufacturing of all of its products. Any disruptions at such third-party production or manufacturing facilities, or failure of such third parties to adhere to the relevant quality standards may have a negative effect on its reputation, business and financial condition.

If the company is unable to effectively manage or expand its retail network and operations or pursue its growth strategy, its new showrooms may not achieve its expected levels of profitability which may adversely affect its business prospects, financial condition and results of operations.

Its Promoter and certain of its Directors may have interest in entities, which are engaged in lines of business similar to that of the Company. Any conflict of interest which may occur between its business and the activities undertaken by such entities could adversely affect its business and prospects.