RBZ Jewellers Ltd IPO

The strength of the company's brand is crucial to the success and its may not succeed in continuing to maintain and develop of the brand.

The Company requires significant amount of working capital for continued growth. Its inability to meet the working capital requirements, on commercially acceptable terms, may have an adverse impact on the business, financial condition and results of operations.

The company's inability to respond to changes in demands and market trends in a timely manner and failure to expand of the product offering in a diversified manner may have an adverse effect on its business, results of operations and financial condition.

The company revenue and earnings are dependent on the sales mix consisting of retail and wholesale as well as provision of job work services and working capital requirements of each segment is different. If its are unable to balance or maintain this sales mix or balance working capital requirement for every segment in future, there could be an adverse impact on the company business, financial condition and results of operations.

The company is dependent on the long-term relationship with the customers. In particular, the process substantial volume of gold for the customers for whom the company work on jobwork basis. If such customers were to suffer a deterioration of their business, cease doing business with its or substantially reduce their dealings with it, the company revenues could decline, which could have adverse effect on its business, financial condition and results of operations.

Any failure in the company quality control processes, its inability to maintain or establish formal arrangements with third party manufacturers, and any disruptions at such third-party manufacturing facilities, or failure of such third parties to adhere to the relevant quality standards may have an adverse effect on its business, brand, results of operations and financial condition.

The company is dependent on the machinery and technology for the operations. Any break-down of the machinery may disrupt its manufacturing process. If the company fail to adopt new and improved technologies, our competitors may gain advantage over us. Both of these events may have an impact on our business, financial results and growth prospects. Our success and financial condition will depend on our ability to maximise our manufacturing capacities with the help of machinery and technologies.

The company revenues have been significantly dependent on sale of gold jewellery and gold jewellery processed, which accounted for 87.93%, 90.38% and 88.40% of the total revenue from operations for the Fiscals 2023, 2022 and 2021, respectively. Any factors adversely affecting the procurement of gold or the company sales of gold jewellery may negatively impact its business, financial condition, results of operations and prospects.

The company has availed unsecured loans from Promoters, Promoter Group and other companies that are recallable, at any time.

Failure to manage the company inventory could have an adverse effect on its net sales, profitability, cash flow and liquidity.