Sunil Gold India Limited IPO

Our revenue from operations is significantly concentrated among a limited number of customers. Revenue from our top 10 customers aggregated to Rs.3,842.93 million, Rs.4,860.46 million, Rs.3,027.97 million and Rs.2,102.08 million for the six-month period ended September 30, 2025 and Fiscal 2025, Fiscal 2024, and Fiscal 2023, respectively, representing 93.71%, 93.26%, 95.49% and 86.93% of our revenue from operations for the respective periods. We are dependent on such customers for a substantial portion of our revenue and any reduction, modification or termination of business by such customers could materially and adversely affect our business, financial condition, results of operations, cash flows and prospects.

We are dependent on third-party Karigars for the manufacturing of our products. Any discontinuation of services, disruptions in their operations, failure to adhere to quality standards or loss of skilled Karigars could materially and adversely affect our business, results of operations, financial condition, cash flows and reputation.

Our business is working capital intensive and our ability to fund and efficiently manage our working capital requirements is critical to our operations. Any inability to do so could materially and adversely affect our business, financial condition, results of operations and cash flows.

A substantial portion of our revenue from operations is derived from the states of Karnataka, Maharashtra, Tamil Nadu, Telangana, Andhra Pradesh and Kerala. Revenue from these states aggregated to Rs.4,054.82 million, Rs.4,980.98 million, Rs.3,041.61 million and Rs.2,232.17 million for the six-month period ended September 30, 2025, and Fiscal 2025, Fiscal 2024 and Fiscal 2023, respectively, representing 98.88%, 95.57%, 95.92% and 92.31% of our revenue from operations for the corresponding periods. Any adverse developments in these regions could materially and adversely affect our business, financial condition, results of operations, cash flows and prospects.

Our business is critically dependent on the availability and price of gold bullion, our primary raw material, and volatility in gold prices could materially and adversely affect our business, results of operations and financial condition.

The company's business is highly dependent on the procurement of gold bullion, which constituted Rs.3,009.93 million, Rs.3,868.19 million, Rs.2,560.55 million and Rs.2,021.97 million for the six-month period ended September 30, 2025 and Fiscal 2025, Fiscal 2024 and Fiscal 2023, respectively, representing 94.83%, 71.60%, 90.90% and 87.49% of the company's total raw material purchases for the corresponding periods, with the company's top 5 suppliers accounting for up to 91.34% of the company's purchases during the six-month period ended September 30, 2025. Any disruption in supply, price volatility or increased supplier concentration could materially and adversely affect its business, results of operations, financial condition and cash flows.

The company's inventories as of the six-month period ended September 30, 2025 and Fiscal 2025, Fiscal 2024 and Fiscal 2023 amounted to Rs.752.47 million, Rs.1,153.35 million, Rs.360.33 million and Rs.351.98 million, respectively, representing 18.35%, 22.13%, 11.36% and 14.56% of the company's revenue from operations for the respective periods. The company's results of operations are dependent on the company's ability to accurately forecast demand and effectively manage its inventory, and any failures to do so could materially and adversely affect the company's business, financial condition, results of operations and cash flows.

We are exposed to counterparty credit risk due to the extension of credit to our customers, and any delay in, or non-receipt of, payments could materially and adversely affect our cash flows, working capital position and results of operations.

Demand for gold jewellery is discretionary in nature, and any sustained decline in discretionary consumer spending, adverse macroeconomic conditions or shifts in consumer investment preferences could materially and adversely affect our business, results of operations, cash flows and financial condition.

Our success depends on our ability to continuously identify, anticipate and respond to evolving jewellery design trends and consumer preferences across regions. Any failure to achieve market acceptance for our designs, or the duplication of our designs by competitors, could result in obsolescence of inventory and materially and adversely affect our business, results of operations, cash flows and financial condition.