Royal Chain Limited

• Repayment/ prepayment, in part or full, of certain outstanding loan facilities and accrued interest thereon, availed by our Company₹650 Cr
• General corporate purposes

Except as disclosed in this section, as on the date of this Draft Red Herring Prospectus, there are no outstanding (i) criminal proceedings, (ii) actions by regulatory authorities and statutory authorities, (iii) claims related to direct and indirect tax matters, (iv) any other litigation determined to be material by the Board, and (v) disciplinary action including penalty imposed by SEBI or stock exchanges against Promoters in the last five fiscals. Pending litigation involving the Relevant Parties has been considered 'material' and disclosed where the monetary amount of claim/amount in dispute exceeds the Materiality Threshold of ₹ 44.01 million. All outstanding litigation, including civil litigations or arbitration proceedings, involving the Company and Subsidiaries, where the cumulative value or expected impact exceeds the Materiality Threshold, is disclosed. Pre-litigation notices and matters in which summons have not been received are not considered as litigation unless the parties are impleaded or notified by an authority.

• The cost of materials consumed, primarily gold, which constituted 81.11%, 45.50% and 79.94% of total expenses in Fiscals 2026, 2025 and 2024, respectively, is subject to significant price volatility, and any increase in costs without a corresponding increase in product prices, or any decrease in gold prices resulting in a decline in the realisable value of inventory, could adversely affect profitability and financial condition.(Raw Material Price Volatility)

• A significant decline in gold prices could result in a reduction in the net realisable value of inventory, which was valued at ₹6,958.87 million, ₹3,568.32 million and ₹2,641.43 million as of March 31, 2026, March 31, 2025, and March 31, 2024, respectively, requiring inventory write-downs and adversely affecting profitability, financial condition and results of operations.(Inventory Valuation)

• Our working capital loans accounted for 72.72%, 67.33% and 59.15% of total borrowings as of March 31, 2026, March 31, 2025, and March 31, 2024, respectively, and our inability to meet working capital requirements on commercially acceptable terms may have an adverse effect on business, results of operations and financial condition.(Working Capital Management)

• A large portion of working capital is funded by credit facilities, and any tightening of lending norms, increase in interest rates, or reduction in the availability of credit from lenders could increase our cost of funds or limit our ability to access working capital financing on commercially acceptable terms, or at all.(Access to Credit)

• Our business requires a significant amount of working capital, primarily to finance inventory, which increased to ₹6,958.87 million as of March 31, 2026, from ₹3,568.32 million as of March 31, 2025, and elevated levels of finished goods inventory increase working capital requirements and dependence on bank borrowings, gold lease facilities and other funding sources.(Working Capital Management)

• There can be no assurance that we will be able to convert our finished goods inventory into sales in a timely manner, or that our Inventory Turnover Ratio, which was 8.29 in Fiscal 2026, 11.03 in Fiscal 2025 and 10.14 in Fiscal 2024, will improve in future periods.(Inventory Management)

• Gold prices are linked to international commodity markets and are subject to significant volatility, influenced by regulatory factors such as import duties, global economic conditions, geopolitical factors, and fluctuations in demand and supply in international markets.(Raw Material Price Volatility)

• Our costs are indirectly exposed to fluctuations in foreign exchange rates, particularly the U.S. Dollar/Indian Rupee exchange rate, which can affect the Indian Rupee price of gold even in the absence of any change in international gold prices.(Foreign Exchange Risk)

Each bar is a fixed formula applied to the figures shown above, scored 0–100. This is a reading of what the company disclosed — not a recommendation to apply or avoid, not a price target, and not a prediction of listing performance. Dimensions that could not be extracted are excluded rather than assumed, so coverage varies between documents.