Baanganga Gold & Diamond (I) Limited

• Funding the working capital requirements of our Company₹405 Cr
• General corporate purposes

Except as disclosed in this section, there are no outstanding (i) criminal proceedings, (ii) actions by regulatory and statutory authorities, (iii) outstanding claims and proceedings related to direct and indirect tax matters, and (iv) civil litigation or arbitration proceedings, as determined to be material, involving the Company, Subsidiaries, Promoters and Directors. Further, except as stated in this section, there are no outstanding disciplinary actions, criminal proceedings, or actions by regulatory and statutory authorities against the Key Managerial Personnel and members of Senior Management.

• The Company's revenues are significantly dependent on the sale of gold jewellery, which accounted for 99.67%, 99.34% and 99.83% of revenue from operations for Financial Years 2026, 2025 and 2024, respectively. Any factors adversely affecting the procurement of gold or sales of gold jewellery may negatively impact the business, financial condition, results of operations and prospects.(Revenue Concentration)

• The Company requires significant amounts of working capital for its business operations and may need to obtain additional financing. The Company may not be successful in obtaining additional funds in a timely manner and/or on favourable terms, which may have an adverse impact on its business, financial condition and results of operations.(Liquidity and Financing)

• The jewellery business requires substantial inventory in the form of gold, diamonds and other precious materials. Given the high value and price volatility of gold and diamonds, maintaining such inventory levels involves significant capital outlay and may place pressure on liquidity and cash flows.(Liquidity and Financing)

• A sustained or significant increase in gold prices could adversely affect demand from clients, including wholesalers and retailers, as higher prices may lead to reduced order volumes, deferred purchasing decisions, or a shift in demand towards lower-value or alternative jewellery products.(Market and Demand)

• Increases in gold prices may impact working capital requirements and margins, particularly if the Company is unable to pass on such increases to clients in a timely manner due to competitive pressures or contractual arrangements.(Market and Demand)

• Any significant volatility in the prices of gold or other raw materials used in the products could materially and adversely affect revenue from operations and profitability.(Market and Demand)

• The Company is an organized, fully integrated manufacturer of gold and diamond jewellery, operating primarily on a business-to-business model with a market share of approximately 1.9% in the Indian gold jewellery manufacturing (wholesale) market in Fiscal 2026.(Market Position)

• The Company cannot assure that any continued geopolitical uncertainty, heightened volatility in gold prices, restriction on import of gold, increase in custom duty or similar macroeconomic conditions will not adversely affect the business, financial condition, results of operations and prospects in the future.(Macroeconomic and Regulatory)