Kataria Dhulchand Pannalal Jewellers Limited

• Funding capital expenditure towards the establishment of two new stores, one in Kota, Rajasthan and the other in Ujjain, Madhya Pradesh₹1.55k Cr
• Repayment or prepayment, in full or in part, of all or a portion of certain outstanding borrowings availed by our Company₹500 Cr
• General corporate purposes

Except as disclosed in this section, there are no outstanding criminal proceedings involving the Company, Promoters, or Directors. However, with respect to cases involving the Company under Section 138 of the Negotiable Instruments Act, 1881, which are in the ordinary course of business, the aggregate number of cases and aggregate amount involved in such proceedings shall be disclosed in a generic manner without providing specific details. There are no outstanding material dues to creditors.

• The success of our business is closely tied to the strength and reputation of our flagship brand, 'Kataria Jewellers', and the legacy of the Kataria family in central India. Any inability to maintain or enhance this brand, or any reputational damage to the brand, name or logo, could have an adverse effect on our business, financial condition, cash flows and results of operations.(Brand and Reputation)

• Entire portion of our revenue is derived from our Stores in Madhya Pradesh, where our operations are concentrated. Any adverse developments in this State or in our existing Stores could disproportionately harm our business, growth potential, financial condition and cash flows.(Geographic Concentration)

• 100% of our revenue from operations during Fiscal 2026, Fiscal 2025 and Fiscal 2024 has been derived from our Stores located in Madhya Pradesh. Our exclusive presence in Madhya Pradesh exposes us to a range of regional risks.(Geographic Concentration)

• Local economic conditions, demographic shifts, agricultural cycles and unexpected regional developments could significantly impact our operations. Adverse events such as social unrest, political instability, regional economic downturns, natural calamities (including floods or droughts), or policy changes by the State Government may negatively influence our financial performance, results of operations and liquidity.(Regional Risks)

• Any significant disruption at any one Store, including on account of theft, robbery, fire, structural damage, lease termination, government action or any other cause, could severely affect our financial health, business performance and cash flow stability.(Operational Risk)

• The viability of our Stores depends on favourable demographics. Shifts in population dynamics, changes in the demand profile of central India or fluctuations in property values and lease rates could reduce the profitability of these locations.(Market and Demographic Risk)

• The 'Kataria' name is also used by other entities and businesses in India which are not associated with our business and over which we have no control. Any negative publicity attaching to such third parties may lead to customer confusion and could indirectly affect the goodwill of our Company.(Brand and Reputation)

• We are in the process of opening our fourth store in the adjacent state at Kota, Rajasthan which is proposed to have a retail showroom area of approximately 3,600 square feet, expected to be operational by Fiscal 2027. We are also in the process of opening our fifth store in Ujjain, Madhya Pradesh which is proposed to have a retail showroom area of approximately 4,800 square feet, expected to be operational in Fiscal 2028. There can be no assurance that our New Stores will achieve similar performance levels or that geographic diversification within central India and the adjacent state of Rajasthan will be sufficient to materially reduce this concentration.(Expansion Risk)