Rays of Belief Limited

• Funding capital expenditure towards establishment of new centres on leased premises (tenure of 11 months - 3 years) and associated technology (hardware) costs: (i) Setting up new centres by our Company (Company Learning Centres) and our Company in partnership with Licensed Professionals (Company Learning Centres in partnership with Licensed Professionals); (ii) Setting up new centres in collaboration with schools (School Collaboration Centres); (iii) Setting up of new centres to drive research, innovation, and best practices in the domain of neurodevelopmental disorder (Centre for Excellence and Research / COER); (iv) Setting up of in-house training academies for continuous learning and professional upskilling (Upskilling Academy); and (collectively referred to as New Centres (v) Technology (hardware) costs₹41.4 Cr
• Expenditure for lease payments for our existing centres in India₹14.4 Cr
• Investment in our Subsidiary, Mom’s Belief US Inc., for making lease / license payments for our existing centres in the USA₹10.1 Cr
• Expenditure for brand awareness and inclusive outreach programs₹10.2 Cr
• Funding inorganic growth through unidentified acquisition and general corporate purposes

The Company has filed a contempt petition against a Defendant for obstructing a Local Commissioner. The Company has also filed a civil suit against Dr. Manish Samnani seeking permanent injunction and damages amounting to ₹ 2.00 million, with an additional compensation of ₹ 2.49 million. There are no outstanding criminal proceedings, actions by regulatory and statutory authorities, or tax proceedings against the Company, Subsidiaries, Directors, or Promoters.

• A significant portion of capital expenditure, comprising immovable fit-outs on leased premises, may not be recoverable if a lease is not renewed, terminated, or if a centre is closed or moved.(Operational)

• 15.36% of Revenue from Operations is derived from centres located in Uttar Pradesh, Karnataka, and Delhi, and 17.58% is derived from Tier 2 cities, making the business vulnerable to adverse factors in these regions.(Operational)

• The Company operates on leased premises with lease tenures ranging from 11 months to 3 years, requiring frequent renewal and posing risks of relocation or discontinuation.(Operational)

• Immovable capital expenditure constitutes approximately 30–37% of total capex for Company Learning Centres and 3% for School Collaboration Centres, with immovable assets being specific to leased premises and not transferable.(Financial)

• Any loss of business from Uttar Pradesh, Karnataka, or Delhi, or from Tier 2 cities, may adversely affect revenues and profitability.(Operational)

• The Company runs 136 centres in India, with 27 in Uttar Pradesh, 5 in Delhi, and 20 in Karnataka, contributing to 7.62%, 3.80%, and 3.94% of Revenue from Operations, respectively.(Operational)

• The Company runs 42 centres in Tier 1, 77 in Tier 2, and 17 in Tier 3 cities, with Tier 2 centres contributing 17.58% of Revenue from Operations.(Operational)

• Factors relating to political and geographical changes, growing competition, economic downturn, natural disasters, or changes in demand in specific regions may adversely affect the business.(Market)