Augmont Enterprises Limited

Our business is significantly exposed to fluctuations in the market prices of gold and silver, which are influenced by a wide range of global and domestic factors including macroeconomic conditions, interest rates, inflation expectations, currency movements, geopolitical developments, and changes in investor sentiment.(Market Risk)

When gold and silver prices rise sharply, consumer demand, particularly for jewellery and discretionary purchases, may decline due to affordability concerns. Conversely, during periods of falling prices, customers may delay purchases in anticipation of further declines, which can lead to reduced transaction volumes on our platforms and lower sales across our product lines.(Market Risk)

Price volatility also impacts the valuation of our bullion and jewellery inventory. While we generally do not maintain large bullion inventories in the ordinary course of business, we are required to hold gold and silver for longer periods due to production cycles in certain operations, such as refining and jewellery manufacturing. During such periods, adverse movements in prices may result in mark-to-market losses or inventory write-downs, which could negatively affect our profitability and financial condition.(Market Risk)

In falling market conditions, customers holding digital gold may choose to redeem their holdings in large volumes, either through physical delivery or cash settlement. Such redemptions tend to coincide with periods when the value of our underlying inventory is depreciating, thereby compounding liquidity pressures. This may compel us to liquidate physical inventory or arrange cash outflows at a time when market realizations are unfavourable, potentially resulting in financial losses.(Market Risk)

The imposition of tariffs by the US government under its 'Fair and Reciprocal Plan' may impact Indian businesses, especially those with a substantial export presence in the US market. This policy has resulted in the imposition of tariffs across a diverse range of sectors. As a result, Indian exporters may encounter heightened costs and uncertainties, potentially constraining their market competitiveness and profitability.(Regulatory Risk)

Any significant disruptions in our information technology systems or breaches of data security could adversely affect our business and reputation. Any data security breaches or compromises of technology systems could result in institution of legal proceedings against us and potential imposition of penalties, which may have an adverse effect on our business and reputation.(Technology Risk)

We rely on third-party payment gateways and other digital channels to process transactions. Any technical failure, settlement delay, charge-back fraud, phishing attack, SIM-swap fraud, or compromise of communications channels could disrupt collections, erode customer trust and result in financial losses.(Technology Risk)

Our platforms also rely on artificial intelligence ('AI') and machine learning tools for pricing and personalization, which may introduce risks of algorithmic errors or bias.(Technology Risk)