Euro Pratik Sales Limited IPO

1. We are significantly dependent on our contract manufacturers for manufacturing of our products. In the six-month period ended September 30, 2024 and in Fiscals 2024, 2023 and 2022, 32.08%, 70.56%, 56.18% and 46.05%, respectively, of our total value of products purchased were manufactured by our top contract manufacturer and 47.95%, 91.66%, 87.88% and 86.02%, respectively, of our total value of products purchased were manufactured by our top 10 contract manufacturers. Any loss of our contract manufacturers, if not suitably replaced, could materially and adversely affect our business, results of operations and financial condition.

2. We do not operate any manufacturing facilities and our dependence on contract manufacturers for all our products subjects us to risks which, if realized, could materially and adversely affect our business, results of operations and financial condition.

3. We depend significantly on revenue from sale of Decorative Wall Panels, which contributed to 68.97%, 76.54%, 66.12% and 54.97% of our revenue from operations for the six-month period ended September 30, 2024 and in Fiscals 2024, 2023 and 2022, respectively. As a result, our business may be materially and adversely affected if we are unable to sell our Decorative Wall Panels as expected or if substitute products become available or gain wider market acceptance.

4. We do not own the brand name "Euro Pratik" which is crucial for our operations. Any failure to use, protect and leverage our "Euro Pratik" brand could materially and adversely affect our competitive position, business, results of operations and financial condition.

5. Our Restated Consolidated Financial Information as at and for the six-month period ended September 30, 2024, which includes the effect of the Recent Acquisitions on our financial performance and financial condition, may not be comparable to our Restated Consolidated Financial Information in respect of prior periods.

6. We depend on our top 30 distributors who contributed, in aggregate, to 54.89%, 49.66%, 45.38% and, 47.08% of our revenue from operations in the six-month period ended September 30, 2024 and in Fiscals 2024, 2023 and 2022, respectively. Any non-performance by our distributors or a decrease in the revenue we earn from our distributors could adversely affect our business, results of operations, cash flows and financial condition.

7. Our operations involve engagement with counterparties in countries such as South Korea, China, the United States, Romania, Turkey, Indonesia and Portugal due to our contract manufacturing operations. Developments in markets outside India or in India's trade policy could adversely affect our business and results of operations.

8. Failure to promote or develop the "Euro Pratik" and "Gloirio" brands could materially and adversely affect our business performance and brand perception.

9. We do not have any intellectual property protection for a majority of the designs used in our products. Any failure to protect and use our designs and other intellectual property rights could adversely affect our competitive position, business, financial condition and results of operations.

10. Our operations are dependent on our market research and design activities. Our failure to derive the desired benefits from our product development efforts or to identify or respond to evolving trends in the Decorative Wall Panel and Decorative Laminates industries and our consumers' preferences or expectations could adversely affect our business, results of operations and financial condition.