Davin Sons Reta

Improving operational efficiencies.

Expansion of Geographic Reach.

Continued focus on innovative designs.

Competitive Pricing.

Leveraging its Market skills and Relationships.

Inorganic Growth.

Our Company has been recently incorporated and post incorporation has acquired the running business of M/s. Jesus Shirts (Proprietorship firm of our Promoter) thus we have limited operating history as a Company which may make it difficult for investors to evaluate our historical performance or future prospects.

There are outstanding litigation proceedings involving our Company, our Promoters and/ or our Directors, an adverse outcome in which, may have an adverse impact on our reputation, business, financial condition, results of operations and cash flows.

The Warehouses of Our Company are not owned by us.

Our top 10 customers contribute majority of our revenues from operations. Any loss of business from one or more of them may adversely affect our revenues and profitability.

We have experienced negative cash flows and any negative cash flows in the future could adversely affect our financial conditions and results of operations.

We have not executed any agreement with any of our Job workers contractors.

There are certain delayed in filing and non-compliances noticed in some of our financial reporting and/or records relating to filing of various returns and deposit of statutory dues with the taxation and other statutory authorities.

We rely on third party manufacturers for manufacturing of our readymade garments. In the event the manufacturing facilities of our third party manufacturers cease to be available to us at terms acceptable to us, or we experience problems with, or interruptions at such facilities, our business, results of operations and financial condition may be adversely affected.

We generate our major portion of sales from our operations in certain geographical regions of Delhi, Haryana, Rajasthan, Chhattisgarh, Uttar Pradesh, Bihar, Gujarat and Punjab and any adverse developments affecting our operations in these regions could have an adverse impact on our revenue and results of operations.

Relevant copy of educational qualification of our promoters are not traceable.

We distribute products manufactured by third party manufacturers or suppliers. Hence, we have to rely on third parties for procuring the products sold by our Company. If these manufacturers or suppliers are unable or unwilling to manufacture the products distributed by us, or if these organizations fail to comply any applicable regulations or otherwise fail to meet our requirements, our business will be adversely affected.

If demand for our Garment accounting for major portion of our revenue declines or if we do not successfully commercialize our products, or if the sale is delayed, our business and the results of operations may be adversely affected.

Our Company depends on timely identification of evolving fashion trends and creating new designs. Any Delay on the part of our Company in this regard may adversely affect our business operations.

There are certain non-compliances noticed in some of our corporate records relating to forms filed with the Registrar of Companies and other provisions of Companies Act, 2013. Any penalty or action taken by any regulatory authorizes in future for non-compliance with provisions of corporate and other law could impact the financial position of the Company to that extent.

Our Company undertakes job work activities which exposes us to loss in case of Rejection of finished Material.

In the case of any defect in our products, we will be answerable to customers and incur substantial costs which in turn could adversely affect the value of our brand, and our sales could diminish and are subjected to any negative publicity.

Failure to manage our inventory could have an adverse effect on our net sales, profitability, cash flow and liquidity.

We store our inventory in godowns from which we operate, though we take utmost care in maintaining them but there may be chances of spoilage of products due to weather conditions or infections etc.

We generally do our Garment business with our customers on purchase order basis and do not enter into long term contracts with most of them.

Orders placed by customers may be delayed, modified, cancelled or not fully paid for by our customers, which may have an adverse effect on our business, financial condition and results of operations.

Our cost of production is exposed to fluctuations in the prices of Raw materials.

Our Distribution of FMCG goods is exposed to fluctuations in the prices of goods.

Improper handling, processing or storage of our raw materials or products, or spoilage of and damage to such raw materials and products, could damage our reputation and have an adverse effect on our business, results of operations and financial condition.

We require a number of approvals, licenses, registration and permits for our business and failure to obtain or renew them in a timely manner may adversely affect our operations.

We are dependent on third party transportation providers for delivery of product to us from our suppliers and delivery of our products to our customers. Any failure on part of such service providers to meet their obligations could have a material adverse effect on our business, financial condition and results of operation.

Changes in customer preferences could affect our business, financial condition, results of operations and prospects.

Our Company`s failure to maintain the quality standards of the products could adversely impact our business, results of operations and financial condition.

Negative publicity could adversely affect our revenue model and profitability of our Company.

The Objects of the Issue for which funds are being raised, are based on our management estimates and have not been appraised by any bank or financial institution or any independent agency.

If we are unable to collect our receivables from our clients, our results of operations and cash flows could be adversely affected.

Our Corporate logo "DAVINSONS" is not yet registered. If we fail to obtain trademark registration our brand building efforts may be hampered which might lead to adverse effect on our business.

Our Company requires significant amounts of working capital for a continued growth. Our inability to meet our working capital requirements may have an adverse effect on our results of operations.

Our future success depends significantly on the continued service of our promoters, management team and other key personnel.

Changes in technology may render our current technologies obsolete or require us to make substantial capital investments.

Our ability to retain the clients is heavily dependent upon various factors including our reputation and Our skill to maintain the quality in Products manufactured by us and our ability to maintain a high level of service quality including our satisfactory performance for the customers. Any failure by us to retain or attract customers may impact its business and revenues.

Fraud, theft, employee negligence or similar incidents may adversely affect our results of operations and financial condition.

Our Promoters, Directors and Key Management Personnel have interest in our Company, other than reimbursement of expenses incurred or remuneration.

We operate in a competitive business environment. Competition from existing players and new entrants and consequent pricing pressures may adversely affect our business, financial condition and results of operations.

We have in the past entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interest with the equity shareholders.

The average cost of acquisition of Equity Shares by our Promoters may be less than the Issue Price.

Late Deposits of Tax Deducted at Source (TDS) with the Income Tax Authority.

E-verification of Income Tax return of one of our Promoters, Mr. Nohit Arora is pending for FY 2021- 22 and Mr. Mohit Arora, one of our promoters is yet to file its IT Return for FY 2022-23.

Unsecured loans taken by our Company from Lenders, can be recalled by the lenders at any time.

Conflicts of interest may arise out of common business undertaken by our Company and our promoter Group Entities.

Our insurance coverage may not adequately protect us against certain operating risks and this may have an adverse effect on the results of our business.

We have not made any dividend payments in the past and our ability to pay dividends in the future will depend upon future earnings, financial condition, cash flows, working capital requirements, capital expenditures and restrictive covenants in our financing arrangements.

Our inability to manage growth could disrupt our business and reduce profitability. Our Business strategy is to continuously grow by expanding the size and geographical scope of our businesses.

Our promoters and promoter group will continue to retain significant control over our Company after the IPO.

There is no monitoring agency appointed by our Company and the deployment of funds are at the discretion of our Management and our Board of Directors, though it shall be monitored by the Audit Committee.

Delay in raising funds from the IPO could adversely impact the implementation schedule.

We have not independently verified certain data in this Prospectus.

Any future issue of Equity Shares may dilute your shareholding and sales of our Equity Shares by our Promoters or other major shareholders may adversely affect the trading price of the Equity Shares.

Our ability to pay any dividends in the future will depend upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.

You may be subject to Indian taxes arising out of capital gains on the sale of our Equity Shares.

Our inability to manage growth could disrupt our business and reduce profitability. Our Business strategy is to continuously grow by expanding the size and geographical scope of our businesses.