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There are outstanding legal proceedings involving the Company, Promoters and Directors. Any adverse
decision in such proceeding may have a material adverse effect on its business, results of operations and financial condition.
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Its Registered Office, Factory, Showroom and its Warehouses are not owned by it. The same are occupied by it on a lease basis. Disruption of its rights as lessee or termination of the agreements with its lessor would adversely impact its operations and, consequently, its business.
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Its product is subject to frequently changing designs, patterns, customer requirements and tastes, its inability to meet such needs or preferences may affect the company`s business.
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Any inability to pass on increased price of the raw material, used for manufacturing its products may affect its profitability.
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The company is dependent on various kinds of Supplier for the supply of raw materials, services and finished goods.
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The company conduct its business activities on a purchase order basis and therefore, have not entered into long-term agreements with its customers.
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Its continued operations are critical to its business and any shutdown of the company manufacturing unit may adversely affect its business, results of operations and financial condition.
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The company requires a number of approvals, NOCs, licenses, registrations and permits in the ordinary course of its business. Some of the approvals are required to be obtained by its Issuer Company and any failure or delay in obtaining the same in a timely manner may adversely affect its operations.
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The Company`s failure to maintain the quality standards of the products could adversely impact is business, results of operations and financial condition.
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The company face competition in its business from domestic competitors. Such competition would have an adverse impact on its business and financial performance.
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The Company had not made any provision for payment of gratuity to its employees.
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The company may become liable to its customers and lose customers if the company has defects or disruptions in its products or if its provide poor products.
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Its revenue may slow down due to off season- festivals and weddings.
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Artificial plants are not eco-friendly.
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Its ability to remain competitive may be adversely be affected by rapid technological changes and its ability to access such technology.
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Its business involves usage of manpower and any unavailability of its employees or shortage of contract labour or any strikes, work stoppages, increased wage demands by workmen or changes in regulations governing contractual labour may have an adverse impact on its cash flows and results of operations.
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Its business is capital intensive. If the company experience insufficient cash flows to meet required payments on its debt and working capital requirements, there may be an adverse effect on its operations.
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Heavy dependence on its Promoters for the continued success of the company`s business through his continuing services, strategic guidance and support.
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There are certain discrepancies / errors noticed in some of its corporate records relating to forms filed with the Registrar of Companies and other provisions of Companies Act, 1956 / 2013. Any penalty or action taken by any regulatory authorities in future for non-compliance with provisions of corporate and other law could impact the financial position of the Company to that extent.
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The company is yet to obtain consent from its lender banks for the Issue, the same is under process and are subject to certain conditions and restrictions in terms of its financing arrangements.
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The Company does not have any long-term agreements with their clients and is subject to uncertainties in demand for its products and services.
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Significant security breaches in its computer systems and network infrastructure and fraud could adversely impact its business.
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Its lenders have imposed certain restrictive conditions on it under its financing arrangements. Under its financing arrangements, the company is required to obtain the prior, written lender consent for, among other matters, changes in its capital structure, formulate a scheme of amalgamation or reconstruction and entering into any other borrowing arrangement.
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Its business is subject to various operating risks at the company sites, the occurrence of which can affect its results of operations and consequently, financial condition of the Company.
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Delay in delivery of the products due to breakdown of machinery.
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Its success depends in large part upon its qualified personnel, including the company`s senior management, directors and key personnel and its ability to attract and retain them when necessary.
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The company is dependent on third party vendors for delivery of materials required to it from its suppliers and delivery of its products to the company clients. Any failure on part of such vendors to meet their obligations could have a material adverse effect on its business, financial condition and results of operation.
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The shortage or non-availability of power facilities may adversely affect its business and have an adverse impact on the company results of operations and financial condition.
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Its business may be affected by severe weather conditions and other natural disasters.
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Brand recognition is important to the success of its business, and the company`s inability to build and maintain its brand names will harm its business, financial condition and results of operation.
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General economic and market conditions in India and globally could have a material adverse effect on its business, financial condition, cash flows, results of operations and prospects.
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Major fraud, lapses of internal control or system failures could adversely impact the company`s business.
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The company continue to explore the diversification of its business and the implementation of new products. These diversifications and its other strategic initiatives may not be successful, which may adversely affect its business and results of operations.
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Its inability to manage growth could disrupt the company`s business and reduce its profitability. Its propose to expand its business activities in coming financial years.
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The company has entered into related party transactions in the past and may continue to do so in the future.
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The nature of its business exposes its to liability claims and contract disputes and the company indemnities may not adequately protect it. Any liability in excess of its reserves or indemnities could result in additional costs, which would reduce its profits.
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Employee fraud or misconduct could harm it by impairing its ability to attract and retain clients and subject it to significant legal liability and reputational harm.
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Its operations may be adversely affected in case of industrial accidents at its working sites.
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Its operating expenses include overheads that may remain fixed in the medium term. In case there is any decline in its operating performance, its may be unable to reduce such expenses.
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Delays or defaults in payments from its clients could result into a constraint on the company cash flows. The efficiency and growth of its business depends on timely payments received from the company`s clients.
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Its insurance coverage may not adequately protect it against losses, and successful claims against the company that exceed its insurance coverage could harm its results of operations and diminish its financial position.
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There are no alternate arrangements for meeting its requirements for the Objects of the Issue. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.
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Its actual results could differ from the estimates and projections used to prepare its financial statements.
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Guarantees from Promoters & Directors as well as others have been taken in relation to the debt facilities provided to it.
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Its ability to pay dividends in the future will depend upon its future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in its financing arrangements.
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Any future acquisitions, joint ventures, partnerships, strategic alliances, tie-ups or investments could fail to achieve expected synergies and may disrupt its business and harm the results of operations and the company financial condition.
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Its future funds requirements, in the form of fresh issue of capital or securities and/or loans taken by it, may be prejudicial to the interest of the shareholders depending upon the terms on which they are eventually raised.
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Some of the KMPs is associated with the company for less than one year.
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There is no guarantee that its Equity Shares will be listed on the Stock Exchanges in a timely manner or at all.
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The deployment of funds raised through this Issue shall not be subject to any Monitoring Agency and shall be purely dependent on the discretion of the management of the Company.
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Negative publicity could adversely affect its revenue model and profitability.
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Industry information included in this Draft Red Herring Prospectus has been derived from industry reports commissioned by it for such purpose. There can be no assurance that such third-party statistical, financial and other industry information is either complete or accurate.
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The requirements of being a public listed company may strain its resources and impose additional
requirements.
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There are restrictions on daily/weekly/monthly movements in the price of the Equity Shares, which may adversely affect a shareholders` ability to sell, or the price at which it can sell, Equity Shares at a particular point in time.
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After this Issue, the price of the Equity Shares may be highly volatile, or an active trading market for the Equity Shares may not develop.
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You will not be able to sell immediately on Stock Exchange any of the Equity Shares you purchase in the Issue until the Issue receives appropriate trading permissions.
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The Issue price of its Equity Shares may not be indicative of the market price of its Equity shares after the issue.
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Sale of Equity Shares by its Promoters or other significant shareholder(s) may adversely affect the Trading price of the Equity Shares.
