Jiwanram Sheo

Brand building.

International Marketing.

One Stop Solutions.

Effective Supply Chain Integration.

Niche Product Marketing.

Indigenisation of Foreign Technology.

The Company and its Directors are parties to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, result of operations and financial conditions.

The company has a certain contingent liabilities which, if materialised, may adversely affect its financial condition.

The company Primary Raw material is leather and fabrics-the price of which keeps on changing and fluctuations in the price of the same may increase its production expenses which may have a financial impact on the Company.

The company is mainly dependent on exports for sale of its products. Consequently, the company is exposed to foreign currency fluctuations risks which may have an adverse effect on its business, result of operations and financial condition.

The company operate in an industry with several competitors, including large and established ones, and its may fail to compete successfully against existing or new competitors, which may reduce the demand for its products and services which may lead to reduced prices, operating margins, profits and further result in loss of market share across product categories.

The company may have low operating margins in future since its has experience in the past.

The Company requires significant amount of working capital for continuous growth. Its inability to meet the company working capital requirements may have an adverse effect on its results of operations.

The company inability to manage growth could disrupt its business and reduce the company profitability.

The Company generally does business with its customers on purchase order basis and the company has not entered into long term contracts with any of them.

Directorship of two Promoters is in Companies which have been strike off by the Registrar of Companies, Kolkata, West Bengal.

Any reduction in the demand for its products could lead to underutilisation of its manufacturing capacity.

The success of its business strategy depends on the company ability to enhance its own brands and product portfolio. If the company fail to maintain and enhance its brand and reputation, consumers` recognition of the company brands, and trust in it, the company business may be materially and adversely affected.

The company is dependent on third party transportation and logistics providers. Any disruption in logistics and transportation or significant increase in shipping and freight charges could adversely affect its business, financial condition and results of operations.

The company inability to collect receivables and default in payment from the company customers could result in the reduction of its profits and affect the company cash flows.

The Company has delayed payment of Government dues. This may materially adversely affect its business operations in the future.

The company presence in overseas market subject it to various business, economic, political, regulatory and legal risk.

The company is required to comply with certain restrictive covenants under its financing agreements. Any non-compliance may lead to, amongst others, accelerated repayment schedule, enforcement of security and suspension of further drawdowns, which may adversely affect its business, results of operations, financial condition and cash flows.

The company cannot assure you that the company will be able to secure adequate financing in the future on acceptable terms, in time, or at all. Its failure to obtain sufficient financing could result in delay or abandonment of the company business plans and this may have an adverse effect on its growth and operations.

The company has not received NOC from both its Bankers as on the date of filling of this Draft Prospectus.

The company is dependent upon the experience and skill of its management team and a number of key managerial personnel. If the company is unable to attract or retain such qualified personnel, this could adversely affect its business, results of operations and financial condition.

The company inability to obtain, renew or maintain its statutory and regulatory permits and approvals required to operate the company business may have a material adverse effect on its business, financial conditions and results of operations.

The company business is working capital intensive. If its experience insufficient cash flows from the company operations or are unable to borrow to meet its working capital requirements, it may materially and adversely affect its business and results of operations.

Shortage or non-availability of essential utilities such as electricity could affect its manufacturing operations and have an adverse effect on its business, results of operations and financial condition.

The company historical installed capacities and capacity utilisation of its facilities included in the Draft Prospectus need not be an indication of future production capacity and capacity utilisation.

Certain of its Promoter Group and Group Companies have conflicts of interest as they are engaged in similar business and may compete with the company.

The company insurance coverage may not be adequate to cover all losses or liabilities that the company may incur in its business and operations.

Some of its Corporate records including forms filed with Registrar of Companies are not traceable.

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 authorizes in future for non-compliance with provisions of corporate and other law could impact the financial position of the Company to that extent.

There are certain provisions of the Companies Act 1956/2013 which have not been complied by the company and any penalty in future can have an adverse impact on the financial position of the Company.

The company Promoters will continue to retain significant control in the Company, which will allow them to influence the outcome of matters submitted to shareholders for approval.

The company has in the past entered into related party transactions and may continue to do so in future, which may potentially involve conflicts of interest with its Shareholders.

The Promoter director and Promoter Key Managerial Personnel are interested in the Company`s performance in addition to their remuneration and reimbursement expenses.

The company management will have broad discretion in how its apply the Net Proceeds and there is no assurance that the Objects of the Offer will be achieved within the time frame expected, or at all, or that the deployment of Net Proceeds in the manner intended by it will result in any increase in the value of your investment.

The company 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 the company financing arrangements.

Industry information included in this Draft Prospectus has been derived from information freely available on the internet and research reports released by some non-government organisations . There can be no assurance that such third party statistical, financial and other industry data in the Draft Prospectus may be complete or reliable.

The Company has experienced negative cash flow from operating activities in prior periods and may continue to do so in the future, which could have a material adverse effect on its business, prospects, financial condition, cash flows and results of operations.