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The company is dependent on third party manufacturers to manufacture its products on job work basis. The company`s business is therefore dependent to a large extent on expected performance and operation of such manufacturers.
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There have been certain instances of non- compliances in respect of ROC filing or payments. Any penalty or action taken by any regulatory authorities in future for non-compliance with provisions of all applicable law and other law could impact on the financial position of the Company to that extent. Further, few form are not available in the company records.
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"Its logo and Trade Mark "ken" and "KEN" are not registered yet with Registrar of Trademark; any infringement of its brand name or failures to get it registered may adversely affect the company business.
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The company has experienced negative cash flows in the past and may continue to do so in the future and the same may adversely affect its cash flow requirements, which in turn may adversely affect its ability to operate the company business and implement the company growth plans, thereby affecting its financial condition.
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Its operations are geographically located in one area i.e. Ichalkaranji, Kolhapur, Maharashtra and any localized social unrest, natural calamities, etc. could have material adverse effect on business and financial operations.
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The company business is vulnerable to variations in demand and changes in consumer preferences, which could have an adverse effect on its business, results of operations and financial condition.
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If the company is unable to procure raw material of the required quality and quantity, at competitive prices and in absence of any long term contract or agreement with its suppliers, the company business, results of operations and financial condition may be adversely affected.
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Its Promoters and Directors have extended mortgage over their properties along with personal guarantees with respect to various loan facilities availed by the Company. Revocation of any or all of these personal guarantees may adversely affect its business operations and financial condition.
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The company Registered Office, a part of its factory I and warehouse from where the company operates are not owned by the Company. Any adverse impact on the title /ownership rights of the owner, from who`s premises the company operate its registered office, part of its Factory I and warehouse or breach of the terms / non-renewal of the rent agreements, may cause disruption in its corporate affairs and business and impede the company effective operations and thus adversely affect its profitability.
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The company industry is labour intensive and its business operations may be materially adversely affected by strikes, work stoppages or increased wage demands by the company employees or those of its suppliers.
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The company has entered into related party transactions in the past and may continue to do so in the future. The company has entered into certain transactions with related parties. These transactions or any future transactions with its related parties could potentially involve conflicts of interest.
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Its Promoter of the Company are party to certain litigation and claims. These legal proceedings are pending at different levels of adjudication before the court and regulatory authority. Any adverse decision may make it liable to liabilities/ penalties and may adversely affect its reputation, business, and financial status.
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The company business is dependent on its manufacturing activities and the company is subject to all risks associated with manufacturing processes. Any disruptions caused in its manufacturing activities could materially and adversely affect the company business, financial condition, cash flows and results of operations.
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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 company export is products in various international markets which make its operations subject to risks and uncertainties of various international markets. Further, its revenue from operations is significantly dependent on export sales and there is no assurance that its may be able to continue the company export sales going forward.
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Changing regulations in India could lead to new compliance requirements that are uncertain. The regulatory environment in which the company operates is evolving and is subject to change.
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Its business is operating under various laws which require the company to obtain approvals from the concerned statutory/regulatory authorities in the ordinary course of business and its inability to obtain, maintain or renew requisite statutory and regulatory permits and approvals for its business operations could materially and adversely affect the compay business, prospects, results of operations and financial condition.
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If any industrial accident, loss of human life or environmental damage were to occur the company could be subject to significant penalties, other actionable claims and, in some instances, criminal prosecution.
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The company has not entered into any long-term contracts with any of its customers and operate on the basis of purchase orders, which could adversely impact its revenues and profitability.
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The company faces competition in its business from organized and unorganized players, which may adversely affect the company business operations and financial condition.
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Its insurance coverage may not be adequate to protect the company against all losses, which could adversely affect business, results of operations and financial condition.
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The objects of the Issue include funding working capital requirements of the Company, which is based on certain assumptions and estimates.
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The company currently derive its revenue solely from the sale of regular and sustainable greige fabrics, if its products are not wellreceived by the markets or there is a shift in customers buying pattern, its business could be adversely affected.
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The company does not have any international office or business place to look after its Export Operations.
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The company is highly dependent on third party logistics services for the delivery of its raw materials/ finished products and any disruption in their operations or a decrease in the quality of their services could affect the Company`s reputation and results of operations.
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Its operations are subject to high working capital requirements. If the company is unable to generate sufficient cash flows to allow it to make required payments, there may be an adverse effect on the company operations.
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In addition to normal remuneration, other benefits and reimbursement of expenses some of its Directors (including the company Promoter) and Key Management Personnel are interested in the Company to the extent of their shareholding and dividend entitlement in the Company.
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Reliance has been placed on information furnished by its certain Directors and Key Managerial Personnel for details of their profiles included in this Prospectus.
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Its success depends largely upon the services of the company Management and other Key Managerial Personnel and its ability to not to retain them may adversely affect the operations of the Company.
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Its operations are subject to environmental, health and safety laws and regulations.
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The company has no contingent liabilities and capital commitments pending as of date. Its financial condition could be adversely affected if any of these contingent liabilities or capital commitments materialize in future.
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Significant security breaches in its computer systems and network infrastructure, fraud, systems failures and calamities would adversely impact the company business.
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Upon completion of the Issue, its Promoter / Promoter Group may continue to retain significant control, which will allow them to influence the outcome of matters submitted to the shareholders for approval.
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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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Its ability to pay dividends in the future will depends upon the company future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in its financing arrangements.
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Any future issuance of Equity Shares may dilute its shareholdings, and the sale of the Equity Shares by the company major shareholders may adversely affect the trading price of its Equity Shares.
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The Issue Price of the company Equity Shares may not be indicative of the market price of its Equity Shares after the Issue and the market price of the company Equity Shares may decline below the Issue Price and you may not be able to sell your Equity Shares at or above the Issue Price.
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The company is subject to the risk of failure of, or a material weakness in, its internal control systems.
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Its may not succeed in continuing to establish, maintain and strengthen the company reputation and it could be harmed by complaints and negative publicity due to inferior product quality, delayed deliveries etc which could materially and adversely affect customer acceptance of its products and the company business revenue and future prospects.
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Its may faces some delays in implementation of the company proposed objects.
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The Company has not yet placed orders for new machineries required by it for expansion of the company manufacturing facility. Any delay in placing the orders or supply of new machineries may result in time and cost overruns, and may affect its profitability.
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Its insurance coverage may not be adequate to protect the company against all losses, which could adversely affect business, results of operations and financial condition.
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Its majority of directors does not possess experience of any listed company.
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The company may not be successful in implementing its business strategies.
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If the company does not obtain, renew, or maintain the statutory and regulatory permits and approvals required to operate its business, it could have a material adverse effect on the company business.