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If the company is unable to anticipate or respond to changing consumer preferences and trends pertaining to its products and foam industry in a timely and effective manner, the demand for its products may decline, which may have an adverse effect on its business, results of operations and financial condition.
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The Company may be unable to implement new technologies for the company`s business operations in a timely and cost-effective manner, or at all, which could adversely affect its business, results of operations, cash flows and financial condition.
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The Company may be unable to obtain, renew or maintain statutory and regulatory permits, licenses and approvals required to operate its business and operate its manufacturing facilities, which could result in an adverse effect on its results of operations.
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The company does not own its registered office and factory office from which the company carry out itsr business activities.
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Any delay or default in payment from its distributors, dealer and customers could result in the reduction of its profits and affect the company cash flows.
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The Company may not be able to sustain if there is no effective implementation of its business and growth strategy.
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Its Promoter and the Promoter Group will jointly continue to retain majority shareholding in the Company after the issue, which will allow them to determine the outcome of the matters requiring the approval of shareholders.
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Its Restated Financial Statements are prepared and signed by the Peer Review Auditor who is not Statutory Auditors of the Company as required under the provisions of SEBI (ICDR) Regulations 2018.
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The company has entered into Related Party Transactions and continue to do so in future. There can be no assurance that such transactions, individually or in the aggregate, will not have an adverse effect on the Company`s financial condition and results of operations.
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Its ability to pay dividends in the future will depends upon its future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in its financing arrangements.
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Information in relation to its installed capacity and capacity utilization of the company manufacturing facility included in this Draft Prospectus is based on various assumptions and estimates, and future production and capacity utilization may vary.
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Under-utilization of its manufacturing capacities and an inability to effectively utilize its expanded manufacturing capacities could have an adverse effect on its business, future prospects and future financial performance.
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Improper handling, processing or storage of its products, or spoilage of and damage to such the company products, could damage its reputation and have an adverse effect on the company`s business, results of operations and financial condition.
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The company operates in a competitive environment and may not be able to effectively compete due to various factors not under its control, which could have a material adverse effect on its business, results of operations and financial condition.
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The Company has unsecured loans that may be recalled by the lenders at any time and its Company may not have adequate funds to make timely payments or at all.
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If the company is unable to source business opportunities effectively, its may not achieve its financial objectives.
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The success of its manufacturing process is dependent upon few suppliers for its raw material supplies for its business operations. In an eventuality where the company suppliers are unable to deliver it the required materials in a time - bound manner it may have a material adverse effect on its business operations and profitability.
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In the twelve months prior to the date of filing this Draft Prospectus, the Company had issued Equity Shares at a price, which may be lower than the Issue Price.
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There have been certain instances of regulatory delayed-compliances or delays or errors in the past. Its may be subject to regulatory actions and penalties for any such past or future non- compliance or delays or errors and its business, financial condition and reputation may be adversely affected.
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The Company, directors and promoters are party to certain litigation and claims. These legal proceedings are pending at different levels of adjudication before various courts and regulatory authorities. Any adverse decision may make it liable to liabilities/penalties and may adversely affect its reputation, business and financial status. A classification of these legal and other proceedings is given below.
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Its success is dependent on the company management, skilled manpower. Its inability to attract and retain key personnel or the loss of services of its Promoter Director may have an adverse effect on its business prospects.
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The Company has negative cash flows from its operating and investing activities in the past years, details of which are given below. Sustained negative cash flow could impact its growth and business.
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The company sell its products through an extensive network of distributors and dealers directly to clients, and any inability to expand or effectively manage its growing distribution and sales network may have an adverse effect on its business, results of operations and financial condition.
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The mattresses and pillows and foam manufacturing industry is competitive and its inability to compete effectively may adversely affect the company business, results of operations, financial condition and cash flows.
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Fraud, theft, employee negligence or similar incidents may adversely affect its results of operations and financial condition.
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The company does not hold any patents or other form of intellectual property protection in relation to its manufacturing processes, and its inability to maintain the integrity and secrecy of its manufacturing processes may adversely affect its business.
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Certain agreements may be inadequately stamped or may not have been registered as a result of which its operations may be adversely affected.
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The company relies on third parties to transport its products to its distributors and customers, and any disruption in the company transportation arrangements or increases in transportation costs may adversely affect its business, results of operations and financial condition.
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Its funding requirements and proposed deployment of the Net Proceeds are based on management estimates and may be subject to change based on various factors, some of which are beyond its control. If the company is unable to deploy the Net Proceeds in a timely or an efficient manner, it may affect its business, results of operations and financial condition.
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Any variation in the utilisation of the Net Proceeds or in the terms of any contract as disclosed in this Draft Prospectus would be subject to certain compliance requirements, including prior shareholders` approval.
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The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Offer. Further the company has not identified any alternate source of financing the Objects of the Offer. Any shortfall in raising / meeting the same could adversely affect its growth plans, business operations and financial condition.
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Its actual results could differ from the estimates and projections used to prepare its financial statements.
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If the company is unable to raise additional capital, its business prospects could be adversely affected.
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Its financing agreements entail interest at variable rates and any increases in interest rates may adversely affect its results of operations.
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The company has not commissioned an industry report for the disclosures made in the chapter titled ndustry Overview` and made disclosures on the basis of the data available on the internet and such data has not been independently verified by it.
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Its insurance coverage may not be sufficient or may not adequately protect it against all material hazards, which may adversely affect its business, results of operations and financial condition.
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The average cost of acquisition of Equity Shares by its Promoters could be lower than the price determined at time of registering the Draft Prospectus.
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Any inability on its part to keep pace with the technological developments could adversely impact its business, results of operations and financial conditions.
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Non compliance with and changes in, safety, health and environmental laws and other applicable regulations in its manufacturing operations may adversely affect the company`s business, results of operations and financial condition.
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Its Promoters, who are also Directors and Key Management Personnel have interests in its business other than reimbursement of expenses incurred or normal remuneration or benefits. They may cause the Company to take actions, or refrain from taking actions, in order to benefit themselves instead of the Company`s interests or the interests of its other Shareholders and which may be harmful to the Company`s interests or the interests of its other Shareholders, which may materially adversely impact its business, financial condition, results of operations and cash flows.
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The company is highly dependent on its Key Managerial Personnel and the company`s Senior Management Personnel for its business. The loss of or its inability to attract or retain such persons could have a material adverse effect on its business performance.
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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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If the company fail to maintain an effective system of internal controls, its may not be able to successfully manage, or accurately report, its financial risks.
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The company has availed certain unsecured borrowings which may be recalled by its lenders at any time.
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Its may raise further borrowings and charge its assets.