Omfurn India

Experienced Management and Motivated Team.

Skilled and dedicated manpower.

Range of Product Offerings.

Compliance with Quality Standards.

Existing customer relationship.

Strong & Long term relationship with its Clients.

Substantial portion of its revenues come from the manufacturing of doors.

The company proposes to enter into new products viz. metal doors to be supplied to the construction and hotel industry. Its may fail to generate new clients for these products and sell in these industries due to competition and other commercial factors.

The Company has not entered into any long-term agreements with its customers for purchasing our products. The company is subject to uncertainties in demand and there is no assurance that its customers will continue to purchase the company products. This could impact the business and financial performance of the Company.

Its Showroom/ Registered Office and Godown are located on leased and licensed premises and consequently, its required to comply with certain requirements given under lease and license agreements.

Its customers expect the company to maintain high quality standards and any failure by it to comply with such quality standards may have an adverse effect on demand from end customers and on its reputation, business, results of operations and financial condition.

Its manufacturing unit are situated in Gujarat at Umbergaon GIDC and its operations may be affected by various factors associated with the region where the company operate.

If the company is unable to successfully implement its proposed expansion plans, its results of operations and financial condition could be adversely affected.

The company has substantial working capital requirements. Its inability to obtain and / or maintain sufficient cash flow, credit facilities and other sources of funding in a timely manner to meet its requirements of working capital or payment of the company debts, could adversely affect its operations.

The company may not be able to adequately protect or continue to use its intellectual property. The reputation of its brand "OMFURN" may be diluted if low quality counterfeit products under its brand name are sold in the company`s markets.

The company has certain outstanding litigation against it, an adverse outcome of which may adversely affect its business, reputation and results of operations.

In case of its inability to obtain, renew or maintain the statutory and regulatory licenses, permits and approvals required to operate its business it may have a material adverse effect on its business.

Developments in the competitive environment in the furniture industry, such as consolidation among its competitors, could have a material adverse effect on the company competitive position and hence its business, financial condition, results of operations or prospects.

The Company has not entered into long-term agreements for the supply of raw materials with its suppliers. The company is subject to uncertainties in the supply of raw materials and there is no assurance that its suppliers will continue to sell raw materials to it as per its requirements. This could impact the business and financial performance of the Company.

Its success largely depends upon the services of the company senior management and other Key Managerial Personnel (KMP) and its ability to attract and retain them. Demand for senior management personnel in the industry is intense and its inability to attract and retain its KMP may affect the operations of the Company.

The company does not own its Registered Office. Any revocation or adverse changes in the terms of the lease and leave and license may have an adverse effect on its business, prospects, results of operations and financial condition.

The company failures to accurately forecast and manage inventory could result in an unexpected shortfall and/ or surplus of products, which could harm its business.

Its inability to respond adequately to increased competition may adversely affect its business, financial condition and results of operations.

Any ban on wood cutting by the Government of India may affect its business.

In the event of any accident at its manufacturing units, the Company may be held liable for damages and penalties which may impact the financials of the Company.

Furniture products manufacturing is a labour intensive industry, hence its may face labour disruptions and other planned and unplanned outages that could interfere or temporarily disrupt its operations.

Its business is dependent on the company`s manufacturing units which are strategically located in Gujarat. Any shutdown of operations of its manufacturing units may have an adverse effect on the company`s business and results of operations.

Any reduction in the demand for its products could lead to underutilization of the company`s manufacturing capacity. Its may also face surplus production of a particular product due to various reasons including inaccurate forecasting of customer requirements, which could adversely affect its business, results of operations, financial condition and cash flows.

The Company is dependent on third party transportation providers for the supply of raw materials and delivery of its 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.

In the event the company fail to obtain, maintain or renew its statutory and regulatory licenses, permits and approvals required to operate its business, the company`s business and results of operations may be adversely affected.

Its business and profitability will suffer if the company fail to anticipate and develop new value added products and enhance existing products in order to keep pace with rapid changes in customer preferences and the industry on which its focus.

The company is exposed to the risks of significant breaches of data security, and malfunctions or disruptions of information technology systems.

The Company has in the past entered into related party transactions and may continue to do so in the future. There can be no assurance that such transactions, individually or in the aggregate, will not have an adverse effect on its financial condition and results of operations.

Its agreements with banks for financial arrangements contain restrictive covenants for certain activities and if the company is unable to get their approval, it might restrict its scope of activities and impede the company growth plans.

Its Promoters have provided personal guarantees for the company loans and any failure or default by it to repay such loans in accordance with the terms and conditions of the financing documents could trigger repayment obligations, which may adversely affect its Promoters` ability to manage its affairs.

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 its business plans and this may have an adverse effect on its growth and operations.

Its Promoters and Promoter Group will continue to retain significant control in the Company after the Issue, which will allow them to influence the outcome of matters submitted to shareholders for approval. Such a concentration of ownership may also have the effect of delaying, preventing or deterring a change in control.

Its ability to pay dividends in the future will depends upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures and are also prohibited by the terms of its financing arrangement.

Its insurance cover may not adequately protect the company against all material hazards and accidents.

The Objects of the Issue for which funds are being raised have not been appraised by any bank. The deployment of funds is entirely at the discretion of its management and as per the details mentioned in the section titled "Objects of the Issue". Any revision in the estimates may require it to reschedule its expenditure and may have a bearing on its expected revenues and earnings.

Any variation in the utilisation of its Net Proceeds would be subject to certain compliance requirements, including prior shareholders` approval.

The company may requires further equity issuance, which will lead to dilution of equity and may affect the market price of its Equity Shares or additional funds through incurring debt to satisfy its capital needs, which its may not be able to procure and any future equity offerings by it.

The Issue price of its Equity Shares may not be indicative of the market price of the company Equity Shares after the Issue and the market price of its 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.

Certain data mentioned in this Draft Red Herring Prospectus has not been independently verified.

QIBs and Non-Institutional Bidders are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid and Retail Individual Investors are not permitted to withdraw their Bids after Bid/Issue Closing Date.