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The top ten Buyers of its Product and top ten suppliers for raw material contribute majority of revenue and source of Raw Material. The company does not have long term agreement with the customer or supplier. The loss of any Customer or a decrease in the volume of order by any customer or any disruption in supply of raw material by any supplier may adversely affect its revenues and profitability.
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The Company has sold out its cloths and readymade garments manufacturing units and its now in to
trading activities.
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The company does not own registered office from which its operate.
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The Company is providing credit of average more than 100 days to the customers and also enjoy credit facility from the suppliers of average more than 100 days.
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An Appeal filed before the Income Tax tribunal challenging the order passed under section 263(1) of the Income Tax Act, 1961 by the Principal Commissioner of Income Tax, any failure to plead its case successfully may have an adverse effect on the company business prospects, financial condition, result of ongoing operations and reputation.
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The company have to update the name of the company in some of the statutory approvals and certificates due to the Change in the name upon conversion of the Company in to Public Limited Company.
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Its business requires it to obtain and renew certain registrations, licenses and permits from government and regulatory authorities and the failure to obtain and renew them in a timely manner may adversely affect its business operations.
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The company has yet to obtain to Enrollment Certificate and Registration Certificate under the provisions of Gujarat State Tax on Profession, Trade, Calling and Employment Act, 1976.
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Certain inaccuracy in relation to filings of forms with the RoC were done by the company.
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The company results of operations may be materially adversely affected by its failure to anticipate and respond to changes in fashion trends and consumer preferences in a timely manner.
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There are no long-term supply agreements with its vendors/suppliers. The company Business may be adversely affected if there is any disruption in the supply of trading material or due to non-availability of trading material.
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The Company had issued share Certificates without payment of necessary stamp duty on share Certificates.
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The company insurance coverage may not adequately protect it against certain operating risks and this may have an adverse effect on the results of its business.
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The company is dependent on third party transportation providers for delivery of trading goods and materials to it from its suppliers and delivery of Garments and materials to the company clients. Any failure on part of such service providers to meet their obligations could have a material adverse effect on its business, financial condition and results of operation.
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The company may not be successful in implementing its business strategies.
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The company do business with its customers on purchase order basis and do not have any long term contracts with most of them.
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The company have unsecured loans from directors and relatives of directors, which are repayable on demand. Any demand from lenders for repayment of such unsecured loans, may adversely affect its liquidity and business operations.
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Failure to manage its inventory could have an adverse effect on the company net sales, profitability, cash flow and liquidity.
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The company could be exposed to risks arising from misconduct, fraud and trading errors by its employees and Business Associates.
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The Company does not have intellectual property rights over its corporate logo.
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The Company is subject to high working capital requirements and its inability to fund these requirements in a timely manner may adversely impact its financial performance.
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The company have experienced negative cash flows in previous years / periods. Any operating losses or negative cash flows in the future could adversely affect its results of operations and financial condition.
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The company have 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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The company Promoter, Directors and Key Managerial Personnel may have interest in the Company, other than reimbursement of expenses incurred or remuneration.
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Sale of shares by its promoter or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.
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The issue price of the Equity Shares may not be indicative of market price of its equity shares after the issue and the market price of the company Equity shares may decline below the issue price.
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There is no monitoring agency appointed by the Company and the deployment of funds are at the
discretion of its Management and the company Board of Directors, though it shall be monitored by the company Audit Committee.
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The company`s success depends heavily upon its Promoter and Senior Management for their continuing services, strategic guidance and financial support.
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The company have not identified any alternate source of financing the `objects of the Issue`. If the company fail to mobilize resources as per its plans, its growth plans may be affected.
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The company ability to pay dividends in the future will depends upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.
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The company have not independently verified certain data in this Prospectus.
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The company funding requirements and proposed deployment of the Net Proceeds are based on management estimates and have not been independently appraised, and may be subject to change based on various factors, some of which are beyond its control.