Alpine Texworld Ltd IPO

Substantial portion of the company's revenues has been dependent upon its top 10 customers for the Fiscal 2026, Fiscal 2025 and Fiscal 2024 which amounted to Rs. 2,410.22 million, Rs. 1,665.85 million and Rs. 1,319.29 million which accounted for 70.33%, 70.19 % and 71.86 % of the company's revenue from operations for the respective years, with whom its does not has any firm commitments. The loss of any one or more of the company's top 10 customers would have a material adverse effect on its business, cash flows, results of operations and financial condition.

The Company's commenced operations at Manufacturing Unit II without obtaining Consolidated Consent and Authorization (CCA) from Gujarat Pollution Control Board (GPCB) and there is no assurance that similar non-compliances will not occur for its Proposed Manufacturing Unit III. The Company was subject to regulatory scrutiny for delays in obtaining CCA for Manufacturing Unit II and any future lapses, whether due to operational, administrative, or technical reasons, could have a material adverse effect on the Company's business, results of operations, and financial condition.

The Company and one of its Promoter Group / Group Companies, i.e. Alpine Weaving Private Limited, has extended corporate guarantees aggregating to Rs. 557.50 million to secure the debt facilities availed by the company's Subsidiary. The corporate guarantee constitutes a material contingent liability for the Company. While the Subsidiary has been regular in servicing its debt obligations, there can be no assurance that the Subsidiary will continue to service its debt obligations in a timely manner in the future. Any default by the Company's Subsidiary may result in invocation of the guarantees.

Any increase in interest rates would have an adverse effect on its results of operations and will expose the Company to interest rate risks.

The Company's long-term rating was downgraded by CRISIL Ratings Limited from `CRISIL BBB- /Stable' to `CRISIL BB/Stable' and its short-term rating from `CRISIL A3' to `CRISIL A4+' with a remark "Issuer Not Cooperating". Any adverse perception arising from such credit rating or any future downgrade of its credit ratings by a domestic or international credit rating agency may adversely affect the perception of the company's credit profile, increase its cost of borrowings, adversely affect the company's ability to borrow on a competitive basis and have a material adverse effect on its business, financial condition, cash flows and results of operations.

The company's Subsidiary, Alpine Cottweave LLP and Group Companies, Aarnav Fashions Limited, Aarnav Industries Private Limited, Alpine Weaving Private Limited, Sameep Fabrics Private Limited, Sameep Texfab LLP and One World Texofab Private Limited are in the same line of industry. Besides its Subsidiary, the Group Companies is engaged in different business activities than that of the Company and no non-compete agreements has been executed, which could create conflicts of interest and may also have an adverse effect on its business.

Potential Conflict of Interest and Related Party Considerations in Land Acquisition.

The Company has negative cash flows from its investing activity and financing activity, details of which are given below. Sustained negative cash flow could adversely impact the company's business, financial condition and results of operations.

The Company and its Subsidiary has unsecured borrowings, loans from related parties and loans from others which are repayable on demand. Any demand from lenders for repayment of such unsecured loans may adversely affect its cash flows.

The company is subject to restrictive covenants under its credit facilities that limit the company's operational flexibility.