Cedaar Textile Ltd IPO

Its top ten customers contribute significant portion in the revenue of the Company. Any loss of business from one or more of them may adversely affect its revenues and profitability.

The Company has not entered into any long-term contracts with any of its customers and we typically operate on the basis of purchase orders. Inability to maintain regular order flow would adversely impact our revenues and profitability.

Its business depends on the company production facility situated in city of Punjab. Any loss of or shutdown of operations of the production facility on any grounds could adversely affect its business or results of operations.

Any change in the consumer's likes, preferences or a change in their perception regarding the quality of its products may negatively affect the image and the company reputation and in turn affect its revenues and profitability.

Its may not be able to prevent unauthorized use of the company logo as the company has not obtained/ applied for the trademark license. Consequently, its trademarks may be obtained or used by third party(ies), which may lead to the dilution of the company goodwill.

Its inability to manage inventory in an effective manner could affect the company business.

The company does not have any long-term agreement or contract of supply of raw materials and consequently are exposed to price and supply fluctuations for its raw materials.

The future operating results are difficult to predict and may fluctuate or adversely vary from the past performance.

The loss, shutdown or slowdown of operations of its facility or the under-utilization of any such facility may have a material effect on its results of operations and financial condition.

Exporting to Bangladesh involves risks due to political instability, security concerns, and internal tensions. Issues like border disputes, strikes, and protests can disrupt trade, increase costs, and reduce consumer demand. Additionally, political instability can affect financial institutions, leading to payment delays and higher risks for exporters.