Duroflex Limited IPO

The company's business and results of operations are significantly dependent on its Brands, under which we offer a wide range of products, including mattresses, foam and furniture and any impairment, dilution or damage to the company's Brands in any manner may adversely affect its business reputation, results of operations, financial condition and cash flows.

The company derives a significant portion of its revenue from the company's mattress and branded foam product categories. The company's revenue from the sale of mattress accounted for 54.74%, 51.41%, 51.79% and 55.54% of its revenue from operations in the three months period ended June 30, 2025 and Fiscals 2025, 2024 and 2023, respectively. The company's revenue from the sale of branded foam accounted for 36.75%, 39.37%, 36.62% and 33.69% of its revenue from operations in the three months period ended June 30, 2025 and Fiscals 2025, 2024 and 2023, respectively. Any shifts in customer preferences, any disruption in the supply chain, or heightened competition in these product categories could adversely affect our business, results of operations, financial condition and cash flows.

The company is exposed to risks relating to our general trade distribution channels and its inability to effectively manage our general trade distribution channels could adversely affect the company's business, financial condition and results of operations, including its network of trade stores.

The company is exposed to risks relating to its e-commerce channels, such as technical issues that may affect ecommerce platforms, changes in customer behaviour and platform disruptions.

The company's COCO Stores may not perform as expected and we may be unable to successfully expand its COCO Store network, which may adversely impact the company's business, financial condition and results of operations.

The premises of all of the company's COCO Stores are leased or sub-leased or are on leave and license basis. If the company fails to renew these leases and leave and license agreements on competitive terms or if the company is unable to manage its rental costs, the company's business, results of operations, financial condition and cash flows would be adversely affected.

The company's business is dependent on its manufacturing facilities and the company is subject to certain risks in the company's manufacturing processes. Any unscheduled, unplanned or prolonged disruption of its manufacturing operations could materially and adversely affect the company's business, financial condition, cash flows and results of operations.

Under-utilization of its manufacturing capacities over extended periods, or significant underutilization in the short term could increase the company's cost of production and our operating costs and adversely impact its business, growth prospects and future financial performance.

The depends on certain key suppliers to procure its raw materials. Further, the company does not have long term agreements with suppliers for its raw materials and an increase in the cost of or a shortfall in the availability of such raw materials could have an adverse effect on the company's business, results of operations, financial condition and cash flows.

Any failures in the company's quality control processes or if the quality of its products does not meet the company's customers' expectations, could have an adverse effect on its business, results of operations, financial condition and cash flows.