K K Silk Mills Ltd IPO

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

There may be potential conflicts of interest if its Promoters, Promoters' Group entities who are involved in same business activities that compete with or are in the same line of activity as the company business operations.

Its revenue is concentrated in the state of Gujarat and Maharashtra and any adverse developments affecting Gujarat and Maharashtra could have an adverse effect on the company business, results of operations and financial condition.

The company has had made non-compliances of certain provision under Companies Act, 2013.

The company is subject to strict quality requirements and are consequently required to incur significant expenses to maintain its product quality. Any failures to comply with such quality standards may lead to cancellation of existing and future orders which may adversely affect its reputation, financial conditions, cash flows and results of operations.

The Company is dependent on few numbers of customers for sales. Loss of any of this large customer may affect its revenues and profitability.

The Company is dependent on few suppliers for purchase of product. Loss of any of these large suppliers may affect the company business operations.

Its Restated Financial Statements are prepared and signed by the Peer Review Auditor who is not Statutory Auditors of ths Company as required under the provisions of ICDR.

Its cost of production is exposed to fluctuations in the prices of raw material prices particularly yarn, fabrics and accessories and the company has not entered into any agreement in respect of long-term supply for raw materials required by it.

The Company's manufacturing activities are labour intensive and depends on availability of skilled and unskilled labourers in large numbers. In case of unavailability of such labourers and / or inability to retain such personnel, its business operations could be affected.