Karnika Industries Ltd IPO

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

The company has significant power requirements for continuous running of the factories. Any disruption to its operations on account of interruption in power supply or any irregular or significant hike in power tariffs may have an effect on the company business, results of operations and financial condition.

The company is dependent on Job work for manufacturing of its Products, any disruption to the operations on account of Job work may have an effect on the business, results of operations and financial condition.

The company's business is manpower intensive and any unavailability of the employees or shortage of labour or any strikes, work stoppages, increased wage demands by workmen or changes in regulations governing hiring of labour may have an adverse impact on its cash flows and results of operations.

There are outstanding legal proceedings involving the Company and Group Company. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.

The restated financial statements have been provided by peer reviewed chartered accountants who is not statutory auditor of the Company.

The property used by the Company for the purpose of its operations is not owned by it. Any termination of the relevant rent agreement in connection with such property or its failure to renew the same could adversely affect the company operations.

The company top ten customers contribute majority of the revenues from operations. Any loss of business from one or more of them may adversely affect its revenues and profitability.

The company top ten suppliers contribute majority of the purchases. Any loss of business with one or more of them may adversely affect its business operations and profitability.

Its may not be able to adapt to changing market trends and customer requirements in the fashion market in a timely manner, or at all.