The company operates in a heavily regulated sector and its operations are subject to environmental, health and safety regulations that could expose it to liability, increase its cost of operations or otherwise have a material adverse effect on its results of operations and could also result in enhanced compliance obligations.

Majority of its revenue is dependent on single business segment i.e. manufacturing of fiber and yarns. Any adverse impact on sales of a product would adversely affect its operations and profitability.

Its business depends on the company manufacturing facility and the loss of or shutdown of operations of the manufacturing facility on any grounds could adversely affect its business or results of operations. Further, the company's business involves usage of manpower and any unavailability of its employees or any strikes, work stoppages may have an adverse impact on its cash flows and results of operations.

The Company is dependent on a few suppliers for purchases of product/service. The loss of any of these large suppliers may affect its business operations.

Too much Geographical concentration of its Business in one location can impact the company's Business.

The company faces competition in its business from organized and unorganized players, which may adversely affect its business operation and financial condition.

The company derives a majority portion of its revenue from operations from the company top 10 customers, contributing 78.18% revenue from operations for the period ended March 31, 2024. Loss of one or more of these customers or a reduction in the amount of business the company obtain from them could have an adverse effect on its business, results of operations, financial condition and cash flows. Further, the company does not have long-term agreements with any its customers.

There are outstanding proceedings involving the Company, Promoters and Directors. Any adverse decision in such proceedings may have an adverse effect on its business, results of operations and financial condition.

The company has been in non-compliance of certain provisions of Companies Act, 2013, for which an application for adjudication has been filed with the ROC.

The Company is yet to place orders for 100% of the plant & machineries for its proposed object, as specified in the Objects of the Issue. Any delay in placing orders, procurement of plant & machineries may delay its implementation schedule and may also lead to increase in price of these plant & machineries, further affecting its revenue and profitability.