Technical Expertise.
Good relationship with Original Equipment Manufacturer (OEMs) and suppliers.
Centralized operation.
Experienced Leadership and an efficient management team.
Well established association with Government entities.
We have certain outstanding litigation against us, an adverse outcome of which may adversely affect our business,
reputation and results of operations.
Our business is dependent and will continue to depend on our manufacturing facilities, and we are subject to certain
risks in our manufacturing process. Any slowdown or shutdown in our manufacturing operations or strikes, work
stoppages or increased wage demands by our employees that could interfere with our operations could have an adverse
effect on our business, financial condition and results of operations.
Majority of our revenue is dependent on single business segment i.e. manufacturing and trading of fiber, yarns and
knitted cloth. Any adverse impact on sales of a product would adversely affect our operations and profitability.
The top ten customers of our product and top ten suppliers for raw material contribute a substantial part of our total
revenue and source of Raw Material. We do not have long term agreement with the customer or supplier. The loss of
any Customer or a decrease in the volume of order by any customer or any disruption in supply of raw material by any
supplier may adversely affect our revenues and profitability.
Certain assumptions have been made in the absence of historical data from 1996 to 2003; variations in Capital Structure
and other factors could impact the accuracy of the DRHP and affect Investment Decisions.
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 the Company's implementation
schedule and may also lead to increase in price of these plant & machineries, further affecting its revenue and
profitability.
Within the parameters as mentioned in the chapter titled "Objects of this Issue" beginning on page 84 of this Draft Red
Herring Prospectus, the fund requirement and deployment mentioned in the Objects of this Issue have not been
appraised by any bank or financial institution.
There are certain discrepancies and non-compliances noticed in some of our corporate records relating to forms filed
with taxation authorities and other public authorities.
There are certain discrepancies and non-compliances noticed in some of our statutory compliances reporting and/or
records relating to filing of returns with the concerned Registrar of Companies.
Since the Company was incorporated on March 08, 1996, certain documents were not available during the physical
inspection at the Registrar of Companies (RoC). Accordingly, the Book Running Lead Manager (BRLM) has relied on
backup documents provided by the Company, including minutes of meetings and statutory registers, for the purpose of preparing this chapter.
