Experienced Promoter and Management Team.
Scalable Business Model.
Wide and diverse range of product offerings.
In-house manufacturing facility with equipped machines and processes. Further having in-house Quality Control
and Research & Development facility.
The company has certain outstanding litigation against it, an adverse outcome of which may adversely affect the company's business,
reputation and results of operations.
The company's business is dependent and will continue to depends on its manufacturing facilities, and the company is subject to certain
risks in its manufacturing process. Any slowdown or shutdown in the company's manufacturing operations or strikes, work
stoppages or increased wage demands by its employees that could interfere with the company operations could have an adverse
effect on its business, financial condition and results of operations.
Majority of the company's 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 its operations and profitability.
The top ten customers of the company's product and top ten suppliers for raw material contribute a substantial part of its total
revenue and source of Raw Material. The company does 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 its revenues and profitability.
Certain assumptions have been made in the absence of historical data from 1996 to 2006; variations in Capital Structure
and other factors could impact the accuracy of the RHP 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 85 of this 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 the company's corporate records relating to forms filed
with taxation authorities and other public authorities.
The Company has a negative cash flow in its operating, investing activities and Net Increase / Decrease in Cash & Cash
Equivalents for the financial years ended March 31, 2026, March 31, 2025, and March 31, 2024 details of which are
given below. Sustained negative cash flow could impact its growth and business.
Non-recovery of business advances may adversely impact the Company's financial position and cash flows.
