Purple United Sales Ltd IPO

The company's business from retail outlet is concentrated in the National Capital Region (NCR) only. As of September 30, 2024, revenue from National Capital Region (NCR) constitute Rs. 506.63 Lakhs i.e. 16.61% of its revenue for September 30, 2024. Any adverse impact in this region may adversely affect its business, results of operations and financial condition.

The company proposed expansion plans relating to the opening of new stores are subject to the risk of unanticipated delays in implementation and cost overruns.

The company's business requires significant working capital, necessitating substantial financing. If the company is unable to secure additional debt or equity financing on favourable terms, it may lead to increased interest costs, restrictive covenants, or equity dilution, adversely impacting its financial performance, operations, and the market price of the company Equity Shares.

There are certain discrepancies and non- compliances noticed in some of its financial reporting and/or records relating to filing or returns and deposit of statutory dues with the taxation and other statutory authorities.

The Company has delayed in complying with certain statutory provisions under various laws. Such delayed compliance /lapses may attract certain penalties.

The Company requires significant amounts of working capital for a continued growth. Its inability to meet the company working capital requirements may have an adverse effect on its results of operations.

The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Issue. Further the company has not identified any alternate source of financing the 'objects of the Issue'. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.

Its inability to collect receivables and default in payment from the company customers could result in the reduction of its profits and affect the company cash flows.

In the past Company had delayed in the EPF and GST returns. This may adversely affect the financial performance and regulatory compliance of the company.

The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Issue. Further the company has not identified any alternate source of financing the 'objects of the Issue'. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.