The application has been filed to NCLT under section 9 of Insolvency and Bankruptcy Code, 2016 against the Company and the same is pending with NCLT, Ahmedabad. Any adverse outcome of the pending proceeding will impact the operations of the Company.

The company products are sold under a single brand, "SWEET DREAMS'. Any inability to effectively market its products, or any deterioration in public perception of the company brand, could affect consumer footfall and consequently adversely impact its business, financial condition, cash flows and results of operations.

Its business is primarily concentrated on the sale of women's sleepwear's and is vulnerable to variations in demand and changes in consumer preferences which could have an adverse effect on its business, results of operations and financial condition.

The company operates in highly competitive markets in each of its product segments in both offline and online channels and an inability to compete effectively may adversely affect its business, results of operations and financial condition. Further, pricing pressure from its competitors may affect the company ability to maintain or increase its product prices and, in turn, the company revenue from product sale, gross margin and profitability, which may materially and adversely affect its business, cash flows, results of operations and financial condition.

If the company is unable to predict customer demands and maintain optimum inventory level there may be an adverse effect on its results of operations, financial condition, and cash flows.

Current locations of its exclusive brand outlets may become unattractive, and suitable new locations may not be available for a reasonable price, if at all. In addition, the company is exposed to all of the risks associated with leasing real estate and any adverse developments could materially affect its business, results of operations and financial condition.

There have been certain instances of regulatory non-compliances or delays or errors in the past. Its may be subject to regulatory actions and penalties for any such past or future non- compliance or delays or errors and its business, financial condition and reputation may be adversely affected.

The company Restated Financial Statements are prepared and signed by the Peer Review Auditor who is not Statutory Auditors of the Company as required under the provisions of ICDR.

The company inability to effectively manage or expand its retail network may have an adverse effect on the company's business, results of operations and financial condition.

While the company design its products in-house, the company relies on outsourcing the manufacturing of finished products to third-party manufacturing partners, without exclusivity arrangements and are dependent on them for its finished goods. Any inability to obtain sufficient quantities of apparel of the requisite quality in a timely manner and at acceptable prices, or a slowdown, shutdown or disruption in such third- party manufacturing partners' operations and performance, could adversely affect its business, cash flows, results of operations and financial condition.