Saraswati Saree Depot Ltd IPO

The company's business is highly concentrated on the sale of women's sarees and is vulnerable to variations in demand. Any changes in consumer preference could have an adverse effect on its business, results of operations and financial condition.

The company operates out of two stores in Maharashtra which are located at Kolhapur and Ulhasnagar. Any localized social unrest, natural disaster or breakdown of services or any other natural disaster in and around Maharashtra or any disruption in production at, or shutdown of, its stores could have material adverse effect on the company's business and financial condition.

The Company is operating in wholesale segment due to which its lack visibility and direct connection with the end consumers of the company's products which may adversely affect its ability to build brand loyalty and awareness with the end consumers.

The company operates in highly competitive and fragmented industry with presence of large number of smaller unorganised players operating standalone outlets markets in each of its product segments and an inability to compete effectively may adversely affect its business, results of operations and financial condition.

Its business is subject to seasonality. Lower revenues in the festive period of any Fiscal may adversely affect the company's business, financial condition, results of operations and prospects.

A significant portion of its sales are derived from the western zone and any adverse developments in this market could adversely affect its business.

The company is dependent on third party weavers /suppliers for sourcing its products. The company does not have longterm or exclusive agreements with its weavers/suppliers and its may not be able to procure sufficient quantity or quality of goods from its weavers/ suppliers in a timely manner and at an acceptable price and this may adversely affect the business, results of operations and financial conditions.

The Company being in the wholesale sector requires significant amount 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 experienced negative cash flows in relation to its operating, investing and financing activities in the last three financial years. Any negative cash flows in the future would adversely affect the company's results of operations and financial condition.

If the company is unable to maintain an optimal level of inventory, its business, results of operations and financial condition may be adversely affected.