Shanti Gold International Ltd IPO

The company depends on the success of its relationships with its customers and the company does not have long term contracts with them. Any loss of one or more of its top customers, or the deterioration of their financial condition or prospects, or a reduction in their demand for its products, could adversely affect the company business, results of operations, financial condition and cash flows.

A significant portion of its business operations and revenue generation is concentrated in the Southern India. This regional concentration could expose the Company to economic, cultural, geopolitical and local market risks.

Its business is highly concentrated on the sale of 22kt CZ jewellery and is vulnerable to variations in demand and changes in consumer preference, which could have an adverse effect on its business, results of operations and financial condition.

The company dependence on gold may expose it to market and demand fluctuations. Further, the non-availability or high cost of quality gold, may have an adverse effect on its business, results of operations, financial condition and prospects.

The company income and sales are subject to seasonal fluctuations and lower income in a peak season may have a disproportionate effect on its results of operations.

The Company has experienced negative net cash flow from operating activities in the past three Fiscals and six months period ended September 30, 2024 and may continue to do so in future, which could have a material adverse effect on its business, prospects, financial condition, cash flows and results of operations.

Its business is dependent on the company's manufacturing capabilities at its Andheri Manufacturing Facility. Unplanned slowdowns, unscheduled shutdowns or prolonged disruptions in its manufacturing operations and an inability to effectively utilize the company production capacity could have an adverse effect on its business, results of operations, cash flows and financial condition.

The company intend to further expand its operations through setting up the Proposed Jaipur Facility and such expansion will be subject to the risks of unanticipated delays in implementation and cost overruns.

The nature of its business requires the company to maintain sufficient inventories resulting into high inventory costs. If its unable to maintain an optimal level of inventory, including due to changes in consumer demands, the company business, results of operations and financial condition may be adversely affected.

Its business and the demand for the company product is reliant on the success of its customers' products with end consumers, and any decline in the demand for the end-products could have an adverse impact on its business, results of operations, cash flows and financial condition.