Silky Overseas Ltd IPO

There are outstanding litigations by and against the Company which if determined against it, could adversely impact financial conditions.

Its business predominantly focuses on blankets, which makes it particularly susceptible to fluctuations in demand. Any shifts in consumer preferences have the potential to significantly impact its business, as well as influence the company operational outcomes and financial standing. Its business is highly concentrated on the sale of a single product, i.e., blankets. The details of the contribution of the sales of its products to the company total revenue from operations.

A majority of the company supplies for its operations are obtained from a limited number of suppliers.

The company is dependent on a few customers for a major part of its revenues. Further, the company does not enter into long-term arrangements with its customers could adversely affect the company business and the results of operations.

The Company has a negative cash flow in its operating activities for the financial year ended on March 31, 2024, investing activities for the ten months period ended January 31, 2025 and financial year ended March 31, 2024, March 31, 2023 and March 31, 2022 and Financing Activity for the ten months period ended January 31, 2025 and the financial year ended March 31, 2023 details of which are given below. There was a net decrease in Cash and Cash Equivalent for ten months period ended January 31, 2025 and all the three years. Sustained negative cash flow could impact its growth and business.

Its business is subject to significant seasonal fluctuations, which could materially impact the company financial results.

The company has only one production unit that is located in Panipat and any localized social unrest, natural disaster breakdown of services, or any other natural disaster in and around Panipat or any disruption in production at, or shutdown of, its production unit could have material adverse effect on the company business 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.

Risk of Unsustainability of PAT Margin Increase in FY 24.

Its registered office on located on rental premises and consequently, the company is required to comply with certain requirements given under leave and license agreements.