1. The company' business is primarily concentrated on the sale of men's casual western wear 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.
2. All the products are sold under a single brand,
ufti'. Any inability to effectively market the company products, or any deterioration in public perception of its brand, could affect consumer footfall and consequently adversely impact the
business, financial condition, cash flows and results of operations.
3. The company's inability to grow the business across emerging markets in India and effectively manage or expand its retail network may adversely impact the company business, results of operations and financial condition.
4. While the company design the products in-house, its relies on outsourcing the manufacturing of finished products to third-party manufacturing partners, without exclusivity arrangements. 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 thirdparty manufacturing partners' operations and performance, could adversely affect the company business, cash flows, results of operations and financial condition.
5. The company's business is subject to seasonality. Lower sales and revenue may adversely affect its business, financial condition, and results of operations.
6. The company may not be able to procure sufficient quantity or quality of products from third party raw material suppliers in a timely manner and at an acceptable price and this may adversely affect the business, results of operations and financial
conditions.
7. The company is dependent on third party manufacturing partners for the finished products. Its may not be able to procure sufficient quantity or quality of finished goods from the manufacturing partners in a timely manner and at an acceptable price and this may adversely affect the business, results of operations and financial conditions.
8. Its business depends on continual purchases of the products and timely payments by its franchise stores, both in short and long term. Any delay or failure in sale of products or payments at the franchise stores or any disputes with franchisees may adversely impact its business, cash flows and results of operations.
9. The company operate in highly competitive markets in each of the 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.
10. Pricing pressure from the competitors may affect its ability to maintain or increase the 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.