1. All the properties on which we run our stores are taken on rent/lease by us and many of them have been taken by us from third parties on short term lease/rent basis. Any disruption of rent agreements so entered by us or any objections from the owners of these properties to let us continue our operations or vacate those properties on short notice may have a material and adverse impact on the business of our Company. Further, some of our lease agreements may have certain irregularities because of which we may be unable to effectively enforce our leasehold rights which may have a material and adverse impact on the business of our Company.
2. We have significant working capital requirements and our inability to meet the working capital requirements may have an adverse effect on our results of operations.
3. If we are unable to maintain an optimal level of inventory, our business, results of operations, financial condition and cash flows may be adversely affected.
4. All of our stores are presently located in Gujarat. However, we plan to expand into new geographies and may be exposed to significant liability and could lose some or all of our investment in such regions, as a result of which our business, financial condition and results of operations could be adversely affected.
5. Competition from Organized offline retailers and online retailers which can offer products at more competitive prices and also offer wide range of products, may adversely affect our business and our financial condition, results of operations and cash flows.
6. We intend to utilise a portion of the Net Proceeds for funding our capital expenditure requirements. This includes Purchase of Existing Store of the company located at Nana Chiloda, Ahmedabad and Purchase of fit-outs for Three (3) new proposed stores, which may be subject to the risk of unanticipated delays in implementation, cost overruns and other project risks and uncertainties.
7. There are certain proceedings involving our Company, our Directors, Promoters which if determined against us, may have an adverse effect on our business, cash flows and results of operations.
8. There have been certain instances of delays and discrepancies in relation to certain statutory filings made or required to be filed by our Company with the RoC under applicable law and certain other non-compliances under Indian company law.
9. There are certain discrepancies and non-compliances noticed in filing of returns and deposit of statutory dues with the taxation and other statutory authorities in the past. Any delay in payment of statutory dues by our Company in future, may result in the imposition of penalties, which could adversely impact our financials.
10. The restated financial statements have been provided by peer reviewed chartered accountants who is not statutory auditor of our Company.