1. The company does not own its registered office.
2. The top ten Buyers of its Product and top ten suppliers for raw material contribute majority of revenue and source of Raw Material. The company does not have long term agreement with the customer or supplier. The loss of any Customer or a decrease in the volume of order by any customer or any disruption in supply of raw material by any supplier may adversely affect its revenues and profitability.
3. There are outstanding litigations by and against the Company which if determined against it, could adversely impact financial conditions.
4. There have been instances of delay in filing of Goods and Service Tax (GST) returns and return of Tax Deducted at Source (TDS) dues.
5. Its business is dependent on its manufacturing facilities and the company is subject to certain related risks; Unplanned slowdowns, unscheduled shutdowns or prolonged disruptions in its manufacturing operations or under - utilization of its manufacturing capacities could have an adverse effect on its business, results of operations, cash flows and financial condition.
6. At present, its promoter group companies Shree Laxminarayan Weaving Private Limited, Aadi Texworld Private Limited and Katex Exim Limited have similar objects to deal in the products in which issuer company is engaged which may create a conflict of interest. Further, the company does not enjoy contractual protection by way of a non-compete or other agreement or arrangement with its group companies.
7. The company has not executed any agreement with any of its labours who are on Job work basis.
8. Its business is manpower intensive and any unavailability of its employees or shortage of labour or any strikes, work stoppages, increased wage demands by workmen or changes in regulations governing hiring of labour may have an adverse impact on its cash flows and results of operations.
9. Its business and the demand for its products 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.
10. Any increase in the cost of its raw material or other purchases or a shortfall in the supply of its raw materials, may adversely affect the pricing and supply of its products and have an adverse effect on its business, results of operations and financial condition.