1. The company, Promoters, and Directors are involved in certain legal proceedings and potential litigations. Any adverse decision in such proceedings may render it/them liable to liabilities/penalties which may adversely affect
its business, financial condition and results of operations.
2. The company has a history of net losses and its anticipate that may continue in the future.
3. The company requires high working capital for the smooth day to day operations of business and any discontinuance or the company inability to procure adequate working capital timely and on favorable terms may have an adverse effect on its operations, profitability, and growth prospects.
4. If the company is unable to offer discounted prices constantly according to the pricing strategy, its risk losing the advantage and a substantial portion of the company customers which will adversely affect its business, financial condition and results of operations. Further, in case of shortages, the company suppliers may increase prices of products beyond the control due to which its may lose the competitive advantage.
5. If the company is unable to enter into long-term leasehold arrangements or enter into rental agreements at locations suitable for new stores, warehousing or packing centres for the expansion at terms commercially beneficial to it, it may adversely affect the expansion and growth plans.
6. The company's inability to manage its inventory effectively and at optimum level in the stores may impact its business and operations adversely.
7. The company's ability to attract customers is dependent on the location of the stores and identification of new stores in new locations, in case of improper identification or non-performance of store or franchise partner, the company stores may not achieve expected level of profitability, it will adversely affect its business, financial condition and results of operations.
8. If the company is unable to effectively manage the expanded operations or pursue its growth strategy, the company business plan and expansion strategies may not achieve its expected level of profitability which may adversely affect the company business prospects, financial condition and results of operations.
9. Its Inability to promptly identify and effectively respond to changing customer preferences and spending patterns in a timely manner, the demand for the products could decrease, among the company customers, which may adversely affect its business.
10. The company may not be successful in maintaining and enhancing awareness of the brands. Any fall in the company brand's reputation may adversely affect its business, results of operations and prospects.