1. The company is dependent on its vendors to procure its products and does not have any manufacturing facilities of its own. The company's business is therefore dependent to a large extent on expected performance and operation of its vendor partners.
2. The company face substantial competition in the textile business, both from Indian and international companies, which may adversely affect its revenues.
3. Any increase in the prices of its raw material and any decrease in the supply of the company raw materials, primarily cotton, will materially and adversely affect its business, results of operations and financial condition.
4. The company has entered into Sole selling and Job work Agreements with the various spinning units for manufacturing and trading the products. Any termination of such agreements may have adverse effect on its business, prospects, results of operations and financial condition.
5. The company relies on outsourcing of its production processes and activities to third-parties. Any inability to obtain sufficient quantities of processed material of the requisite quality in a timely manner and at acceptable prices, or a slowdown, shutdown or disruption in such third parties' operations and performance, could adversely affect its business, results of operations and financial condition.
6. Any failure in its quality control processes may have an adverse effect on the company's business, results of operations and financial condition.
7. Any failure on its part to effectively manage the company inventory may result in an adverse effect on its business, revenue from manufacturing operations and financial condition.
8. Dependence upon third party transportation services for supply and transportation of its products are subject to various uncertainties and risks, and delays in delivery may result in rejection of products by customer.
9. If the company is unable to procure raw materials, finished products and packing material of the required quality and quantity, at competitive prices, its business, results of operations and financial condition may be adversely affected.
10. There are outstanding legal proceedings involving its Group Company. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.