1. The company business is highly concentrated on the sale of women's sarees and is vulnerable to variations in demand and changes in consumer preference, could have an adverse effect on its business, results of operations and financial condition.
2. An inability to effectively market its products, or any deterioration in public perception of the company brands, could affect customer footfall and consequently adversely impact its business, financial condition, cash flows and results of operations.
3. Current locations of its stores may become unattractive, and suitable new locations may not be available for a reasonable price or acceptable terms, if at all. In addition, the company is exposed to risks associated with leasing real estate and any adverse developments could materially affect its business, results of operations and financial condition. Further, the company is generated substantially all of its sales from stores located in Southern India and any adverse developments affecting its operations in these regions could have an adverse impact on the company revenue and results of operations.
4. The current and continuing impact of the ongoing COVID-19 pandemic on its business and operations has been significant. The impact of the pandemic on its operations in the future, including its effect on the ability or desire of customers to visit the company stores, is uncertain and may be significant and continue to have an adverse effect on its business prospects, strategies, business, operations, the company future financial performance, and the price of its Equity Shares.
5. The Proforma Financial Statements included in this Draft Red Herring Prospectus are not indicative of its future financial condition or results of operations.
6. If the company is unable to maintain an optimal level of inventory, its business, results of operations and financial condition may be adversely affected.
7. The company operate all of its shops, the company Registered Office, and warehouses on a leasehold basis. If its unable to comply with the terms of the leases, renew the company agreements or enter into new agreements on favorable terms, or at all, its business, results of operations and financial condition may be adversely affected.
8. Quality and consistency in customer service at its stores are critical for the company success, which depend on its ability to attract and retain skilled personnel. Any failure in this respect could materially and adversely impact the company reputation, business, financial condition, cash flows and results of operations.
9. The company may be subject to labour unrest, slowdowns and increased wage costs, which may have an adverse effect on its business, operations, the company cash flow and financial condition.
10. The company procure its products from third-party vendors and master weavers. The company do not enter into long term formal agreements with such vendors and may not be able to procure sufficient quantities or desired quality of products from such vendors and master weavers in a timely manner or at acceptable prices, or on an exclusive basis, which may adversely affect its business, financial condition and results of operations.