1. Changes in market trends, fashion and consumer preferences and increase in competition that are largely beyond its control could adversely affect its business, financial condition, results of operations and prospects.
2. The company is highly dependent upon a limited number of suppliers. 76.45%, 52.04%, 49.81% and 53.71% of its Total Purchases are derived from its top 10 suppliers for the quarter ended June 30, 2023 and Fiscal Years ended on March 31, 2023, 2022 and 2021.
3. The company derives 70.46%, 66.15%, 51.60% and 47.17% of its revenue from top 10 customers during the period ended on September 30, 2023, and fiscal ended on March 31, 2023, 2022 and 2021. If one or more of such customers choose not to source their requirement from it, the company's business, financial condition and result of operation may be adversely affected.
4. The company does not have long term agreements with suppliers for its raw materials and packaging material and an increase in the cost of, or shortfall in the availability or quality of such raw materials and packaging material could have an adverse effect on its business, financial condition and result of operation.
5. Its reliance on six major products comprises the substantial sales and any factor affecting the sales of these major products could have an adverse effect on its business.
6. The company operate in a highly competitive and fragmented industry.
7. Properties, on which the company has its registered office and manufacturing facilities, are not owned by it. Any termination or dispute in relation to this lease/ rental agreement may have an adverse effect on its business operations and results thereof.
8. There are pending litigations against the company and certain Directors and any adverse decision in these proceedings may render it/them liable to liabilities/penalties and may adversely affect its business, result of operations and financial conditions.
9. The company is required to maintain certain licenses, approvals, registrations, consents and permits in the ordinary course of business. Failure to obtain the requisite approvals result in non-compliance and therefore, affect its business operations, financial condition, result of operations and prospects.
10. The company has in the past entered into transactions with related parties and may continue to do so in the future. These or any future related party transactions may potentially involve conflicts of interest and there can be no assurance that its could not have achieved better terms, had such arrangements been entered into with unrelated parties.