1. There are outstanding legal proceedings involving the Company, Promoters, Directors, and Group Companies. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.
2. The company has a very limited operating history of its manufacturing operations, which may make it difficult for investors to evaluate its historical performance or future prospects.
3. There may be potential conflict of interests between the Company and other group Companies / entities or enterprises promoted by its Promoters or directors or in which the company promoters / directors may be interested.
4. The Company is dependent on few numbers of customers for sales. The loss of any of this large customer may affect our revenues and profitability.
5. The Company is dependent on few suppliers for purchase of product. Loss of any of these large suppliers may affect our business operations.
6. The Company in the past has entered into Related Party Transactions and may continue to do so in future also, which may affect its competitive edge and better bargaining power if entered with non-related parties resulting into relatively more favorable terms and conditions and better margins.
7. Its revenues are highly dependent on the company operations in geographical region of state of Gujarat & Maharashtra. Any adverse development affecting its operations in these regions could have an adverse impact on its business, financial condition and results of operations.
8. Its business requires the company to obtain and renew certain registrations, licenses and permits from government and regulatory authorities and the failure to obtain and renew them in a timely manner may adversely affect its business operations and some of the approvals are required to be transferred in the name of United Cotfab Limited'.
9. The Company have incurred losses in past and any operating losses in the future could adversely affect the results of operations and financial conditions of the company. The Company have incurred losses in past in the previous years as per the Restated Financial Statements and the same are summarized as under.
10. In its restated financials as at March 31, 2024, the company has a contingent liability related to export commitments. Failure to meet these commitments under the Export Promotion Capital Goods (EPCG) scheme may result in the imposition of penalties.