Karnika Industries has a diverse product lineup spanning various categories to meet customer needs. They specialize in crafting a wide range of children's apparel, including shorts, joggers, capris, tees, rompers, sleepwear, pajamas, and winter clothing, along with infant garments.
Committed to maintaining high-quality standards, the company adheres to stringent manufacturing protocols. This involves employing skilled personnel, well-equipped manufacturing facilities, and quality control measures.
To enhance efficiency and cost-effectiveness, Karnika Industries has implemented various measures. These include streamlining procurement processes for production inputs, ultimately reducing production costs.
Wide range of children's clothing, such as shorts, joggers, capris, tees, rompers, sleepsuits, pajamas, winter wear, and infant wear.
Karnika Industries and a group company are currently involved in ongoing legal proceedings. Unfavorable outcomes in these legal matters could significantly impact the company's business, financial condition, and operational results.
In the periods ending on March 31, 2023, April 12, 2022, March 31, 2022, and March 31, 2021, the top customers accounted for 54.49%, 61.66%, 61.49%, and 62.40% of the company's revenues, respectively. Any loss of business from one or more of these key customers could negatively affect the company's profitability.
The company's top ten suppliers contributed approximately 45.09%, 65.93%, 55.93%, and 46.99% of the company's total purchases for the periods ending on March 31, 2023, April 12, 2022, March 31, 2022, and March 31, 2021, respectively.
The loss of business with one or more of these suppliers may have an adverse impact on the company's business operations and profitability.
As of March 31, 2023, Karnika Industries had long-term borrowings of Rs. Rs. 4.33 Lakhs and short-term borrowings of Rs. 5,241.20 Lakhs. The company anticipates incurring additional indebtedness in the future.
The company has obtained unsecured loans from directors, the promoter group, and other parties. The total outstanding amount owed to them as of March 31, 2023, stands at Rs. 1426.94 Lakhs.
Karnika Industries is exposed to foreign currency exchange rate fluctuations, which significantly impact on its operational results and financial condition.
In the past, the company has faced negative cash flows. Any such occurrences in the future could potentially affect its business, operational results, and overall prospects.