The company does not have long-term agreements with its suppliers.
The company provides guarantees and warranties on its products. A significant increase in returns and activation of warranty provisions by customers may impact the business and results from operations.
The business is subject to seasonality (as they see higher demand for their products during the festive seasons), which may contribute to fluctuations in periodical results of operations and financial condition.
There are certain discrepancies/errors noticed in some of the company’s corporate records relating to forms filed with the Registrar of Companies and other provisions of Companies Act, 2013.
The company has had certain inaccuracies in relation to regulatory filings and has made non-compliances of certain provisions under applicable law.
About 45% of sales come from the states of Tamil Nadu (26%) and Karnataka (19%). Due to this geographic concentration, the company’s results of operations and growth might be impacted if there are adverse economic and demographic conditions in these states.
Company has recorded a negative cash flow in its operating activities in the previous three financial years.
There are outstanding legal proceedings involving the company, promoters and directors.