On Door Concepts, its promoters and directors are involved in legal disputes and potential litigations. Unfavorable outcomes in these cases could expose them to penalties and liabilities, potentially impacting the company's business, financial status, and operational results.
In 2022 and 2021, On Door Concepts reported losses of Rs. 536.98 Lakhs and Rs. 523.44 Lakhs, respectively.
The company risks losing a significant portion of its customer base if it fails to consistently offer discounted prices in line with its pricing strategy. Additionally, supplier price hikes beyond the company's control during shortages may erode its competitive edge.
The inability to secure favorable long-term leasehold agreements or rental arrangements for new store, warehouse, or packing center locations could hinder the company's expansion and growth plans.
The success of On Door Concepts depends on the strategic selection and performance of its store locations. In the event of improper store or franchise partner performance, the company may not achieve its expected profitability levels, impacting its business and financial condition.
The top 5 suppliers accounted for 33.97%, 28.02%, and 30.91% of total purchases in 2023, 2022, and 2021, respectively. Failure to maximize relationships with existing suppliers or identify new ones could disrupt business operations.
Most of On Door Concepts' sales are generated from Madhya Pradesh stores. Any adverse developments affecting operations in this state could negatively impact the company's revenue and operational results. Increased competition in Madhya Pradesh may also reduce the company's market share.
The company's information technology systems play a crucial role in its business. Any system interruptions or failure to upgrade to advanced systems in the future could harm business operations and profitability.
Negative cash flows have been experienced in the past, and the company is vulnerable to the same in the future. Such cash flow issues could negatively impact the business and future prospects.
As of August 31, 2023, On Door Concepts has contingent liabilities in accordance with Ind AS 37. If any of these liabilities materialize, they could adversely affect profitability and significantly impact the company's operational results and financial condition.
As of August 31, 2023, On Door Concepts has outstanding unsecured loans amounting to Rs. 87.70 Lakhs that are callable on demand by lenders.
The company has not made dividend payments, and its ability to do so in the future will depend on earnings, financial condition, cash flows, working capital needs, capital expenditures, and the constraints imposed by financing agreements.