Shree Balaji (Mala) Textiles Ltd IPO

Experienced Promoters having deep domain knowledge to scale up the business.

Diversified customers and suppliers base.

Wide geographic presence.

Vast and versatile product portfolio for women.

Ability to buy in bulk quantities.

Long standing relationship with job workers.

Management team with an established track record.

Established track record of successfully completed orders.

Efficient operational team.

The companys business is highly concentrated on the sale of womens sarees and is vulnerable to variations in demandand changes in consumer preference, could have an adverse effect on its business, results of operations andfinancial condition.

The companys business prospects depends on the strength of its key brand and any failures to maintain or grow sales ofthe companys products could adversely affect its business.

The company relies on outsourcing a significant proportion of its production processes and activities to third-parties,without exclusivity arrangements. Any inability to obtain sufficient quantities of attires of the requisite qualityin a timely manner and at acceptable prices, or a slowdown, shutdown or disruption in such third partiesoperations and performance, could adversely affect the companys business, results of operations and financial condition.

The Company is party to certain legal proceedings. Any adverse decision in such proceedings may have amaterial adverse effect on its business, results of operations and financial condition.

The company may be unable to sufficiently obtain, maintain, protect, or enforce its intellectual property and otherproprietary rights.

The company has working capital requirements. If its experience insufficient cash flows to make required payments onthe companys debt or fund working capital requirements, there may be an adverse effect on its results of operations.

The companys inability to identify and retain skilled third-party suppliers, vendors and manufacturers for various partsof its production or procurement processes may adversely affect the companys business, financial condition and resultsof operations.

The companys warehouse, factory and a majority of its jobbers is mostly based in some specific geographical region.This may expose the companys manufacturing processes and its supply chain to regional risks, which may adverselyaffect the companys business, financial condition and results of operations.

Any failures in the companys quality control processes may damage its reputation, and adversely affect the companys business,results of operations and financial condition. Its may faces reputational harm or proceedings if the quality ofthe companys products does not meet its customers expectations.

The Company has negative cash flows during recent fiscal year in relation to the companys operating activities.Sustained negative cash flows in the future would adversely affect its results of operations and financialcondition.