Shreedhar Spinners Ltd IPO

Long term and expanding customer relationship across textile industry.

Fully integrated cotton spinning infrastructure with modern technologies to support the company product portfolio.

Experienced management team.

Location advantage of the manufacturing facility.

Cost effective production and timely fulfilment of orders

Some of the Equity Shares held by the Promoter, Shreedhar Cotsyn Private Limited, has been pledged withthe SBICAP Trustee Company Limited.

The company financing agreements contain covenants that limit its flexibility in operating the company business and has asignificant debt-equity ratio. Its inability to meet the company obligations, including financial and other covenantsunder the company debt financing arrangements could adversely affect its business, results of operations and financialcondition. Additionally, the company Promoters has given personal guarantees in relation to certain financingarrangements provided to the Company by the lenders which may not continue after the completion of theOffer.

The company has in the past entered into related party transactions and may continue to does so in the future.

The company business is dependent on its operating facility in Amravati. The loss or shutdown of the company facilities couldhas a material adverse effect on its business, financial condition and results of operations.

The company generate a substantial portion of revenue from Maharashtra. Any adverse developments affecting its operations in the Maharashtra could has an adverse impact on the company revenue and results of operations.

The company generally does business with its customers on purchase order basis and does not enter into long term contractswith them. The company inability to maintain relationships with its customers could has an adverse effect on its business, prospects, results of operations and financial condition.

The company is dependent upon limited suppliers for the raw material requirements of its business. Further, the company doesnot has definitive agreements or fixed terms of trade with most of its suppliers. Additionally, the Companyrelies on suppliers located in certain states in India for procurement of raw materials. Failures to successfullyleverage its relationships with existing suppliers or to identify new suppliers could adversely affect the companybusiness operations.

The company faces competition in its business from organized and unorganized players, which may adversely affect its business operations and financial condition.

The company business is subject to seasonal volatility on account of the nature of main raw material i.e., raw cotton asan agricultural commodity, and such seasonality may cause significant fluctuations in its revenue, results ofoperations, and financial condition.

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