Avi Ansh Textile Limited - IPO

1. Its business depends on the company production facility in Punjab and the loss of or shutdown of operations of the production facility on any grounds could adversely affect its business or results of operations.

2. The company does not have long-term agreements with a majority of its customers. Any changes or cancellations to the company orders or its inability to forecast demand for its products may adversely affect its business, results of operations and financial condition.

3. Its insurance coverage may not be adequate.

4. The company may need to seek additional financing in the future to support its growth strategies. Any failure to raise additional financing could have an adverse effect on its business, results of operations, financial condition and cash flows.

5. Its business requires the company to obtain and renew certain licenses and permits from government, regulatory authorities and other national/ international corporations and the failure to obtain or renew them in a timely manner may adversely affect its business operations.

6. The company has entered into, and will continue to enter into, related party transactions.

7. The company is subject to various laws and regulations in jurisdictions where its operate, including environmental and health and safety laws and regulations, which may subject it to increased compliance costs, which may in turn result in an adverse effect on its financial condition.

8. The company may not be able to successfully manage the growth of its business if the company is not able to effectively implement its strategies.

9. An inability to address changing industry standards and shift in consumer preference or taste may adversely affect its business, results of operations and financial condition.

10. Changes in Technology may render its current technologies obsolete or require the company to make substantial capital investments.