Borana Weaves Limited - IPO

1. Any failures to obtain approval/licenses or permits to operate the Proposed Unit 4, may adversely affect its business, financial condition, cash flows and results of operations.

2. As of December 31, 2024, more than 98% of its revenue from the company customers is derived from customers based in Gujarat and the company does not have long-term agreements with them. Any changes or cancellations of purchase orders from them or its inability to forecast demand for its products may adversely affect its business, results of operations and financial condition.

3. Its Registered and Corporate Office, manufacturing units, and 90.00% of suppliers of its raw material, POY Yarn, as of the nine months period ended December 31, 2024 are majorly located in Gujarat exposing it to regulatory and other geography specific risks such as labour unrests, terrorist attacks, other acts of violence and occurrence of natural and man-made disasters which may affect the state of Gujarat.

4. The Company has a limited operating history, as the Company commenced its operation in 2020 and its may not be able to continue to grow at its historical rate of growth.

5. Any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval.

6. Information relating to the installed and actual manufacturing capacity of its units included in this Red Herring Prospectus are based on various assumptions and estimates. These assumptions and estimates may prove to be inaccurate and its future production and capacity may vary.

7. The company procure raw material, POY Yarn, from members of the Promoter Group. Termination of such arrangement, or non-performance of obligations under such arrangement, may impact its business, financial condition, cash flows and results of operations.

8. The company enter into related party transactions in the ordinary course of its business and the company cannot assure you that such transactions will not have an adverse effect on its results of operation and financial conditions.

9. The company incur significant employee benefits expense. An increase in employee costs, including on account of changes in regulations, may prevent it from maintaining its competitive advantage and may reduce its profitability.

10. Its funding requirements and proposed deployment of the Net Proceeds of the Issue have not been appraised by a bank or a financial institution and if there are any delays or cost overruns, its business, cash flows, financial condition and results of operations may be adversely affected.