Ecoline Exim Limited IPO Details

1. The company is dependent on certain key customers for a substantial portion of its revenues. Loss of relationship with any of these customers may have a material adverse effect on its profitability and results of operations.

2. The company does not have long term agreements for supply of its raw materials. If the company is unable to procure raw materials of the required quality and quantity, at competitive prices, its business, results of operations and financial condition may be adversely affected. Majority of the company raw materials are sourced from few key suppliers. Discontinuation of operations of such suppliers may adversely affect its ability to source raw materials at a competitive price.

3. Its business is dependent on the company manufacturing facilities and its subject to certain related risks; Unplanned slowdowns, unscheduled shutdowns or prolonged disruptions in the company manufacturing operations could have an adverse effect on its business, results of operations, cash flows and financial condition.

4. Its business is labour intensive and any unavailability or shortage of labour or any strikes, work stoppages, increased wage demands by workmen or changes in regulations governing hiring of labour may have an adverse impact on its cash flows and results of operations.

5. The company plan to set up the proposed Factory V for manufacturing of bags along with additional weaving unit at Ahmedabad is subject to risks, including implementation delays, cost overruns, and substantial upfront capital expenditures before the company realize any benefits.

6. The company relies on outsourcing a certain proportion of its production processes and activities to third parties. Any inability to obtain sufficient quantities of processed material of the requisite quality in a timely manner and at acceptable prices, or a slowdown, shutdown or disruption in such third parties' operations and performance, could adversely affect its business, results of operations and financial condition.

7. The global scope of its operations exposes the company to risks of doing business in foreign countries, including the constantly changing economic, regulatory, social and political conditions in the jurisdictions in which the company operate and seek to operate, which could adversely affect its business, financial condition and results of operations.

8. If the company is unable to estimate the demand of its products accurately and are unable to maintain an optimal level of inventory, the company business, results of operations and financial condition may be adversely affected.

9. Its business is vulnerable to variations in demand of cotton or jute bags, timely identification of evolving fashion trends and creating new designs. Changes in consumer preferences, could have an adverse effect on its business, results of operations and financial condition.

10. The company insurance coverage may not be sufficient or adequate to protect it against all material hazards or business losses, which may adversely affect the company business, results of operations and financial condition.