Neelam Linens and Garments Limited - IPO

1. Purchase of higher quality thread count fabric at lower price.

2. Experienced promoters and dedicated employee base.

3. Infrastructure and Integrated capabilities to deliver quality Products.

1. Its business predominantly focuses on bedsheets, which makes the company particularly susceptible to fluctuations in demand. Any shifts in consumer preferences have the potential to significantly impact its business, as well as influence its operational outcomes and financial standing.

2. A majority of its supplies for the company operations are obtained from a limited number of suppliers.

3. The company is dependent on a few customers for a major part of its revenues. Further the company does not enter into long-term arrangements with its customers could adversely affect its business and results of operations.

4. A significant portion of its sales are derived from India and any adverse developments in this market could adversely affect its business.

5. The Company and the promoters do not have enough documentary evidence for the Capital Built-up of the Company.

6. The company has only one production unit that is located in Bhiwandi and any localized social unrest, natural disaster or breakdown of services or any other natural disaster in and around Ahmednagar or any disruption in production at, or shutdown of, its production unit could have material adverse effect on the company's business and financial condition.

7. Its success depends on third party logistics and transportation infrastructure. Disruption of logistics and transportation services could impair the ability of its suppliers to deliver raw materials or the company ability to deliver products to its customers and/ or increase the company transportation costs, which may adversely affect its operations.

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

9. Its business is exposed to foreign exchange rate related fluctuations.

10. The company registered office and processing facility are located on leave and licensed premises and consequently, the company is required to comply with certain requirements given under leave and license agreements.