Shree Balaji (Mala) Textiles Ltd.

Our business is highly concentrated on the sale of women's sarees, specifically cotton sarees, which accounted for 90.75% of revenue in Fiscal 2026. A decline in demand for our products or a misjudgement regarding designs could lead to increased market acceptance of competitors' products, substitution of our products, lower sales, excess inventories, and necessitate selling inventory at cost price or lower.(Business Related Risks)

Our business prospects depend on the strength of our key brand, 'Shree Balaji (Mala) Textiles Limited', and any failure to maintain or grow sales could adversely affect our business. Our marketing strategies rely on celebrity endorsements, and relationships with celebrity endorsers may be discontinued if they endorse competitor brands, which could impact brand recognition.(Business Related Risks)

We rely on outsourcing a significant proportion (approximately 95%) of our production processes to third-party job workers under non-exclusive arrangements without long-term contracts. We have not entered into long-term job work arrangements with our job workers, and our reliance on job workers subjects us to risks including dependence on relationships and potential disruptions.(Business Related Risks)

Our business is characterized by rapidly changing customer preferences. If we are unable to anticipate and gauge customer preferences or adapt to changes in a timely basis, we may lose or fail to attract customers, our inventory may become obsolete, and we may be subject to pricing pressure to sell inventory at a discount.(Business Related Risks)

Our marketing initiatives may not be successful, and our results of operations would suffer if such investments and initiatives are not appropriately timed with market opportunities or are not effectively brought to market. Maintaining and enhancing our brands may require substantial investments and incur significant expenses.(Business Related Risks)

Our brands may be adversely affected if our public image or reputation is tarnished by negative publicity, or if ineffective marketing, product diversion to unauthorized distribution channels, product defects, counterfeit products, unfair labour practices, or failure to protect intellectual property rights occur.(Business Related Risks)

We have only one distinctive brand as a women's ethnic brand. We cannot assure you that we will be able to successfully maintain or enhance the recognition and reputation of any of our brands, and any inability to do so may adversely affect our business and competitiveness.(Business Related Risks)

Our results of operations are dependent on our ability to attract customers by anticipating and responding to changes in customer preferences and modifying existing products in line with changes in customer demands. The number of customers demanding women's ethnic wear may not continue to increase.(Business Related Risks)