We have a few regular clients for whom we offered customisation of their products. We had presumed that we will receive the orders from these clients for specific products. We went ahead and ordered the raw materials required for the jobs. In the process, we ordered excess materials, which resulted in excess stocks in our inventory.

 

We realised that by the end of the year we actually did not receive enough repeat orders for those products.

 

And we had followed this process for quite a few clients. This proved to be a mistake. 

 

The year-end finance checks revealed that we had incurred a loss of around Rs 80-lakhs, which caused a dent in our balance sheet.