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The company business is dependent on a few customers and the loss of, or a significant reduction in orders by such customers could adversely affect its business.
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The company relies significantly on some suppliers for the supply of its raw materials. If these suppliers are unable or unwilling to supply raw materials on time or otherwise fail to meet its requirements, the company business will be harmed. An inability to procure the desired quality, quantity of its raw materials and components in a timely manner and at reasonable costs, or at all, may have a material adverse effect on its business, results of operations and financial condition.
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The company ability to anticipate changes in consumer preference, and industry trends and to meet customers` demands is a significant factor to remain competitive, any failure to identify and understand the trends may materially adversely affect its business.
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The company is affected by the prices, availability, and quality of the raw materials used in its production.
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The dependence on third-party services could have an adverse effect on the business financial condition and results of operations.
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The company may face significant competition in its business. An inability to compete effectively may lead to a lower market share or reduced operating margins.
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The company has only one manufacturing facility.
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Delays or defaults in customer payments could adversely affect its financial condition.
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The company success depends on stable and reliable logistics and transportation infrastructure. Disruption of logistics and transportation services could impair the ability of its suppliers to deliver materials or our ability to deliver materials to its customers and/ or increase the company transportation costs, which may adversely affect its operations.
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The company is required to comply with certain restrictive covenants under its financing agreements. Any noncompliance may lead to, amongst others, an accelerated repayment schedule, enforcement of security, and suspension of further drawdowns, which may adversely affect its business, results of operations, financial condition, and cash flows.
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The company Directors are parties to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.
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The company business is subject to seasonal and other fluctuations that may affect its cash flows and business operations.
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The company has a limited operating and financial history, which makes it difficult to accurately assess its future growth prospects.
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The Company had negative cash flow in recent fiscals, details of which are given below. Sustained negative cash flow could adversely impact its business, financial condition and results of operations.
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The average cost of acquisition of Equity Shares by its Promoters is lower than the Issue Price.
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The company has issued Equity Shares in the last 12 (twelve) months at a price which is lower than the Issue Price.
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The Company has availed certain unsecured loan which can be recalled at any time.
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Latent defects in the company products may increase it`s after-sales cost or its may suffer losses on account of replacements/ product recalls.
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Expansion into new geographic regions and markets may subject it to various challenges.
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The company revenues are highly dependent on clients located in India. Any decline in the economic health of India could adversely affect its business, financial condition and results of operations.
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The company share its registred office with its group companies.
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The company continued success is dependent on its senior management and skilled manpower. The company inability to attract and retain key personnel may have an adverse effect on its business prospects.
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If the company is unable to manage/arrange funds to meet its working capital requirements, there may be an adverse effect on its results of operations.
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Certain relevant copies of educational qualification and experience certificates of its promoters/Directors are not traceable.
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In addition to the company existing indebtedness for its operations, the company may be required to obtain further loan during the course of business. There can be no assurance that its would be able to service the company existing and/or additional indebtedness.
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Some of the KMPs is associated with the company for less than one year.
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The company customers may claim against it and/or terminate its services in whole or in part prematurely should its fail to satisfy their requirements and expectations or for any other reason.
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The company has entered into, and will continue to enter into, related party transactions.
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Shortage or non-availability of essential utilities such as electricity could affect its manufacturing operations and have an adverse effect on the company business, results of operations and financial condition.
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The company Registered Office, Corporate Office and Factory Premises are not owned by it and the company has only leave and license rights over them. In the event its lose such rights, its business, financial condition and results of operations, and cash flows could be adversely affected.
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If the company is unable to source business opportunities effectively, its may not achieve the company financial objectives.
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The company could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect its financial condition, results of operations and reputation.
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Major fraud, lapses of internal control or system failures could adversely impact the company`s business.
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The company may not be successful in implementing its business strategies.
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Some of the approvals are required to be updated consequent to the change in the name of the Company.
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The company business requires it to obtain and renew certain licenses and permits from government, regulatory authorities and other national/ international corporations and the failure to obtain or renew them in a timely manner may adversely affect its business operations.
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The Logo used by the Company is currently not registered under Trade Marks Act, 1999. Failure to protect its intellectual property rights may adversely affect its competitive business position, financial condition and profitability.
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Brand recognition is important to the success of its business, and the company inability to build and maintain its brand names will harm the company business, financial condition and results of operation.
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An inability to renew quality accreditations in a timely manner or at all, or any deficiencies in the quality of the company products may adversely affect its business prospects and financial performance.
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The company inability to effectively manage project execution and milestone schedules may lead to project delays which may adversely affect its business and the result of operations.
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The company may not be able to secure new contracts and/or customers.
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An inability to manage its growth could disrupt the company business and reduce its profitability.
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The company Directors and certain Key Management Personnel hold Equity Shares in the Company and are therefore interested in the Company`s performance in addition to their remuneration and reimbursement of expenses.
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The company ability to pay dividends in the future will depend upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.
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The company management will have broad discretion in how its apply the Net Proceeds of the Issue and there is no assurance that the Objects of the Offer will be achieved within the time frame expected, or at all, or that the deployment of Net Proceeds in the manner intended by it will result in an increase in the value of your investment.
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The Company has no insurance coverage to protect it against certain operational risks or claims by the company employees.
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The Promoter and Promoter Group will continue to exercise control post completion of the Issue and will have considerable influence over the outcome of matters.
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The company is subject to risks arising from interest rate fluctuations, which could adversely affect its business, financial condition and results of operations.
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The Company does not have any listed peer companies for comparison of performance and therefore, investors must rely on their own examination of accounting ratios of the Company for the purposes of investment in the Issue.
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The future operating results are difficult to predict and may fluctuate or adversely vary from the past performance.
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Portion of the company Issue Proceeds are proposed to be utilized for general corporate purposes amounting to Rs. 248.50 lakhs which constitute 19.29% of the total Issue Proceeds.
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The company Board of Directors and management may change its operating policies and strategies without prior notice or shareholder approval.
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Industry information included in this prospectus has been derived from industry reports. There can be no assurance that such third-party statistical, financial and other industry information is either complete or accurate.
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The Company had earlier filed a Draft Prospectus dated May 23, 2023, for initial public issue aggregating upto Rs. 1,350.00 lakhs.