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Our Registered Office from where we operate is not owned by us.
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The factory premises from where we operate our business operations are not owned by us.
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Our company had bought assets from our Promoter Mr. Jagjit Singh Dhillon and had not taken the valuation report to determine the price of the assets and also the price for such assets has not yet been paid.
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Our top five customers contribute majority of our revenues from operations. Any loss of business from one or more of them may adversely affect our revenues and profitability.
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The holding period of our Trade Receivables and Trade payables is high.
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We have entered into related party transactions in the past and may continue to do so in the future. We had and have related party transaction with "Associated Fabricators" for more than or equal to 20% of total Purchases and such transaction may continue in the future.
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We have applied for Registration and Grant or Renewal of license and notice of occupation specified in Section 6 & 7 of the Factories Act, 1948 but the same has not been granted to us as on date.
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Our business is capital intensive. If we experience insufficient cash flows to meet required payments on our debt and working capital requirements, there may be an adverse effect on our operations.
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There are certain discrepancies / errors noticed in some of our corporate records relating to forms filed with the Registrar of Companies and other provisions of Companies Act, 2013. Any penalty or action taken by any regulatory authorities in future for non-compliance with provisions of corporate and other law could impact the financial position of the Company to that extent.
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The nature of our business exposes us to liability claims and contract disputes and our indemnities may not adequately protect us. Any liability in excess of our reserves or indemnities could result in additional costs, which would reduce our profits.
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Our business is manpower intensive and our business operations may be materially adversely affected by strikes, work stoppages or increased wage demands by our employees or those of our suppliers.
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Our Company has a negative cash flow in its Investing activities of the Company in period ended on December 31, 2023 and the Financial year ended on March 31, 2023 and March 31, 2022 and Financing Activities in the Financial year ended on March 31, 2022. Sustained negative cash flow could impact our growth and business.
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Our company purchases raw materials from proprietorship firm of our promoter.
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There may be potential conflict of interests between our Company and other venture or enterprises promoted by our promoter.
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There are no long-term supply agreements with our vendors / suppliers.
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Our individual Promoters plays key role in our functioning and we heavily rely on their knowledge and experience in operating our business and therefore, it is critical for our business that our Promoter and Executive Directors remain associated with us.
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Our Company had not made any provision for payment of gratuity to our employees. As per provision of Payment of Gratuity Act, 1972 (Act) a scheme for the payment of gratuity to employees shall be made upon applicability of the Act.
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We require a number of approvals, NOCs, licenses, registrations and permits in the ordinary course of our business. Some of the approvals are required to be obtained by the Issuer Company and any failure or delay in obtaining the same in a timely manner may adversely affect our operations.
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Our revenues are dependent upon our meeting specific customer requirements largely on a case-to-case basis. Any failure or limitation on our ability to provide services may detrimentally affect our future growth.
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Stringent environmental, health and safety laws and regulations or stringent enforcement of existing environmental, health and safety laws and regulations may result in increased liabilities and increased capital expenditures.
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Any slowdown or work stoppages at our project sites may have effect on our business, financial condition and results of operations.
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We generally do business with our customers on purchase order basis and do not enter into long term contracts with most of them.
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Orders placed by customers may be delayed, modified, cancelled or not fully paid for by our customers, which may have an adverse effect on our business, financial condition and results of operations.
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We face competition in our business from organized and unorganized players, which may adversely affect our business operation and financial condition.
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Improper storage, processing and handling of raw materials and finished products may cause damage to our inventory leading to an adverse effect on our business, results of operations and cash flows.
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Our ability to grow our business depends on our relationships with our dealers and customers, and any adverse changes in these relationships, or our inability to enter into new relationships, could negatively affect our business and results of operations.
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We have applied for registration of the word mark "ASSOCIATED COATERS" and logo "Associated Coaters" but do not own the wordmark and logo legally as on date. We may be unable to adequately protect our intellectual property. Furthermore, we may be subject to claims alleging breach of third-party intellectual property rights.
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If we fail to cost-effectively turn existing customers into repeat customers or to acquire new customers, our business, financial condition, and results of operations would be harmed.
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Breakdown of machinery and / or equipment used for the purpose of manufacturing process.
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If we are unable to respond to the demands of our existing and new clients, or adapt to technological changes or advances, our business and growth could be adversely affected.
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Major fraud, lapses of internal control or system failures could adversely impact the company`s business.
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We continue to explore the diversification of our business and the implementation of new services. These diversifications and our other strategic initiatives may not be successful, which may adversely affect our business and results of operations.
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General economic and market conditions in India and globally could have a material adverse effect on our business, financial condition, cash flows, results of operations and prospects.
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Any deficiency in our products could make our Company liable for customer claims, which in turn could affect our Company`s results of operations.
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Our funding requirements and the deployment of Net Proceeds are based on management estimates and have not been independently appraised.
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Activities involving our manufacturing process can be dangerous and can cause injury to people or property in certain circumstances.
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We face intense competition in our businesses, which may limit our growth and prospects. Our Company faces significant competition from other companies in Industry.
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Our inability to manage growth could disrupt our business and reduce our profitability. We propose to expand our business activities in coming financial years.
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If we are unable to source business opportunities effectively, we may not achieve our financial objectives.
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Brand recognition is important to the success of our business, and our inability to build and maintain our brand names will harm our business, financial condition and results of operation.
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Significant disruptions in our information technology systems or breaches of data security could adversely affect our business and reputation.
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Employee fraud or misconduct could harm us by impairing our ability to attract and retain clients and subject us to significant legal liability and reputational harm.
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The average cost of acquisition of Equity Shares by our Promoters is lower than the issue price.
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Our Promoters and Promoter Group will continue to retain majority control over the Company after the Issue, which will allow them to influence the outcome of matters submitted to shareholders for approval.
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We are dependent on a number of Key Managerial Personnel and our senior management, and the loss of, or our inability to attract or retain such persons could adversely affect our business, results of operations and financial condition.
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Our operating expenses include overheads that may remain fixed in the medium term. In case there is any decline in our operating performance, we may be unable to reduce such expenses.
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Delays or defaults in payments from our clients could result into a constraint on our cash flows. The efficiency and growth of our business depends on timely payments received from our clients.
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There are no alternate arrangements for meeting our requirements for the Objects of the Issue. Any shortfall in raising / meeting the same could adversely affect our growth plans, operations and financial performance.
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Our ability to pay dividends in the future will depend upon our future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in our financing arrangements.
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Any future acquisitions, joint ventures, partnerships, strategic alliances, tie-ups or investments could fail to achieve expected synergies and may disrupt our business and harm the results of operations and our financial condition.
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Our future funds requirements, in the form of fresh issue of capital or securities and / or loans taken by us, may be prejudicial to the interest of the shareholders depending upon the terms on which they are eventually raised.
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Our lenders have imposed certain restrictive conditions on us under our financing arrangements. Under our financing arrangements, we are required to obtain the prior, written lender consent for, among other matters, changes in our capital structure, and formulation of a scheme of amalgamation or reconstruction and entering into any other borrowing arrangement. Further, we are required to maintain certain financial ratios.
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Some of the KMPs is associated with our company for less than one year.
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There is no guarantee that our Equity Shares will be listed on the Stock Exchanges in a timely manner or at all.
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Excessive reliance on our information technology systems and their failure could harm our relationship with customers, expose us to lawsuits or administrative sanctions or otherwise adversely affect our provision of service to customers and our internal operation.
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The deployment of funds raised through this Issue shall not be subject to any Monitoring Agency and shall be purely dependent on the discretion of the management of Our Company.
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Negative publicity could adversely affect our revenue model and profitability.
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Industry information included in this Prospectus has been derived from industry reports commissioned by us for such purpose. 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 requirements of being a public listed company may strain our resources and impose additional
requirements.
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There are restrictions on daily / weekly / monthly movements in the price of the Equity Shares, which may adversely affect a shareholders` ability to sell, or the price at which it can sell, Equity Shares at a particular point in time.
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After this Issue, the price of the Equity Shares may be highly volatile, or an active trading market for the Equity Shares may not develop.
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You will not be able to sell immediately on Stock Exchange any of the Equity Shares you purchase in the Issue until the Issue receives appropriate trading permissions.
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The Issue price of our Equity Shares may not be indicative of the market price of our Equity shares after the issue.
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Sale of Equity Shares by our Promoters or other significant shareholder(s) may adversely affect the Trading price of the Equity Shares.
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After this Issue, the price of the Equity Shares may be highly volatile, or an active trading market for the Equity Shares may not develop.
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You will not be able to sell immediately on Stock Exchange any of the Equity Shares you purchase in the Issue until the Issue receives appropriate trading permissions.
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The Issue price of its Equity Shares may not be indicative of the market price of the company`s Equity shares after the issue.
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Sale of Equity Shares by its Promoters or other significant shareholder(s) may adversely affect the Trading price of the Equity Shares.
