Deem Roll

Risks

• Continued operations at the company Manufacturing Units are critical to its business and any disruption in the company Manufacturing Units would have a material adverse effect on its business, results of operations and financial condition. Further, its Manufacturing Units are not operating at optimum capacity utilization and there can be no assurance that the company will be successful in achieving such utilization levels.

• Activities involving the company manufacturing process can be dangerous and can cause injury to people or property in certain circumstances. A significant disruption at any of its Manufacturing Units may adversely affect the companyh production schedules, costs, sales and ability to meet customer demand.

• Developments in the competitive environment in the steel industry, such as expansion in production capacity of the company competitors, consolidation among its competitors, could have a material adverse effect on its competitive position and hence the company business, financial condition, results of operations or prospects.

• The company depends on outside parties for adequate and timely supply of raw materials at commercially acceptable prices. Any disruptions, delay or increase in prices of such material may have a material adverse effect on its business.

• The company is heavily reliant on a few customers and its derives a significant part of the company revenue from selected customers. The loss of any significant customer may have a material adverse effect on the company business and results of operations.

• Its commercial success depends to a large extent on the success of its customers` products with end consumers. If the demand for the products in which the company products are used declines, this could have a material adverse effect on its business, financial condition and results of operations.

• Its Corporate office is situated on leased premises. Its failure to renew the leases, obtain new leases or pay higher rental fees under these leases could negatively impact the company operations.

• If the company does not continue to invest in new technologies and equipment, its technologies and equipment may become obsolete and the cost of processing may increase relative to the company competitors, which may have an adverse impact on its business, results of operations and financial condition.

• The company is subject to various laws and regulations. If its fail to obtain, maintain or renew the licenses, permits and approvals required to operate the company business, or fail to comply with applicable laws, its business, results of operations and financial condition may be adversely affected.

• Any defect in the company products may result in its orders being cancelled and the company could become liable to customers, suffer adverse publicity and incur substantial costs which in turn could affect it adversely.

• Delays or defaults in client payments could affect the company operations. Its may be subject to working capital risks due to delays or defaults in payment by clients, which may restrict the company ability to procure raw materials and make payments when due.

• The success of the company business depends substantially on a number of key management personnel, management team, and on its operational workforce. The company inability to retain them or to recruit highly skilled technical personnel that are necessary for its business could adversely affect the company businesses.

• Its may face several risks associated with the proposed expansion in its Manufacturing Unit 2, which could hamper the company growth, prospects, cash flows and business and financial condition.

• The company is yet to obtain consents/ no objection certificate from lenders of the Company for the Issue. The Company has entered into agreements for borrowings with certain lenders.

• The company is yet to place orders for the equipment to be procured in relation to the proposed expansion in its Manufacturing Unit 2. In the event of any delay in placing the orders, or in the event the vendors are not able to provide the equipment in a timely manner, or at all, may result in time and cost over-runs and its business, prospects and results of operations may be adversely affected.

• The company is dependent on third party transportation and logistics service providers. Any increase in the charges of these entities could adversely affect its business, results of operations and financial condition.

• A significant portion of the company revenues are denominated in foreign currencies. As a result, the company is exposed to foreign currency exchange risks which may adversely impact its results of operations.

• There are outstanding legal proceedings involving the Company, its Directors, its Promoter and the Group Companies.

• Some of the company borrowings carry restrictive covenants or conditions and could affect its ability to manage the company business operations.

• Its Manufacturing Units are located at Gandhinagar and Mehsana in Gujarat and at Hoogly in West Bengal exposing it to regulatory and other geography specific risks such as weather and natural occurrences as well as regulatory, economic, demographic and other changes in Gujarat and West Bengal.

• Any adverse change in regulations governing the company products and the products of its customers, may adversely impact the company business, prospects and results of operations.

• Any inability on the company part to manage its growth or implement the company strategies effectively could have a material adverse effect on its business, results of operations and financial condition.

• The company Promoter and Promoter Group will, even after the culmination of this Issue, continue to be its largest Shareholders and can influence the outcome of resolutions, which may potentially involve conflicts of interest with the other Equity Shareholders.

• Its may be unable to sufficiently obtain, maintain, protect, or enforce its intellectual property and other proprietary rights.

• The company Promoter and some of its Directors and Key Managerial Personnel have interests in it other than reimbursement of expenses incurred and normal remuneration or benefits.

• Its may not be able to secure funding in the future. In the event the Company is unable to obtain sufficient funding, it may delay its growth plans and have a material adverse effect on the company business, cash flows and financial condition.

• The company insurance coverage may not be sufficient or adequate to protect it against all material hazards, which may adversely affect its business, results of operations, financial condition and cash flows.

• The average cost of acquisition of Equity Shares by the company Promoter could be lower than the Issue Price.

• In the twelve months prior to the date of filing the Draft Prospectus, the Company had issued Equity Shares at a price, which may be lower than the Issue Price.

• Reliance has been placed on declarations and affidavits furnished by Directors and Key Managerial Personnel for details of their profile included in this Draft Prospectus.

• Any failure on the company part to effectively manage its inventory may result in an adverse effect on the company business, revenue from manufacturing operations and financial condition.

• Its may not be successful in penetrating new export markets.

• The company operations could be adversely affected by strikes, work stoppages, demands for increased wages or any other kind of employee dispute.

• The company is unable to trace some of its historical records including forms filed with the RoC and there are certain discrepancies in records available with it as well as the company filings with the RoC. There have been certain instances of non-compliances, including with respect to certain secretarial/ regulatory filings for corporate actions taken by the Company in the past. Consequently, Its may be subject to regulatory actions and penalties for any such non-compliance and the company business, financial condition and reputation may be adversely affected.

• The shortage or non-availability of power facilities may adversely affect the company manufacturing processes and have an adverse impact on its results of operations and financial condition.

• Information relating to the current and historical installed capacity of each of the plants in the company Manufacturing Units included in this Draft Prospectus are based on various assumptions and estimates.

• The company has in the past entered into related party transactions and may continue to do so in the future.

• Any failure of the company information technology systems could adversely affect its business and the operations.

• The Company`s ability to pay dividends in the future will depend on a number of factors, including but not limited to the Company`s earnings, capital requirements, contractual obligations, applicable legal restrictions and overall financial position.

• Any variation in the utilization of the Net Proceeds as disclosed in this Draft Prospectus shall be subject to certain compliance requirements, including prior approval of the shareholders of the Company.

• The Company has experienced negative cash flows in some prior periods and may do so in the future, which could have a material adverse effect on its business, prospects, financial condition, cash flows and results of operations.

• The company has certain contingent liabilities that have been disclosed in its financial statements, which if they materialize, may adversely affect the company results of operations, cash flows and financial condition.

• The Company has availed Rs. 64.72 lakhs as unsecured loan, which are repayable on demand. Any demand for repayment of such unsecured loans may affect the company cash flows and financial condition.

• The company Promoter and members of the Promoter Group have provided personal guarantees for its borrowings to secure the company loans. Its business, financial condition, results of operations, cash flows and prospects may be adversely affected by the revocation of all or any of the personal guarantees provided by the company Promoter in connection with the Company`s borrowings.

• In the event there is any delay in the completion of the Issue, there would be a corresponding delay in the completion of the objects / schedule of implementation of this Issue which would in turn affect the company revenues and results of operations.

• The requirements of being a listed entity will strain the company resources.

• Any future issuance of Equity Shares, or convertible securities or other equity linked securities by it and any sale of Equity Shares by the company Promoter may dilute your shareholding and adversely affect the trading price of the Equity Shares.

• If there is any change in tax laws or regulations, or their interpretation, such changes may significantly affect the company financial statements for the current and future years, which may have a material adverse effect on its financial position, business and results of operations.

• Statistical and industry data contained in this Draft Prospectus may be incomplete or unreliable.

• Its business is working capital intensive. If its experience insufficient cash flows to meet required payments on the company working capital requirements, there may be an adverse effect on the results of its operations.

• There is no monitoring agency appointed by the Company to monitor the utilization of the Issue proceeds.