Emmforce

Customer Centric Approach.

Optimal Utilization of Resources.

Improving operational efficiencies.

Leveraging its Market skills and Relationships.

One Stop Solution Approach.

Market Driven Product Development.

To Build-Up a Professional Organization.

Engineering Excellence.

One Stop Solution for Drivetrain Parts.

Quality Assurance and Standards.

Existing client relationship.

Scalable Business Model.

Experienced Management Team.

The company is subject to strict quality requirements and are consequently required to maintain its product quality. Any failure to comply with such quality standards may lead to cancellation of orders which may adversely affect itd reputation, financial conditions, cash flows and results of operations.

The company is heavily dependent on the performance of the Automobile Sector particularly, passenger vehicle, commercial vehicles and engines.

The company requires certain approvals and licenses in the ordinary course of business and the failure to successfully obtain/renew such registrations would adversely affect its operations, results of operations and financial condition.

Its failure to identify and understand evolving industry trends and preferences and to develop new products to meet its customers` demands may materially adversely affect the company`s business.

There are outstanding legal proceedings involving the Company, Promoters and Group Companies. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.

The company`s continued operations are critical to its business and are subject to operating risks such as breakdown or failure of machinery, disruption to power sources or any temporary shutdown of its manufacturing facilities, in the event of which, its business, results of operations, financial condition and cash flows can be adversely affected.

The company may be subject to financial and reputational risks due to product quality and liability claims and legal proceedings if the quality of its products does not meet the company`s customers` expectations.

The company depends on third parties for the supply of raw materials and delivery of products and such third parties could fail to meet their obligations, which may have a material adverse effect on its business, results of operations and financial condition.

The restated financial statements have been provided by peer reviewed chartered accountants who is not statutory auditor of the Company.

The company faces foreign exchange risks that could affect its results of operations.

The company operations are subject to environmental, health and safety laws and regulations, and the company will be subject to environmental notices in the future.

Any failure to compete effectively in the highly competitive automotive components industry could have a material adverse effect on its business, financial condition, results of operations and cash flows.

Its top ten customers contribute majority of the company`s revenues from operations. Any loss of business from one or more of them may adversely affect it`s revenues and profitability.

Its top ten suppliers contribute majority of its purchases. Any loss of business with one or more of them may adversely affect its business operations and profitability.

The company engage in a highly competitive business and if the company fail to compete effectively, it would have a material adverse effect on its business, financial condition and results of operations.

The property used by the Company for the purpose of its operations is not owned by it. Any termination of the relevant lease or leave and license agreement in connection with such property or its failure to pay annual lease rental, the same could adversely affect its operations.

Changes in technology may render its current technologies obsolete or require the company to make substantial investments.

Delays or defaults in client payments could affect its operations.

Obsolescence, destruction, theft, breakdowns of its major plants or machineries or failures to repair or maintain the same may affect its business, cash flows, financial condition and results of operations.

Its business is manpower intensive and any unavailability of the company`s employees or any strikes, work stoppages, increased wage demands by workmen or changes in regulations governing contractual labour may have an adverse impact on its cash flows and results of operations.

The company has a substantial amount of outstanding indebtedness, which requires significant cash flows to service and are subject to certain conditions and restrictions in terms of its financing arrangements, which restricts its ability to conduct its business and operations in the manner the company desires.

The company`s inability to effectively manage its growth or to successfully implement the company`s business plan and growth strategy could have an effect on its business, results of operations and financial condition.

The company has been recently incorporated as company and any non-compliance with the provisions of Companies Act, 2013 may attract penalties against the Company which could impact its financial and operational performance and reputation.

The company may not be able to prevent unauthorised use of trademarks obtained/ applied for by third parties, which may lead to the dilution of its goodwill.

There may be potential conflicts of interest if its Promoters or Directors are involved in any business activities that compete with or are in the same line of activity as its business operations.

The unsecured loan availed by its Company from Director may be recalled at any given point of time.

Misconduct or errors by manpower engaged by it could expose it to business risks or losses that could affect the companay`s business prospects, results of operations and financial condition.

Any failure to comply with financial and other restrictive covenants imposed on it under its financing agreements may affect its operational flexibility, business, results of operations and prospects.

The company has entered into and may enter into related party transactions in the future also.

The company has significant ongoing funding requirements and may not be able to raise additional capital in the future. As a result, the company may not be able to respond to business opportunities, challenges or unforeseen circumstances.

Its success is dependent on the company`s Promoters, senior management and skilled manpower. its inability to attract and retain key personnel or the loss of services of its Promoters or Managing Director and Whole Time Directors may have an adverse effect on its business prospects.

If there is a change in policies related to tax, duties or other such levies applicable to the company, it may affect its results of operations.

The company has experienced negative cash flows in the past. Any such negative cash flows in the future could affect its business, results of operations and prospects.

Its Promoters and Executive Directors hold Equity Shares in the Company and are therefore interested in the Company`s performance in addition to their remuneration and reimbursement of expenses.

Its lenders have charge over the company immovable properties in respect of finance availed by it.

The company is subject to the risk of failure of, or a material weakness in, its internal control systems.

The company`s insurance coverage may not be adequate to protect it against all potential losses to which its may be subject and this may have a material effect on its business and financial condition.

Its business is substantially affected by prevailing economic, political and other prevailing conditions in India.

The future operating results are difficult to predict and may fluctuate or adversely vary from the past performance.

The company has not independently verified certain data in this Draft Red Herring Prospectus.

The company is susceptible to risks relating to unionization of its employees employed by the company.

Any Penalty or demand raised by statutory authorities in future will affect its financial position of the Company.

The company has not identified any alternate source of raising the working capital mentioned as its `objects of the Issue`. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.

The Company`s management will have flexibility in utilizing the Net Proceeds from the Issue. The deployment of the Net Proceeds from the Issue is not subject to any monitoring by any independent agency.

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

Portion of its Issue Proceeds are proposed to be utilized for general corporate purposes which constitute [*] of the Issue Proceed. As on date the company has not identified the use of such funds.

The company has in the last 12 months issued Equity Shares at a price that may be at lower than the Issue Price.

The average cost of acquisition of Equity Shares by its Promoters could be lower than the Issue Price.

The company has not paid any dividends in the past Financial Years. Its ability to pay dividends in the future will depends upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.

The company will continue to be controlled by its Promoter and Promoter Group after the completion of the Issue, which will allow them to influence the outcome of matters submitted for approval of its shareholders.

Its Equity Shares have never been publicly traded and may experience price and volume fluctuations following the completion of the Issue, an active trading market for the Equity Shares may not develop, the price of its Equity Shares may be volatile and you may be unable to resell your Equity Shares at or above the Issue Price or at all.

Rights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.

The Issue Price of its Equity Shares may not be indicative of the market price of the company`s Equity Shares after the Issue and the market price of its Equity Shares may decline below the Issue Price and you may not be able to sell your Equity Shares at or above the Issue Price.

A third party could be prevented from acquiring control of the Company because of anti-takeover provisions under Indian law.

The requirements of being a listed company may strain its resources and distract management.

The company may requires further equity issuance, which will lead to dilution of equity and may affect the market price of its Equity Shares or additional funds through incurring debt to satisfy its capital needs, which the company may not be able to procure and any future equity offerings by the company.