Global Pet Indus

Risks

• The company has certain outstanding litigation against it, an adverse outcome of which may adversely affect its business, reputation and results of operations.

• The company do not have long-term agreements with suppliers for its raw materials and an increase in the cost of, or a shortfall in the availability or quality of such raw materials could have an adverse effect on its business, financial condition and results of operations.

• The company has recently commissioned its manufacturing facility at Manufacturing Unit - 2. Under-utilization of its manufacturing capacities would have an adverse effect on its business, future prospects and future financial performance.

• The company has not yet placed orders in relation to the funding Capital Expenditure towards construction of factory building which is proposed to be financed from the Issue proceeds of the IPO. 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. Its proposed capacity expansion plans via one of the company proposed manufacturing facilities are subject to the risk of unanticipated delays in implementation due to factors including delays in construction, obtaining regulatory approvals in timely manner and cost overruns.

• The Company is yet to receive development permission from the Deputy Director of Town Planning for the proposed manufacturing facility.

• The company depend on the success of its relationships with its customers. The company derive a significant part of its revenue from the company major customers and its do not have long term contracts with these customers. If one or more of such customers choose not to source their requirements from it, the company business, financial condition and results of operations may be adversely affected.

• The company business is dependent and will continue to depend on its manufacturing facilities, and its are subject to certain risks in the company manufacturing process. Any slowdown or shutdown in its manufacturing operations or strikes, work stoppages or increased wage demands by its employees that could interfere with the company operations could have an adverse effect on its business, financial condition and results of operations.

• The company existing and proposed manufacturing facility are concentrated in a single region i.e., Vasai, Maharashtra and the inability to operate and grow its business in this particular region may have an adverse effect on the company business, financial condition, results of operations, cash flows and future business prospects.

• The company is exposed to counterparty credit risk and any delay in receiving payments or non-receipt of payments may adversely impact its results of operations.

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

• Fluctuation in the prices of raw materials may affect its ability to price the company products competitively.

• The company success mainly depends on sectors specific to PET bottle industry in which its cater to and therefore as a result its may be affected by any disruptions in the industry. The company profitability, business and commercial success is significantly dependent on its ability to successfully anticipate the industry and customer requirements and utilize its resources to enhance and develop its products that efficiently satisfy and meet the company client`s specific requirements in a timely manner. Any failure on its part to do so, may have an impact on the reputation of its products, which could have an adverse effect on the company revenue, reputation, financial conditions, results of operations and cash flows.

• The company provide after sales service to its customers. Any failure or deterioration of after sale service could have an adverse effect on its business, reputation, results of operations or financial condition.

• Changes in technology may render its current technologies obsolete or require it to make substantial capital investments.

• The Company has entered into related party transactions in the past and may continue to enter into related party transactions in the future, which may potentially involve conflicts of interest with the equity shareholders.

• Any shortage or non-availability of power supplies may adversely affect its provision of manufacturing operation and have an adverse impact on its results of operations and financial condition.

• Certain premises including its registered office, manufacturing facility, and branch offices are not owned by it and the company has only lease rights over such premises. In the event its lose such rights or are required to negotiate it, its cash flows, business, financial conditions and results of operations could be adversely affected.

• The company may be unable to protect its intellectual property or knowhow from third party infringement which could harm its brand and services. If its are unable to protect the company intellectual property rights, its business, financial condition and results of operations may be adversely affected.

• The company depend on skilled personnel and if its unable to recruit and retain skilled personnel, its ability to operate or grow the company business could be affected.

• The company is subject to quality requirements and any product defect issues or failure by it or The company raw material suppliers to comply with quality standards may lead to the cancellation of existing and future orders, recalls and exposure to potential product liability claims.

• industry in which the company operate is labour intensive and its manufacturing operations may be materially adversely affected by strikes, work stoppages or increased wage demands by its employees or those of the company suppliers.

• The company may not be able to accurately manage its inventory, this may adversely affect its goodwill and business, financial condition and results of operations.

• The Company`s failure to maintain the quality standards of the products or keep pace with the technological developments could adversely impact its business, results of operations and financial condition.

• The orders placed by customers may be delayed, modified or cancelled, which may have an adverse effect on its business, financial condition and results of operations.

• The Company operates under several statutory and regulatory permits, licenses and approvals. Its failure to obtain and/or renew any approvals or licenses in future may have an adverse impact on its business operations.

• There are certain discrepancies and non- compliances noticed in some of its corporate records relating to filing or returns and deposit of statutory dues with the taxation and other statutory authorities.

• Non-compliance with and changes in, safety, health, environmental and labour laws and other applicable regulations, may adversely affect its business, financial condition and results of operations.

• There are certain discrepancies and non- compliances noticed in some of its corporate records relating to forms filed with the Registrar of Companies.

• The Company had negative cash flows in the past years, details of which are given below. Sustained negative cash flow could impact its growth and business.

• The company export its products in 19 countries. Any change in law or any other adverse events affecting these countries could have a significant adverse impact on its export orders and consequently on the company results from operations.

• The company generate its major portion of sales from its operations in certain geographical regions both domestic and exports. Any adverse developments affecting its operations in these regions could have an adverse impact on the company revenue and results of operations.

• The company may not be fully insured for all losses its may incur.

• The company is dependent on third party logistics services for the delivery of its manufactured machines and supply of its raw materials and any disruption in their operations or a decrease in the quality of their services could affect the Company`s reputation and results of operations.

• The company face significant competition in its business which could adversely affect the company operations and its profitability.

• The company business may expose it to potential product liability claims, which could adversely affect its results operation, goodwill and the marketability of the company products.

• Failure or disruption of its IT, manufacturing automation systems may adversely affect its business, financial condition and results of operations.

• The company ability to pay dividends will depend upon future earnings, financial condition, cash flows, working capital requirements, capital expenditures and other factors.

• The company are subject to foreign currency exchange rate fluctuations which could have a material and adverse effect on its results of operations and financial conditions.

• The company success largely depends upon the knowledge and experience of its Promoter, Directors, the company Key Managerial Personnel and Senior Management as well as its ability to attract and retain personnel with technical expertise. Any loss of its Promoter, Directors, Key Managerial Personnel, Senior Management or its ability to attract and retain them and other personnel with technical expertise could adversely affect its business, financial condition and results of operations.

• The company failure to manage growth effectively may adversely impact its business, prospects, financial condition and results of operations.

• Pricing pressure from customers may affect its gross margins and ability to increase the company prices, which in turn may adversely affect its revenue from operations, profits and cash flows.

• The company inability to effectively manage its growth or to successfully implement its business plan and growth strategies could have an adverse effect on its business, results of operations and financial condition. The success of its business will depend greatly on the company ability to effectively implement its business and growth strategies.

• Any inability to address changing industry standards and consumer trends may adversely affect its business, results of operations and financial condition.

• 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 the Company.

• Within the parameters as mentioned in the chapter titled "Objects of this Issue" beginning on page 71 of this Prospectus, the Company`s management will have flexibility in applying the proceeds of the Issue. The fund requirement and deployment mentioned in the Objects of this Issue have not been appraised by any bank or financial institution.

• The company Promoter and members of the Promoter Group will continue jointly to retain majority control over the Company after the Issue, which will allow them to determine the outcome of matters submitted to shareholders for approval.

• The company might infringe upon the intellectual property rights of others and any misappropriation of its intellectual property could harm the company competitive position.

• Employee misconduct including misuse of confidential data and failure to maintain confidentiality of information could harm it and is difficult to detect and deter.

• 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.

• Information relating to the installed manufacturing capacity of its manufacturing facilities included in this Prospectus are based on various assumptions and estimates and future production and capacity may vary.

• If the company is unable to establish and maintain an effective internal controls and compliance system, its business and reputation could be adversely affected.

• The company Directors, Key Managerial Personnel and Senior Management may have interests other than reimbursement of expenses incurred and normal remuneration or benefits in the Company.