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The Company has been recently incorporated thus it has limited operating history as a Company which may make it difficult for investors to evaluate its historical performance or future prospects.
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The company intend to use a portion of the Net Proceeds to prepay / repay certain loan facilities.
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The company propose to utilize a portion of its Net Proceeds towards pursuing inorganic growth opportunities by way of strategic acquisitions and/ or joint ventures.
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The Company`s business operations geographically restricted to Maharashtra and any downturn and/ or any economic, regulatory, social and political change in any of the Indian states in which the company operates or seek to operates may affect its market share and/ or may adversely affect its business, financial condition and results of operations.
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The company derives a significant portion of its revenue from the company single product i.e. Laminates. Therefore, factors that adversely affect the demand for such lamination or its position and reputation may adversely affect the company`s business and results of operations.
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The company does not own the premises in which its registered office, corporate office, godown and workshop premise are located and the same are on lease arrangement. Any termination of such lease/license and/or non-renewal thereof and attachment by Property Owner could adversely affect its operations.
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The company does not own the trademarks and logo used in its business; its may be unable to sufficiently protect, or continue the company intellectual property and other proprietary rights.
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The company is dependent upon few suppliers for the material requirements of its business. Further, the company does not have definitive agreements or fixed terms of trade with most of its suppliers. Failures to successfully leverage the company relationships with existing suppliers or to identify new suppliers could adversely affect its business operations.
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If the company is unable to attract new clients or its existing clients does not renew their contract or default in payments, the growth of its business and cash flows will be adversely affected.
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The company operations are significantly dependent on the timely procurement of raw materials and any delay in such procurement or procurement on commercially unviable terms may adversely affect its business and results of operations.
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The company has high working capital requirements. If its experience insufficient cash flows to make required payments on its debt or fund working capital requirements, there may be an adverse effect on its results of operations.
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The company product is subject to frequently changing designs, patterns, customer requirements and tastes, its inability to meet such needs or preferences may affect the company`s business.
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The company may be unable to respond to changes in consumer demands and market trends in a timely manner. An inability to renew quality accreditations in a timely manner or at all, or any deficiencies in the quality of its products may adversely affect the company`s business prospects and financial performance.
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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.
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Its business is dependent on the company`s single workshop unit and its subject to certain risks in the company manufacturing process. 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.
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Information relating to its production capacities and the historical capacity utilization of the company production facilities included in this Prospectus is based on certain assumptions and future production and capacity utilization may vary.
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Its inability to effectively manage or expand the company distribution network may have an adverse effect on its business, results of operations and financial condition.
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The company is dependent on third party transportation providers for delivery of raw materials to it from its suppliers and delivery of the company products to it distribution intermediaries. The company has not entered into any formal contracts with our transport providers and any failures on part of such service providers to meet their obligations could adversely affect its business, financial condition and results of operation.
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If the company is not able to obtain, renew or maintain the statutory and regulatory permits and approvals required to operate its business it may have an adverse effect on the company`s business.
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The Company had negative cash flow from certain activity in recent fiscals, details of which are given below.
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Its financing agreements contain covenants that limit the company flexibility in operating its business. Its inability to meet the company obligations, including financial and other covenants under its debt financing arrangements could adversely affect the company`s business, results of operations and financial condition.
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The company has in the past entered into related party transactions and may continue to do so in the future.
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Unsecured loans taken by the Company can be recalled by the lenders at any time.
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Its Promoters have provided personal guarantees for a portion of borrowings taken by Company to secure such loans.
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Its insurance coverage may not be adequate.
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There are certain outstanding legal proceeding involving its Promoter and Promoter Entities which may adversely affect the company`s business, financial condition and results of operations.
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The company is dependent on Promoters, a number of key employees, including its senior management, and the loss of or the company`s inability to attract or retain such persons with specialized technical know-how could adversely affect its business, results of operations, cash flows and financial condition.
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None of its Directors possess experience of being on the board of any listed company.
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Lamination industry is design and pattern driven hence if the company fails to attract and retain designers as competition for skilled personnel is intense, its may face temporarily disrupt the company`s operations.
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In addition to normal remuneration or benefits and reimbursement of expenses, some of its directors and key managerial personnel are interested in the Company to the extent of their shareholding and dividend entitlement in the Company.
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There have been several instances of delay/ default in payment of statutory dues and filing of statutory returns by the Company in the past.
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The company operates in a competitive environment, cheap substitutions, faces fair competition and absence of entry barriers into laminates production in its business from organized and unorganized players, which may adversely affect its business operations and financial condition.
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Its inability to effectively manage the company growth or to successfully implement its business plan and growth strategies could have an adverse effect on the company`s business, results of operations and financial condition. The success of its business will depends greatly on its ability to effectively implement the company`s business and growth strategies.
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Any inability to address changing industry standards and consumer trends may adversely affect its business, results of operations and financial condition.
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Any IT system failures or lapses on part of any of its employees may lead to operational interruption, liabilities or reputational harm.
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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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The Objects of the Issue for which funds are being raised have not been appraised by any bank or financial institution. The deployment of funds is entirely at the discretion of its management and as per the details mentioned in the section titled "Objects of the Issue". Any revision in the estimates may requires it to reschedule the company expenditure and may have a bearing on its expected revenues and earnings.
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The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Offer. Further the company has not identified any alternate source of financing the `objects of the Offer`.
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Delay in raising funds from the IPO could adversely impact the implementation schedule.
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There is no monitoring agency appointed by the Company and the deployment of funds are at the discretion of its Management and the company Board of Directors, though it shall be monitored by the Audit Committee.
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Any variation in the utilization of the Net Proceeds as disclosed in this Prospectus shall be subject to certain compliance requirements, including prior Shareholders` approval.
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The company has not commissioned an industry report for the disclosures made in the chapter titled "Industry Overview" and made disclosures on the basis of the data available on the internet.
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Its Promoters, together with the company`s Promoter Group, will continue to retain majority shareholding in the Company after the proposed Initial Public Issue, which will allow them to exercise significant control over it. The company`s cannot assure you that its Promoters and Promoter Group members will always act in the best interests of the Company.
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Any future issuance of Equity Shares may dilute your shareholdings, and sales of the Equity Shares by its major shareholders may adversely affect the trading price of the company`s Equity Shares.
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The Company has not paid any dividends in the past and its may not be able to pay dividends in the future.
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Investors may be subject to Indian taxes arising out of capital gains on sale of Equity Shares.
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QIBs and Non-Institutional Bidders are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid.
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The Equity Shares have never been publicly traded, and, after the Offer, the Equity Shares may experience price and volume fluctuations, and an active trading market for the Equity Shares may not develop. Further, the price of the Equity Shares may be volatile, and you may be unable to resell the Equity Shares at or above the Offer Price, or at all.
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Investors bear the risk of fluctuations in the price of Equity Shares and there can be no assurance that a liquid market for its Equity Shares will develop following the listing of the company`s Equity Shares on the Stock Exchanges.
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Political, economic, or other factors that are beyond its control may have an adverse effect on the company`s business and results of operations.
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Changes in the regulatory framework could adversely affect its operations and growth prospects.
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Investors may have difficulty enforcing foreign judgments against it or the company`s management.