Premium Plast

Long-standing relationships with established customers, with potential to expand its customer base.

Diverse range of specialised plastic products across varied customer segments.

Robust design optimisation capabilities.

Sustainable business development.

Existing client and supplier relationships.

Strategic location of manufacturing units.

Its business is dependent on certain major customers, with whom the company does not have firm commitment agreements. The loss of such customers, a significant reduction in purchases by such customers, or a lack of commercial success of a particular vehicle model of which the company is a significant supplier could adversely affect its business, results of operations and financial condition.

The company significantly relies on automotive molding products (injection and blow molding) division for a significant amount of revenue, and any interruption or reduction in the customers in the said division may adversely affect its business and results of operations.

Pricing pressure from customers may adversely affect its gross margin, profitability and ability to increase the company prices, which in turn may materially adversely affect its business, results of operations and financial condition.

The company is heavily dependent on the performance of the passenger vehicle market in India. Any adverse changes in the conditions affecting the passenger vehicle market can adversely impact its business, 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 have been instances of delays in payment of statutory dues, i.e. ESIC and EPF by the Company. In case of any delay in payment of statutory due in future by our Company, the Regulatory Authorities may impose monetary penalties on it or take certain punitive actions against the Company in relation to the same which may have adverse impact on its business, financial condition and results of operations.

The company failures to compete effectively in the highly competitive automotive components industry and to keep pace with advances with its research and development ("R&D") capabilities, including retaining qualified engineers and staff, could result in the loss of customers, which could have an adverse effect on its business, results of operations, financial condition and future prospects.

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.

As on date the company has not obtained any of the approvals, clearances and permissions as may be required from the relevant authorities for the proposed expansion at its manufacturing units. In the event the company is unable to obtain such approvals and permits, its business, results of operations, cash flows and financial condition could be adversely affected.

There can be no assurance that the objects of the Issue will be achieved within the time frame anticipated or at all, or that the deployment of the Net Proceeds in the manner intended by it will result in any increase in the value of your investment. Further, the plan for deployment of the Net Proceeds has not been appraised by any bank or financial institution.

The Company is yet to place orders for 100% of the plant and machinery and solar rooftops. Any delay in placing orders or procurement of such plant and machinery and rooftops, may further delay the schedule of implementation and increase the cost of commissioning the manufacturing unit.

There have been instances of delays in filings of certain forms which were required to be filed as per the reporting requirements under the Companies Act, 2013 to RoC. There have also been instances wherein incorrect details were filed in certain forms filed by the Company.

A portion of the Net Proceeds will be utilized by the Company for part-repayment or prepayment of secured loans availed by it from Kotak Mahindra Bank Limited.

If the company is not able to obtain, renew or maintain its statutory and regulatory licenses, registrations and approvals required to operate its business, it may have a material adverse effect on the company`s business, results of operations and financial condition.

Its continued operations are critical to the company`s business and any shutdown of its manufacturing units may adversely affect the company`s business, results of operations and financial condition.

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

Any delays and/or defaults in payments could result in increase of working capital investment and/or reduction of our Company`s profits, thereby affecting our operation and financial condition.

The company has substantial capital expenditure and working capital requirements and may require additional financing to meet those requirements, which could have an adverse effect on its results of operations and financial condition.

Its inability to manage inventory in an effective manner could affect the company`s business.

The company failures to keep its technical knowledge confidential could erode the company competitive advantage.

The company regularly work with hazardous materials and activities in its operation can be dangerous, which could cause injuries to people or property.

The availability of counterfeit products, such as products passed off as its products by others in the aftermarket business, could adversely affect its goodwill and results of operations.

If the Company is unable to protect its intellectual property, or if the Company infringes on the intellectual property rights of others, its business may be adversely affected.

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

In addition to its existing indebtedness for the company existing operations, its may incur further indebtedness during the course of business. The company cannot assure that its would be able to service its existing and/ or additional indebtedness.

Its inability to procure and/or maintain adequate insurance cover in connection with its business may adversely affect the company operations and profitability.

The company has significant power requirements for continuous running of its manufacturing units. Any disruption to the company operations on account of interruption in power supply or any irregular or significant hike in power tariffs may have an effect on its business, results of operations and financial condition.

The company operates in a competitive business environment and its inability to compete effectively may adversely affect the company`s business, results of operations, financial condition and cash flows.

Its Promoters, Directors and Key Managerial Personnel have interests in the Company other than reimbursement of expenses incurred or normal remuneration or benefits.

Its Promoters and members of the Promoter Group have significant control over the Company and have the ability to direct its business and affairs; their interests may conflict with your interests as a shareholder.

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

Its future fund requirements, in the form of further issue of capital or securities and/or loans taken by it, may be prejudicial to the interest of the Shareholders depending upon the terms on which they are eventually raised.

The company is dependent on information technology systems in carrying out its business activities and it forms an integral part of the company`s business. Further, if the company is unable to adapt to technological changes and successfully implement new technologies or if the company faces failure of its information technology systems, the company may not be able to compete effectively which may result in higher costs and would adversely affect its business and results of operations.

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

Its agreements with lenders for financial arrangements contain restrictive covenants for certain activities and if the company is unable to get their approval, it might restrict its scope of activities and impede the company growth plans.

The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Issue. Further, the company has not identified any alternate source of financing the objects of the Issue`. Any shortfall in raising/meeting the same could adversely affect its growth plans, operations and financial performance.

Its success largely depends upon the knowledge and experience of the company Promoters, Directors, and its Key Managerial Personnel. Loss of any of its Directors and key managerial personnel or the company ability to attract and retain them could adversely affect its business, operations and financial condition.

Its branch office and manufacturing units are located on premises which are not owned by it and has been obtained on lease basis. Disruption of its rights as licensee/ lessee or termination of the agreements with its licensors/ lessors would adversely impact the company manufacturing operations and, consequently, its business, financial condition and results of operations.

Its Promoters may enter into ventures that may lead to real or potential conflicts of interest with its business.

The Company has issued Equity Shares in the last one year at a price which is lower that the Issue Price.

Its may face difficulties in implementing the company strategies including its expansion and diversification plans of entering new geographical areas, development and commercialization of new products.

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.

Any variation in the utilisation of the Net Proceeds or in the terms of any contract as disclosed in the Draft Red Herring Prospectus would be subject to certain compliance requirements, including prior shareholders` approval.

The company is exposed to foreign currency exchange rate fluctuations, which may impact its results of operations and cause its results to fluctuate. The company inability to manage its foreign currency risk may harm the company results of operations and cause its results to fluctuate and/or decline.

Information relating to the historical capacity of its production facilities included in this Draft Red Herring Prospectus is based on various assumptions and estimates and future production and capacity may vary.

The requirement of funds in relation to the objects of the Issue has not been appraised.

Its ability to pay dividends in the future may be affected by any material adverse effect on its future earnings, financial condition or cash flows.

The data and statistics added in this Draft Red Herring Prospectus may be incomplete or inaccurate or may not be comparable to statistics produced elsewhere.

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

Delay in raising funds from the IPO could adversely impact the implementation schedule.

The Equity Shares have never been publicly traded and the Issue may not result in an active or liquid market for the Equity Shares.

There is no guarantee that the Equity Shares issued pursuant to the Issue will be listed on the SME Platform of National Stock Exchange of India Limited in a timely manner or at all.

There is no existing market for its Equity Shares, and the company does not know if one will develop to provide you with adequate liquidity. Further, an active trading market for the Equity Shares may not develop and the price of the Equity Shares may be volatile.

Any variation in the utilisation of the Net Proceeds or in the terms of any contract as disclosed in the Draft Red Herring Prospectus would be subject to certain compliance requirements, including prior shareholders` approval.

You will not be able to sell immediately on the Stock Exchanges any of the Equity Shares you purchase in the Issue.

There are restrictions on daily movements in the trading price of the Equity Shares, which may adversely affect a shareholder`s ability to sell Equity Shares or the price at which Equity Shares can be sold at a particular point in time.

The price of the Equity Shares may be volatile, which could result in substantial losses for investors acquiring the Equity Shares in the Issue.

Any future issuance of Equity Shares, or convertible securities or other equity-linked securities by the Company may dilute your shareholding and any sale of Equity Shares by its Promoters or members of our Promoter Group may adversely affect the trading price of the Equity Shares.

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