Shree Marutinand

Risks

• The property used by the Company for the operation purpose of its storage is not owned by it. Any termination of the relevant lease agreement or rent agreement in connection with such property or the company failure to renew the same could adversely affect its operations.

• The demand and pricing in the steel industry is volatile and are sensitive to the cyclical nature of the industries it serves. A decrease in steel prices may have adverse effect on the company business, results of operations, margins and financial condition.

• The company generate a substantial portion of revenue from Gujarat Region. Any adverse developments affecting its operations in the Gujarat Region could have an adverse impact on the company revenue and results of operations.

• The company Revenue from Black pipe/MS Pipe and Structural Pipe contribute significantly to its revenue from operation. Any loss of business from such product may adversely affect the company revenues and profitability.

• The company Peer Review Auditor and Statutory Auditor of the Company are not same.

• The company has had certain inaccuracy in relation to regulatory filings to be made with the RoC and the company has made non-compliances of certain provision under applicable law.

• The company success depends largely upon the services of the Promoters, Managing Directors and other key managerial personnel and its ability to attract and retain them.

• The company is dependent upon few suppliers for the material requirements of its trading business. Loss of any of the company suppliers or a failure by its suppliers to deliver the products may have an adverse impact on the company ability to continue its operations without interruption and the company ability to deliver the products to its customers without any delay.

• The Company is dependent on third party transportation providers for the delivery of its products 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 business requires it to obtain and renew certain registrations, licenses and permits from government and regulatory authorities and the failure to obtain and renew them in a timely manner may adversely affect its business operations.

• The company has referred to the data derived from internal Company reports and industry and government publications, publicly available information, and sources.

• The company business is a High Volume-Low Margin Business.

• The company operate in a highly competitive industry. Any inability to compete effectively may lead to a lower market share or reduced operating margins.

• The company Promoter and Promoter Group will continue to exercise control post completion of the Issue and will have considerable influence over the outcome of matters.

• The company ability to pay dividends in the future will depends upon its future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in its financing arrangements.

• In addition to normal remuneration, other benefits and reimbursement of expenses to the company Promoters and Directors, they are interested to the extent of their shareholding and dividend entitlement thereon in the Company and for the transactions entered into between the Company and themselves as well as between the Company and its Group Companies / Entities.

• The Company has in the past entered into related party transactions and may continue to do so in the future and its cannot assure you that the company could not have achieved more favorable terms if such transactions had not been entered into with related parties. And will not have an adverse effect on the company financial conditions and result of operations.

• The company management has discretion in how it may use the proceeds of the Offer. Any variation in the utilization of its Net Proceeds would be subject to certain compliance requirements, including prior shareholders` approval.

• The company Object has not been appraised by any Bank or Financial Institution. Any significant deviation in the Object could adversely impact its operations and sustainability in absence of any independent monitoring agency.

• There is no monitoring agency appointed by The Company and the deployment of funds are at the discretion of the Management and the Board of Directors, though it shall be monitored by its Audit Committee.

• The company could be adversely affected if its fail to keep pace with technical and technological developments in the Industry in which the company are operating.

• The average cost of acquisition of Equity shares by the company Promoters is lower than the Issue price. The company promoters average cost of acquisition of Equity shares in the Company is lower than the Issue Price of Equity shares as given below:

• The company require high working capital for its smooth day to day operations of business and any discontinuance or the company inability to acquire adequate working capital timely and on favorable terms at a future date, may have an adverse effect on its operations, profitability and growth prospects.

• 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.

• Certain information contained in this Draft Prospectus is based on management estimates and the company cannot assure you of the completeness or accuracy of the data.

• The Company has made application for registration of trademark, which is under process of registration. Its are unable to assure that the future viability or value of any of the company intellectual property or that the steps taken by it to protect the proprietary rights of the Company will be adequate.

• The COVID-19 pandemic, or any future pandemic or widespread public health emergency, could materially and adversely impact the company business, financial condition, cash flows and results of operations.

• Failure to manage the company stocks could have an adverse effect on its net sales, profitability, cash flow and liquidity.

• The company could be exposed to risks arising from misconduct, fraud and trading errors by its employees and Business Associates.

• The company has to update the name of the company in some of the statutory approvals and certificates due to the conversion of the Company in to Public Limited Company.