Atmastco Ltd

Risks

• The Company and its Directors are parties to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, result of operations and financial conditions.

• Its business is substantially dependent on certain key customers, from whom the company derives a significant portion of its revenues. The loss of any significant customer may have a material and adverse effect on its business and results of operations.

• The company is dependent on its Top 10 suppliers for uninterrupted supply of Raw-Materials. Any shortfall in the supply of its raw materials, or an increase in its raw material costs and other input costs, may adversely affect the pricing and supply of its products with subsequently having an adverse effect on the business, results of operations and financial conditions of the company.

• Revenues are recorded on the basis of the execution of the contracts. Its order book may not necessarily indicate future income, however, the company actively manage projects, addressing potential delays, modifications, cancellations, or payment variations from clients.

• Its inability to qualify for or win large EPC contracts and compete with other engineering companies could adversely affect its margins and results of operations.

• The company is required to furnish financial and performance bank guarantees as part of its business. The company is actively working to secure necessary bank guarantees and are confident in its ability to do so successfully. In the rare event of challenges, its proactive approach ensures effective resolution, minimizing the risk of bid security or earnest money deposit forfeiture.

• The company is exposed to significant construction risks on fixed-price or lump-sum turnkey contracts.

• Its business requires the company to obtain and renew certain licenses and permits from government, regulatory authorities and the failure to obtain or renew them in a timely manner may adversely affect its business operations.

• Its industry is labour intensive, and its business 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 generally do business with its customers on purchase order basis and does not enter into long-term contracts with most of them.

• Its cost of production is exposed to fluctuations in the prices of its major raw material.

• The Company has availed certain unsecured loans from various body corporates which may be recalled at any time.

• There have been certain instances of delay in statutory filing of forms with ROC as per Companies Act, 2013. Any adverse order passed or penalty imposed by regulators on it, may adversely affect its business and results of operations.

• The company is dependent on Promoters, directors and key managerial personnel of the Company for success whose loss could seriously impair the ability to continue to manage and expand business efficiently.

• Disruptions or failures in its information technology systems may affect the company operations. Further, Changes in technology may render its current technologies obsolete or require it to make substantial capital investments.

• Any disruption or shutdown of, its manufacturing facility especially in case of Fabrication could adversely affect its business, results of operations and financial condition.

• Construction faults may arise in its projects, which may result in delays in completion and revision in estimated costs, thereby affecting its business and results of operations.

• The company`s clientele comes from various Industrial Segments, such as, Power and Energy, Steel, Cements, Railways, Refineries, Heavy Engineering, Industrial Infrastructure etc. and therefore any downturn in these industries may adversely affect the revenue and operating profit of the company.

• The company operates in an extremely competitive environment, with many domestic players in its segment and may not be able to maintain the company market position, which may adversely impact its business, results of operations and financial condition.

• The company has certain contingent liabilities that have not been provided for in the Company`s financials which if materialized, could adversely affect its financial condition.

• Its business requires working capital, part of which would be met through additional borrowings in the future.

• The Company does not own the land on which its Registered Office and Manufacturing facility (Unit I) are situated and has been taken on lease.

• Its business operations are dependent on its ability to obtain new contracts, failing which the company operations and financials conditions may be adversely affected.

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

• Within the parameters as mentioned in the chapter titled objects of the Offer beginning on page 100 of this Prospectus, the Company`s management will have flexibility in applying the proceeds of this Issue. The fund requirement and deployment mentioned in the Objects of this Issue have not been appraised by any bank or financial institution.

• Its Promoters 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 has taken guarantees from Promoters and members of Promoter Group in relation to debt facilities provided to it.

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

• 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.

• The company will not receive any proceeds from the Offer for Sale portion.

• 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.

• Its operations may be adversely affected in case of industrial accidents, physical hazards and similar risks at its construction sites, which could expose it to material liabilities, loss in revenues and increased expenses.

• Risk Factor in relation to Technical collaboration agreements with leading international technology providers.

• The company recently received the approval/ license for Defense business, in case, its future planning related to Defense business may not be executed as planned. Risk of shutdown the Defense business temporary or permanently basis may happen, which can adversely affect its business and results of operations.

• The Company has delayed payment of Government dues. This may materially adversely affect its business operations in the future.