Barflex Polyfilm

Risks

• The company is involved in one criminal case which is pending against the Company that may have a material adverse outcome.

• The company had, in the past, entered into OTS with its lender in respect of the company credit facilities. Any inability to any lenders in future could adversely affect on its business, results of operation and financial condition.

• In the past, on account of losses, the Company failed to meet financial performance as per the expectation of its Investor which subsequently resulted in dispute. Any failures on the company part go meet performance parameters in future may lead to dispute, penal provisions, financial & reputational loss.

• Its Promoters, Mr. Jaiwant Bery and Mrs. Nomita Bery, were associated with companies which were delisted compulsorily by an order of BSE Dissemination Board.

• The company has not yet obtained possession of the land/premises where its intend to set up the company expansion unit.

• The Company has yet to place orders for 100% of the plant & machineries for its proposed object, as specified in the Objects of the Issue. Any delay in placing orders, procurement of plant & machineries may result in time and cost over-runs and its business, prospects and results of operations may be adversely affected.

• If the company is unable to successfully implement its proposed expansion plans, the company results of operations and financial condition could be adversely affected.

• Its may not be able to manage the company growth or sustain the pace of its growth in future periods, which may adversely affect the company`s business, financial condition, results of operations and prospects.

• Its other income include profit from investment in stock market/mutual funds, which being exceptional income, and is not sustainable.

• There are outstanding litigations involving the Company, Promoters and Directors which, if determined adversely, may affect its business and financial condition.

• The company failed to meet its export obligations in the past.

• A significant portion of its revenue is generated from sales of the company top five products. The loss of customers who purchase these products, or a significant reduction in the production and sales of, or demand for said products for any reason may adversely affect its business, financial condition, results of operations and prospects.

• Its reliance on certain industries for a significant portion of the company revenue could have an adverse effect on its business.

• Any inability to pass on an increased price of the primary raw material, used for manufacturing its products, may affect the company profitability.

• The company does not have any long-term agreements with its customers. If the company customers choose not to source their requirements from it, its business and results of operations may be adversely affected to that extent.

• The company Promoters Group Entity viz. Packit have similar objects and have engaged in the line of business similar to the Company. There are no non-compete agreements between the Company and this Promoter Group Entity. Its cannot assure that the company Promoters will not favor the interests of that firm over its interest or that the said entity will not expand which may increase the company competition, which may adversely affect business operations and financial condition of the Company.

• The company has experienced negative cash flows for investing and financing activities in the recent past, and its may have negative cash flows in the future.

• Its inability to receive or renew the necessary licenses, approvals and registrations in a timely manner or at all may lead to interruption of the Company`s operations.

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

• Underutilization of capacity of its facility may adversely affect the company business, results of operations and financial conditions.

• The company has not spent certain allocated portions of its profits towards CSR, as required under the Companies Act, 2013. Failure to do so in future, may subject it to penalties, and have an adverse effect on the company reputation, financial condition, cash flows and results of operations.

• There has been delay in filing of forms/returns with the Regulatory Authorities and payment of statutory dues as per the stipulated timelines prescribed under certain provisions of statutory regulations. Any penalty or action taken by any regulatory authorities in future, for delay in such compliances could impact the reputation and financial position of the Company.

• The commercial success of its products depends to a large extent on the success of the products of its end use customers. If the demand for the end use products in which the company products are used as a raw materials declines, it could have a material adverse effect on its business, financial condition and results of operations.

• The Company`s operations are dependent on its ability to develop and design innovative packaging material suitable for the final finished product of our customers. Its inability to effectively utilize and manage the company resources to develop and design packing products would impact its revenue and profitability.

• Growing government regulation and the impact of plastics on the environment could have a severe impact on its ability to continue the company`s business operations, which could adversely affect its business, results of operations and financial condition.

• The introduction of alternative packaging materials caused by changes in technology or consumer preferences may affect demand for its existing products, which may adversely affect the company financial results and business prospects.

• The company may faces risks associated with its manufacturing facilities, which could hamper the company growth, prospects, cash flows and business and financial condition.

• The company faces competition in its business from organized and unorganized players, which may adversely affect its business operation and financial condition.

• Its may have to incur expenditure in relation to repair, maintenance or upkeep of any plant.

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

• Information relating to its production capacities and the historical capacity utilization of the company production facilities included in this Draft Red Herring Prospectus is based on certain assumptions and has been subjected to rounding off, and future production and capacity utilization may vary.

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

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

• The company is dependent on third party transportation providers for delivery of raw materials to it from its suppliers and delivery of the company finished products to its customers. The company has not entered into any formal contracts/agreement(s) with its 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.

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

• Any failures in its quality control processes may adversely affect the company`s business, results of operations and financial condition. Its may faces product liability claims and legal proceedings if the quality of the company products does not meet its customers` expectations.

• 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 may be unable to grow the company`s business in additional geographic regions or sectors, which may adversely affect its business prospects and results of operations.

• The company requires power for continuous running of its 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.

• Its Promoters are unable to trace certain of historical records in relation to their past directorships.

• Its Promoters/Directors have interests in the Company other than reimbursement of expenses incurred or normal remuneration or benefits.

• Its Promoters 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.

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

• The Company requires high working capital and its inability in future to maintain sufficient cash flow, working capital facilities from banks or other sources of funding, in a timely manner, or at all, to meet requirement of working capital, could adversely affect its operations.

• 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.

• The Company is dependent on contract labour for manufacturing of its products. The company operations could be adversely affected by strikes, work stoppages or increased wage demands by its employees or any other kind of disputes with the company employees. If its unable to continue to hire contract labour, the quality of its products being manufactured in the company units can get affected.

• Its insurance coverage may not be adequate to protect the company against certain operating hazards and this may have a material adverse effect on its business.

• 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 deployment of funds is entirely at its discretion and as per the details mentioned in the chapter titled "Objects of the Issue".

• Certain documents in relation to educational qualifications and experience for some of its Key Management and Senior Management Personnel are not available and reliance has been made on declaration/undertaking furnished by such Key Management and Senior Management Personnel for details of their profiles included in this Draft Red Herring Prospectus.

• Industry information included in this Draft Red Herring Prospectus has been derived from industry reports and annual reports of various listed players of its industry. There can be no assurance that such third-party statistical, financial and other industry information is either complete or accurate.

• Its Promoters were associated as Promoter/Director in some companies which had been struck-off by the Registrar of Companies.

• The Equity Shares have never been publicly traded, and, after the Issue, 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 Issue Price, or at all.

• The Issue Price of the Equity Shares may not be indicative of the market price of the Equity Shares after the Issue and the market price of its Equity Shares may decline below the Issue price and you may not be able to sell your Equity Shares at or above the Issue Price.

• 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 may adversely affect the trading price of the Equity Shares.

• Subsequent to the listing of the Equity Shares, its may be subject to surveillance measures, such as the Additional Surveillance Measures and the Graded Surveillance Measures by the Stock Exchanges in order to enhance the integrity of the market and safeguard the interest of investors.

• There are restrictions on daily / weekly / monthly movements in the price of the Equity Shares, which may adversely affect a shareholder`s ability to sell, or the price at which it can sell, Equity Shares at a particular point in time.

• You will not be able to sell immediately on Stock Exchange any of the Equity Shares you purchase in the Issue until the Issue receives appropriate trading permissions.

• QIB and Non-Institutional Investors 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.

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

• The requirements of being a listed company may strain our resources.