Bulkcorp

Risks

• Its Manufacturing Unit, Registered Office and Labour Colony, from where the company operates are not owned by it.

• The operations of the company are limited to selected regions such as in Gujrat domestically and in USA overseas. Any adverse development affecting its operations in this region could have an adverse impact on its business, financial condition and results of operations.

• The Company is dependent on few suppliers for purchase of product. Loss of any of these large suppliers may affect its business operations.

• The Company is dependent on few numbers of customers for sales. The loss of any of this large customer may affect its revenues and profitability.

• Business of the company is dependent on its Manufacturing facilities. Continues operations of its manufacturing facility is critical to the company`s business and any disruption in the operation of its manufacturing facility may have a material adverse effect on its business, results of operations and financial condition.

• Its operations are subject high level of hygiene & safety standards.

• The company is subject to foreign currency exchange rate fluctuations which could have a material and adverse effect on its results of operations and financial conditions.

• The company will continue to be controlled by its Promoters after the completion of the Issue.

• The Company, Promoter, Directors and Group Company are involved in certain legal proceedings. Any adverse decision in such proceedings may render it/them liable to liabilities/penalties and may adversely affect its business and results of operations.

• The Company has not entered into any agreements/ contracts for the supply of raw material and other utilities. Risks related to shortfall or non-availability of raw material and other utilities may adversely affect its manufacturing processes and have an adverse impact on the company`s operations and financial condition.

• Increases in the prices of raw materials, their availability, quality and cost overruns could have adverse effect on us.

• Our failures to perform in accordance with the standards prescribed in work order of our client could result in loss of business or payment of liquidated damages.

• There is an increased awareness towards controlling pollution and many economies including India have joined in the efforts to ban plastic product. In case any plastic packaging products manufactured by us are janned in India it could have a material and adverse effect on our business and results of operations.

• There are certain discrepancies and non-compliances noticed in some of our corporate records relating to forms filed with taxation authorities and other public authorities.

• There are certain discrepancies and non-compliances noticed in some of our corporate records relating to forms filed with taxation authorities and other public authorities.

• Orders placed by customers may be delayed, modified, cancelled or not fully paid for by our customers, which may have an adverse effect on our business, financial condition and results of operations.

• The company Sales are on credit basis and hence receivables may be converted into bad debts due to change in economic conditions or its client`s inability to pay.

• The company has a logo which is used for its business purpose and the company depends on brand names and its corporate name and logo that its may not be able to protect and/or maintain.

• The company has unsecured loans from directors & relatives of directors and inter corporate deposits, which are repayable on demand. Any demand from lenders for repayment of such unsecured loans, may adversely affect its liquidity and business operations.

• The company has experienced significant working capital requirements in past and may continue to experience in future also. If the company experience insufficient cash flows from its operations or are unable to borrow to meet the company working capital requirements, it may materially and adversely affect its business, cash flows and results of operations.

• Its insurance coverage may not adequately protect the company against certain operating risks and this may have an adverse effect on the results of its business.

• The company is subject to risks associated with expansion into new markets.

• The company is dependent on third party transportation providers for procuring raw material from its suppliers and delivery of products to the company clients. Any failures on the part of such service providers to meet their obligations could have a material adverse effect on its business, financial condition and results of operation.

• The industry segments in which the company operates being fragmented, its faces competition from other players, which may affect the company`s business operations and financial conditions.

• The company may not be successful in implementing its business strategies.

• Failures to manage appropriate Inventory level could have an adverse effect on the company`s 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.

• A shortage or non-availability of power facilities may adversely affect its manufacturing operations and have an adverse effect on the company`s business, results of operations and financial condition.

• The company has offered Equity Shares during the last one year at a price below the Issue Price.

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

• Dependence on debt and outflow of finance cost leads to outflow of cash flows and reduce overall profitability.

• The Company had negative cash flow from operating activity in recent financial year, details of which are given below. Sustained negative cash flow could adversely impact its business, financial condition and results of operations.

• Its manufacturing activities are dependent upon availability of skilled and unskilled labour.

• Its success depends on the company`s ability to attract and retain its key and senior management personnel. If the company is unable to do so, it would adversely affect its business and results of operations.

• In addition to regular remuneration, other benefits and expense reimbursement its Promoters, Directors, KMPs and SMPs hold a vested interest in the Company; to the extent of their shareholding and associated dividend entitlements. They also have a stake in transactions involving the company, whether with themselves individually or with its group companies/entities. The Company in future may enter in related party transactions subject to necessary compliances.

• Strikes, work stoppages or increased wage demands by its employees or any other kind of disputes with the company employees/workmen in future could adversely affect its business and results of operations.

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

• Compliance with and changes in safety, health and environmental laws and various labour, workplace and related laws and regulations impose additional costs and may increase its compliance costs and a such adversely affect the company`s results of operations and its financial condition.

• One of its Group Company is engaged in similar line of business. Any conflict of interest in future may occur between its group company or the company promoter group entities and it may adversely affect its business, prospects, results of operations and financial condition.

• The company is subject to the restrictive covenants of banks in respect of the Loan/Credit Limit and other banking facilities availed from them.

• If the company is unable to service its debt obligations in a timely manner or to comply with various financial and other covenants and other terms and conditions of its financing agreements, it may adversely affect the company`s business, prospects, results of operations and financial condition.

• Its lenders have charge over the company movable in respect of finance availed by it and its group company, promoters, Directors and member of promoters group have provided their personal guarantee and mortgage their immovable properties for such debt facility availed by the company.

• Its contingent liabilities as stated in the company Restated Financial Statements could affect its financial condition.

• Changes in technology may render its current technologies obsolete or require it to make substantial investments.

• The average cost of acquisition of Equity shares by its Promoters is lower than the Issue price.

• Fraud, theft, employee negligence or similar incidents may adversely affect the results of operations and financial condition.

• Its ability to pay any dividends will depends upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.

• There is no monitoring agency appointed by the Company to monitor the utilization of the Issue proceeds.

• Any variation in the utilization of the Net Proceeds as disclosed in this Red Herring Prospectus shall be subject to certain compliance requirements, including prior approval of the shareholders of the Company.

• Any future issuance of its Equity Shares may dilute prospective investors` shareholding, and sales of its Equity Shares by the company major shareholders may adversely affect the trading price of its Equity Shares.

• The Issue price of its Equity Shares may not be indicative of the market price of the company 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.

• The Objects of the Issue for which funds are being raised, are based on its management estimates and the same have not been appraised by any bank or financial institution or any independent agency. The deployment of funds in the project is entirely at its discretion, based on the parameters as mentioned in the chapter titled as "Objects of the Issue".

• In the event there is any delay in the completion of the Issue, or delay in schedule of implementation, there would be a corresponding delay in the completion of the objects of this Issue which would in turn affect its revenues and results of operations.

• The company has not identified any alternate source of raising the funds required for the object of the Issue and the deployment of funds is entirely at its discretion and as per the details mentioned in the section titled "Objects of the Issue".

• The requirements of being a public listed company may strain its resources and impose additional requirements.

• Certain data mentioned in this Red Herring Prospectus has not been independently verified.