Cosmic CRF

A reputed private sector manufacturer of cold rolled stainless sections in India.

Long term sourcing arrangements for components.

Strong focus on innovation.

Effective Cost Control Management.

Quality Assurance and Quality Control of our products.

Strong Order Book.

The company is required to obtain licenses and approvals under several legislations. Its inability to obtain or renew such permits, approvals and licenses in the ordinary course of its business may adversely affect its business, financial condition and results of operations.

There have been instances of delays of certain forms which were required to be filed as per the reporting requirements under the Companies Act, 2013 to RoC. Further, there have also been instances where our Company has inadvertently filed incorrect information with the RoC in its statutory filings.

The company depend on its customers and any decrease in revenues or sales from any one of its key customers may adversely affect the company business and results of operations.

An increase in the cost of or a shortfall in the availability of raw materials could have an adverse effect on its business, results of operations and financial condition.

The company may face several risks associated with the proposed expansion of its manufacturing unit, which could hamper the company growth, prospects, cash flows and business and financial condition.

The company cannot assure you that the proposed expansion of its manufacturing unit will become operational as scheduled, or at all, or operate as efficiently as planned. If we are unable to commission its new facilities in a timely manner or without cost overruns, it may adversely affect its business, results of operations and financial condition.

The cost estimates for the proposed expansion of its manufacturing unit situated at Singur have been derived from management estimates and quotations received from third parties and may not be accurate.

The Company is yet to place orders for 100% of the plant and machinery for the proposed expansion of its manufacturing unit. Any delay in placing orders or procurement of such plant and machinery may delay the schedule of implementation and possibly increase the cost of the proposed expansion of its manufacturing unit.

The company operations are considerably located in West Bengal and failure to expand its operations may restrict the company growth and adversely affect its business.

The Company has ventured into manufacturing of cold rolled stainless sections in 2022, and therefore has a very limited operating history of its operations with respect to the same, which will make it difficult for the investors to evaluate its historical performance or future prospects.

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

The erstwhile Director of the Company has filed a complaint with Securities and Exchange Board of India Limited, BSE Limited and other authorities against our Promoter and Managing Director alleging that his signature on the resignation letter dated November 22, 2022 was fake and forged and therefore his resignation is unlawful.

The company entire business operations are based out of a single manufacturing unit at Singur. Further, its manufacturing unit, the company warehouses, godowns and all its facilities are currently located in one geographical area. The loss of, or shutdown of, its operations at this manufacturing or any disruption in the operation of its warehouses will adversely affect the company business, financial condition and results of operations.

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

Any adverse change in regulations governing its products and the products of the company customers, may adversely impact its business prospects and results of operations.

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 requires significant amount of working capital for a continuing growth. Its inability to meet the company working capital requirements may adversely affect its results of operations.

The company is dependent on information technology systems in carrying out its business activities and it forms an integral part of the company business. Further, if its unable to adapt to technological changes and successfully implement new technologies or if its face failure of the company information technology systems, its 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 may be unable to grow its business in additional geographic regions or international markets, which may adversely affect its business prospects and results of operations.

The company is dependent on third party transportation providers for delivery of raw materials to it from the company suppliers and delivery of its products to its customers. The company has not entered into any formal contracts with its transport providers and any failure on part of such service providers to meet their obligations could adversely affect its business, financial condition and results of operation.

The company inability to manage inventory in an effective manner could affect its business.

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.

The company industry is labour intensive and its business operations may be materially adversely affected by strikes, work stoppages or increased wage demands by the company employees or those of its suppliers.

The company business dependent on a continuing relationship with its clients/customers.

The company has significant power and water requirements for continuous running of its manufacturing units. Any disruption to the company operations on account of interruption in power and water 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 operate in a competitive business environment and its inability to compete effectively may adversely affect the company business, results of operations, financial condition and cash flows.

The company has certain contingent liabilities and its financial condition and profitability may be adversely affected if any of these contingent liabilities materialize.

The company Promoter, members of Promoter Group, Directors, Key Managerial Personnel and Senior Management have interests in the Company other than reimbursement of expenses incurred or normal remuneration or benefits.

The company Promoter 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 the Promoter could be lower than the Issue Price.

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

The company Promoter and Directors have extended personal guarantees with respect to various loan facilities availed by the Company. Revocation of any or all of these personal guarantees may adversely affect its business operations and financial condition.

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

The Company has experienced negative cash flow in the past and may continue to do so in the future, which could have a material adverse effect on its business, prospects, financial condition, cash flows and results of operations.

The Company has incurred losses in the past and may continue to do so in the future, which could have a material adverse effect on its business, prospects, financial condition, cash flows and results of operations.

One of the Group Companies of the Company, Prilika Enterprises Private Limited has reported losses and negative net worth in the past and may continue to do so in the future, which could have a material adverse effect on its business, prospects, financial condition, cash flows and results of operations.

The Company has availed certain unsecured loans which may be recalled at any time.

In addition to its existing indebtedness for its 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.

The Company is highly dependent on skilled contract labour for manufacturing of its products. If the company is unable to continue to hire skilled contract labour, the quality of its products being manufactured in its units can get affected.

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.

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.

Its operations can be adversely affected in case of industrial accidents at the company manufacturing unit.

The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Issue. Further, its have 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.

The company success largely depends upon the knowledge and experience of its Promoter, Directors, its Key Managerial Personnel and the company Senior Management. Loss of any of its Directors, the company Key Managerial Personnel and its Senior Management or our ability to attract and retain them could adversely affect its business, operations and financial condition.

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

Any defect in title/ ownership of owner (s) (including its Group Company, namely Prilika Enterprises Private Limited), from whom the Company has bought space/ taken space on lease, may adversely affect the operations of the Company resulting in loss of business.

If the company is unable to maintain and enhance its brand and reputation, the sales of the company products may suffer which would have a material adverse effect on its business operations.

Relevant copies of previous experience of its Promoter and Directors are not traceable.

Information relating to the historical capacity of its production facilities included in this 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.

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

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

Increased losses due to fraud, employee negligence, theft or similar incidents may have an adverse impact on it.

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

The company has not independently verified certain data in this Red Herring Prospectus.

The Company proposes to utilize part of the Net Proceeds for repayment or pre-payment, in full or in part, of all or certain unsecured borrowings availed by the Company and accordingly, the utilization of that portion of the Net Proceeds will not result in creation of any tangible assets.

The requirements of being a listed company may strain the 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 BSE Limited in a timely manner or at all.

There is no existing market for its Equity Shares, and its do 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.

The price of the Equity Shares may be highly volatile after the Issue.

You will not be able to sell immediately on the Stock Exchange 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 Promoter or members of its Promoter Group may adversely affect the trading price of the Equity Shares.

Sale of Equity Shares by its Promoter or other significant shareholder(s) may adversely affect the trading priceof the equity shares.

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