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The company has certain outstanding litigation against it, an adverse outcome of which may adversely affect its business, reputation and results of operations.
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The costs of the raw materials that the company uses in its manufacturing process are subject to volatility due to factors beyond its control. Increases or fluctuations in raw material prices may have a material adverse effect on its business, financial condition, results of operations and cash flows.
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Its business is dependent and will continue to depends on the company manufacturing facility, and its subject to certain risks in its manufacturing process. Any slowdown or shutdown in the company manufacturing operations or strikes, work stoppages or increased wage demands by its employees that could interfere with the company operations could have an adverse effect on its business, financial condition and results of operations.
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The company is dependent on the performance of the pet straps market. Any adverse changes in the conditions affecting the pet straps market can adversely impact its business, financial condition, results of operations, cash flows and prospects.
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The company is subject to strict quality requirements and any product defect issues or failure by it or its raw material suppliers to comply with quality standards may lead to the cancellation of existing and future orders, recalls and exposure to potential product liability claims.
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The company derives significant portion of its revenue from one of its products; i.e. Pet Straps. The company profitability, business and commercial success is significantly dependent on its ability to successfully anticipate the industry and customer requirements and utilize its resources to enhance and develop its products that efficiently satisfy and meet the company client`s specific requirements in a timely manner. Any failure on our part to do so, may have an impact on the reputation of its products, which could have an adverse effect on the company revenue, reputation, financial conditions, results of operations and cash flows.
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Any shortages, delay or disruption in the supply of the raw materials its use in the company`s manufacturing process due to factors beyond its control may have a material adverse effect on the company`s business, financial condition, results of operations and cash flows.
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The industry in which its operate is labour intensive and the company manufacturing operations may be materially adversely affected by strikes, work stoppages or increased wage demands by its employees or those of its suppliers.
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Its Business is dependent on the company Continuing relationships with its customers, with whom the company has not entered into long term arrangements and failure to procure such orders on a continuous basis could adversely impact its revenues and profitability.
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The Restated Financial Statements have been provided by Peer Reviewed Chartered Accountants who is not Statutory Auditor of the Company.
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The company depends on the success of its relationships with its customers. The company derives a significant part of its revenue from the company top 10 customers and the company does not have long term contracts with these customers. If one or more of such customers choose not to source their requirements from it, its business, financial condition and results of operations may be adversely affected.
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The company propose to deploy a part of the Net Proceeds towards acquisition of land which is not registered in the name of the Company.
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Its reliance on certain industries for a significant portion of the company sales could have an adverse effect on its business.
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The company is highly dependent on its promoters, directors and key managerial personnel for the company business. The loss of or its inability to attract or retain such persons could have a material adverse effect on its business performance, results of operations, financial condition and cash flows.
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Inventories and trade receivables form a major part of its current assets. Failure to manage the company inventory and trade receivables could have an adverse effect on its sales, profitability, cash flow and liquidity.
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The Company has higher debt-equity ratio which requires significant cash flows to service its debts obligations, and this, together with the conditions and restrictions imposed by its financing arrangements, fluctuations in the interest rates may limit its ability to operate freely and grow the company`s business.
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The company is highly dependent on its skilled and unskilled personnel for its day-to-day operations. The loss of or its inability to attract or retain such persons have a material adverse effect on its business performance.
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Its failure to maintain optimum inventory levels could adversely affect its business, financial condition, results of operation and cash flow.
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Improper storage, processing and handling of its raw materials, work products and products could damage its inventories and, as a result, have an adverse effect on the company business, results of operations and cash flows.
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Failure or disruption of its information technology systems may adversely affect its business, financial condition, results of operations, cash flows and prospects.
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The company is subject to various laws and extensive government regulations and if its fail to obtain, maintain or renew the company statutory and regulatory licenses, permits and approvals required in the ordinary course of its business, including environmental, health and safety laws and other regulations, its business financial condition, results of operations and cash flows may be adversely affected.
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The company is generate its major portion of sales from its operations in certain geographical regions especially, Gujarat, Haryana, Madhya Pradesh, Maharashtra, Rajasthan and Telangana. Any adverse developments affecting its operations in these regions could have an adverse impact on its revenue and results of operations.
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In case of its inability to obtain, renew or maintain the statutory and regulatory licenses, permits and approvals required to operate the company business it may have a material adverse effect on its business.
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The Company has entered into related party transactions in the past and may continue to enter into related partytransactions in the future, which may potentially involve conflicts of interest with the equity shareholders.
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The Company had negative cash flows in the past years, details of which are given below. Sustained negative cash flowcould impact its growth and business.
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Its Promoters cum Directors and their relatives have provided personal guarantees for loan facilities obtained by the Company, and any failure or default by the Company to repay such loans in accordance with the terms and conditionsof the financing documents could trigger repayment obligations on them, which may impact their ability to effectivelyservice their obligations as its Promoters/Directors and thereby, impact the company business and operations.
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The company face significant competitive pressures from other players in its business as the industry segments in which the company operate being fragmented, its inability to compete effectively would be detrimental to its business and prospects for future growth.
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The Company has availed unsecured loans from non-banking financial companies("NBFC"), its directors and directors` relatives, which may be recalled on demand.
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Pricing pressure from customers may adversely affect its gross margin, profitability and ability to increase its prices.
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If the company fail to retain its relationships with its distributors, the company`s business, financial condition, cash flows and operations will be adversely affected.
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The Company purchases majority of its basic raw materials viz hot washed pet bottle flakes and used pet straps grinding from few suppliers and will continue to rely in the near future.
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Its intend to utilise a portion of the Net Proceeds for funding its capital expenditure requirements. The company are yet to place orders for 100% of the (i) acquisition of Land and (ii) Solar Power Plant on the land proposed to be acquired, as specified in the Objects of the Issue chapter. Any delay in acquisition of such land or procurement of such solar power system may delay the schedule of implementation and may also lead to increase in cost of these land and solar power system, further affecting its revenue and profitability.
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The company is dependent on third party transportation providers for the delivery of its products. Accordingly, continuing increases in transportation costs or unavailability of transportation services for them, as well the extent and reliability of Indian infrastructure may have an adverse effect on its business, financial condition, results of operations and prospects.
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If the company is unable to manage its growth effectively and further expand into new markets its business, future financial performance and results of operations could be materially and adversely affected.
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The company has significant power requirements and any disruption to power sources could increase its production costs and adversely affect the company`s results of operations and cash flows.
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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, business operations and financial condition.
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Within the parameters as mentioned in the chapter titled "Objects of the Issue" beginning on page 75 of this Draft 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.
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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.
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Its may not be fully insured for all losses the company may incur.
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Information relating to historical installed capacity of its manufacturing facility included in this Draft Prospectus is based on various assumptions and estimates and its future production and capacity utilization may vary. Under-utilization of its manufacturing capacity and an inability to effectively utilize its manufacturing facilities may have an adverse effect on its business and future financial performance.
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Its financing agreements contain covenants that limit the company flexibility in operating its business. If the company is not in compliance with certain of these covenants and are unable to obtain waivers from the respective lenders, its lenders may accelerate the repayment schedules, and enforce their respective security interests, leading to a material adverse effect on its business and financial condition.
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Any increase in interest rates would have an adverse effect on its results of operations and will expose the Company to interest rate risks.
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If the company fail to maintain an effective system of internal controls, its may not be able to successfully manage, or accurately report, its financial risks. Despite its internal control systems, the company may be exposed to operational risks, including fraud, petty theft and embezzlement, which may adversely affect its reputation, business, financial condition, results of operations and cash flows.
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The company is exposed to counterparty credit risk and any delay in receiving payments or non-receipt of payments may adversely impact its results of operations.
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The company could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect its financial condition, results of operations and reputation.
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The Company logo GABRIEL is not registered with Registrar of Trademark; any infringement of its brand name orfailure to get it registered may adversely affect its business. Further, any kind of negative publicity or misuse of its brand name could hamper its brand building efforts and its future growth strategy could be adversely affected.
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The company has been recently incorporated the company and any non-compliance with the provisions of Companies Act, 2013 may attract penalties against the Company which could impact its financial and operational performance andreputation.
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The company face significant competition in its business which could adversely affect the company operations and its profitability.
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Its Promoters and Promoter Group will continue to retain a majority shareholding in the Company after the Issue, which will allow them to exercise significant influence over it.
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The company might infringe upon the intellectual property rights of others and any misappropriation of its intellectual property could harm its competitive position.
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In addition to normal remuneration, other benefits and reimbursement of expenses some of its directors (including its Promoters) are interested in the Company to the extent of their shareholding and dividend entitlement in the Company.
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Industry information included in this Draft 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.
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Its ability to pay dividends in the future will depend upon the company future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in its financing arrangements.
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The determination of the Issue Price is based on various factors and assumptions and the Issue Price of the Equity Shares may not be indicative of the market price of the Equity Shares upon listing on the Stock Exchange.
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The average cost of acquisition of Equity Shares by its Promoters could be lower than the Issue price determined in consultation with Lead Manager in accordance with the SEBI ICDR Regulations.
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Significant differences exist between Indian GAAP and other accounting principles, such as US GAAP and IFRS, which may be material to investors assessments of the Company`s financial condition. its failure to successfully adopt IFRS may have an adverse effect on the price of its Equity Shares. The proposed adoption of IFRS could result in its financial condition and results of operations appearing materially different than under Indian GAAP.
