Global Surfaces

Wide product portfolio and multiple designs

Established presence in international markets

Experienced and result oriented Promoter

Synergy of young and experienced management team with a committed employee base

Effective quality checks thereby reducing loss.

R&D set up for new product development.

The continuing impact of the COVID-19 pandemic on its business and operations is uncertain and it may be significant and continue to have an adverse effect on the company business, operations and its future financial performance.

The company is dependent on a few customers for a major part of its revenues. Further its do not enter into long-term arrangements with the company customers and any failure to continue its existing arrangements could adversely affect the company business and results of operations.

The company do not have long-term agreements with its suppliers for raw materials and an inability to procure the desired quality, quantity of its raw materials in a timely manner and at reasonable costs, or at all, may have a negative impact on its business, results of operations, financial condition and cash flows.

Major portion of its revenues are derived from exports to the United States of America and any adverse developments in this market or restrained economic or political relations of India with the United States of America could adversely affect its business.

Under-utilization of its production capacities could have an adverse effect on the company business, future prospects and future financial performance.

The company business is working capital intensive. If its experience insufficient cash flows from the company operations or are unable to borrow to meet its working capital requirements, it may materially and adversely affect its business and results of operations.

If there are delays in setting up the Proposed Facility or if the costs of setting up and the possible time or cost overruns related to the Proposed Facility or the purchase of plant and machinery for the Proposed Facility are higher than expected, it could have a material adverse effect on its financial condition, results of operations and growth prospects.

The company Units and office premises are located on leasehold basis. If these leasehold agreements are terminated or not renewed on terms acceptable to the company, it could have a material adverse effect on its business, financial condition, results of operations and cash flows.

The company is in the process of expanding its operations and establishing a network of customers, particularly for engineered stone product category, in regions where its do not have a significant presence or prior experience. Any failure to expand into these new regions could adversely affect its sales, financial condition, result of operations and cash flows.

The company has in the past entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interest with the equity shareholders.

The company may not be able to adequately protect or continue to use its intellectual property. In addition, the use of the company brands or similar trade names by third parties could have a material adverse effect on its business growth and prospects, financial condition, results of operations and cash flows.

The company has incurred borrowings from commercial banks and an inability to comply with repayment and other covenants in its financing agreements could adversely affect the company business and financial condition.

The company, through its wholly owned subsidiary Global Surfaces FZE, are in the process of setting up the Proposed Facility for manufacturing of engineered stone in Dubai, United Arab Emirates. Such venture may not be profitable or achieve the profitability that justifies its investment, which may have an adverse impact on the company prospects, growth, results of operations and financial condition.

The average cost of acquisition of Equity Shares by its Promoter and Selling Shareholders may be lower than the Floor Price.

Some of its records are not traceable.

Information relating to the installed production capacity and capacity utilization of the company production Units included in this Red Herring Prospectus are based on various assumptions and estimates and future production and capacity may vary.

Any unscheduled or prolonged disruption of its manufacturing operations could materially and adversely affect its business, financial condition, results of operations and cash flows.

The Company, its Promoter, Promoter group members and its Directors are party to certain legal proceedings. Any adverse outcome in such proceedings may have an adverse impact on its reputation, business, financial condition, results of operations and cash flows.

The company Statutory Auditors have included certain emphasis of matter in their examination report on the Restated Financial Statements.

Industry information included in this Red Herring Prospectus has been derived from an industry report commissioned by it for such purpose. There can be no assurance that such third-party statistical, financial and other industry information is either complete or accurate.

The company funding requirements and proposed deployment of the Net Proceeds are based on third party certification and management`s estimates which may be subject to change based on various factors, some of which are beyond its control.

The company inability to collect receivables from its customers or default in payment by them could result in the reduction of its profits and affect the company cash flows.

The company is dependent on third-party transportation providers for the supply of raw materials and delivery of its finished products.

The company Restated Financial Statements disclose certain contingent liabilities which if materialize, may adversely affect its business, financial condition, cash flows and results of operation.

The company is required to obtain, renew or maintain certain statutory and regulatory permits and approvals required to operate its business and if the company fail to do so in a timely manner or at all and its business, financial conditions, results of operations and cash flows may be adversely affected.

The company has not received consent from Promoter Group members for including their name in the Red Herring Prospectus.

The company relies on only one port for the majority of its exports. Disruption of transportation from this port may interrupt its exports which could impact the company sales and results of operations.

All the company production Units are located in one geographic area and therefore, any localized social unrest, natural disaster or breakdown of services or any other natural disaster in and around Jaipur, Rajasthan or any disruption in production at, or shutdown of, its production Units could have material adverse effect on its business and financial condition.

The company may not be able to identify or effectively respond to evolving preferences, expectations or trends in a timely manner and a failure to derive the desired benefits from its product development efforts may impact the company competitiveness and profitability.

Inability to protect, strengthen and enhance its existing reputation could adversely affect the company business prospects and financial performance.

The company ability to grow its business depends on its relationships with the company customers and any adverse changes in these relationships, or its inability to enter into new relationships and thereby expand its customer network, could negatively affect the company business and results of operations.

There have been some instances of delay/ default in payment of statutory dues by the Company in the past.

There have been some instances of delayed filing/ incorrect filings in the past with the Registrar of Companies which may attract penalties.

Stringent environmental, health and safety laws and regulations or stringent enforcement of existing environmental, health and safety laws and regulations may result in increased liabilities and increased capital expenditures.

The company manufacturing activities are dependent on the delivery of adequate and uninterrupted supply of electrical power at a reasonable cost. Any shortage or any prolonged interruption or increase in the cost of power could adversely affect its business, result of operations, financial conditions and cash flows.

The company appoint contract labour for carrying out some of its operations and its may be held responsible for paying the wages of such workers, if the independent contractors through whom such workers are hired default on their obligations, and such obligations could have an adverse effect on its results of operations, cash flows and financial condition.

Improper storage, processing and handling of raw materials and finished products may cause damage to its inventory leading to an adverse effect on its business, results of operations and cash flows.

The company inability to effectively manage its growth or to successfully implement the company business plan and growth strategy could have an adverse effect on its business, results of operations, financial condition and cash flows.

The company may be subject to unionization, work stoppages or increased labour costs, which could adversely affect its business and results of operations.

The company inability to accurately forecast demand or price for its products and manage the company inventory may adversely affect its business, results of operations, financial condition and cash flows.

Fluctuations in the average selling prices of natural and engineered stones could adversely affect its business, financial condition, results of operations and cash flows.

Its may be subject to significant risks and hazards when operating and maintaining the company Units, for which its insurance coverage might not be adequate.

The company is dependent on its Promoter, Directors and a number of key managerial personnel and the loss of or its inability to attract or retain such persons could adversely affect its business,results of operations, financial condition and cash flows.

An inability to renew quality accreditations in a timely manner or at all, or any deficiencies in the quality of our products may give rise to product liability claims and negatively affect its business prospects and financial performance.

The Company`s name has been wrongly used in the past.

Restrictions on import of raw materials may adversely impact its business and results of operations.

Any downgrading of its credit rating by a domestic or international credit rating agency may increase interest rates for the company future borrowings, which would increase its cost of borrowings, and adversely affect its ability to borrow on a competitive basis.

Uncertainty regarding the infrastructure industry, housing and other real estate market, economic conditions and other factors beyond its control could adversely affect demand for the company products and services, its costs of doing business and its financial performance.

The industry segment in which its operate being fragmented, the company face competition from other players, which may affect its business operations and financial conditions.

The company has in this Red Herring Prospectus included certain Non-GAAP Measures and certain other industry measures related to its operations and financial performance. These Non-GAAP Measures and industry measures may vary from any standard methodology that is applicable across the natural and engineered stone industry, and therefore may not be comparable with financial or industry related statistical information of similar nomenclature computed and presented by other companies.

The company Promoter will continue to retain majority shareholding in the Company after the Offer, which will allow him to exercise significant influence over it and potentially create conflicts of interest.

Any failure or disruption of its information technology systems could adversely impact the company business and operations.

Changes in technology may affect its business by making the company Units or equipment less competitive.

The Company will not receive any proceeds from the Offer for Sale portion, and the Selling Shareholders shall be entitled to the Offer Proceeds to the extent of the Equity Shares offered by them in the Offer for Sale. Its Promoter are therefore interested in the Offer in connection with the Equity Shares offered by them in the Offer for Sale.

The company may undertake strategic acquisitions or investments, which may prove to be difficult to integrate and manage or may not be successful.

The company has issued Equity Shares at prices that may be lower than the Offer Price in the last 12 months.

Its Promoter has provided personal guarantee for loans availed by it. In the event of default of the debt obligations, the personal guarantees may be invoked thereby adversely affecting its Promoter`s ability to manage the affairs of the Company and the Company`s profitability and consequently this may impact its business, prospects, financial condition and results of operations.

If the company is subject to any frauds, theft, or embezzlement by its employees, suppliers or customers, it could adversely affect the company reputation, results of operations, financial condition and cash flows.

The company face foreign exchange risks that could adversely affect its results of operations and cash flows.

The company Promoter, also being the Managing Director, and some other Directors and Key Managerial Personnel of the Company, hold Equity Shares in the Company and are therefore interested in the Company`s performance in addition to their remuneration and reimbursement of expenses.

The company ability to pay dividends in the future will depend on its earnings, financial condition, working capital requirements, capital expenditures and restrictive covenants of its financing arrangements.