Paramount Specia

Long-standing relationships with customers across industries.

Manufacturing Facilities.

Quality and focus on customer satisfaction.

Experienced Promoters and Management Expertise.

Track record of healthy financial performance.

Continual development of new products.

The company does not have any long-term agreements with its customers. If the company customers choose not to source their requirements from it or manufacture such products in-house, its business and results of operations may be affected.

Demand for its products is related to growth and trends of the company end user industry. A decline in sales of its customers may adversely affect the demand for the company products which in turn would adversely impact its business, financial condition, results of operations and prospects.

The company obtain a substantial portion of its raw materials from a limited number of suppliers, and the company does not have long-term contracts with its suppliers. If one or more of its top suppliers were to suffer a deterioration of their business, cease doing business with it or substantially reduce their dealings with the company, its business, results of operations, cash flows and financial condition may be adversely affected.

The company depends on its Plant and Machinery for critical functions of the company`s business. Failures to properly maintain its plant and machineries or any adverse remark during the Inspection of its Products may result in disruptions to or lower quality of the company services and its business, results of operations and financial condition may be adversely affected.

Exchange rate fluctuations may adversely affect the results of operations as certain portion of its revenues are denominated in foreign currencies.

The Restated Financial Statements for Financial Year ended on March 31, 2024, March 31, 2023, and March 31, 2022, were prepared by a Peer Reviewed Chartered Accountant who is not the Company`s statutory auditor, introducing the potential risk of differences in the accounting standard and policies.

Its manufacturing facilities are located in the same geographical location and any disruptions in its manufacturing process due to local and regional factors could have an adverse effect on its business, financial condition, and results of operations.

Volatility in the supply and pricing of its raw materials may have an adverse effect on the company`s business, financial condition, and results of operations. Its raw material suppliers could fails to meet their obligations, which may have a material adverse effect on its business, results of operations and financial condition.

The company has significant power and fuel requirements and any disruption to power or fuel sources could increase its production costs and adversely affect the company`s business, financial condition, cash flows and results of operations.

If its customers dispute or default on their payment obligations to it, the company may be subject to adverse cash flows and may be required to spend significant amounts in recovering amounts due, in turn adversely impacting its cash flows, results of operations and future prospects.

Nearly all of its revenues from operations are derived on sales made within India. The company`s business is therefore significantly affected by fluctuations in general economic activity in India.

If the company is unable to sustain or manage its growth, its business, results of operations and financial condition may be materially adversely affected.

If the company fails to maintain an effective system of internal controls, its may not be able to successfully manage, or accurately report, the company financial risks.

Its inability to accurately forecast demand for the company standardized products, and accordingly manage its inventory or plan capacity increases, may have an adverse effect on its business, cash flows, financial condition, and results of operations.

The company faces significant risk with regard to length of time needed to complete each project and there could be unscheduled delays and cost overruns in relation to its ongoing and future projects.

Significant security breaches in its computer systems and network infrastructure and fraud could adversely impact the company`s business.

The company relies on third-party transportation providers for procurement of raw materials and for supply of its products and failures by any of the company transportation providers could result in loss in sales.

Its manufacturing facilities are subject to operating risks. Any breakdown or shutdown of its manufacturing facilities of the company existing or future manufacturing facilities or other production problems caused by unforeseen events may reduce sales and adversely affect its business, cash flows, results of operations and financial condition.

Its operations involve activities and materials which are hazardous in nature and could result in a suspension of operations and/or the imposition of civil or criminal liabilities which could adversely affect the company`s business, results of operations, cash flow and financial condition.

The company is subject to strict quality requirements and standards and inspections and the success and acceptance of its products by the company customers is largely dependent on its ability to meet such quality requirements and standards. The company failures to comply with the quality standards and technical specifications prescribed by such customers may lead to a loss of business from such customers and could negatively impact its reputation, which would have an adverse impact on the company`s business prospects and results of operations.

The company has availed unsecured loans which may be recalled. Any demand from lenders for repayment of such working facilities may adversely affect its cash flows.

The company has experienced negative cash flows in prior years.

There are pending litigations against the Company, Group Companies and certain Promoters and Directors. Any adverse decision in such proceedings may render us/them liable to liabilities /penalties and may adversely affect its business, cash flows, financial condition and reputation.

The company intend to utilize the Net Proceeds for funding its capital expenditure requirements. The company`s inability to successfully implement such capacity expansion or any future capacity expansion plans could have a material adverse effect on its business, prospects, operations, prospects or financial results.

The company has not placed orders for machinery of value of approximately Rs.2,381.28 Lakhs constituting approximately 100% of the value of the total machinery to be purchased from the Net Proceeds.

Its operating expenses include overheads that may remain fixed in the medium term. In case there is any decline in the company operating performance, its may be unable to reduce such expenses.

The company`s insurance coverage may not be sufficient or adequate to protect it against all hazards, which may adversely affect the company business, results of operations and financial condition.

Failures to obtain or maintain pre-qualifications from customers or loss of its pre-qualified status from the comnpany existing customers could adversely impact its business.

The company Promoters, certain members of its Promoter Group, Directors, Key Managerial Personnel and Senior Management have interests in its business other than reimbursement of expenses incurred or normal remuneration or benefits. The Company in future may enter in related party transactions subject to necessary compliances.

Its may need to seek financing in the future to support the company growth strategies. Any failures to raise additional financing could have an adverse effect on its business, results of operations, and cash flows. As on date of this Red Herring Prospectus, the company has not identified any alternate source of raising the funds required for the object of the Offer and the deployment of funds is entirely at its discretion and as per the details mentioned in the section titled "Objects of the Offer".

The company does not have any comparable listed peers in India or abroad. Accordingly, valuation of the Company as compared with other listed Indian companies, may not be comparable and could be higher on account of certain aspects.

Information relating to installed capacities and the historical production and capacity utilization of its manufacturing facilities included in this Prospectus is based on various assumptions and estimates by the independent chartered engineer verifying such information and its future production and capacity utilization may vary.

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

The Net Proceeds might not be applied in ways that increase the value of your investment. Further, it is not subject to any monitoring by any independent agency.

The company has substantial capital expenditure and working capital requirements and may requires additional financing to meet those requirements, which could have an adverse effect on its results of operations and financial condition.

The company has incurred significant indebtedness, and an inability to comply with repayment and other covenants in its financing agreements could adversely affect the company`s business and financial condition.

The company has certain contingent liabilities that have not been provided for in its financial statements, which if they materialize, may adversely affect the company`s financial condition.

The company depends on the skills and experience of its Promoters, Key Managerial Personnel, Senior Management, and employees with technical expertise for the company`s business and future growth.

Its Promoters, who are also the company directors, and members of its Promoter Group will continue to hold a significant equity stake in the Company after the Offer and their interests may differ from those of the other shareholders.

Conflict of interest may arise out of common business objects shared by the Company and its Promoter Group.

Its success depends heavily upon the company Promoters, Directors and Key Managerial Personnel for their continuing services, strategic guidance, and financial support. Its success depends heavily upon the continuing services of Promoters, Directors and Key Managerial Personnel who are the natural person in control of the Company.

The company has not been able to obtain certain records, such as Income Tax Return, Experience Letters of its Independent Directors, and its Promoters, and have relied on information available in the public domain, declarations and undertakings furnished by them for details of their profiles included in this Red Herring Prospectus.

The Objects of the Offer for which funds are being raised have not been appraised by any bank or financial institution. The deployment of funds is entirely at the discretion of its management and as per the details mentioned in the section titled "Objects of the Offer". Any revision in the estimates may require it to reschedule the company expenditure and may have a bearing on its expected revenues and earnings.

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 Shareholders` approval. If there are delays or cost overruns in utilization of Net Proceeds, its business, financial condition, and results of operations may be adversely affected.

If there is deterioration in the reputation and market perception of its brands, or if the company`s sales and marketing efforts are ineffective, it could adversely affect its sales, profitability, and the implementation of the company growth strategy.

Its may not be able to detect or prevent fraud or other misconduct committed by its employees or third parties.

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

Majority of its Directors does not have prior experience of holding a directorship in a company listed on the Stock Exchanges.

This Red Herring Prospectus contains certain non-GAAP financial measures and certain other selected statistical information related to its operations and financial performance. These non-GAAP measures and statistical information may vary from any standard methodology that is applicable across the manufacturing industry, and therefore may not be comparable with financial or statistical information of similar nomenclature computed and presented by other manufacturing companies.