Parmeshwar Metal

Leveraging our market skills and relationship.

Maintaining edge over competitors.

Continue to strive for cost efficiency.

Expand our geographical presence.

Focus on Quality.

Forward integration.

The company has certain outstanding litigation against it, an adverse outcome of which may adversely affect its business, reputation and results of operations.

Its operations are concentrated in the state of Gujarat and any adverse developments affecting Gujarat could have an adverse effect on the company`s business, results of operations and financial condition.

Dependency on High Volume Sales with Low Margins and Associated Risks to Profitability.

The company generally do business with its customers on purchase order basis and does not enter into long-term contracts with them.

The company is subject to strict quality requirements and are consequently required to incur significant expenses to maintain its product quality. Any failures to comply with such quality standards may lead to cancellation of existing and future orders which may adversely affect its reputation, financial conditions, cash flows and results of operations.

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

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

Its Restated Financial Statements are prepared and signed by the Peer Review Auditor who is not Statutory Auditors of the Company as required under the provisions of ICDR.

The company has certain contingent liabilities that have not been provided for in the Company`s financials which if materialized, could adversely affect its financial condition.

Our Company had negative cash flow from operating activity in FY 2022-23. Sustained negative cash flow could adversely impact our business, financial condition and results of operations.

The company has entered into a number of related party transactions and may continue to enter into such transactions under Ind AS 18, in the future, and there can be no assurance that the company could not have achieved more favourable terms had such transactions not been entered into with related parties.

The company cost of production is exposed to fluctuations in the prices of raw material prices particularly Copper scrap and the company has not entered into any agreement in respect of long-term supply for raw materials required by it.

The company intend to utilise a significant portion of the Net Proceeds for funding its capital expenditure requirements. The company is yet to place orders for such capital expenditure machinery.

Our lenders have charge over our movable and immovable properties in respect of finance availed by us.

There may be potential conflicts of interest if our Promoters, Promoters` Group entities who are involved in same business activities that compete with or are in the same line of activity as our business operations.

We have acquired property from Promoter and Whole Time Director i.e., Suchitkumar Maheshbhai Patel in the past 5 years.

There are certain discrepancies and non- compliances noticed in some of our financial reporting and/or records relating to filing of returns and deposit of statutory dues with the taxation and other statutory authorities.

We may not have adequate experience in manufacturing of products which are proposed to be manufactured by Machineries to be acquired from Object of the Issue.

Company derives a substantial portion of its revenue from manufacturing of copper wire rod and any reduction in the demand of such products could have an adverse effect on the business, results of operations and financial condition.

The industry segments in which we operate being fragmented, we face competition from other players, which may affect our business operational and financial conditions.

Under-utilization of our manufacturing capacities could have an adverse effect on our business, future prospects and future financial performance.

The shortage or non-availability of power, natural gas and water facilities may adversely affect our manufacturing processes and have an adverse impact on our results of operations and financial condition.

Changes in technology may render our current technologies obsolete or require us to make substantial capital investments.

We may be unable to attract and retain employees with the requisite skills, expertise and experience, which would adversely affect our operations, business growth and financial results.

Any delay in production, or shutdown, or any interruption for a significant period of time, in this facility may in turn adversely affect our business, financial condition and results of operations.

Our Company does not have any documentary evidence for the education qualifications of two Promoters.

Failure to manage our inventory could have an adverse effect on our net sales, profitability, cash flow and liquidity.

Our ability to pay dividends in the future will depend upon our future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in our financing arrangements.

Our operations may be adversely affected in case of industrial accidents at our production facility.

Our insurance coverage may not be adequate.

Our Company has availed unsecured loans which are repayable on demand. Any demand from lenders for repayment of such unsecured loans, may adversely affect our cash flows.

We have incurred substantial indebtedness which exposes us to various risks which may have an adverse effect on our business and the results of operations.

Increases in interest rates may materially impact our cash flows and results of operations.

If we are unable to source business opportunities effectively, we may not achieve our financial objectives.

Our failure to identify and understand evolving industry trends and preferences and to develop new products to meet our customers` demands may materially adversely affect our business.

We may not be successful in implementing our business strategies.

We require certain approvals, licenses, registrations and permits to operate our business, and failure to obtain or renew them in a timely manner or maintain the statutory and regulatory permits and approvals required to operate our business may adversely affect our operations and financial conditions.

We have not entered into any technical support service for the maintenance and smooth functioning of our equipment`s and machineries, which may affect our performance.

Our inability to accurately forecast demand for our products, and accordingly manage our inventory, may have an adverse effect on our business, cash flows, financial condition and results of operations.

We rely on third-party transportation providers for procurement of raw materials and for supply of our products and failure by any of our transportation providers could result in loss in sales.

Fluctuation in the exchange rate between the Indian rupee and foreign currencies may have an adverse effect on our business.

. Our promoters will continue to retain significant control over our Company after the Public Issue.

Our Promoters Directors may have interest in our Company other than normal remuneration or benefits and reimbursement of expenses incurred.

We are heavily dependent on our Directors and Key Managerial Personnels for the continued success of our business through their continuing services and strategic guidance and support.

The average cost of acquisition of Equity Shares by our Promoter, is lower than the face value of Equity Share.

We could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect our financial condition, results of operations and reputation.

Our Promoters, members of Promoter Group and director have provided personal guarantees to certain loan facilities availed by us, which if revoked may require alternative guarantees, repayment of amounts due or termination of the facilities.

Delays or defaults in client payments could affect our operations.

Failure to effectively manage labour or failure to ensure availability of sufficient labour could affect the business operations of the Company.

Any shortfall in raising / meeting the same could adversely affect our growth plans, operations and financial performance

The Issue price of our Equity Shares may not be indicative of the market price of our Equity Shares after the Issue and the market price of our 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.

We have had made non-compliances of certain provision under Companies Act, 2013.

The average cost of acquisition of Equity shares by our Promoter is lower than the Issue price.

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

Within the parameters as mentioned in the chapter titled "Objects of this Issue" of this Red Herring Prospectus, our 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.

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 our revenues and results of operations.

We have not identified any alternate source of raising the funds required for the object of the Issue and the deployment of funds is entirely at our discretion and as per the details mentioned in the section titled "Objects of the Issue".

Any future issuance of Equity Shares may dilute your shareholdings, and sale of the Equity Shares by our major shareholders may adversely affect the trading price of our Equity Shares.

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

Third party statistical and financial data in this Red Herring Prospectus may be incomplete or unreliable.