Platinum Industr

Risks

• The company is in the process of expanding its operations and establishing a network of distributors & customers in regions where the company does 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 is dependent on a few customers for a major part of the revenues. Further its do not enter into long-term arrangements with the customers and any failure to continue the company existing arrangements could adversely affect its business and results of operations.

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

• The Company is dependent on the demand from the industries where its products find application such as PVC pipes and tubes, PVC profiles, PVC fittings and electrical wires and cables. Any downturn in such industries could have an adverse impact on the Company`s business and results of operations.

• Under-utilization of the manufacturing capacities and an inability to effectively utilize the company expanded manufacturing capacities could have an adverse effect on its business, future prospects and future financial performance.

• The company does not have long-term agreements with the suppliers for raw materials and an inability to procure the desired quality, quantity of the company 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.

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

• Its inability to meet the preferences or consistent quality requirements of the customers or its inability to accurately predict and successfully adapt to changes in market demand could reduce demand for the company products and harm the company sales.

• A significant portion of the company domestic sales are derived from the western zone and any adverse developments in this market could adversely affect its business.

• The company operates out of a single Manufacturing Facility which is located at Palghar, Maharashtra and therefore, any localized social unrest, natural disaster or breakdown of services or any other natural disaster in and around Palghar, Maharashtra or any disruption in production at, or shutdown of, the company manufacturing unit could have material adverse effect on its business and financial condition.

• The company has experienced negative cash flows in relation to its operating, investing and financing activities in the last three financial years. Any negative cash flows in the future would adversely affect the company results of operations and financial condition.

• 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 a long-term Technical Collaboration Agreement for providing know-how in relation to its business and manufacture of products. If this Technical Collaboration Agreement is terminated or not renewed on terms acceptable to it, it could have a material adverse effect have an adverse impact on the company business, results of operations and financial condition.

• Pricing pressure from customers may affect its gross margin, profitability and ability to increase the company prices, which in turn may materially adversely affect the business, results of operations and financial condition.

• The company funding requirements and proposed deployment of the Net Proceeds are based on management estimates and its have not entered into any definitive arrangements to utilize certain portions of the Net Proceeds of the Issue. the company has relied on the quotations received from third parties for estimation of the cost for the capital expenditure requirements and have not been independently appraised by a bank or a financial institution.

• 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.

• There have been some instances of delayed filing with the Registrar of Companies and other noncompliances under the Companies Act in the past which may attract penalties.

• The company promoter group members have defaulted in repayment of loan to their lenders in the past.

• The company Manufacturing Facility, R&D Laboratory and registered office premises are have been taken on leave and license basis. If these leasehold /license agreements are terminated or not renewed on terms acceptable to it, its could have a material adverse effect on its business, financial condition, results of operations and cash flows.

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

• 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 the company product development efforts may impact its competitiveness and profitability.

• 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 its Shareholders.

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

• The Company, its Promoter, and the 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 has outstanding unsecured loans that may be recalled by the lenders at any time.

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

• Some of the Group Companies and Subsidiaries are authorized to carry on similar line of business as the Company which may lead to real or potential conflicts of interest for the Promoters or Directors.

• The company business is working capital intensive. its net working capital requirements as of March 31, 2023, 2022 and 2021 were Rs. 458.44 million, Rs. 386.12 million, and Rs. 34.82 million, respectively. If the 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 the company business and results of operations.

• If the company fail to manage its growth effectively, the company may be unable to execute the business plan or maintain high levels of service and satisfaction, and its business, results of operations, cash flows and financial condition could be adversely affected.

• The Company`s logo and some other trademarks are not registered as on date of this Draft Red Herring Prospectus. However, applications for registration its trademarks have been filed with the trademarks authority. The company may be unable to adequately protect its intellectual property and/ or be subject to claims alleging breach of third-party intellectual property rights.

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

• Some of the company Promoters, Directors, and Key Managerial Personnel have interests other than reimbursement of expenses incurred and normal remuneration or benefits in the Company.

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

• The company may be subject to significant risks and hazards when operating and maintaining the company Manufacturing Facility, for which its insurance coverage might not be adequate.

• The average cost of acquisition of Equity Shares by the Promoters may be lower than the Floor Price.

• 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.

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

• 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.

• Industry information included in this Draft Red Herring Prospectus has been derived from an industry report from CRISIL Market Intelligence & Analytics, a division of CRISIL Limited which has been commissioned and paid by it for such purpose exclusively in connection with the Issue. There can be no assurance that such third-party statistical, financial and other industry information is either complete or accurate.

• Exchange rate fluctuations may adversely affect its results of operations as the company sales from exports and a portion of the expenditures are denominated in foreign currencies.

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

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

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

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

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

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

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

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

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

• Activities involving the manufacturing process can be dangerous and can cause injury to people or property in certain circumstances. A significant disruption at any of its Manufacturing Facilities may adversely affect the company production schedules, costs, sales and ability to meet customer demand.

• There is no guarantee that its Equity Shares will be listed on the Stock Exchanges in a timely manner or at all.

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