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The Commissioner, the Central Goods and Services Tax, Kolkata had undertaken a search at its Registered Office. Subsequent to the search, the Commissioner, the Central Goods and Services Tax, Kolkata, issued summons to its Directors under the Central Goods and Services Tax Act, 2017. In the event any adverse orders are passed against the Company or its Directors, it would have a significant impact on its business, results of operations and financial condition.
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The company generally doing business with its customers on purchase order basis and does not enter into long term contracts with them. Its inability to maintain relationships with the company customers could have an adverse effect on its business, prospects, results of operations and financial condition.
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The Company is reliant on the demand from the steel industry for a significant portion of its revenue. Any downturn in the steel industry or an inability to increase or effectively manage the company sales could have an adverse impact on the Company`s business and results of operations.
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There have been instances of incorrect filings of certain forms with the RoC, in the past.
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The company depends on a few customers for a significant portion of its revenue, and any decrease in revenues or sales from any one of its key customers may adversely affect the company`s business and results of operations.
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The prices the company is able to obtain for its products that its trade depend largely on prevailing market prices.
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The commercial success of its services depends to a large extent on the success of the success of the end use customers. If there is any downturn in the industries in which the customers operate, it could have a material adverse effect on its business, financial condition and results of operations.
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The business orders which the company undertake may be delayed, modified, cancelled, or not fully paid for by its clients and therefore, could materially affect its business, results of operations and financial condition.
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The company is dependent upon few suppliers for the material requirements of its trading business.
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The company derives majority of its revenue from its export operations. Any adverse events affecting these countries could have an adverse impact on its results from operations.
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Its results of operations are likely to vary from year to year and be unpredictable, which could cause the market price of the Equity Shares to be volatile.
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The proposed objects of the Offer for which funds are being raised have not been appraised by any bank or financial institution. Any inability on its part to effectively utilize the Offer proceeds could adversely affect its financials.
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The company may not be able to maintain its current levels of profitability due to increased costs or reduced trading spreads or margins.
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If the company is not able to obtain, renew or maintain its statutory and regulatory licenses, registrations and approvals required to operate its business, it may have a material adverse effect on the company`s business, results of operations and financial condition.
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If the company is unable to establish and maintain an effective system of internal controls and compliances, its business and reputation could be adversely affected.
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The Company had negative cash flows in the past years, details of which are given below. Sustained negative cash flow could impact its growth and business.
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The company has certain contingent liabilities and its financial condition and profitability may be adversely affected if any of these contingent liabilities materialize.
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The company depends on the accuracy and completeness of information about customers and counterparties and any misrepresentation, errors in or incompleteness of such information could cause its business to suffer.
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All of its product verticals are extremely competitive segments and the company faces risk of competition affecting its margins and profitabilities as the company scale its operations.
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There are outstanding litigations involving the Company, its Promoters, Directors and Group Companies which, if determined adversely, may affect its business and financial condition.
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The Company proposes to utilize part of the Net Proceeds for repayment or pre-payment, in full or in part, of all or certain unsecured borrowings availed by the Company and accordingly, the utilization of that portion of the Net Proceeds will not result in creation of any tangible assets.
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System failures or inadequacy and security breaches in computer systems may adversely affect its business.
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Failures to manage its inventory could have an adverse effect on the company net sales, profitability, cash flow and liquidity.
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Any adverse change in regulations governing its products, may adversely impact the company`s business prospects and results of operations.
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Any delays and/or defaults in customer payments could result in increase of working capital investment and/or reduction of the Company`s profits, thereby affecting its operation and financial condition.
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The Company requires significant amount of working capital for a continuing growth. Its inability to meet the company working capital requirements may adversely affect its results of operations.
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The company is dependent on information technology systems in carrying out its business activities and it forms an integral part of the company`s business. Further, if the company is unable to adapt to technological changes and successfully implement new technologies or if the company faces failure of its information technology systems, the company may not be able to compete effectively which may result in higher costs and would adversely affect its business and results of operations.
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The company may be unable to grow its business in additional geographic regions or international markets, which may adversely affect the companay`s business prospects and results of operations.
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If the Company is unable to protect its intellectual property, or if the Company infringes on the intellectual property rights of others, its business may be adversely affected.
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Its Promoters, Directors and Key Managerial Personnel have interests in the Company other than reimbursement of expenses incurred or normal remuneration or benefits.
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Its Promoters and members of the Promoter Group have significant control over the Company and have the ability to direct its business and affairs; their interests may conflict with your interests as a shareholder.
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The average cost of acquisition of Equity Shares held by its Promoters could be lower than the Offer Price.
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The company is exposed to foreign currency exchange rate fluctuations, which may impact its results of operations and cause the company results to fluctuate. Its inability to manage the company foreign currency risk may harm its results of operations and cause the company`s results to fluctuate and/or decline.
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Its future fund requirements, in the form of further Offer of capital or securities and/or loans taken by it, may be prejudicial to the interest of the Shareholders depending upon the terms on which they are eventually raised.
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The company has in past entered into related party transactions and its may continue to do so in the future.
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Its agreements with lenders for financial arrangements contain restrictive covenants for certain activities and if the company is unable to get their approval, it might restrict its scope of activities and impede the company growth plans.
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Its Group Company is engaged in a similar line of business as the Company and may compete with it.
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In addition to its existing indebtedness for the company existing operations, its may incur further indebtedness during the course of business. The company cannot assure that its would be able to service its existing and/ or additional indebtedness.
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The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Offer. Further, the company has not identified any alternate source of financing the `objects of the Offer`. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.
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Its success largely depends upon the knowledge and experience of the company Promoters, Directors and its Key Managerial Personnel. Loss of any of its Directors and key managerial personnel or the company`s ability to attract and retain them could adversely affect its business, operations and financial condition.
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Its inability to procure and/or maintain adequate insurance cover in connection with its business may adversely affect the company`s operations and profitability.
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Its ability to pay dividends in the future may be affected by any material adverse effect on its future earnings, financial condition or cash flows.
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Increased losses due to fraud, employee negligence, theft or similar incidents may have an adverse impact on it.
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The company has not independently verified certain data in this Draft Prospectus.
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The requirements of being a listed company may strain its resources.
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Delay in raising funds from the IPO could adversely impact the implementation schedule.
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The Equity Shares have never been publicly traded and the Offer may not result in an active or liquid market for the Equity Shares.
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There is no guarantee that the Equity Shares issued pursuant to the Offer will be listed on the SME Platform of National Stock Exchange of India Limited in a timely manner or at all.
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There is no existing market for its Equity Shares, and the company does not know if one will develop to provide you with adequate liquidity. Further, an active trading market for the Equity Shares may not develop and the price of the Equity Shares may be volatile.
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The price of the Equity Shares may be highly volatile after the Offer.
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Any variation in the utilisation of the Net Proceeds or in the terms of any contract as disclosed in the Draft Prospectus would be subject to certain compliance requirements, including prior shareholders` approval.
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The shareholders will not be able to sell immediately on the Stock Exchanges any of the Equity Shares you purchase in the Offer.
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There are restrictions on daily movements in the trading price of the Equity Shares, which may adversely affect a shareholder`s ability to sell Equity Shares or the price at which Equity Shares can be sold at a particular point in time.
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The price of the Equity Shares may be volatile, which could result in substantial losses for investors acquiring the Equity Shares in the Offer.
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Any future issuance of Equity Shares, or convertible securities or other equity-linked securities by the Company may dilute your shareholding and any sale of Equity Shares by its Promoters or members of its Promoter Group may adversely affect the trading price of the Equity Shares.
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Sale of Equity Shares by its Promoters or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.
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Rights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.
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The Company will not receive any proceeds from the Offer for Sale portion.