Sai Swami Metals

Risks

• The property used by the Company for the operation purpose is not owned by it. Any termination of the relevant lease agreement or rent agreement in connection with such property or its failure to renew the same could adversely affect the company`s operations.

• Majority of its Current revenue is dependent on one product i.e., S.S. Scraps inability to anticipate or adapt to evolving upgradation of products or inability to ensure product quality or reduction in the demand of such products may adversely impact its revenue from operations and growth prospects.

• The Company is using logo of its Subsidiary Company and also has made application for registration of trademark, which is under process of registration. The company is unable to assure that the future viability or value of any of its intellectual property or that the steps taken by it to protect the proprietary rights of the Company will be adequate.

• The company source its materials from third parties with whom the company does not have long term contract or price guarantees.

• Its operations are significantly dependent on third parties for the distribution and sales of its products.

• The Company has in the past entered into related party transactions and may continue to do so in the future and the company cannot assure you that the company could not have achieved more favorable terms, if such transactions had not been entered into with related parties. And will not have an adverse effect on its financial conditions and result of operations.

• Its sales may be negatively impacted by increasing competition from companies and local firms with products similar to its.

• Its Group Company Bhagat Marketing Private Limited and Dhruvish Metals Industries LLP is engaged primarily in manufacturing, Distribution and Marketing of Kitchen appliances. Any conflict of interest which may occur between the business of group companies and it may adversely affect its business, prospects, results of operations and financial condition.

• There are certain outstanding legal proceeding against its Promoter and the company`s Group Companies which may adversely affect its business, financial condition and results of operations.

• The demand and pricing in the steel industry is volatile and are sensitive to the cyclical nature of the industries it serves. A decrease in steel prices may have adverse effect on its business, results of operations, margins and financial condition.

• Its future success depends on the company`s ability to promote its brand and protect its reputation. Its failure to establish and promote its brand and any damage to the company`s reputation will hinder its growth.

• Its business is a High Volume Low Margin Business.

• The Company has been formed specifically for the purpose of acquisition of the business of M/s Steel Kraft Industries (Proprietorship firm of its Promoter) thus the company has limited operating history as a Company which may make it difficult for investors to evaluate its historical performance or prospects.

• The Company is yet to place orders for 100% of the plant & machineries for its proposed object, as specified in the Objects of the Issue. Any delay in placing orders, procurement of plant & machineries may delay its implementation schedule and may also lead to increase in price of these plant & machineries, further affecting its revenue and profitability.

• The company has issued some of the securities within the last twelve months at a price lower than the issue price (other than bonus issues).

• The companygenerates a substantial portion of revenue from Gujarat Region. Any adverse developments affecting its operations in the Gujarat Region could have an adverse impact on its revenue and results of operations.

• The company has had certain inaccuracy in relation to regulatory filings to be made with the RoC and the company has made non-compliances of certain provision under applicable law.

• Its success depends largely upon the services of the company`s Promoter, Managing Directors and other key managerial personnel and its ability to attract and retain them.

• The company is dependent upon few suppliers for the material requirements of its trading business. Loss of any of its suppliers or a failure by its suppliers to deliver the products may have an adverse impact on its ability to continue the company`s operations without interruption and its ability to deliver the products to the company`s customers without any delay.

• The Company is dependent on third party transportation providers for the delivery of its products and any disruption in their operations or a decrease in the quality of their services could affect the Company`s reputation and results of operations.

• Its business requires it to obtain and renew certain registrations, licenses and permits from government and regulatory authorities and the failure to obtain and renew them in a timely manner may adversely affect its business operations.

• The company has referred to the data derived from internal Company reports and industry and government publications, publicly available information, and sources.

• The company operates in a highly competitive industry. Any inability to compete effectively may lead to a lower market share or reduced operating margins.

• Its Promoter and Promoter Group will continue to exercise control post completion of the Issue and will have considerable influence over the outcome of matters.

• Its ability to pay dividends in the future will depends upon its future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in its financing arrangements.

• In addition to normal remuneration, other benefits and reimbursement of expenses to its Promoter and Directors, they are interested to the extent of their shareholding and dividend entitlement thereon in the Company and for the transactions entered into between the Company and themselves as well as between the Company and its Group Companies / Entities.

• Excessive dependence on any key managerial personnel for the project for which the issue is being made.

• Its management has discretion in how it may use the proceeds of the Offer. Any variation in the utilization of its Net Proceeds would be subject to certain compliance requirements, including prior shareholders` approval.

• Its Object has not been appraised by any Bank or Financial Institution. Any significant deviation in the Object could adversely impact its operations and sustainability in absence of any independent monitoring agency.

• There is no monitoring agency appointed by the company and the deployment of funds are at the discretion of its Management and its Board of Directors, though it shall be monitored by its Audit Committee.

• The company could be adversely affected if the company fail to keep pace with technical and technological developments in the Industry in which the company is operating.

• The average cost of acquisition of Equity shares by its Promoter is lower than the Issue price. Its promoter average cost of acquisition of Equity shares in the company is lower than the Issue Price of Equity shares as given below.

• The company requires high working capital for its smooth day to day operations of business and any discontinuance or its inability to acquire adequate working capital timely and on favorable terms at a future date, may have an adverse effect on its operations, profitability and growth prospects.

• The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the issue. Further the company has not identified any alternate source of financing the "Objects of the Issue". Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.

• Certain information contained in this Prospectus is based on management estimates and the company cannot assure you of the completeness or accuracy of the data.

• The COVID-19 pandemic, or any future pandemic or widespread public health emergency, could materially and adversely impact its business, financial condition, cash flows and results of operations.

• Failure to manage its stocks could have an adverse effect on the company`s net sales, profitability, cash flow and liquidity.

• The company could be exposed to risks arising from misconduct, fraud and trading errors by its employees and Business Associates.

• The company has to update the name of the company in some of the statutory approvals and certificates due to the conversion of the Company in to Public Limited Company.