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The company derives a significant portion of its revenue from operations from the company top ten customers, with its single largest customer contributing more than 17.39%, of its revenue from operations in the six months period ended September 30, 2024. Loss of any of these customers or a reduction in purchases by any of them could adversely affect its business, results of operations and financial condition.
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The company is dependent on the performance of industries in which its customers operate and fluctuations in the performance of such industries may result in a loss of such customers, a decrease in the volume of work the company undertake or the price at which it offer its services.
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Its success depends on the company ability to generate sufficient volume of cargo and optimise revenue to achieve desired profit margins and avoid losses. Any failures on its part to achieve desired operating or net profit margins could have an adverse impact on its business, results of operations and financial condition.
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The company faces significant competition from domestic and international shipping and logistic players which may lead to a reduction in its market share, which in turn may adversely affect the company business, results of operations, financial condition and cash flows.
-
The company is subject to various risks associated with transportation and its may face claims relating to loss or damage to cargo, personal injury claims or other operating risks that are not adequately insured.
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The company success largely depends upon the knowledge and experience of its Promoters, Directors, Key Managerial Personnel and Senior Management as well as its ability to attract and retain personnel with technical expertise. The company inability to retain its Directors, Key Managerial Personnel and Senior Management or its ability to attract and retain other personnel with technical expertise could adversely affect its business, results of operations and financial condition.
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Any disruptions which affect its ability to utilize the company transportation network in an uninterrupted manner could result in delays, additional costs or a loss of reputation or profitability.
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Its operations may be subject to strikes and work stoppages by the company employees and are also susceptible to risks relating to compliance with labour laws, either of which could result in an increase in its employee benefits expense impacting the company profitability.
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Its cargo handling services are dependent on the ports and jetties on which the company provide its services. Majority of these ports and jetties are situated across the west coast of India. Any adverse developments affecting its operations in such ports and jetties, could have an adverse impact on its business, financial condition, results of operations and cash flows.
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The Company has in the past committed procedural non-compliances in respect to GR Waiver Approval by the Foreign Exchange Management Act 1999 and RBI Master circular Master Direction No. 16/2015-16 dated January 01, 2016. However, no adverse actions have been taken by the statutory authorities in relation to such non-compliances.
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Upgrading or renovation works or physical damage to its vessels and earthmoving equipment may disrupt the company operations and adversely affect its business, cash flows, and results of operations.
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The company is significantly dependent on particular dry bulk commodities such as coal, pet coke and sulphur. Any change in regulations or demand of such commodities may significantly affect its operations.
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Its business is subject to significant revenue concentration in the second half of a fiscal and the company may not be able to forecast its project schedule which could have an adverse effect on the company cash flows, business, results of operations and financial condition.
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Its may not be able to pass on any increase in the company cost of services. Conversely, its may not be able to pass on any decline in prices the company charge its customers to the company third-party service providers.
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There may be delays or defaults in payment by its customers or the tightening of payment periods by third party service providers which could negatively affect its cash flows. As a result, the company experience significant working capital requirements and its inability to meet the company working capital requirements may materially and adversely affect its business, cash flows and financial condition.
-
The company has availed of certain unsecured borrowings which are repayable on demand.
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The company has incurred indebtedness, and an inability to comply with repayment and other covenants in its financing agreements could adversely affect the company business and financial condition.
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The company has experienced negative cash flows in the six months period ended September 30, 2024.
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Its contingent liabilities could materially and adversely affect the company business, results of operations and financial condition.
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Exchange rate fluctuations may adversely affect its results of operations as the company sales and operating expenses in its overseas operations are denominated in foreign currencies.
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Its services are dependent on the ports and jetties on which the company provide its services. Any modernization in the ports and jetties may affect its operations in such ports and jetties, could have an adverse impact on its business, financial condition, results of operations and cash flows.
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Its may not have sufficient insurance coverage to cover the company economic losses as well as certain other risks, not covered in its insurance policies, which could adversely affect business, results of operations and financial condition.
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Delay/ default in payment of statutory dues may attract penalties and in turn have an adverse impact on its financial condition.
-
There are outstanding legal proceedings against the Company, Promoters, and certain of its Directors. Any adverse decision in such proceedings may render it/them liable to liabilities /penalties and may adversely affect its business, results of operations and financial condition.
-
The company require various licenses and approvals for undertaking its businesses and the failures to obtain or retain such licenses or approvals in a timely manner, or at all, may adversely affect its business, results of operations and financial condition.
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Its international operations are subject to legal and regulatory risks.
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Failures to maintain confidential information of the company customers could adversely affect its reputation, business, business, results of operations and financial condition.
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The company has a trademark application pending for its name and corporate logo. The company also relies on a combination of trade secret and contractual restrictions to protect its intellectual property. If the company ise unable to protect its intellectual property rights, its business, results of operations and financial condition may be adversely affected.
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The company might infringe upon the intellectual property rights of others and any misappropriation of its intellectual property could harm the company competitive position.
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The company enter into certain related party transactions in the ordinary course of its business and the company cannot assure you that such transactions will not adversely affect its business, results of operations and financial condition.
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After the completion of the Issue, its Promoters will continue to collectively hold substantial shareholding in the Company.
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Any variation in the utilization of the Net Proceeds as disclosed in this Draft Red Herring Prospectus shall be subject to certain compliance requirements, including prior approval of the shareholders of the Company.
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The objects of the Issue have not been appraised by any bank or financial institution and its cannot assure you that the objects of the Issue will be achieved within the expected time frame, or at all, and any variation in the utilisation of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders` approval.
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The company intend to utilise a portion of the Net Proceeds towards acquisition of Dry Bulk Carriers in Supramax category in the secondary market. If such expansion does not lead to increases in its revenue from operations, it could have an adverse effect on the company business, results of operations, financial condition and cash flows. Further, the company is yet to place orders for the acquisition of such vessels and its cannot assure you that the company will be able to place orders for such vessels, in a timely manner or at all.
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Some of its Directors does not have any prior experience of being a director in any other listed company in India and this may present certain potential challenges for the Company and in the event of any material noncompliance where its Directors are held liable and responsible, the company may have to appoint new directors.
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The company is susceptible to risks relating to accidents due to human error, which can lead to injury or loss of human life and cause interruptions and disruptions to its logistics operations. Moreover, misconduct or errors by manpower engaged by it could expose the company to business risks.
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Its Registered Office, workshop and certain residential premises are not located on land owned by it. In the event the company lose or are unable to renew such agreements, its business, financial condition and results of operations may be adversely affected.
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The company is dependent on contract labour and any disruption to the supply of such labour or its inability to control the composition and cost of its contract labour could adversely affect the company operations.
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The company is dependent on third party vendors and suppliers for the supply of fuel, heavy vehicles or equipment and any disruption in the supply of such utilities or equipment could adversely affect its operations.
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Its inability to successfully implement some or all the company business strategies in a timely manner or at all could have an adverse effect on its business.
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If the company does not continue to invest in its vessels and earthmoving equipment, the company existing fleet of vessels and earthmoving equipment may become obsolete after certain age and its may not be able to effectively optimise its asset fleet relative to the company competitors, which may have an adverse impact on its business, results of operations and financial condition.
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Failures or disruption of its IT systems may adversely affect the company business, results of operations and financial condition.
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If the company is unable to establish and maintain an effective internal controls and compliance system, its business and reputation could be adversely affected.
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Certain sections of this Draft Red Herring Prospectus contain information from the Dun & Bradstreet Report which the company commissioned and purchased and any reliance on such information for making an investment decision in the Issue is subject to inherent risks.
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This Draft Red Herring Prospectus includes certain Non-GAAP Measures, financial and operational performance indicators and other industry measures related to our operations and financial performance. The Non-GAAP Measures and industry measures may vary from any standard methodology that is applicable across the Indian shipping and logistics industry and, therefore, may not be comparable with financial or industry related statistical information of similar nomenclature computed and presented by other companies.
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We had derived 20.86 %, 15.20%, and 16.83% of our revenue from operations from our largest customer in
Fiscal 2025, 2024 and 2023 amounting to Rs. 1,267.51 million, Rs. 1,111.23 million, Rs. 1,391.71 million
respectively. Any loss or reduction of business from this customer and our inability to maintain close
relationship with this customer could reduce our revenues and adversely affect our business, cash flows,
financial condition and results of operations.
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We derive a significant portion of our revenue from operations from our top 10 customers, with our top 10
customers contributing 64.12 %, 68.79%, and 75.87% of our revenue from operations in the Fiscal 2025, Fiscal
2024, and Fiscal 2023 respectively. Loss of any of these customers or a reduction in purchases by any of them
could adversely affect our business, results of operations, cash flows and financial condition.
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We are dependent on the performance of industries such as Oil and Gas, Energy and Power and Coal,
aggregating to 54.11%, 49.51%, and 46.15% for the Fiscal 2025, Fiscal 2024, and 2023, respectively, in which
our customers operate and fluctuations in the performance of such industries may result in a loss of such
customers, a decrease in the volume of work we undertake or the price at which we offer our services.
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Our revenue generation is mostly dependent on cargo handling. Any failure on our part to achieve desired
operating or net profit margins could have an adverse impact on our business, results of operations and
financial condition.
-
We face significant competition from domestic and international shipping and logistic players which may lead
to a reduction in our market share, which in turn may adversely affect our business, results of operations,
financial condition and cash flows.
-
We are subject to various risks associated with transportation and we may face claims relating to loss or
damage to cargo, personal injury claims or other operating risks that are not adequately insured.
-
Our Registered Office, workshop and certain residential premises are not located on land owned by us. In the
event we lose or are unable to renew such agreements, our business, financial condition and results of
operations may be adversely affected.
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Our dependence on Non-Major Ports may involve certain operational and regulatory risks that are different
from those associated with Major Ports, which could adversely affect our business, results of operations and
financial condition.
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Some of the members of our Promoter Group have not consented to the inclusion of, nor have they provided,
information or any confirmations or undertakings pertaining to themselves or the entities in which they hold
interest, which are required to be disclosed in this Red Herring Prospectus, under the SEBI ICDR Regulations.
The disclosures relating to the members of the Promoter Group have been included in this Red Herring
Prospectus based on information available in public domain. Accordingly, we cannot assure you that the
disclosures relating to such members of our Promoter Group are accurate, complete, or updated.
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Our success largely depends upon the knowledge and experience of our Promoters, Directors, Key Managerial
Personnel and Senior Management as well as our ability to attract and retain personnel with technical
expertise. Our inability to retain our Directors, Key Managerial Personnel and Senior Management or our
ability to attract and retain other personnel with technical expertise could adversely affect our business, results
of operations and financial condition.
-
Exchange rate fluctuations may adversely affect our results of operations as our sales and operating expenses
in our overseas operations are denominated in foreign currencies.
-
Our operations may be subject to strikes and work stoppages by our employees and are also susceptible to risks
relating to compliance with labour laws, either of which could result in an increase in our employee benefits
expense impacting our profitability.
-
The objects of the Issue have not been appraised by any bank or financial institution and we cannot assure
you that the objects of the Issue will be achieved within the expected time frame, or at all, and any variation in
the utilisation of the Net Proceeds would be subject to certain compliance requirements, including prior
shareholders` approval.
-
We intend to utilise a portion of the Net Proceeds towards acquisition of Dry Bulk Carriers in Supramax
category in the secondary market. If such expansion does not lead to increases in our revenue from operations,
it could have an adverse effect on our business, results of operations, financial condition and cash flows.
Further, we are yet to place orders for the acquisition of such vessels and we cannot assure you that we will be
able to place orders for such vessels, in a timely manner or at all.
-
We enter into certain related party transactions in the ordinary course of our business and we cannot assure
you that such transactions will not adversely affect our business, results of operations and financial condition.
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Our significant portion of cargo handling operations is conducted through Non-Major Ports, accounting for 13.09
MMTs, 11.32 MMTs and 11.03 MMTs out of total volumes of 15.71 MMTs, 13.78 MMTs and 13.87 MMTs, for
Fiscal Years 2025, 2024 and 2023, respectively. Any adverse changes in their regulatory, political, or operational
environment may impact our business, financial condition, or results of operations.
-
Our cargo handling services are dependent on the ports and jetties on which we provide our services. Majority of
these ports and jetties are situated across the west coast of India. Any adverse developments affecting our operations
in such ports and jetties, could have an adverse impact on our business, financial condition, results of operations
and cash flows. Further, any modernization in the ports and jetties may disrupt operations in such ports and jetties,
could have an adverse impact on our business, financial condition, results of operations and cash flows.
-
We have a trademark application pending for our name and corporate logo. We also rely on a combination of trade
secret and contractual restrictions to protect our intellectual property. If we are unable to protect our intellectual
property rights, our business, results of operations and financial condition may be adversely affected.
-
We do not have long term arrangements with any of our customers. Any termination of our current arrangements
with our customers could materially and adversely affect our business, results of operations and financial condition.
-
Our Company has in the past committed procedural non-compliances in respect to GR Waiver Approval by the
Foreign Exchange Management Act 1999 and RBI Master circular Master Direction No. 16/2015-16 dated January
01, 2016. However, no adverse actions have been taken by the statutory authorities in relation to such noncompliances.
-
Upgrading or renovation works or physical damage to our vessels and earthmoving equipment may disrupt our
operations and adversely affect our business, cash flows, and results of operations.
-
We are significantly dependent on particular dry bulk commodities such as coal, pet coke and sulphur. Any change in
regulations or demand of such commodities may significantly affect our operations.
-
Any disruptions which affect our ability to utilize our transportation network in an uninterrupted manner could
result in delays, additional costs or a loss of reputation or profitability.
-
Our business is subject to seasonal fluctuations with significant revenue concentration in the second half of a fiscal
and we may not be able to forecast our project schedule which could have an adverse effect on our cash flows, business,
results of operations and financial condition.
-
We may not be able to pass on any increase in our cost of services. Conversely, we may not be able to pass on any
decline in prices we charge our customers to our third-party service providers.
-
There may be delays or defaults in payment by our customers or the tightening of payment periods by third party
service providers which could negatively affect our cash flows. As a result, we experience significant working
capital requirements and our inability to meet our working capital requirements may materially and adversely affect
our business, cash flows and financial condition.
-
We have availed of certain unsecured borrowings which are repayable on demand.
-
We have incurred indebtedness, and an inability to comply with repayment and other covenants in our financing
agreements could adversely affect our business and financial condition.
-
Our contingent liabilities could materially and adversely affect our business, results of operations and financial
condition.
-
We may not have sufficient insurance coverage to cover our economic losses as well as certain other risks, not
covered in our insurance policies, which could adversely affect business, results of operations and financial
condition.
-
Delay/ default in payment of statutory dues may attract penalties and in turn have an adverse impact on our
financial condition.
-
The advent of superior technology or the introduction of a new line of vessels/equipment could cause our existing
fleet of vessels to become outdated and therefore less desirable, which could adversely affect our financial results
and growth prospects.
-
There are outstanding legal proceedings against our Company, Promoters, and certain of our Directors. Any
adverse decision in such proceedings may render us/them liable to liabilities/penalties and may adversely affect our
business, results of operations and financial condition.
-
We require various licenses and approvals for undertaking our businesses and the failure to obtain or retain such
licenses or approvals in a timely manner, or at all, may adversely affect our business, results of operations and
financial condition.
-
Our international operations are subject to legal and regulatory risks. Changes in laws and government rules and
regulations could reduce our operating flexibility, increase operating expenses, result in service delays and
disruptions, prevent us from successfully implementing our growth strategy or otherwise adversely affect us.
-
Failure to maintain confidential information of our customers could adversely affect our reputation, business,
business, results of operations and financial condition.
-
We might infringe upon the intellectual property rights of others and any misappropriation of our intellectual
property could harm our competitive position.
-
After the completion of the Issue, our Promoters will continue to collectively hold substantial shareholding in our
Company.
-
Conflicts of interest may arise out of common pursuits between our Company and our Promoter Group/ Group
Companies.
-
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 approval of the shareholders of our Company.
-
Majority of our Directors do not have any prior experience of being a director in any other listed company in India
and this may present certain potential challenges for our Company and in the event of any material noncompliance
where our Directors are held liable and responsible, we may have to appoint new directors.
-
We are susceptible to risks relating to accidents due to human error, which can lead to injury or loss of human life
and cause interruptions and disruptions to our logistics operations. Moreover, misconduct or errors by manpower
engaged by us could expose us to business risks.
-
We are dependent on contract labour and any disruption to the supply of such labour or our inability to control the
composition and cost of our contract labour could adversely affect our operations.
-
Our vessel fleet primarily comprises of Barges, Mini-bulk carriers, Motor tugs and Floating cranes. While we
continue to maintain our fleet in seaworthy condition, certain vessels are in operation for a considerable period,
which may result in increased maintenance needs and evolving compliance requirements.
-
We are dependent on third party vendors and suppliers for the supply of fuel, heavy vehicles or equipment and any
disruption in the supply of such utilities or equipment could adversely affect our operations.
-
Our inability to successfully implement some or all our business strategies in a timely manner or at all could have
an adverse effect on our business.
-
If we do not continue to invest in our vessels and earthmoving equipment, our existing fleet of vessels and
earthmoving equipment may become obsolete after certain age and we may not be able to effectively optimise our
asset fleet relative to our competitors, which may have an adverse impact on our business, results of operations and
financial condition.
-
Failure or disruption of our IT systems may adversely affect our business, results of operations and financial
condition.
-
If we are unable to establish and maintain an effective internal controls and compliance system, our business and
reputation could be adversely affected.
-
Certain sections of this Red Herring Prospectus contain information from the Dun & Bradstreet Report which we
commissioned and purchased and any reliance on such information for making an investment decision in the Issue
is subject to inherent risks.
-
This Red Herring Prospectus includes certain Non-GAAP Measures, financial and operational performance
indicators and other industry measures related to our operations and financial performance. The Non-GAAP
Measures and industry measures may vary from any standard methodology that is applicable across the Indian
shipping and logistics industry and, therefore, may not be comparable with financial or industry related statistical
information of similar nomenclature computed and presented by other companies.
