Shreenath Paper

Extensible Business Model.

Strong Network of supplier.

Multiproduct Portfolio and ability to identify customer requirements.

Strong relationships with key customers.

Experienced management team with an established track record.

Track record of financial performance.

The Company does not own any manufacturing facility and its therefore depends on third-party manufacturers and therefore, the company is subject to risks associated with the third-party manufacturing processes.

The company is dependent on its Top 5 suppliers for uninterrupted supply of papers. Any disruption in supply of papers from these third-party manufacturers will adversely affect its operations.

The company is dependent on few customers. Any loss of business from one or more of them may adversely affect its revenues and profitability.

The Company, its Directors and its Promoters are party to certain litigation and claims. These legal proceedings are pending at different levels of adjudication before various forums and regulatory authorities. Any adverse decision may make it liable to liabilities/penalties and may adversely affect its reputation, business and financial status.

Trade Receivables form a substantial part of its current assets and net worth. Failures to manage the company trade receivables could have an adverse effect on its net sales, profitability, cash flow and liquidity.

Its lenders have created charge over the assets of the Company in respect of borrowings that have been availed by it.

The Company has reported negative cash flow in the recent past. Any negative cash flows in the future would adversely affect its cash flow requirements, which may adversely affect the company ability to operate its business and implement the company growth plans, thereby affecting its financial condition.

The company financing agreements contain certain restrictive covenants which may affect its financial and operational flexibility. In the event of breach of any covenants in its financing agreements, the company lenders may take any action in connection with such breaches which may have a material adverse effect on its business, results of operation, financial condition and prospects.

One of its Promoter Group Entity is engaged in similar line of business, which may create a conflict of interest. Further, the company does not enjoy contractual protection by way of a non-compete or other agreement or arrangement with its Promoter Group Entity.

There are certain discrepancies/errors noticed in some of its corporate records relating to forms filed with the Registrar of Companies and other provisions of Companies Act, 1956/ 2013. Any penalty or action taken by any regulatory authorizes in future for non-compliance with provisions of corporate and other law could impact the financial position of the Company to that extent.

Orders placed by customers may be delayed, modified, cancelled or not fully paid for by its customers, which may have an adverse effect on the company business, financial condition and results of operations.

The leave and license agreements with respect to its registered office premises are yet to be properly stamped and registered as per statutory requirement.

Its Promoters - Alok Parekh, Ronak Parekh, Key Managerial Personnel - Navneetdas Parekh and Senior Management - Harish Parekh, by virtue of their positions have the power to influence decisions pertaining to the Company.

The company is dependent on its key managerial personnel, management team and other key employees, the loss of, or its inability to attract or retain, such persons could adversely affect its business, result of operations, financial condition, and cash flows.

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

Cyclical demand of paper could have adverse impact on Sales.

The company requires certain approvals, licenses, registration and permits for our business, and the failures to obtain or renew them in a timely manner may adversely affect its operations.

The company is dependent on third party transportation providers for the supply of products.

Fluctuating prices of papers may affect its operations.

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 the equity shareholders.

The Company`s purchases and sales to its related parties are significant.

Its Funding requirements and the proposed deployment of the Net Proceeds are based on management estimates and have not been appraised by any independent agency and may be subject to change based on various factors, some of which are beyond its control.

Its business prospects and continued growth depends on the company ability to access financing at competitive rates and competitive terms. Its may not be able to avail the requisite amount of financing or obtain financing at competitive interest rates for the company growth plans, in the future, or any increase in interest rates which could have a material adverse effect on its business, results of operations and financial condition.

The company has issued Equity Shares during the preceding twelve months at a price which may be below the Offer Price.

The company operates in a competitive business environment. Competition from existing players and new entrants and consequent pricing pressures could have a material adverse effect on its business growth and prospects, financial condition, and results of operations.

Any adverse events in the industries which the company cater to could have a material impact on the performance of the Company.

Its insurance coverage may not adequately protect the company against all material hazards, which may adversely affect its business, results of operations and financial condition.

Certain Promoters and Directors hold Equity Shares in the Company and are therefore interested in the Company`s performance in addition to their remuneration and reimbursement of expenses.

The company has high working capital requirements for its business operations. In case of the company inability to obtain the requisite additional working capital facilities from the proposed IPO proceeds, its internal accruals/cash flows would be adversely affected, and consequently its operations, revenue and profitability.

The Company has not paid any dividends till now and there can be no assurance that the company will pay dividends in future. Its ability to pay dividends in the future will depends upon a variety of factors such as future earnings, financial condition, cash flows, working capital requirements, and restrictive covenants in its financing arrangements.

Its Promoters and Directors has provided personal guarantees to the loan facilities availed by it, which if revoked may require alternative guarantees, repayment of amounts due or terminations of the facilities.

The deployment of funds raised through this Issue shall not be subject to monitoring by any monitoring agency and shall be purely dependent on the discretion of the management of the Company.

Any variation in the utilisation of the Net Proceeds would be subject to certain compliance requirements, including prior shareholder`s approval.

Certain of its properties are not owned by the company, but taken on leave and license basis.

None of its Independent Directors have experience of being a Director of a public limited company.

Its growth strategy to expand into new geographic areas poses risks. The company may not be able to successfully manage some or all of such risks, which may have a material adverse effect on its revenues, profits and financial condition.

The Company has availed unsecured borrowings from its Promoters and members of the promoter group, which may be recalled by them at any time.

In the event there is any delay in the completion of the Issue, there would be a corresponding delay in the completion of the objects of this Issue, which would in turn affect its revenues and results of operations.

The company has not made any alternate arrangements for meeting its working 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.

The company cannot assure you that its will be able to secure adequate financing in the future on acceptable terms, in time, or at all. Further, the company cannot assure you that for the financing secured by it, the company will be able to continue servicing the principal amount, interest or both.

Its may not be able to sustain effective implementation of the company business and growth strategies.

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

The company may decide not to proceed with the Issue at any time before Allotment. If its decide not to proceed with the Issue after the Issue Opening Date but before Allotment, the refund of Application amounts deposited will be subject to it complying with its obligations under applicable laws.

If there is any future issue of Equity Shares it may dilute your shareholding and sale of its Equity Shares by the company Promoters or other major shareholders may adversely affect the trading price of the Equity Shares.

There is no guarantee that the Equity Shares issued pursuant to the Issue will be listed on the SME Platform of BSE in a timely manner, or at all.

There are certain restrictions on daily movements in the price of the Equity Shares, which may adversely affect shareholder`s ability to sell, or the price at which it can sell, Equity Shares at a particular point in time.

The average cost of acquisition of Equity Shares by its Promoters is lower than the issue price.

Certain data mentioned in this Prospectus has not been independently verified.

Its future success will depends on the company ability to anticipate and respond to technological advances, new standards and changing consumer preferences.

Its future funds requirements, in the form of fresh issue 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.

Certain Agreements /deeds may be in the previous name of the Company.

If the company is unable to source business opportunities effectively, its may not achieve the company financial objectives.

Its may be unable to sufficiently obtain, maintain, protect, or enforce the company intellectual property and other proprietary rights.