Swastika Castal

Risks

• Substantial portion of its revenues are dependent on few customers and the loss of, or a significant reduction in purchases by any one or more such customers could adversely affect its financial performance.

• Financial and Market Risks.

• Our design and engineering team designs our products as per the specifications provided by the Customers. Any variation from the customer specification may lead to increase in cost or reduce margins.

• We rely significantly on some suppliers for the supply of our raw materials. If these suppliers are unable or unwilling to supply raw materials on time or otherwise fail to meet our requirements, our business will be harmed. An inability to procure the desired quality, quantity of our raw materials and components in a timely manner and at reasonable costs, or at all, may have a material adverse effect on our business, results of operations and financial condition.

• The aluminium casting and manufacturing business is inherently capital-intensive, requiring substantial financial investment to establish and maintain operations.

• We may be unable to obtain, renew or maintain statutory and regulatory permits, licenses and approvals required to operate our business which could result in an adverse effect on our results of operations. We require certain statutory and regulatory permits, licenses and approvals for our business.

• If there are delays in setting up the proposed expansion 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 our financial condition, results of operations and growth prospects.

• We rely on repetitive orders from our long-term customers.

• The aluminium casting and manufacturing industry presents significant entry barriers.

• We operate through direct contracts with our customers.

• We depend on our promoters to deal with the customers, in the absence of any marketing team.

• We are affected by the prices, availability, and quality of the raw materials used in our production.

• We generally do business with our customers on purchase order basis and do not enter into long term contracts with them. Our inability to maintain relationships with our customers could have an adverse effect on our business, prospects, results of operations and financial condition.

• We may face significant competition in our business. An inability to compete effectively may lead to a lower market share or reduced operating margins.

• Our Company has experienced negative cash flow in the past and may continue to do so in the future, which could have a material adverse effect on our business, prospects, financial condition, cash flows and results of operations.

• We have only one manufacturing facility.

• There have been instances of delays in filing of GST Return by the Company. In case of any delay in filing of Return in future by our Company, the regulatory authorities may impose monetary penalties on us or take certain punitive actions against our Company in relation to the same which may have an adverse impact on our business, financial condition and results of operations.

• We have been unable to locate certain of our historical corporate records. Our Company was incorporated in 1996 and certain corporate records and documents filed by us with the RoC are not traceable.

• There have been instances of non-compliance in filling statutory forms which were required to be filed as per the reporting requirements with the Registrar of Companies under the Companies Act in the past which may attract penalties.

• Our inability to collect receivables and default in payment from our customers could result in the reduction of our profits and affect our cash flows.

• Delays or defaults in customer payments could adversely affect our financial condition.

• Our success depends on stable and reliable logistics and transportation infrastructure. Disruption of logistics and transportation services could impair the ability of our suppliers to deliver materials or our ability to deliver materials to our customers and/ or increase our transportation costs, which may adversely affect our operations.

• We are required to comply with certain restrictive covenants under our financing agreements. Any noncompliance may lead to, amongst others, an accelerated repayment schedule, enforcement of security, and suspension of further drawdowns, which may adversely affect our business, results of operations, financial condition, and cash flows.

• Latent defects in our products may increase it`s after-sales cost or we may suffer losses on account of replacements/ product recalls.

• Our inability to manage our inventory and foresee accurate demand for our products for a future period may adversely affect our reputation, business, results of operation, and financial performance.

• Our 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.

• We have entered into, and will continue to enter into, related party transactions.

• We could be adversely affected if we fail to keep pace with technical and technological developments.

• Our Group Company, Swastika Metcast Private Limited, Has Been Incurring Losses and Has Negative Net Worth, Which May Adversely Impact Our Business and Reputation.

• Labour disputes could affect our operations.

• An inability to manage our growth could disrupt our business and reduce our profitability.

• Some of the reports referred to in this Draft Prospectus were commissioned by us.

• Our ability to pay dividends in the future will depend upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.

• Our management will have broad discretion in how we apply the Net Proceeds of the Offer and there is no assurance that the Objects of the Offer will be achieved within the time frame expected, or at all, or that the deployment of Net Proceeds in the manner intended by us will result in an increase in the value of your investment.

• Our insurance coverage may not adequately protect us against certain operational risks or claims by our employees.

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

• The requirements of being a public listed company may strain our resources and impose additional requirements.

• Our Company logo "SCL" is not registered with Registrar of Trademark; any infringement of our brand name or failure to get it registered may adversely affect our business. Further, any kind of negative publicity or misuse of our brand name could hamper our brand building efforts and our future growth strategy could be adversely affected.

• We may be unable to grow our business in additional geographic regions or international markets, which may adversely affect our business prospects and results of operations.

• Our future fund requirements, in the form of further Issue of capital or securities and/or loans taken by us, may be prejudicial to the interest of the Shareholders depending upon the terms on which they are eventually raised.

• In addition to our existing indebtedness for our existing operations, we may incur further indebtedness during the course of business. We cannot assure that we would be able to service our existing and/ or additional indebtedness.

• Delay in raising funds from the IPO could adversely impact the implementation schedule.

• After this Issue, the price of our Equity Shares may be volatile, or an active trading market for our Equity Shares may not be sustained.

• The investors will not be able to sell immediately on an Indian stock exchange any of the Equity Shares they purchase in the Issue.

• Any future issuance of Equity Shares may dilute the investors` shareholdings or sales of our Equity Shares by our Promoters or Promoter Group may adversely affect the trading price of our Equity Shares.

• Foreign investors may be restricted in their ability to purchase or sell Equity Shares.

• The investors may be restricted in their ability to exercise pre-emptive rights under Indian law and may be adversely affected by future dilution of their ownership position.

• Rights of shareholders under Indian law may be more limited than under the laws of other jurisdictions.

• Our Equity Shares are quoted in Indian Rupees in India, and therefore investors may be subject to potential losses arising out of exchange rate risk on the Indian Rupee and risks associated with the conversion of Indian Rupee proceeds into foreign currency.

• 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.

• Sale of Equity Shares by our Promoters or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.

• The deployment of funds raised through this Offer shall not be subject to any Monitoring Agency and shall be purely dependent on the discretion of the management of our Company.

• Financial and Market Risks.

• Its Group Company, Swastika Metcast Private Limited, Has Been Incurring Losses and Has Negative Net Worth, Which May Adversely Impact the company Business and Reputation.

• Uncertainty in Capacity Utilization and Potential Impact of Underutilization.

• Its design and engineering team designs the company products as per the specifications provided by the Customers. Any variation from the customer specification may lead to increase in cost or reduce margins.

• The company relies significantly on some suppliers for the supply of its raw materials. If these suppliers are unable or unwilling to supply raw materials on time or otherwise fail to meet the company requirements, its business will be harmed. An inability to procure the desired quality, quantity of the company raw materials and components in a timely manner and at reasonable costs, or at all, may have a material adverse effect on its business, results of operations and financial condition.

• The aluminium casting and manufacturing business is inherently capital-intensive, requiring substantial financial investment to establish and maintain operations.

• Its may be unable to obtain, renew or maintain statutory and regulatory permits, licenses and approvals required to operate its business which could result in an adverse effect on the company results of operations. Its require certain statutory and regulatory permits, licenses and approvals for its business.

• If there are delays in setting up the proposed expansion 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 relies on repetitive orders from its long-term customers.

• The aluminium casting and manufacturing industry presents significant entry barriers.

• The company operates through direct contracts with its customers.

• The company depends on its promoters to deal with the customers, in the absence of any marketing team.

• The company is affected by the prices, availability, and quality of the raw materials used in its production.

• The company generally do 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.

• Its may faces significant competition in our business. An inability to compete effectively may lead to a lower market share or reduced operating margins.

• The Company has experienced negative cash flow in the past and may continue to do so in the future, which could have a material adverse effect on its business, prospects, financial condition, cash flows and results of operations.

• The company has only one manufacturing facility.

• There have been instances of delays in filing of GST Return by the Company. In case of any delay in filing of Return in future by the Company, the regulatory authorities may impose monetary penalties on it or take certain punitive actions against the Company in relation to the same which may have an adverse impact on its business, financial condition and results of operations.

• The company has been unable to locate certain of its historical corporate records. The Company was incorporated in 1996 and certain corporate records and documents filed by it with the RoC are not traceable.

• There have been instances of non-compliance in filling statutory forms which were required to be filed as per the reporting requirements with the Registrar of Companies under the Companies Act in the past which may attract penalties.

• Its inability to collect receivables and default in payment from its customers could result in the reduction of our profits and affect the company cash flows.

• Delays or defaults in customer payments could adversely affect its financial condition.

• Its success depends on stable and reliable logistics and transportation infrastructure. Disruption of logistics and transportation services could impair the ability of the company suppliers to deliver materials or its ability to deliver materials to the company customers and/ or increase its transportation costs, which may adversely affect its operations.

• The company is required to comply with certain restrictive covenants under its financing agreements. Any noncompliance may lead to, amongst others, an accelerated repayment schedule, enforcement of security, and suspension of further drawdowns, which may adversely affect its business, results of operations, financial condition, and cash flows.

• Inability to Obtain NOCs from Certain Lenders.

• Latent defects in its products may increase it`s after-sales cost or the company may suffer losses on account of replacements/ product recalls.

• Its inability to manage the company inventory and foresee accurate demand for our products for a future period may adversely affect its reputation, business, results of operation, and financial performance.

• 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.

• The company has entered into, and will continue to enter into, related party transactions.

• The company could be adversely affected if its fail to keep pace with technical and technological developments.

• Labour disputes could affect its operations.

• An inability to manage its growth could disrupt the company business and reduce its profitability.

• Some of the reports referred to in this Prospectus were commissioned by it.

• Its ability to pay dividends in the future will depends upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.

• The company management will have broad discretion in how its apply the Net Proceeds of the Offer and there is no assurance that the Objects of the Offer will be achieved within the time frame expected, or at all, or that the deployment of Net Proceeds in the manner intended by it will result in an increase in the value of your investment.

• Its insurance coverage may not adequately protect it against certain operational risks or claims by the company employees.

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

• The requirements of being a public listed company may strain its resources and impose additional requirements.

• The Company logo "SCL" is not registered with Registrar of Trademark; any infringement of its brand name or failures to get it registered may adversely affect the company business. Further, any kind of negative publicity or misuse of its brand name could hamper the company brand building efforts and its future growth strategy could be adversely affected.

• Its may be unable to grow the company business in additional geographic regions or international markets, which may adversely affect its business prospects and results of operations.

• Its future fund requirements, in the form of further 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.

• 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 our existing and/ or additional indebtedness.

• Delay in raising funds from the IPO could adversely impact the implementation schedule.

• After this Issue, the price of its Equity Shares may be volatile, or an active trading market for the company Equity Shares may not be sustained.

• The investors will not be able to sell immediately on an Indian stock exchange any of the Equity Shares they purchase in the Issue.

• Any future issuance of Equity Shares may dilute the investors` shareholdings or sales of its Equity Shares by the company Promoters or Promoter Group may adversely affect the trading price of its Equity Shares.

• Foreign investors may be restricted in their ability to purchase or sell Equity Shares.

• The investors may be restricted in their ability to exercise pre-emptive rights under Indian law and may be adversely affected by future dilution of their ownership position.

• Rights of shareholders under Indian law may be more limited than under the laws of other jurisdictions.

• Its Equity Shares are quoted in Indian Rupees in India, and therefore investors may be subject to potential losses arising out of exchange rate risk on the Indian Rupee and risks associated with the conversion of Indian Rupee proceeds into foreign currency.

• 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

• Sale of Equity Shares by its Promoters or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.

• The deployment of funds raised through this Offer shall not be subject to any Monitoring Agency and shall be purely dependent on the discretion of the management of the Company.