Sylvan Plyboard

Increasing plywood production.

Increasing focus on lower-middle class segment.

Increasing focus on lower-middle class segment.

Cost reduction initiative.

Increasing marketing activity.

Automation of manufacturing facility.

The Company, Directors, Promoters and Group Companies are parties to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.

If the company is unable to successfully implement its proposed expansion plans; the company results of operations and financial condition could be adversely affected.

The Company is yet to place orders for the machinery for the expansion of the Manufacturing Facility. Any delay in placing orders or procurement of such machinery may delay the schedule of implementation and possibly increase the cost of commencing operations.

The availability of look-alikes, counterfeit products, primarily in its domestic markets, manufactured by other companies and passed off as its products, could adversely affect the company goodwill and results of operations.

The Company maintains high level of inventory for uninterrupted production activities.

Its cost of production is exposed to fluctuations in the prices of raw material prices, particularly Timber.

The Company had negative cash flow in recent fiscals, details of which are given below. Sustained negative cash flow could adversely impact its business, financial condition and results of operations.

The average cost of acquisition of Equity Shares by its Promoters is lower than the Issue Price.

The company has issued Equity Shares in the last 12 (twelve) months at a price which is lower than the Issue Price.

Its Group Companies have incurred losses in the past and may incur losses in the future.

The company has certain contingent liabilities, which, if materialized, may affect its financial condition and results of operations.

The company does not own the certain premises which its use for the purpose of the company`s business operations.

The company has not entered into any definitive agreements with its customers/dealers. If the company dealers choose not to buy their products from it, its business, financial condition and results of operations may be adversely affected and its business are on purchase order basis with its customers.

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`s business, financial condition and results of operations.

The company majorly sell its products in West Bengal and any adverse developments affecting the company operations in these regions could have an adverse impact on its revenue and results of operations.

Expansion into new geographic regions and markets may subject it to various challenges.

The company has not entered into any long-term contracts with any of its clients.

The Company is dependent on its Authorized Dealers. The loss of any one or more of its major dealers would have a material effect on the company`s business operations and profitability.

The Company is dependent on the continuing operation of its manufacturing facilities.

The Company previously had filed a Draft Prospectus dated September 18, 2018 for initial public issue and the same stood withdrawn.

The company`s business is dependent on certain suppliers and the loss of one or more of them would have a material adverse effect on the business.

The Company focusses on manufacturing of plywood (including block board and flush door), veneer and sawn timber segment with no presence in Medium Density Fibre (MDF) products.

The Company does not manufacture Particle board, Laminates and allied products.

There are certain discrepancies/errors/ non- compliance noticed in some of its corporate records in the past and certain instances of non-filing/ delays /incorrect filings in the past with certain statutory authorities. 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.

As the company import majority of raw material requirement, its faces the risk of losses of raw material in transit. In past two times its raw material was lost in transit.

Threats of ban and restrictions on wood cutting activities by various government and other environmental authorities.

The company is subject to risks resulting from foreign exchange rate fluctuations, which could adversely affect its results of operations.

In past the company had experienced fire mishap in its manufacturing facility.

The Company has significant portion of Property Plant and Equipment. Any destruction, breakdown, theft of its major plants or equipment or failures to repair or maintain the same may adversely affect its business, cash flows, financial condition and results of operations.

Its business growth is partially dependent on the growth and development of construction real estate industry.

The shortage or non-availability of power facilities may adversely affect its manufacturing processes and have an adverse impact on the company`s results of operations and financial condition.

The company may be unable to respond to changes in consumer demands and market trends in a timely manner.

General economic and market conditions in India and globally could have a material adverse effect on its business, financial condition, cash flows, results of operations and prospects.

The company does not have any offshore office or business place to look after its foreign operations.

The company could become liable to customers, suffer adverse publicity and incur substantial costs as a result of defects in its products/ services, which in turn could adversely affect the value of its brand, and the company sales could be diminished if the company is associated with negative publicity.

The Company has entered into certain related party transactions and may continue to do so in the future.

Its lenders have charge over the company movable properties, book debts, stocks in respect of finance availed by it.

Its insurance coverage may not be adequate to protect the company against certain operating hazards and this may have a material adverse effect on its business.

Its Promoters have provided personal guarantees for loans availed by the Company. Its business, financial condition, results of operations, cash flows and prospects may be adversely affected by the invocation of all or any personal guarantees provided by its Promoter.

Its directors and certain Key Management Personnel hold Equity Shares in the Company and are therefore interested in the Company`s performance in addition to their remuneration and reimbursement of expenses.

Information in relation to its installed capacity and capacity utilization of the company manufacturing facility included in this Draft Prospectus is based on various assumptions and estimates, and future production and capacity utilization may vary.

The company appoint contract labour for carrying out certain of its operations and its may be held responsible for paying the wages of such workers, if the independent contractors through whom such workers are hired default on their obligations, and such obligations could have an adverse effect on its results of operations, cash flows and financial condition.

An inability to renew quality accreditations in a timely manner or at all, or any deficiencies in the quality of its products may adversely affect its business prospects and financial performance.

Its operations are subject to high working capital requirements. If the company is unable to generate sufficient cash flows to allow it to make required payments, there may be an adverse effect on its results of operations.

Its ability to protect or use intellectual property right may adversely affect its business.

The future operating results are difficult to predict and may fluctuate or adversely vary from the past performance.

Portion of its Issue Proceeds are proposed to be utilized for general corporate purposes which constitute 15.33% of the Issue Proceed.

The company has not made any alternate arrangements for meeting its regular working capital requirements. If its operations does not generate the necessary cash flow, its working capital requirements may negatively affect its operations and financial performance.

Delays or defaults in payment by its clients could affect the company cash flows and may adversely affect its financial condition and operations.

In addition to its existing indebtedness for the company operations, its may be required to obtain further loan during the course of business. There can be no assurance that its would be able to service the company existing and/or additional indebtedness.

Its debt financing agreements contain certain restrictive covenants that may adversely affect the Company`s business, credit ratings, prospects, results of operations and financial condition.

Underutilization of capacity of its facility may adversely affect its business, results of operations and financial conditions.

The company is subject to certain government regulation and if its fail to obtain, maintain or renew its statutory and regulatory licenses, permits and approvals required to operate its business, its business and results of operations may be adversely affected.

The company may be subjected to risks associated with product warranty.

The company is subject to risks arising from interest rate fluctuations, which could adversely affect its business, financial condition and results of operations.

Its success depends largely on the company Directors, Promoters and other key managerial personnel and the loss of or its inability to attract or retain such persons with specialized technical know-how could adversely affect its business, results of operations, cash flows and financial condition.

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

The company 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.

Major fraud, lapses of internal control or system failures could adversely impact the company`s business.

The company may not be successful in implementing its business strategies.

An inability to renew quality accreditations in a timely manner or at all, or any deficiencies in the quality of its products may adversely affect its business prospects and financial performance.

Brand recognition is important to the success of its business, and the company inability to build and maintain its brand names will harm the company`s business, financial condition and results of operation.

Its success depends heavily upon the company Promoters and Directors for their continuing services, strategic guidance and financial support.

There may be potential conflict of interests between the Company, Promoter Group Entities, Group Companies and other venture or enterprises promoted by its promoter or directors.

Upon completion of the Issue, its Promoters / Promoter Group may continue to retain significant control, which will allow them to influence the outcome of matters submitted to the shareholders for approval.

Within the parameters as mentioned in the chapter titled "Objects of this Issue" beginning on page 81 of this Draft Prospectus, the Company`s management will have flexibility in applying the proceeds of this Issue. The fund requirement and deployment mentioned in the Objects of this Issue have not been appraised by any bank or financial institution.

Delays or defaults in client payments could affect its operations.

Its revenues are highly dependent on clients located in India. Any decline in the economic health of India could adversely affect its business, financial condition and results of operations.

Certain relevant copies of educational qualification and experience certificates of its promoters/Directors are not traceable.

Non-availability of initial period secretarial/ statutory records of the company filed with ROC since incorporation.

The company faces competition in its business from organized and unorganized players, which may adversely affect its business operation and financial condition.

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

Certain key performance indicators for certain listed industry peers included in this Draft Prospectus have been sourced from public sources and there is no assurance that such financial and other industry information is complete.

Industry information included in this draft prospectus has been derived from industry reports. There can be no assurance that such third-party statistical, financial and other industry information is either complete or accurate.

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.

There is no guarantee that its Equity Shares will be listed on the Emerge Platform of National Stock Exchange of India Limited in a timely manner or at all.

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

The Issue Price of its Equity Shares may not be indicative of the market price of the company Equity Shares after the Issue.

After this Issue, the price of its Equity Shares may be volatile, or an active trading market for its 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.

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

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.

The Company has not paid any dividends till now and there can be no assurance that its will pay dividends in future.

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.

You may be subject to Indian taxes arising out of capital gains on sale of Equity Shares.

Applicants to this Issue are not allowed to withdraw their Applications after the Issue Closing Date.

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.

The company majorly sell its products in West Bengal and any adverse developments affecting its operations in these regions could have an adverse impact on the company`s revenue and results of operations.

The Company does not manufacture Particle board, Laminates and allied products.