Visaman Global

Strong Customer Base.

Strong Customer Base.

Leveraging the experience of its Promoters and Management Team.

Comprehensive solution for logistics requirement.

Existing Supplier Relationship.

Location Advantage.

ISO Certified Organization.

In depth understanding of customers` requirements.

The company has certain outstanding litigation against it, an adverse outcome of which may adversely affect its business, reputation and results of operations.

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

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.

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

Its Revenue supply of Pipes contribute significantly to the company revenue from operation. Any loss of business from such products may adversely affect its revenues and profitability.

The Restated Financial Statements have been provided by Peer Reviewed Chartered Accountants who is not Statutory Auditor of the Company.

Its business is a High Volume-Low Margin Business.

The Company had negative cash flows in the past years, details of which are given below. Sustained negative cash flow could impact its growth and business.

The company depends on the success of its relationships with its customers. The company`s top ten customers contribute majority of its revenues from operations. If one or more of such customers choose not to source their requirements from it, the company`s business, financial condition and results of operations may be adversely affected.

The company is heavily dependent on one of its suppliers, M/s. APL Apollo Tubes Limited for whom the company is distributors for procurement and sale of its traded goods. Any disruption of supply from such entities may affect its business operations.

The Company has entered into related party transactions in the past and may continue to enter into related party transactions in the future, which may potentially involve conflicts of interest with the equity shareholders.

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

If the company fail to maintain an effective system of internal controls, the company may not be able to successfully manage, or accurately report, its financial risks. Despite its internal control systems, the company may be exposed to operational risks, including fraud, petty theft and embezzlement, which may adversely affect its reputation, business, financial condition, results of operations and cash flows.

Delays or defaults in client payments could result in a reduction of its profits.

The Company has higher debt-equity ratio which requires significant cash flows to service its debts obligations, and this, together with the conditions and restrictions imposed by its financing arrangements, fluctuations in the interest rates may limit the company`s ability to operate freely and grow its business.

Its Registered Office, godowns, stock yards, and proposed manufacturing unit are not owned by the company is taken on rental basis. If the company is unable to renew existing rental agreements or relocate its operations on commercially reasonable terms, there may be a material adverse effect on its business, financial condition, results of operations and cash flows could be adversely affected.

Its trading activities are exposed to fluctuations in the prices of traded goods.

The company has not yet placed orders in relation to the funding Capital Expenditure towards construction of factory building and purchase of plant and machineries which is proposed to be financed from the Issue proceeds of the IPO. In the event of any delay in placing the orders, or in the event the vendors are not able to provide the equipment in a timely manner, or at all, may result in time and cost over-runs and its business, prospects and results of operations may be adversely affected. Its proposed capacity plans via its proposed manufacturing facilities are subject to the risk of unanticipated delays in implementation due to factors including delays in construction, obtaining regulatory approvals in timely manner and cost overruns.

The company requires 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 favourable terms may have an adverse effect on its operations, profitability and growth prospects.

Failure or disruption of its information technology systems may adversely affect the company`s business, financial condition, results of operations, cash flows and prospects.

The company is highly dependent on its promoters and directors for its business. The loss of or the company`s inability to attract or retain such persons could have a material adverse effect on its business performance, results of operations, financial condition and cash flows.

The Company has availed unsecured loans from its directors, their relatives and non-banking financial companies which may be recalled on demand.

The Company has not entered into any long-term contracts with its customers and the company typically operate on the basis of orders received on hand. Inability to maintain regular order flow would adversely impact its revenues and profitability.

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

The Company has limited storage capacity which can result in stock out cost and loss of customer adversely affecting its business and results of operations.

The company is dependent on third party transportation providers for the delivery of its products. Accordingly, continuing increases in transportation costs or unavailability of transportation services for them, as well the extent and reliability of Indian infrastructure may have an adverse effect on its business, financial condition, results of operations and prospects.

The average cost of acquisition of Equity Shares by its Promoters is lower than the Issue price determined in consultation with Lead Manager in accordance with the SEBI ICDR Regulations.

Within the parameters as mentioned in the chapter titled "Objects of the Issue" beginning on page 82 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.

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, business operations 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.

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, 2013. Some of its corporate records are not traceable. Any penalty or action taken by any regulatory authorities in future, for non-compliance with provisions of corporate and other law could impact the reputation and financial position of the Company to that extent.

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.

There are certain discrepancies and non-compliances noticed in some of its financial reporting and/or records relating to filing of returns and deposit of statutory dues with the taxation and other statutory authorities.

The recent outbreak of the novel coronavirus could have a significant effect on its results of operations, and could negatively impact the company`s business, revenues, financial condition and results of operations.

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.

Its Promoters have interest in entities, which are in businesses similar to its and this may result in conflict of interest with the company.

In addition to normal remuneration, other benefits and reimbursement of expenses some of its directors (including its Promoters) are interested in the Company to the extent of their shareholding and dividend entitlement in the Company.

The company depends on skilled personnel and if the company is unable to recruit and retain skilled personnel, its ability to operate or grow its business could be affected.

If the company is unable to manage its growth effectively and further expand into new markets its business, future financial performance and results of operations could be materially and adversely affected.

Its may not be fully insured for all losses the company may incur.

The company is subject to various laws and extensive government regulations and if its fail to obtain, maintain or renew its statutory and regulatory licenses, permits and approvals required in the ordinary course of its business, including environmental, health and safety laws and other regulations, its business financial condition, results of operations and cash flows may be adversely affected.

If the company is fail to keep its technical knowledge and process know-how confidential, the company may suffer a loss of its competitive advantage.

Pricing pressure from customers may adversely affect its gross margin, profitability and ability to increase the company prices.

Its Promoters cum Directors have provided personal guarantees for loan facilities obtained by the Company, and any failure or default by the Company to repay such loans in accordance with the terms and conditions of the financing documents could trigger repayment obligations on them, which may impact their ability to effectively service their obligations as its Promoters/Directors and thereby, impact the company`s business and operations.

The company is subject to strict quality requirements and any product defect issues or failure by it or its suppliers to comply with quality standards may lead to the cancellation of existing and future orders, recalls and exposure to potential product liability claims.

The logo "VISAMAN" has been registered under the name of the company. Any failure to protect its intellectual property could have a material adverse effect on its business. The company is, and may also in the future be, subject to intellectual property infringement claims, which may be expensive to defend and may disrupt its business.

Its financing agreements contain covenants that limit the company flexibility in operating its business. If the company is not in compliance with certain of these covenants and are unable to obtain waivers from the respective lenders, its lenders may accelerate the repayment schedules, and enforce their respective security interests, leading to a material adverse effect on its business and financial condition.

The company might infringe upon the intellectual property rights of others and may be susceptible to claims from third parties, affecting its operations and financial condition.

Any increase in interest rates would have an adverse effect on its results of operations and will expose the Company to interest rate risks.

The company is exposed to counterparty credit risk and any delay in receiving payments or non-receipt of payments may adversely impact its results of operations.

Its Promoters and Promoter Group will continue to retain a majority shareholding in the Company after the Issue, which will allow them to exercise significant influence over the company.

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

The determination of the Issue Price is based on various factors and assumptions and the Issue Price of the Equity Shares may not be indicative of the market price of the Equity Shares upon listing on the Stock Exchange.

Significant differences exist between Indian GAAP and other accounting principles, such as US GAAP and IFRS, which may be material to investors assessments of the Company`s financial condition. Our failure to successfully adopt IFRS may have an adverse effect on the price of our Equity Shares. The proposed adoption of IFRS could result in its financial condition and results of operations appearing materially different than under Indian GAAP.