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There are outstanding legal proceedings involving the Company, the Directors, the Promoter
and its LLP.
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The company require a number of approvals, NOCs, licenses, registrations and permits in the ordinary course of its business. Some of the approvals are required to be obtained by the Issuer Company and any failure or delay in obtaining the same in a timely manner may adversely affect its operations.
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The company Manufacturing operations involve certain operating hazards, occurrences of which may disrupt its business operations and our financial conditions could be adversely affected.
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Quality of product is very important in the industry and the success of the company is dependent on the quality of the product and any failure to maintain the quality of its products may have an adverse effect on the company reputation and business.
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The company insurance coverage may not be adequate to protect us against certain operating hazards
and this may have a material adverse effect on its business.
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Any fluctuations in prices of raw materials or shortage in supply of raw material for
manufacturing of the company products, could adversely impact its business.
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The company depend on third parties for the transportation needs for raw materials. Any disruptions may affect its operations, business and financial condition.
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Obsolescence, destruction, theft, breakdowns of its plants or machineries or failures to repair
or maintain the same may affect the company business, cash flows, financial condition and results of operations.
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Introduction of alternative technology in manufacturing may reduce demand for the company existing products and may adversely affect its profitability and business prospects.
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The company has not entered into any long-term contracts with any of its customers and typically
operate on the basis of purchase orders, which could adversely impact the company revenues and
profitability.
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The Company has not entered into any supply agreement for the major raw materials required
for manufacturing of the products and are exposed to risks relating to fluctuation in global
commodity prices and shortage of raw material.
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The Company name and logo is not registered as on date of this Draft Prospectus. Its may be unable to adequately protect the intellectual property. Furthermore, the company may be subject to claims
alleging breach of third-party intellectual property rights.
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The company operations are subject to significant working capital requirements. The company inability to maintain an optimal level of working capital required for the business may impact its operations adversely.
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The Company in the past has entered into related party transactions and may continue to do so
in future also, which may affect its competitive edge and better bargaining power if entered with non-related parties resulting into relatively more favourable terms and conditions and
better margins.
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The company operate in a regulated sector and its operations are subject to environmental, health and safety regulations that could expose it to liability, increase the cost of operations or otherwise have a material adverse effect on the company results of operations and could also result in enhanced compliance obligations.
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Loans availed by the Company has been secured on personal guarantees of the Directors and
Promoter. Its business, financial condition, results of operations, cash flows and prospects
may be adversely affected in case of invocation of any personal guarantees provided by the Director and Promoter.
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The company may be unable to attract and retain employees with the requisite skills, expertise and
experience, which would adversely affect its operations, business growth and financial results.
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The company is dependent on its top ten suppliers for the supply of raw material.
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The company has experienced negative cash flows in previous years. Any operating losses or negative
cash flows in the future could adversely affect its results of operations and financial conditions.
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The Company does not enter into any binding agreement with its customers at the time of
receiving orders. Company may not be able to enforce any claims on customers in case of nonacceptance of manufactured products by them.
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The objects of the Issue for which funds are being raised have not been appraised by any bank
or financial institution and are based on management estimates.
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The company business is substantially dependent on the key clients from whom its derive a significant
portion of the revenues. The loss of any significant clients may have a material and adverse effect on the company business and results of operations.
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Orders placed by customers may be delayed, modified, cancelled or not fully paid for by the
customers, which may have an adverse effect on its business, financial condition and results of operations.
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The company will continue to be controlled by the Promoter after the completion of the Issue.
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Information relating to the historical installed capacity and capacity utilization of the
manufacturing facilities included in this Draft Prospectus is based on various assumptions and
estimates and its future production and capacity may vary.
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There are certain discrepancies/errors noticed in some of the corporate records relating to forms filed with the Registrar of Companies and certain non-compliances of provisions of Companies Act, 2013. Any penalty or action taken by any regulatory authorizes in future, for non- compliance with provisions of corporate or any other law could impact the financial position of the Company to that extent.
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The Company in certain instances in the past, has delayed in paying statutory dues to various
government and local bodies which may require it to pay penalties.
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Certain agreements may be inadequately stamped or may not have been registered as a result of
which our operations may be adversely affected.
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The company is heavily dependent on machinery for its operations. Any break-down of the machinery
will have a significant impact on the company business, financial results and growth prospects.
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The company`s operations are subject to varied business risks and its insurance cover may prove
inadequate to cover the company economic losses.
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The company has taken secured loans from Axis Bank Limited and SIDBI wherein the directors have provided collateral security and personal guarantees in relation to cash credit facilities and term loans provided to the Company. In event of default on the debt obligations, the collateral security and personal guarantees may be invoked thereby adversely affecting the directors ability to manage the affairs of the Company and consequently may impact its business, prospects, financial condition and results of operations.
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The Company has unsecured loans, which are repayable on demand.
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The company is heavily reliant on Directors Pritesh Yashwantlal Shah and Dimple Priteshkumar Shah. Failure to retain or replace them will adversely affect its business.
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The company Promoter is engaged in the same line of business similar to the Company. There are no
non-compete agreements between the Company and our Promoter. The company cannot assure that the Promoter and the Company will not compete each other to source the same business. Such competition between each other may adversely affect business operations and financial condition of the Company.
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The company has not independently verified certain data in this Draft Prospectus.
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The company future success will depend on its ability to effectively implement of the business and growth strategies failing which the company results of operations may be adversely affected.
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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.
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The company actual results could differ from the estimates and projections used to prepare its financial statements.
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The company inability to protect or use its intellectual property rights may adversely affect of the business.
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The company do not own the Registered Office from which its carry out the business activities. Any
dispute in relation to use of the premises would have a material adverse effect on the company business and results of operations.
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The company ability to pay dividends in the future will depend upon its future earnings, financial
condition, cash flows, working capital requirements, capital expenditure and restrictive
covenants in the financing arrangements.
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The company Promotes have interest in the Company, other than reimbursement of expenses incurred
or remuneration.
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The company has not identified any alternate source of funding and hence any failure or delay on its part to mobilize the required resources or any shortfall in the Issue proceeds may delay the
implementation schedule.
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Any failure of the company information technology systems could adversely impact its business.
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Any future issuance of Equity Shares may dilute your shareholdings, and sales of the Equity
Shares by its major shareholders may adversely affect the trading price of the company Equity Shares.
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The company`s lenders have charge over its immovable properties in respect of finance availed by it.
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The Issue price of the company Equity Shares may not be indicative of the market price of the Equity Shares after the Issue and the market price of the Equity Shares may decline below the issue price and you may not be able to sell your Equity Shares at or above the Issue Price.
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Investors other than retail (including non- institutional investors and Corporate Bodies) are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Amount)
at any stage after submitting an Application.
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The company Promoter have provided corporate guarantees in connection with its borrowings.
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The company performance may be adversely affected if its do not manage of the inventory or working capital successfully.
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The Company does not have any listed peer companies with the same line of business for
comparison of performance and therefore, investors must rely on their own examination of accounting ratios of the Company for the purposes of investment in the Issue.
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If any new products that the company produce are not as successful of the anticipate, its business, cash flows, results of operations and financial conditions may be adversely affected.
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The average cost of acquisition of Equity Shares by the Promoter could be lower than the Issue
price.
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There is no monitoring agency appointed by the Company and the deployment of funds are at
the discretion of the management and the Board of Directors, though it shall be monitored by
the Audit Committee. The objects of the Offer for which funds are being raised have not been
appraised by any bank or financial institution and are based on management estimates.
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The company has not commissioned an industry report for the disclosures made in the section titled `Our Industry` and made disclosures based on the data available on the internet and such third-party data has not been independently verified by it.
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Under-utilization of the company manufacturing capacities and an inability to effectively utilize its expanded manufacturing capacities could have an adverse effect on the business, future prospects and future financial performance.
