3B Films Limited - IPO

1. Inadequate or uninterrupted supply and price fluctuation of packaging materials could adversely affect our business, results of operations, cash flows, profitability and financial condition.

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

3. Our business is dependent on the adequate and uninterrupted supply of electrical power and water at a reasonable cost. Our Company does not have suitable power back-up to meet power failure exigencies. Failure on account of unavailability of electrical power and water may restrict us in utilizing our full capacity and, hence, may impact our business and results of operation.

4. There have been certain instances of delay in filing of statutory forms with ROC and inadvertent inaccuracies and non-compliances with respect to provision of the Companies Act, 2013. Any adverse order passed or penalty imposed by regulators on us, may adversely affect our business and results of operations.

5. Our company is significantly dependent on few customers for our revenue in a particular financial year. The loss of any one or more of such customer may have a material effect on our business operations and profitability. We derive a significant portion of our revenue from sales to our top 5 customers. Any failure to maintain relationships with such customers could adversely affect our revenue and financial condition.

6. Our success largely depends upon the knowledge and experience of our Key Managerial Personnel, Directors and Promoters of our company. Loss of such Key Managerial Personnel or our ability to attract and retain them could adversely affect our business, operations and financial condition.

7. We have certain contingent liabilities that have not been provided for in our Company's financials which if materialized, could adversely affect our financial condition.

8. Under-utilization of our manufacturing capacities and an inability to effectively utilize our existing manufacturing capacities could have an adverse effect on our business, future prospects and future financial performance.

9. There are instances of delays in payment of EPF and filing of GST returns by our Company. Any further delay in the said payments and filing of returns may attract penalties from the respective government authorities and in turn may have a material adverse impact on our financial condition and cash flows.

10. 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. Our Company has experienced negative net cash flow in operating, investing and financing activities in the past, the details of which are provided below: