Belrise Industries Limited - IPO

1. Seven out of its 17 manufacturing facilities are located in the state of Maharashtra. This concentration poses potential for regional risk exposure, which may adversely affect its business, results of operations, financial condition and cash flows.

2. Revenue from its ten largest customers comprises a significant portion of the company revenue from operations (63.82% for the nine months period ended December 31, 2024, 49.26% for the nine months period ended December 31, 2023, 50.77% for the Financial Year 2024, 57.93% for the Financial Year 2023 and 64.43% for the Financial Year 2022). Any failures to maintain its relationship with these customers or any adverse changes affecting their financial condition will have an adverse effect on its business, results of operations, financial condition and cash flows.

3. The company has entered into, and may continue to enter into related party transactions. Its cannot assure you that such transactions, individually or in the aggregate, will not have an adverse effect on its business, results of operations, financial condition and cash flows.

4. If the company is unable to maintain the existing levels of capacity utilization at its manufacturing facilities, its margins and profitability may be adversely affected. Further, a slowdown or shutdown in its manufacturing operations could have an adverse effect on its business, results of operations, financial condition and cash flows.

5. Its contractual arrangements with the company's OEM customers are generally requirement contracts, and any termination of such contracts or decline in the production requirements of any of its OEM customers, may adversely affect its business, results of operations, financial condition and cash flows.

6. Fluctuations in the prices and disruptions in the availability of raw materials may have an adverse effect on its business, results of operations, financial condition and cash flows.

7. Its manufacturing facilities are subject to periodic inspections and audits by regulatory authorities. Its may be recipient of adverse observations from such visits which may damage its business and reputation leading to an adverse effect on its business, results of operations, financial condition and cash flows.

8. The discontinuance or non-availability of subsidies availed by it may adversely affect its business, results of operations, financial condition and cash flows.

9. Pricing pressure from customers may adversely affect its profitability, which may in turn have an adverse effect on its business, results of operations, financial condition and cash flows.

10. The company derives a significant portion of its revenue from operations from the sale of automotive components for two-wheeler vehicles (64.56% for the nine months period ended December 31, 2024, 59.92% for the nine months period ended December 31, 2023, 63.30% for the Financial Year 2024, 65.48% for the Financial Year 2023 and 73.18% for the Financial Year 2022). Any decrease in demand for two-wheeler vehicles or any development that makes the sale of automotive components for the two-wheeler vehicle market less beneficial economically may adversely affect its business, results of operations, financial condition and cash flows.