Bhadora Industries Limited - IPO

1. The company is highly dependent on its top ten customers and the loss of any of these customers or a substantial reduction in their purchasing activity would have a significant negative impact on its business.

2. The company raw material cost constitutes a significant percentage of its total expenses. Any increase in the prices, availability and quality of raw materials could adversely affect the company reputation, business, results from operations, financial conditions and cash flows. The company relies on few qualified suppliers for its primary raw material, loss of these suppliers may have an adverse effect on its business, results of operations and financial conditions.

3. Its primary source of revenue largely depends on the sale to EPC Contractors. Consequently, any downturn in sales within this segment would significantly hamper its operations and profitability.

4. Its Business is dependent on the company Continuing relationships with its customers, with whom the company has not entered into long term arrangements. Further the company has been procuring business from Government entities, which are undertaken through bidding process and failure to procure such tenders on a continuous basis could adversely impact its revenues and profitability.

5. The company derives a significant portion of its revenue from certain of its products. If sales volume or price of such products declines in the future, or if the company is unable to sell such products for any reason, its business, financial condition, cash flows and results of operations could be adversely affected.

6. Dependence on a Single Manufacturing Facility may have an adverse effect on its business, results of operations and financial condition.

7. The company is measured against high quality standards and stringent performance requirements by its customers. Any failures to meet these standards or requirements could result in the cancellation of current and future orders, product recalls, or liquidated damages. Such events could significantly harm its reputation, business operations, financial condition, and cash flows.

8. The Company is dependent on a domestic market for its sales and any downturn in it could reduce its sales.

9. Its may faces several risks associated with the expansion of the company proposed manufacturing unit, which could hamper its growth, prospects, cash flow and business and financial condition.

10. The company requires working capital for its smooth day-to-day operations and insufficient working capital may result in the company being unable to meet its daily operational needs. This could lead to delays in paying suppliers, wages, or other operational expenses, affecting production schedules and delivery timelines.