CFF FLuid Control Limited - FPO

1. Our Company, Group Companies, 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.

2. Our existing manufacturing facility and upcoming manufacturing facility are concentrated in a single region i.e. Khopoli and Pune, Maharashtra, hence we face geographical concentration related risks.

3. If we are not able to obtain, renew or maintain our statutory and regulatory licenses, registrations and approvals required to operate our business, it may have a material adverse effect on our business, results of operations and financial condition.

4. Significant portion of our revenue is derived from contracts with Indian Defence PSU Shipyard during Financial Year 2024-25, 2023-24 and 2022-23 Decline of order book, contracts, and change in their requirement or fall in budget will have material adverse effect on our business, financial condition and result of operation.

5. Our business of manufacturing and supply of components, equipment and services required by Indian Defence PSU Shipyard is significantly dependent on the technology, process and product development of such components.

6. Our Promoter Group Entity is engaged in business activities which is similar to our line of business. This may be a potential source of conflict of interest for us and which may have an adverse effect on our business, financial condition and results of operations.

7. 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 customers may have a material effect on our business operations and profitability.

8. We have reported negative net cash flows in the past and may do so in the future.

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

10. Our Promoters and Key Managerial Personnel play key role in our functioning and we heavily rely on their knowledge and experience in operating our business and therefore, it is critical for our business that they remain associated with us.