Divyadhan Recycling Industries Limited - IPO

1. Our Registered Office from where we operate are not owned by us. If we are required to vacate the same, due to any reason whatsoever, it may adversely affect our business operations.

2. Our Company is involved in certain legal proceedings/litigations. Any adverse decision in such proceedings may render us/them liable to penalties and may adversely affect our business and result of operations.

3. We have had negative cash flows in the past and may continue to have negative cash flows in the future.

4. The restated financial statements of the company has been provided by the peer reviewed chartered accountant who is not the statutory auditor of the Company.

5. Under-utilization of our currently operational manufacturing facilities and any inability to effectively utilize our proposed manufacturing capacity could have an adverse effect on our business, future prospects, and future financial performance.

6. Inconsistent Product quality could lead to customer dissatisfaction, hampering reputation, sales and business which may materially and adversely affect our business and prospects.

7. Changes in technology may render our current technologies obsolete or require us to make substantial investments.

8. Majority of our state wise revenues from operations for the last 3 years is majorly derived from Himachal Pradesh. Any adverse developments affecting our operations in this state could have an adverse impact on our revenue and results of operations.

9. We depend on a limited number of customers for a significant portion of our revenues. The loss of a major customer or significant reduction in demand from any of our major customers may adversely affect our business, financial condition, results of operations and prospects.

10. Our Company derive signification portion of revenue from Recycled PET Fiber and any reduction in the sale of such products could have an adverse the business, result of operations and financial condition.