Forge Auto International Limited - IPO

1. We depend on a limited number of customers for our revenue from operations, the loss of any of these customers individually or severally could have a material adverse effect on our business, operations and could have impacted our financial strength.

2. We do not have agreements/commitment on part of our customers to purchase or place orders with us, also we do not have any price agreement with our customers. If our customers select some other vendors/competitors for their requirement, it may have adverse effect on our business.

3. We depend on a few suppliers for the supply of steel, our primary raw material. Further, we do not have definitive supply agreements with our suppliers for the supply of steel. If our suppliers fails to fulfil our requirement, it may have adverse effect on our business.

4. We have taken loans and any inability to comply with repayment and other covenants can adversely affect our business, reputation and financial condition.

5. Our business is dependent on the performance of certain other industries which we are serving particularly automobile, tractors, railways, farm equipment etc. Any adverse changes in the conditions affecting these industries can adversely impact our business and financial condition.

6. Our production process require uninterrupted power and fuel supply and any disruption/shortage of power or fuel sources could affect our product quality or increase our production costs and adversely affect our business, and operations.

7. We have substantial working capital requirements and may require additional capital and financing in the future and our operations could be curtailed if we are unable to obtain the required additional capital and financing when needed.

8. Our company has been recently formed by conversion of the erstwhile Partnership firm into the company, thus we have limited operating history as a Company which may make it difficult for investors to evaluate our historical performance or future prospects.

9. Inventories and trade receivables form a major part of our current assets. Failure to manage our inventory and trade receivables could have an adverse effect on our sales, profitability, cash flow and liquidity.

10. Failure to obtain or maintain pre-qualifications from customers or loss of our pre-qualified status from our existing customers could adversely impact our business.