Ganga Bath Fittings Limited - IPO

1. Our business requires working capital. Any failure in arranging adequate working capital for our operations may adversely affect our business, results of operations, cash flows and financial condition.

2. We do not own the premises where our manufacturing units are located.

3. Trade receivables constitute major portion of our assets, our inability to recover the same can affect our financial position.

4. We require certain approvals and licenses in the ordinary course of business and are required to comply with certain rules and regulations to operate our business, and the failure to obtain, retain and renew such approvals and licenses or comply with such rules and regulations, and the failure to obtain or retain them in a timely manner or at all may adversely affect our operations.

6. We have a very limited operating history as a Company, which may make it difficult for investors to evaluate our historical performance or future prospects.

7. Volatility in the supply and pricing of the raw materials and stores & spares may have an adverse effect on our business, financial condition and results of operations

8. Our Company procures majority of its raw material for its manufacturing activity from the state of Gujarat any adverse developments affecting operations in this region could have a significant impact on our business, and results of operations.

9. The Proforma Unaudited Financial Information included in this Red Herring Prospectus is not indicative of our future financial condition or results of operations.

10. We do not have long-term agreements with most of our suppliers or customers and the loss of one or more of them or a reduction in their demand for our products could adversely affect our business, results of operations, financial condition and cash flows. Further, our inability to accurately forecast demand for our products or manage our inventory or working capital requirements may have an adverse effect on our business, results of operations and financial condition.

11. Our Company has reported certain negative cash flows from its Operating activity, investing activity and financing activity, details of which are given below. Sustained negative cash flows could impact our growth and business.