Karbonsteel Engineering Limited IPO Details

1. Our business is substantially dependent on certain key customers, from whom we derive a significant portion of our revenues. The loss of any significant customer may have a material and adverse effect on our business and results of operations.

2. Our business is exposed to risks relating to delays in project execution and cost overruns, which may adversely affect our business, financial condition, results of operations and prospects.

3. Our business is dependent on capital investments in industrial and infrastructure sectors and any slowdown in these sectors due to economic conditions, government policies, or project specific factors may materially and adversely affect our business, financial condition and results of operations.

4. Failure to comply with stringent quality standards, inspection requirements and technical specifications may result in rework, delayed payments or termination of contracts, which could adversely affect our business, financial condition and results of operations.

5. Our Company does not have long-term agreements with suppliers for our input materials and a significant increase in the cost of, or a shortfall in the availability, or deterioration in the quality, of such input materials could have an adverse effect on our business and results of operations.

6. Our business is dependent on and will continue to depend on our Manufacturing Facilities and we are subject to certain risks in our manufacturing process due to the usage of heavy machinery in our manufacturing operations. Any slowdown or shutdown in our manufacturing operations or strikes or work stoppages could have an adverse effect on our business, cash flows, financial condition and results of operations.

7. Our industry is labour-intensive which relies on Contract and Skilled Labour and any shortage of skilled labour, labour disputes, or wage cost increases may adversely impact our operations, project execution and financial performance.

8. There are outstanding legal proceedings involving our Company. Any adverse decisions could impact our cash flows and profit or loss to the extent of demand amount, interest and penalty, divert management time and attention and have an adverse effect on our business, prospects, results of operations and financial condition.

9. Our business is working capital intensive and delays in client payments, retention money, or extended credit terms may strain our liquidity, increase financing costs and impact profitability.

10. The number of orders we have received in the past, our current order book and our growth rate may not be indicative of the number of orders we will receive in future.