Nilachal Carbo Metalicks Limited IPO

1. If the supply chain of raw materials is disrupted due to price volatility or changes in government regulations, it could significantly impact our business operations, potentially affecting our ability to meet customer demands and leading to adverse financial consequences for the company.

2. Our business is inherently working capital-intensive. Should we encounter insufficient cash flows from our operations or face challenges in securing borrowing to meet our working capital needs, it could materially and adversely impact our business operations and financial results.

3. Our business is dependent on our manufacturing units and we are subject to certain risks in our manufacturing process. Any slowdown or shutdown in our manufacturing operations or underutilization of our manufacturing units could have an adverse effect on our business, results of operations and financial condition.

4. Any failure in our quality control processes may adversely affect our business, results of operations and financial condition. We may face product liability claims and legal proceedings if the quality of our product does not meet our customers' expectations.

5. Our manufacturing capacity could be significantly impacted if we are unable to maintain or renew our lease agreement for the Vishakhapatnam unit, which is owned by a third party. Should we fail to secure a renewal of this lease, it could adversely affect our business operations, revenue generation, and distribution channels.

6. Our business is highly dependent on the ferroalloy industries and is exposed to cyclical demand fluctuations in these sectors, which may materially affect our revenue, profitability, and financial condition. Further, we derive a significant portion of our revenues from a limited number of customers. The loss of any significant clients may have an adverse effect on our business, financial condition, results of operations, and prospects.

7. We are heavily dependent on limited number of suppliers in handling our business operations. The loss of any significant supplier may have an adverse effect on our business, operations, financial conditions and prospects.

8. Our Company had negative operating cash flow in recent fiscals, details of which are given below. Sustained negative cash flow could adversely impact our business, financial condition and results of operations.

9. Our revenue is dependent on domestic market and we do not have any export revenue. Any adverse changes in the conditions affecting domestic market could adversely affect our business, results of operations and financial condition.

10. There are outstanding legal proceedings involving our Company, Directors and Promoters. 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, consume financial resources in their defense or prosecution, affect our reputation, standing and future business and have an adverse effect on our business, prospects, results of operations and financial condition.