Paramount Dye Tec Limited - IPO

1. We operate in a heavily regulated sector and our operations are subject to environmental, health and safety regulations that could expose us to liability, increase our cost of operations or otherwise have a material adverse effect on our results of operations and could also result in enhanced compliance obligations.

2. Majority of our revenue is dependent on single business segment i.e. manufacturing of fiber and yarns. Any adverse impact on sales of a product would adversely affect our operations and profitability.

3. Our business depends on our manufacturing facility and the loss of or shutdown of operations of the manufacturing facility on any grounds could adversely affect our business or results of operations. Further, our business involves usage of manpower and any unavailability of our employees or any strikes, work stoppages may have an adverse impact on our cash flows and results of operations.

4. ?The Company is dependent on a few suppliers for purchases of product/service. The loss of any of these large suppliers may affect our business operations.

5. We face competition in our business from organized and unorganized players, which may adversely affect our business operation and financial condition.

6. We derive a majority portion of our revenue from operations from our top 10 customers, contributing 78.18% revenue from operations for the period ended March 31, 2024. Loss of one or more of these customers or a reduction in the amount of business we obtain from them could have an adverse effect on our business, results of operations, financial condition and cash flows. Further, we do not have long-term agreements with any our customers.

7. There are outstanding proceedings involving our Company, Promoters and Directors. Any adverse decision in such proceedings may have a adverse effect on our business, results of operations and financial condition.

8. Our company has been in non-compliance of certain provisions of Companies Act, 2013, for which an application for adjudication has been filed with the ROC.

9. There are certain discrepancies / errors noticed in some of our corporate records relating to forms filed with the Registrar of Companies and other provisions of Companies Act, 2013. Any penalty or action taken by any regulatory authorities in future for non-compliance with provisions of corporate and other law could impact the financial position of the Company to that extent.

10. The Restated Financial Statements have been provided by Peer Reviewed Chartered Accountants who is not Statutory Auditor of our Company.