Parmeshwar Metal Limited - IPO

1. The company has certain outstanding litigation against it, an adverse outcome of which may adversely affect its business, reputation and results of operations.

2. Its operations are concentrated in the state of Gujarat and any adverse developments affecting Gujarat could have an adverse effect on the company's business, results of operations and financial condition.

3. High volume-low margin business.

4. The company generally do business with its customers on purchase order basis and does not enter into long-term contracts with them.

5. The company is subject to strict quality requirements and are consequently required to incur significant expenses to maintain its product quality. Any failures to comply with such quality standards may lead to cancellation of existing and future orders which may adversely affect its reputation, financial conditions, cash flows and results of operations.

6. The Company is dependent on few numbers of customers for sales. Loss of any of this large customer may affect its revenues and profitability.

7. The Company is dependent on few suppliers for purchase of product. Loss of any of these large suppliers may affect its business operations.

8. Its Restated Financial Statements are prepared and signed by the Peer Review Auditor who is not Statutory Auditors of the Company as required under the provisions of ICDR.

9. The company has certain contingent liabilities that have not been provided for in the Company's financials which if materialized, could adversely affect its financial condition.

10. The Company derives entire revenue from manufacturing of copper wire rod and any reduction in the demand of such products could have an adverse effect on the business, results of operations and financial condition.