Patel Chem Specialities Limited - IPO

1. We do not have long-term agreements with our suppliers for raw materials and an inability to procure the desired quality, quantity of our raw materials in a timely manner and at reasonable costs, or at all, may have a negative impact on our business, results of operations, financial condition and cash flows.

2. Majority of our domestic purchases and imports for the last 3 Financial Years and stub period is dependent on few states and single country. Any loss of business from any of these states and country may adversely affect our ability to procure our raw materials in time to meet our customers needs.

3. Majority of our domestic sales for the last 3 Financial Years and stub period is dependent on few states. Any loss of business from any of these states may adversely affect our revenues and profitability.

4. The restated financial statements have been provided by peer reviewed auditor who is not statutory auditor of our Company.

5. Our Major Exports are to Egypt, United States, Russia, Republic of Korea, United Kingdom, Japan and Germany. Any loss of business from any of these countries may adversely affect our revenues and profitability.

6. There may be potential conflict of interests between our Company and M/s Patel Industries.

7. Our international operations expose us to complex management, legal, tax, foreign exchange and economic risks, which could adversely affect our business, results of operations and financial condition.

8. Under-utilization of our production capacities could have an adverse effect on our business, future prospects and future financial performance.

9. Risk of Potential Machinery Strain and Operational Challenges Due to Overutilization of Installed Capacity.

10. The Company is in process of obtaining Fire NOC from the Fire Safety department for plot A1/272/5 and A2/272/4, GIDC Industrial Estate, Vatva, Ahmedabad - 382445 and Survey No. 93, Talod- Himmatnagar Road, Ahmedpura, Talod, Sabarkantha 383215, Gujarat, India.