Shri Hare-Krishna Sponge Iron Limited - IPO

1. The viability of our business operations for the Steel Division is dependent on cost of power and fuel, any volatility in energy prices may result into financial stress on the viability of the Steel operations which may lead to temporary shutdown of the plant, which had an affect our revenue and financial strength in the past and could effect the future too.

2. Substantial portion of our revenues has been dependent upon few customers, with which we do not have any firm commitments. The loss of any one or more of our major customer would have a material adverse effect on our business, cash flows, results of operations and financial condition.

3. In the past, our Company contravened certain provisions of the SEBI Act and Regulations, for which SEBI imposed a penalty amounting to Rs. 2,40,000/- on our Company. This penalty was imposed under Section 15HA of the SEBI Act, 1992, for alleged violations in relation to trading activities in the Stock Options Segment of the Bombay Stock Exchange (BSE) during the period from April 1, 2014, to September 30, 2015.

4. We significantly depend upon few of the raw material suppliers for manufacturing of sponge iron. Volatility in the supply and pricing of our raw materials may have an adverse effect on our business, financial condition and results of operations.

5. Our business operations are majorly concentrated in certain geographical regions and any adverse developments affecting our operations in these regions could have a significant impact on our revenue and results of operations.

6. Our Company is yet to place orders for the some of the Plant & Machinery for the setup of captive power plant. Any delay in placing orders or procurement of such machinery may delay the schedule of implementation and possibly increase the cost of commencing operations.

7. Majority of our revenue is dependent on single business segment i.e. Sponge Iron. An inability to anticipate or adapt to evolving upgradation of products or inability to ensure product quality or reduction in the demand of such products may adversely impact our revenue from operations and growth prospects.

8. There have been certain instances of non-compliances/ discrepancies, including with respect to certain secretarial/ regulatory filings for corporate actions taken by our Company in the past. Consequently, we may be subject to regulatory actions and penalties for any such non-compliance/ discrepancies and our business, financial position and reputation may be adversely affected.

9. We do not own the Registered Office and Manufacturing Unit from which we carry out our business activities. In case of dispute in relation to use of the said premise, our business and results of operations can be adversely affected.

10. We require certain approvals, licenses, registrations and permits to operate our business, and failure to obtain or renew them in a timely manner or maintain the statutory and regulatory permits and approvals required to operate our business may adversely affect our operations and financial conditions.