Smarten Power Systems Limited - IPO

1. We do not own the premises in which our registered office and our warehouse are located and the same are on lease arrangement and further there exists an ongoing litigation with respect to our assembling unit. Any termination of such lease/license and/or non-renewal thereof and attachment by property owner could adversely affect our operations.

2. A significant portion of our revenue is derived from the states of Haryana and Uttar Pradesh, and any adverse developments in these states could adversely affect our business.

3. We have not entered into any long term agreements with our distributors. Our inability to maintain relationships with our distributors may adversely affect our business, results of operations, cashflow and profitability.

4. Our top ten customers contribute approximately 41.31%, 42.29%, 37.74% and 44.82% of our revenues from operations for the three months period ended June 30, 2024 and the financial year ended March 31, 2024, March 31, 2023 and March 31, 2022 respectively. Any loss of business from one or more of them may adversely affect our revenues and profitability.

5. We have significant working capital requirements. If we experience insufficient cash flows to meet our working capital requirements, our business, results of operations and cashflows could be adversely affected.

6. We rely on third parties for the supply of our raw materials for Home UPS Systems and Solar Inverters/Solar Power Conditioning Units (PCUs), and in the event such suppliers fail to meet their obligations, we may face material adverse effect on our business, results of operations and financial condition.

7. We rely on third parties for the supply of batteries and solar panels for our trading business, and in the event such suppliers fail to meet their obligations, we may face material adverse effect on our business, results of operations and financial condition.

8. Significant portion of our revenues is dependent upon sale of Home UPS Systems, Solar Inverter / Solar Power Conditioning Units and Batteries. The loss in sales of our assembled or traded products or a decrease in the demand or volume of such products, will materially and adversely affect our revenues and profitability.

9. A significant portion of our revenue from exports is dependent on Nigeria and West Africa. Any change in foreign policies and import-export regulations could have a material adverse effect on our business, financial condition, results of operations and cash flows of our Company.

10. Our investment in purchase of movable assets of the production line of battery manufacturing unit are subject to the risk of unanticipated delays in implementation and may be less profitable or may be lossmaking.