Subam Papers Limited - IPO

1. We have certain outstanding litigation against us, an adverse outcome of which may adversely affect our business, reputation and results of operations.

2. The availability of raw material, i.e. waste paper is very crucial for our business activities.

3. We have received certain notices from the GST Department indicating huge discrepancies which may translate into Demand against us and potentially harming our business, reputation, and financial performance.

4. We highly depend on our major raw materials and a few key suppliers who help us procure the same. Our Company has not entered into long-term agreements with its suppliers for the supply of raw materials. In the event we are unable to procure adequate amounts of raw materials, at competitive prices our business, results of operations and financial condition may be adversely affected.

5. We conduct our business activities on a purchase order basis and therefore have not entered into long-term agreements with our customers.

6. Our business is operating under various laws which require us to obtain approvals from the concerned statutory/regulatory authorities in the ordinary course of business and our inability to obtain, maintain or renew requisite statutory and regulatory permits and approvals for our business operations could materially and adversely affect our business, prospects, results of operations and financial condition. We require a number of approvals, NOCs, licenses, registrations and permits in the ordinary course of our business. Some of the approvals are required to be obtained by our Issuer Company and any failure or delay in obtaining the same in a timely manner may adversely affect our operations.

7. We have entered into related party transactions in the past and may continue to do so in the future.

8. We are exposed to counterparty credit risk and any delay in receiving payments or non-receipt of payments may adversely impact the results of operations.

9. Our Company has extended corporate guarantee to secure the debt facilities availed by our Wholly Owned Subsidiary.

10. We have certain contingent liabilities as on date of this Red Herring Prospectus that have not been provided for in our Company's financials which if materialized, could adversely affect our financial condition.