Systematic Industries Limited IPO Details

1. Our business is capital intensive in nature for which we need to raise additional funds whenever required. Such excessive dependency on debt funds for capital expansion may result into increase in finance cost to the company and impact the profitability of the company, which could materially and adversely affect our business, financial position and results of operations.

2. 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.

3. Our company has not complied with certain statutory provisions of the Companies Act, 2013. Such non-compliance may attract penalties against our Company which could impact the financial position of us to that extent.

4. Our reliance on certain industries for a significant portion of our sales could have an adverse effect on our business.

5. Our Company is dependent on limited number of suppliers, within limited geographical locations for procurement of raw materials. Any delay, interruption or reduction in the supply of raw materials required for our products may adversely affect our business, results of operations, cash flows and financial condition.

6. We are subject to strict quality requirements and the success and wide acceptability of our products is largely dependent upon our quality controls and standards. Any failure to comply with quality standards may adversely affect our business prospects and financial performance, including cancellation of existing and future orders.

7. We do not own the registered office, office and one factory from which we carry out our business activities. In case of nonrenewal of rent agreements or dispute in relation to use of the said premise, our business and results of operations can be adversely affected.

8. Our business is dependent and will continue to depend on our factories, and we are subject to certain risks in our manufacturing process. Any slowdown or shutdown in our manufacturing operations due to power failure, machinery breakdown or strikes, work stoppages or increased wage demands by our employees that could interfere with our operations could have an adverse effect on our business, financial condition and results of operations.

9. We have experienced negative operating cash flows in the past. Any operating losses or negative cash flows in the future could adversely affect our results of operations and financial conditions.

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