Admach Systems Ltd IPO

The company business is dependent on the performance of Steel and Non-Destructive Testing equipment industry with a large portion of revenue being derived from it. Any downturn in these industries can adversely impact its business, results of operations, cash flow and financial condition of the Company.

The company are significantly dependent on the sale of its products namely, Steel Machines, Non-destructive testing equipment and Packaging machine. The company aggregate revenue from sale of Steel Machines accounted for 76.11%,88.48%, 55.13% and 33.66% of its revenue from operations for the period ended June 30,2025 and Fiscal 2025, 2024 and 2023 respectively. Failure to anticipate and adapt to changing consumer preferences or maintain product quality could harm demand for the company products, weaken brand loyalty, and negatively affect its business, financial results, and cash flow.

The company derive its revenue from the domestic market and substantial portion of revenue from the region of Maharashtra. Any adverse developments affecting the company operations in this region, could have an adverse impact on its business, financial condition, results of operations and cash flows.

The company does not has long-term agreements with most of its suppliers. Further, the company inability to accurately forecast demand for its products or manage the company inventory or working capital requirements may have an adverse effect on its business, results of operations and financial condition.

The company manufacturing facility is located on property acquired pursuant to the Agreement of Assignment of Business dated November 30, 2009, and the ownership details in the revenue records have not yet been updated in the Company's name; failure to complete such recordal procedure may adversely affect its business, results of operations, financial condition, and cash flows.

The Company is yet to place orders for 100% of the machineries for its proposed object, as specified in the Objects of the Issue. Any delay in placing orders, procurement of machineries may delay its implementation schedule and may also lead to increase in price of these machineries, further affecting the company revenue and profitability.

The company Promoters have provided personal guarantees for the borrowings obtained by its Company and any failure or default by the Company to repay this loan could trigger repayment obligations on its Promoters which may impact their ability to effectively service their obligations and thereby, adversely impact the company business and operations.

There are certain discrepancies/errors/delay filings noticed in some of the company corporate records relating to forms filed with the Registrar of Companies and other provisions of Companies Act, 2013. Any penalty or action taken by any regulatory authorities in future, for non-compliance with provisions of corporate or any other law could impact the financial position of the Company to that extent.

The company top ten customers contribute majority of its revenues from operations. Any loss of business from one or more of them may adversely affect the company revenues and profitability. Further, its does not have any long-term commitments from customers and any failure to continue the company existing arrangements could adversely affect its business and results of operations. The substantial portion of the company revenue is currently significantly dependent on its top ten customers. Any loss of business from one or more of them may adversely affect the company revenues and profitability.

The company require several approvals, licenses, registrations, and permits to operate its business and must comply with various rules, regulations, and conditions. Failure to obtain, retain, or renew such approvals, licenses, and permits in a timely manner, or to comply with the requisite rules and regulations, may adversely affect the company business, results of operations, financial condition, and cash flows.