3B Films Ltd IPO

Inadequate or uninterrupted supply and price fluctuation of packaging materials could adversely affect its business, results of operations, cash flows, profitability and financial condition.

The Company, its Promoters and Directors are parties to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.

Its business is dependent on the adequate and uninterrupted supply of electrical power and water at a reasonable cost. The Company does not have suitable power back-up to meet power failures exigencies. Failures on account of unavailability of electrical power and water may restrict it in utilizing its full capacity and, hence, may impact its business and results of operation.

There have been certain instances of delay in filing of statutory forms with ROC and inadvertent inaccuracies and non-compliances with respect to provision of the Companies Act, 2013. Any adverse order passed or penalty imposed by regulators on it, may adversely affect its business and results of operations.

The company is significantly dependent on few customers for its revenue in a particular financial year. The loss of any one or more of such customer may have a material effect on its business operations and profitability. The company derives a significant portion of its revenue from sales to its top 5 customers. Any failures to maintain relationships with such customers could adversely affect its revenue and financial condition.

Its success largely depends upon the knowledge and experience of the company Key Managerial Personnel, Directors and Promoters of the company. Loss of such Key Managerial Personnel or its ability to attract and retain them could adversely affect its business, operations and financial condition.

The company has certain contingent liabilities that have not been provided for in the Company's financials which if materialized, could adversely affect its financial condition.

Under-utilization of its manufacturing capacities and an inability to effectively utilize the company existing manufacturing capacities could have an adverse effect on its business, future prospects and future financial performance.

There are instances of delays in payment of EPF and filing of GST returns by the Company. Any further delay in the said payments and filing of returns may attract penalties from the respective government authorities and in turn may have a material adverse impact on its financial condition and cash flows.

The Company has experienced negative cash flow in the past and may continue to do so in the future, which could have a material adverse effect on its business, prospects, financial condition, cash flows and results of operations. The Company has experienced negative net cash flow in operating, investing and financing activities in the past, the details of which are provided below.