Airfloa Rail Technology Ltd IPO

The company is business and revenues are substantially dependent on Indian Railways. Any adverse change in policy of the Ministry of Railways, GOI "MoR" may lead to its contracts being foreclosed, terminated, restructured or renegotiated, which may have a material effect on the company business and results of operations.

The company is depend on the entities under Indian Railways for a significant portion of contracts in its order book which are awarded on a tender basis. There is no assurance that its bids will be accepted and future contracts will be awarded to it by Indian Railways. This may result in an adverse effect on the company business growth, financial condition and results of operations.

Increases in the prices of raw materials required for the company operations could adversely affect its business and results of operations.

Its Subsidiary company is in a similar line of business as it which may involve conflict of interest, which could adversely impact the company business.

The Company operations are subject to high working capital requirements. If its are unable to generate sufficient cash flows to allow it to make required payments, there may be an adverse effect on the company results of operations.

The company Registered Office and one of the Manufacturing facility from where its operate is not owned by it.

The company has negative cash flows from Operating activities in the past and a consequent net decrease in cash and cash equivalents in some of the recent years.

The Company has not adequately complied with some of the provisions of Companies Act, 2013. There are certain discrepancies/errors 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 noncompliance with provisions of corporate and other law could impact the reputation and financial position of the Company to that extent.

The company has been unable to locate certain of its historical corporate records. The Company was incorporated in 1997 and certain corporate records and documents filed by it with the RoC are not traceable.

An inability to comply with repayment and other covenants in the financing agreements or otherwise meet its debt servicing obligations could adversely affect the company business, financial condition, cash flows and credit rating.