ARC Insulation & Insulators Ltd IPO

We are exposed to the risk of increase in the price of our raw materials and dependence on suppliers for supply of the raw materials. Further, if we are unable to source quality raw materials required for our business at competitive prices, our business, results of operations and profitability may be adversely affected. The raw material is partially procured through imports which may impact the timeline of production. Also exposing the company to the risk of foreign exchange rate fluctuations.

The Company is dependent on few numbers of customers for sales. The loss of any of this large customer may affect our revenues and profitability.

Our manufacturing capacity may not correspond precisely to our customers' demands. An inability to effectively utilize our manufacturing capacities may affect our business, results of operations, cash flows and financial condition.

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.

Our existing international operations and our plans to expand into additional overseas markets are subject to various business, economic, political, regulatory and legal risks.

Our business depends on our manufacturing facility and the loss of or shutdown of operations of the manufacturing facility on any grounds could adversely affect our business or results of operations. Further, our business involves usage of manpower and any unavailability of our employees or any strikes, work stoppages may have an adverse impact on our cash flows and results of operations.

Our Promoter and Directors play key role in our functioning and we heavily rely on their knowledge and experience in operating our business and therefore, it is critical for our business that our Promoter and Directors remain associated with us.

We face competition in our business from organized and unorganized players, which may adversely affect our business operation and financial condition.

Our Company has entered into Business Transfer Agreement dated June 01, 2009 with M/s. ARC Insulation and Insulators. All the asset and Liabilities are required to be transferred in the name of "ARC Insulation and Insulators Limited" from "Manish Bajoria" pursuant to this BTA, but still Property having address Pargana-Magura, Mouza- Samali, J.L No -23, R.S No. 156, R.S. Khatian No-498, 465 in R. S. Dag No. 87, Bishanpur West Bengal, India is still in the process of transfer.

Our business is dependent on technology and any disruption or failure of our technology systems may affect our operations.