Arrowhead Seperation Engineering Ltd IPO

The company requires certain approvals and licenses in the ordinary course of business and are required to comply with certain rules and regulations to operate its business, and the failure to obtain, retain and renew such approvals and licenses or comply with such rules and regulations, and the failure to obtain or retain them in a timely manner or at all may adversely affect the company operations.

Thr company has concentrated customer base, making us significantly dependent on few customers for its revenue. The loss of any one or more of such customer may have a material effect on the compay business operations and profitability.

The company has experienced net losses in Fiscal 2021 and The company anticipate increased expenses in the future. Any loss in future periods could adversely affect its operations, financial conditions, and the trading price of the Equity Shares.

Equipments manufactured by it is associated with long gestation period and can be encashed only after the timely delivery. The company run the risk of satisfied solution to customer for order to be completed.

The company is heavily dependent on certain suppliers from whom its procure the company material on regular basis. Its day to day operations are dependent on their supply and availability of products. Any disruption of supply from such entities may affect its business operations.

The company has incurred substantial indebtedness which exposes it to various risks which may have an adverse effect on its business and results of operations. The company may also be unable to obtain future financing to fund its operations, expected capital expenditure and working capital requirements on favourable terms, or at all.

The Company may be dependent on the associate entity for the outsourcing model implemented by it.

One of the property mortgaged for its secured loans do not belong to it and are owned by the company Associate Entity. Further, its Promoters have extended personal guarantees in connection with the company debt facilities. There can be no assurance that such properties and personal guarantees will be continued to be provided by its Promoters and related entity in the future or can be called at any time, affecting its financial condition.

The company directors (including the promoters) and Key Management Personnel are interested in the Company to the extent of their shareholding, remuneration and dividend entitlement in the Company. In addition its Associate Entity is interested in purchases, sales and other transaction.

The company's success depends heavily upon the Promoters and Directors for their continuing services, strategic guidance and financial support.