Axiom Gas Engineering Limited IPO

The company dependents on few suppliers for sourcing its liquified petroleum gas. As of March 31,2025, the company procured liquified petroleum gas from three suppliers which constituted more than 99% of the company's total quantity purchased. Any disruption in the receipt of liquified petroleum gas from these third parties, or delay or default in timely sourcing of the liquified petroleum gas could lead to a disruption or failures in the supply of liquified petroleum, gas by the company, which could adversely affect its business, reputation, results of operations and cash flows.

The company's transportation of LPG is majorly done by its related party i.e. "Prime Fuel Logistics Private Limited" the company's group company. As of March 31, 2025, we transported LPG from its group company which constituted more than majority of the company's total transport cost. Any disruption in the transport of such LPG from the company group company, or delay or default in timely transportation of the LPG or any mishap happened during transportation could lead to a disruption or failures in the transportation of LPG by it, which could adversely affect the company's business, reputation, results of operations and cash flows.

Transporting LPG is hazardous and could result in accidents, which could adversely affect its reputation, business, financial condition, results of operations and cash flows.

LPG is highly flammable and poses significant safety risks if mishandled. Compliance with strict safety regulations and standards is crucial to mitigate the risk of accidents, fires, and explosions which could adversely affect the company's reputation, business, financial condition, results of operations and cash flows.

There have been instances in the past where the company has not made certain regulatory filings with the ROC and there were certain instances of discrepancies in relation to certain statutory filings and corporate records of the company.

The sale of its products & services is concentrated in the company's core market of Karnataka, Telangana and Maharashtra. Any adverse developments affecting its operations in such region, could have an adverse impact on the company's business, financial condition, results of operations and cash flows.

Unsecured loans taken by the company can be recalled by the lenders thereof at any time.

The company is dependents on Public Sector Undertakings (PSUs) for cost of Auto LPG supplied. Any updation reflecting shifts in global LPG prices, exchange rates, and local market conditions could adversely affect its business, reputation, operations and cash flows.

The company typically require 7-8 months to generate revenue in the company's ALDS Business Operations. Any further delay in realizing revenue may affect its projections, results of operations and cash flows.

The company has in the past entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interest with the equity shareholders.