Bhavik Enterprises Ltd IPO

We derive our revenue from trading of polymers for which we are dependent on certain suppliers for our operations and an increase in the cost of, or a shortfall in the availability or quality of such products could have an adverse effect on our business, financial condition and results of operations.

Termination or non-renewal of the distribution agreements by Borouge Pte Ltd. or any material modification to the existing terms under such agreements adverse to our interest will materially and adversely affect our ability to continue our business and operations and our future financial performance.

We derive our revenue from the domestic market and substantial portion of revenue from the western region of India and the Union Territory of Dadra and Nagar Haveli and Daman and Diu i.e. Daman & Silvassa. Any adverse developments affecting our operations in western region could have an adverse impact on our revenue and results of operations.

We have certain outstanding litigation against us, an adverse outcome of which may adversely affect our business, reputation and results of operations.

There is an increased awareness towards controlling plastic pollution and many economies including India have joined in the efforts to ban certain types of plastic products. In case any key plastic material traded by us or end-use consumer product that is packaged using raw material of our supplier is banned in India, it could have a material and adverse effect on our business, financial condition, cash flows and results of operations.

Prices fluctuate every day in line with market changes. However, during periods of sharp price increases, there may be a lag before these adjustments take effect, which could negatively impact our profitability in the interim duration. This exposure to price volatility may result in reduced margins and affect our short-term financial performance.

Restrictions on import may adversely impact our business, cash flows and results of operations.

Any disruption at the ports in western region of India may adversely affect our business and operational performance.

Inventories and trade receivables form a major part of our current assets. Failure to manage our inventory and trade receivables could have an adverse effect on our sales, profitability, cash flow and liquidity.

Our Company had negative cash flows in the past years, details of which are given below. Sustained negative cash flow could impact our growth and business.