Bhavik Enterprises Ltd IPO

The company derives the company's revenue from trading of polymers for which we are dependent on certain suppliers for its 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 the company's 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 the company's interest will materially and adversely affect its ability to continue the company's business and operations and the company's future financial performance.

The company derives the company's 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 its operations in western region could have an adverse impact on the company's revenue and results of operations.

The company has certain outstanding litigation against the company, an adverse outcome of which may adversely affect its 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 the company or end-use consumer product that is packaged using raw material of the company's supplier is banned in India, it could have a material and adverse effect on the company's 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 the company's profitability in the interim duration. This exposure to price volatility may result in reduced margins and affect its short-term financial performance.

Restrictions on import may adversely impact the company's business, cash flows and results of operations.

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

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

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