CFF Fluid Control Ltd IPO

The Company, Group Companies, Promoters and Directors are parties to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.

Its existing manufacturing facility and upcoming manufacturing facility are concentrated in a single region i.e. Khopoli and Pune, Maharashtra, hence the company faces geographical concentration related risks.

If the company is not able to obtain, renew or maintain its statutory and regulatory licenses, registrations and approvals required to operate the company business, it may have a material adverse effect on its business, results of operations and financial condition.

Significant portion of its revenue is derived from contracts with Indian Defence PSU Shipyard during Financial Year 2024-25, 2023-24 and 2022-23 Decline of order book, contracts, and change in their requirement or fall in budget will have material adverse effect on its business, financial condition and result of operation.

Its business of manufacturing and supply of components, equipment and services required by Indian Defence PSU Shipyard is significantly dependent on the technology, process and product development of such components.

Its Promoter Group Entity is engaged in business activities which is similar to the company line of business. This may be a potential source of conflict of interest for us and which may have an adverse effect on its business, financial condition and results of operations.

The company is significantly dependent on few customers for its revenue in a particular financial year. The loss of any one or more of such customers may have a material effect on the company business operations and profitability.

The company has reported negative net cash flows in the past and may do so in the future.

In addition to normal remuneration, other benefits and reimbursement of expenses its directors (including the company Promoters) and Key Management Personnel are interested in the Company to the extent of their shareholding and dividend entitlement in the Company.

Its Promoters and Key Managerial Personnel play key role in the company functioning and the company heavily relies on their knowledge and experience in operating its business and therefore, it is critical for the company business that they remain associated with it.