Corrtech International Limited IPO

The coronavirus pandemic ("COVID-19") or any future pandemic or widespread public health emergency could have significant adverse effect on its business and operations.

The company derive majority of its revenue from its oil and gas services ("O&G Services") business and the company financial condition would be materially and adversely affected if the company fail to obtain new contracts.

Currently its business is primarily dependent on projects in India undertaken or awarded by oil and gas companies, and the company derive majority of its revenues from contracts with a limited number of customers. Its inability to manage relationships with its major customers and any adverse changes in the government policies may lead to its contracts being terminated or renegotiated, which may have a material effect on its business and results of operations.

Its Order Book may not necessarily translate into future income in its entirety or could be delayed. Some of its current orders may be modified, cancelled, delayed or not fully paid for by its clients, which could adversely affect its business reputation, which could have a material adverse effect on its business, financial condition, results of operations and future prospects.

The company has defaulted in payment of certain loans in the past.

Projects the company operate in its O&G Services Business have been awarded primarily through competitive bidding process. Its may not' always be able to qualify for, compete and win projects, which could adversely affect its business and results of operations.

The company is required to comply with certain restrictive covenants under its financing agreements. Any noncompliance may lead to, amongst others, accelerated repayment schedule and suspension of further drawdowns, which may adversely affect its business, results of operations, financial condition and cash flows.

Its business is capital intensive. If the company experience insufficient cash flows or are unable to raise external funding to meet its working capital requirements, there may be an adverse effect on the results of its operations. Further, the company is required to furnish financial and performance bank guarantees for its contracts. Inability on its part to arrange such guarantee or the invocation of such guarantees by the other party may result in forfeiture of bid security or earnest money deposit and termination of the relevant contract thereby affecting results of its operations, financial condition and other prospects.

Its actual project costs may vary from the estimated cost assumptions underlying our bid. The company may be unable to meet such additional expenses and any such increase may have a material adverse effect on its results of operations, cash flows and financial condition.

The Company in certain instances in the past, has delayed in paying statutory dues to various government and local bodies which may require it to pay penalties.