Creative Graphics Solutions India Ltd IPO

The object of making unidentified acquisitions may lead to significant investments in the businesses that may not be sustainable in the long run, which may result in financial losses and negatively impact the company's overall portfolio.

The company has not yet placed orders in relation to the capital expenditure to be incurred for the proposed purchase of equipment / machineries. In the event of any delay in placing the orders, or in the event the vendors are not able to provide the equipment / machineries in a timely manner, or at all, the same may result in time and cost over-runs.

The company requires certain approvals, licenses, registrations and permits to operate its business, and failure to obtain or renew them in a timely manner or maintain the statutory and regulatory permits and approvals required to operate its business may adversely affect the company operations and financial conditions.

The Company has given Corporate Guarantees of Rs. 18,34,42,047 in respect to the loan taken by its subsidiary company ("Wahren India Private Limited"). The company cannot assure that there will be no default done by its subsidiary in the future.

Its Promoter/ Directors have mortgaged their properties and provided personal guarantees to secure certain of its loan facilities, which if revoked or invoked may require alternative guarantees, repayment of amounts due or termination of the facilities.

The Company has availed unsecured loan which are repayable on demand. Any demand from the lenders for repayment of such unsecured loan may affect its cash flow and financial condition.

Its lenders have charged over the company fixed assets and book debts in respect of finance availed by it.

The company does not have direct-tie up or agreement with the big corporate house for its product, The company is dependent on Intermediaries for Corporate Client Acquisition.

Discontinuance or non-availability of fiscal benefits enjoyed by its subsidiary ("Wahren") or inability to comply with related requirements may have an adverse effect on operations and results of operations on its subsidiary operation.

The company generally do business with its customers on purchase order basis and does not enter into long term contracts with them.