Dhara Rail Projects Ltd IPO

Its business and revenue are substantially dependent on the Ministry of Railways, Government of India. Any adverse change in policy of the Ministry of Railways may lead to the company contracts being foreclosed, terminated, restructured or renegotiated, which may have a material effect on its business and results of operations.

The company industry is labour intensive and its business operations may be materially adversely affected by strikes, work stoppages or increased wage demands by the company employees or those of its suppliers.

The Company is dependent on limited number of suppliers, within limited geographical locations for procurement of certain products as tools or consumables to be supplied to our clients. Any delay, interruption or reduction in the supply of such goods may affect its business, results of operations, cash flows and financial condition.

Statutory Auditors have included certain Qualifications on its Audited financial statements of FY 2023-24.

The company does not own the registered office and corporate office from which we carry out its business activities. In case of nonrenewal of rent agreements or dispute in relation to use of the said premise, the company business and results of operations can be adversely affected.

The business, growth prospects and financial performance largely depends on the company ability to obtain new contracts, and there is no assurance that its will be able to procure new contracts.

Tender are typically awarded to us on satisfaction of prescribed pre- qualification criteria and following a competitive bidding process. Its business and the company financial condition may be adversely affected if new projects are not allotted to it.

As an integral aspect of its business operations, it is necessary for its to provide Security deposit and performance guarantees. Failing to secure these guarantees or the activation of such guarantees has the potential to negatively impact the company cash flows and financial standing.

Contracts with its clients and purchase orders placed with the company clients typically include provisions for liquidated damages and penalties which if invoked, could have an adverse effect on its business, result of operations and financial condition.

The company is subject to strict quality requirements and client inspections, and any failures to comply with quality standards may lead to cancellation of existing and future orders and could negatively impact its reputation and the company business and results of operations and future prospects.