Diffusion Engineers Ltd IPO

The Company is increasingly dependent on a domestic market for its sales and any a downturn in it could dent its market share.

The Company had negative cash flows during certain fiscal years in relation to its operating, investing and financing activities. Sustained negative cash flows in the future would adversely affect its results of operations and financial condition.

The company operates from four Manufacturing Facilities all of which are located in Nagpur, Maharashtra and therefore, any localized social unrest, natural disaster or breakdown of services or any other natural disaster in and around, Nagpur, Maharashtra or any disruption in production at, or shutdown of, all its manufacturing units could have material adverse effect on its business and financial condition.

Its business is dependent on the performance of certain other industries. Economic cyclicality coupled with reduced demand in these other industries, in India or globally, could adversely affect its business, results of operations and financial condition.

Its proposed plans with respect to funding the capital expenditure requirements as per its Objects of the Issue is subject to the risk of unanticipated delays in obtaining approvals and implementation.

If there are delays in setting up the Proposed Facility or Proposed Expansion or if the costs of setting up and the possible time or cost overruns related to the Proposed Facilities or the purchase of plant and machinery for the Proposed Facilities are higher than expected, it could have a material adverse effect on our financial condition, results of operations and growth prospects.

Its business and profitability is substantially dependent on the availability and cost of its raw materials and any disruption to the timely and adequate supply or volatility in the prices of raw materials may adversely impact its business, results of operations, cash flows and financial condition.

The Company had made allotment of equity shares in the past which was allotted to more than 49 investors, which may have been in non- compliance with the Companies Act, 1956.

Conflict of interest may arise as some of its Group Companies and Subsidiaries are authorized to carry on similar line of business as the Company which may lead to real or potential conflicts of interest for its Promoters or Directors.

Its inability to collect receivables and default in payment from the company customers could result in the reduction of its profits and affect the company cash flows.