Envirotech Systems Ltd IPO

The Company, Promoters, Directors and Group Companies 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.

One of the members of the Promoter group has defaulted on a personal loan with outstanding of Rs 113,225 for which proceedings in DRT has been initiated against him. One of the members of the Promoter group has defaulted on a personal loan with outstanding of Rs 113,225 for which proceedings in DRT has been initiated against him.

The Company has reported certain negative cash flows from its operating activity, investing activity and financing activity, details of which are given below.

The company does not own registered office which is used by its currently.

The Land being purchased by M/s Envirotech Systems Limited from M/s Oriental Trimex Limited has been pledged by Oriental Trimex Limited as collateral to secure a loan of approximately Rs.37.25 crore(against multiple locations properties located at Chennai, Kolkata, Greater Noida (Manufacturing Plants) & New Delhi (Residential) from Edelweiss Bank. In case of any delay in making payment there may be adverse effect on the expansion plans of the business.

The company is highly dependent on its suppliers for uninterrupted procurement and sale of the company traded goods. Any disruption of supply from such entities may affect its business operations.

The company has not made any provision regarding payment of gratuity in its restated and audited financial statements of the company.

The company has Manufacturing Facility, continued operations of its manufacturing facility is critical to the company's business and any disruption in the operation of its manufacturing facility may have a material adverse effect on its business, results of operations and financial condition.

The restated financial statements have been provided by peer reviewed chartered accountants who is not statutory auditor of the Company.

Substantial portion of its revenues has been dependent upon the company few customers. The loss of any one or more of its major clients would have a material adverse effect on its business operations and profitability.