Fabtech Technologies Ltd IPO

The actual orders received by our Company during the preceding three Financial Years is less than 11% of the total value of the proposals submitted by us. If we fail to generate leads and convert leads into orders for a prolonged period, our business, financial condition, results of operations, prospects and cash flows could be adversely affected.

As a result of our limited operating history, we may not be able to compete successfully, and it may be difficult to evaluate our business and future operating results on the basis of our past performance.

Our order book may not be representative of our future results. Projects included in our order book and our future projects may be delayed, modified or cancelled for reasons beyond our control which may materially and adversely affect our business, prospects, reputation, profitability, financial condition and results of operation.

We procure a significant portion of our equipment and materials from our Associate, Promoter Group entities and Group Companies. Accordingly, we are dependent upon them to procure the equipment required for executing our projects.

We are dependent upon and derive a substantial portion of our revenue from a limited number of projects, that form part of our order book. Cancellation of projects by customers could have a material adverse effect on our business, results of operations and financial condition.

We derive majority of our revenue from our turnkey engineering solutions and our financial condition would be materially and adversely affected if we fail to obtain new contracts or our current contracts are terminated.

We are an asset light Company wherein we procure our equipment and materials from Related Entities and third-party equipment suppliers for our projects which presents numerous risks. Further, we do not have definitive supply agreements with such suppliers, and therefore we are exposed to risks relating to interruptions in the supply of equipment or supply of sub-standard equipment by our suppliers.

We are expected to offer high quality equipment as well as engineering services to our customers. Any failure by us to comply with such requirements may lead to the cancellation of existing and future orders, recalls, invocation of performance bank guarantees or warranty or liability claims, which could adversely affect our reputation, business, results from operations, financial conditions and cash flows.

We may not be able to collect receivables due from our customers, in a timely manner, or at all, which may adversely affect our business, financial condition, results of operations and cash flows.

Our Company has experienced negative cash flow in the past and may continue to do so in the future, which could have a material adverse effect on our business, prospects, financial condition, cash flows and results of operations.