Gallard Steel Ltd IPO

The company derives a significant portion of the revenue from the sale of traction motors and bogie assembly components to the railway sector and any decline in their demand may adversely affect its business, results of operations and financial condition.

Substantial portion of the revenue has been dependent upon few customers with which its do not have any firm commitments. The loss of any one or more of the major customers would have a material adverse effect on its business, cash flows, results of operations and financial conditions.

The Company does not have long-term agreements with suppliers for the input materials and a significant increase in the cost of, or a shortfall in the availability, or deterioration in the quality, of such input materials could have an adverse effect on its business and results of operations.

There are outstanding legal proceedings involving the Company, Subsidiary, Directors and Promoters. Any adverse decisions could impact its cash flows and profit or loss to the extent of demand amount, interest and penalty, divert management time and attention and have an adverse effect on the business, prospects, results of operations and financial condition.

The company is subject to strict quality requirements and any failure to comply with quality standards may lead to cancellation of existing and future orders, product recalls, product liability, warranty claims and other disputes and claims.

Its business operations are majorly concentrated in certain geographical regions and any adverse developments affecting its operations in these regions could have a significant impact on the revenue and results of operations.

The company does not own the existing manufacturing facility & registered office from which the carry out its business activities. In case of non-renewal of lease agreements or dispute in relation to use of the said premise, the business and results of operations can be adversely affected.

Expansion of the manufacturing facility requires substantial capital outlay before its realize any benefits or returns on investments.

Any disruptions or shutdown of the manufacturing operations at the existing facility could have an adverse effect on the business, financial condition and results of operations.

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 the business may adversely affect its operations and financial conditions.