Gandhar Oil Refinery (India) Ltd IPO

The company depends significantly on its personal care, health care and performance oil business division and downturns in the industries addressed by this business division or an inability to manage sales by the business division effectively leading to any reduction in revenue from this division could adversely affect its business, financial condition and results of operations.

The company is subject to strict quality requirements and standards and inspections and the success and acceptance of its products by its customers is largely dependent on its ability to meet such quality requirements and standards. Its failure to comply with the quality standards and technical specifications prescribed by such customers may lead to a loss of business from such customers and could negatively impact its reputation, which would have an adverse impact on its business prospects and results of operations.

Its inability to effectively manage its growth and expansion or to successfully implement the company's business plan and growth strategy, including in relation to the expansion of its manufacturing plants, could have an adverse effect on its business, results of operations and financial condition.

Delays, interruptions or reduction in the supply of raw materials to manufacture its products and abrupt fluctuations in the prices of its raw materials may adversely affect the company's business, results of operation, financial condition and cash flows.

The company is exposed to counterparty credit risk and any delay in, or non-receipt of, payments may adversely affect itsr cash flows and results of operations.

Exchange rate fluctuations in various currencies in which the company do business could negatively impact its business, financial condition and results of operations.

Its overall business and the demand for the company products is dependent on the end industries in which its products are used and any decline in the demand for its customers' end products could have an adverse impact on its business, results of operations, cash flows and financial condition.

Any slowdown or shutdown in its manufacturing operations, or under-utilization at its manufacturing facilities, including due to labour unrest, or any inability to obtain adequate electricity, fuel or water with respect to such operations, could have an adverse effect on its business, results of operations, financial condition and cash flows.

The company obtain a substantial portion of its raw materials from a limited number of suppliers and the company does not have long-term contracts with its suppliers. If one or more of its top suppliers were to suffer a deterioration of their business, cease doing business with it or substantially reduce their dealings with the comaany, its business, results of operations, cash flows and financial condition may be adversely affected.

The company have significant working capital requirements. If its experience insufficient cash flows to fund the company working capital requirements or if its not able to provide collateral to obtain letters of credit and bank guarantees in sufficient quantities, there may be an adverse effect on its business, cash flows and results of operations.