Glottis Ltd IPO

While we have adopted a business model wherein majority of assets necessary for offering our services to our customers are provided on rent by a wide network of our business partners, we intend to reduce our dependence on hired assets by acquiring and owning more of such assets. We plan to utilise the entire Net Proceeds towards purchase of commercial vehicles and containers, we may not be able to maintain and operate such owned assets efficiently in our business.

We derive majority of our revenue from ocean freight (import and export) segment, constituting 94.70%, 95.32% and 97.24% of our revenue from operations during the Fiscal 2025, Fiscal 2024 and Fiscal 2023, respectively. Our financial condition would be materially and adversely affected if we fail to obtain new contracts, renew our contracts with existing customers or if our current contracts are terminated, in the said segment.

We extend credit to our customers, with post-billing credit terms, and we may experience delays in payments by our customers even beyond the credit period afforded to them. The holding level of our trade receivables increased from 27 days as of March 31, 2023 to 41 days as of March 31, 2025 primarily due to increase in credit period advanced to customers. Further, bad debts of our Company pursuant to default in payment by our customers were Rs. 0.04 million, Rs. 1.90 million and Rs. 2.50 million for Fiscals 2025, 2024 and 2023 respectively. 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.

We require third parties to execute a portion of our orders, which presents numerous risks. We depend on our network partners, intermediaries and vendors/suppliers in certain aspects of our operations. Occurrence of instances of unsatisfactory services provided by them or failure to maintain relationships with them could disrupt our operations.

During the Fiscal 2025, Fiscal 2024 and Fiscal 2023, 47.54%, 42.42% and 13.01% of our revenue from operations, respectively, was attributed to the renewable energy industry, and therefore our business operations are dependent upon the said industry. Any downturn in the renewable energy industry and the other industries in which our customers operate, would create an adverse impact on our revenue from operations, cash flows and financial conditions.

Our customers or customer groups do not commit to long-term contracts and may cancel or modify their orders or postpone or default in their payments. Any cancellation, modification, postponement of our orders could materially harm our cash flow position, revenues and earnings.

During the Fiscals 2025, 2024 and 2023, our top ten customers contributed to 52.73% 43.95% and 29.35% of our revenue from operations, respectively. A decrease in the revenues we derive from such customers could materially and adversely affect our business, results of operations, cash flows and financial condition.

As of the Fiscal 2025, Fiscal 2024 and Fiscal 2023, we derive 81.94%, 76.99% and 83.50% respectively, of our revenue from operations from order placed by repeat customers. Any loss of, or a significant reduction in the repeat customers could adversely affect our business, results of operations, financial condition and cash flows.

Our Statutory Auditors have included certain observations in the annexure to their audit report on the Companies (Auditor's Report) Order, 2016 / Companies (Auditor's Report) Order, 2020, for the Fiscal 2024.

We are unable to trace bank statements for the capital contribution made by our Promoters in M/s. Glottis, the erstwhile partnership, which was converted into our Company. Our Company has also filed certain forms with a delay with the RoC under the Companies Act, which were subsequently filed with an additional fee with the RoC. In the event we are found not to be in compliance with any applicable regulations in relation to the regulatory filings, we may be subject to regulatory actions or penalties for any such possible non-compliance and our business, financial condition and reputation may be adversely affected.