GP Eco Solutions India Ltd IPO

The Company has availed Bank Guarantees of Rs. 320.00 Lakh vide dated July 22, 2022 and Rs. 80.00 Lakh vide dated August 17, 2022 in favour of M/s Sungrow India Private Limited pertaining to facilities for the procurement and distribution of products obtained from M/S Sungrow India Private Limited. The company cannot assure that there will be no default done by the company in the future.

Its lenders have charged over the company fixed assets and book debts in respect of finance availed by it.

The company depends on third parties for the supply of its products and such third parties could fail to meet their obligations, which may have a material adverse effect on its business, results of operations and financial condition.

The company has not entered into any long-term agreements with its vendors and any shift in their decisions could adversely affect its business. Additionally, the company is dependent upon its vendors for fulfilment of needs of the company customers. Its inability to maintain relationships with the company vendors or deficiency in the goods provided by such vendors may adversely affect its business, results of operations, cashflow and profitability.

Its top ten clients contribute approximately 33.20%, 57.01%, and 51.76% of its revenues from operations for the year ended March 31, 2023, March 31, 2022 and March 31, 2021 respectively. Any loss of business from one or more of them may adversely affect its revenues and profitability.

A significant portion of its revenue is derived from Rajasthan, Haryana, Uttar Pradesh, and Delhi, and any adverse developments in these states could adversely affect its business.

Its results of operations and financial condition are subject to fluctuations in regional economic conditions due to the geographic concentration of our sales in the northern region of India.

Significant portion of its revenues is dependent upon sale of Solar Inverters. The loss of the company product or a decrease in the supply or volume of such product, will materially and adversely affect its revenues and profitability.

The company does not own the premises in which its registered office is located and the same is on lease arrangement. Any termination of such lease/license and/or non-renewal thereof and attachment by Property Owner could adversely affect its operations.

The company has experienced negative cash flows in the past. Any such negative cash flows in the future could adversely affect its business, results of operations and prospects.