Happy Forgings Ltd IPO

The company's business largely depends upon its top 10 customers which contributed 70.08%, 74.64% and 79.22% in Fiscal 2023, 2022 and 2021. The loss of any of these customers could have a material adverse effect on its business, financial condition, results of operations and cash flows.

The company does not have firm commitment agreements with its customers. If the company customers choose not to source their requirements from it, there may be a material adverse effect on its business, financial condition,cash flows and results of operations.

The company's business is dependent on the performance of certain industries particularly commercial vehicles, farm equipment and off-highway vehicles both in the Indian and overseas markets. Any adverse changes in the conditions affecting these industries can adversely impact its business, results of operations, cash flows and financial condition.

The company is subject to strict performance requirements, including, but not limited to, quality and delivery, by its customers, and any failure by it to comply with these performance requirements may lead to the cancellation of existing and future orders, recalls or warranty and liability claims.

The company's business and profitability is substantially dependent on the availability and cost of its steel, the company primary raw material and any disruption to the timely and adequate supply of steel, or volatility in the prices of Steel may adversely impact its business, results of operations, cash flows and financial condition.

The company is export its products to various countries including Brazil, Italy, Japan, Spain, Sweden, Thailand, Turkey, United Kingdom and United States of America. Any adverse events affecting these countries could have an adverse impact on its results from operations.

The company derives a substantial portion of its revenue from the sale of crankshafts and loss of sales due to reduction in demand for crankshafts would have a material adverse effect on its business, financial condition, results of operations and cash flows.

The company manufacturing facilities are subject to operating risks. Any shutdown of its manufacturing facilities of the company existing or future manufacturing facilities or other production problems caused by unforeseen events may reduce sales and adversely affect its business, cash flows, results of operations and financial condition.

All of its three manufacturing facilities are located in Ludhiana, Punjab which exposes the company operations to potential risks arising from local and regional factors such as adverse social and political events, weather conditions and natural disasters.

The company operations involve activities and materials which are hazardous in nature and could result in a suspension of operations and/or the imposition of civil or criminal liabilities which could adversely affect its business, results of operations, cash flow and financial condition.