Hemani Industries Limited IPO

Its business is dependent and will continue to depend on its manufacturing facilities, and the company is subject to certain risks in its manufacturing process. Any slowdown or shutdown in its manufacturing operations or under-utilization of its manufacturing facilities, strikes, work stoppages or increased wage demands by its employees that could interfere with its operations also could have an adverse effect on its business, results of operations and financial condition.

Its operations are subject to environmental, safety, health and labour laws and other applicable regulations. The company has received notices from regulatory authorities in the past; and in particular from the environmental authorities, which may result in litigation, penalties, fines or cancellation or suspension of our operating licenses. Its may incur material costs to comply with these regulations or suffer material liabilities or damages in the event of an incident of non-compliance of environmental and other similar laws and regulations which may adversely affect its business, results of operations and financial condition.

The impact of the COVID-19 pandemic is uncertain and still evolving, and could adversely affect its business, results of operations and financial condition.

The company relies on a combination of trade mark, trade secret, copyright law and contractual restrictions to protect its intellectual property. The company do not own any patents. If the company is unable to protect its intellectual property rights, its business, results of operations and financial condition may be adversely affected.

Any adverse changes in regulations governing its business, products and the products of its customers, may adversely impact its business, prospects and results of operations.

The company is subject to certain risks consequent to its operations involving the manufacture, usage and storage of various hazardous substances and dangerous machinery and chemical processes.

The company require certain approvals and licenses in the ordinary course of business, including certain registrations from the Central Insecticides Board and Registration Committee ("CIBRC") for its products manufactured and sold in India as well as for exports to other jurisdictions. Any failure to successfully obtain such registrations or renew or maintain its statutory and regulatory permits and approvals required to operate its business and manufacturing facilities would adversely affect its operations, results of operations and financial condition.

Its reliance on certain industries for a significant portion of its sales could have an adverse effect on its business.

The company derive a significant part of its revenue from major customers and the company do not have long term contracts with most of these customers. If one or more of such customers choose not to source their requirements from its or to terminate its long-term contracts, its business, results of operations and financial condition may be adversely affected.

Its manufacturing facilities are located in Gujarat exposing its to regulatory and other geography specific risks such as labour unrests, terrorist attacks, other acts of violence and occurrence of natural and man-made disasters.