Jyoti CNC Automation Ltd IPO

The company's success is dependent on its relationship with it customers, and the company do not, generally enter into long term purchase contracts. This exposes it to risk emanating from the inability to retain the company established customers as its clients.

The Company does not have long-term agreements with suppliers for its input materials and a significant increase in the cost of, or a shortfall in the availability, or deterioration in the quality, of such input materials could have an adverse effect on its business and results of operations.

The company operates in a competitive industry. Any inability to compete effectively may lead to a lower market share or reduced operating margins.

The company is completely reliant on third-party logistics service providers for transport of input materials and finished products.

Any failure on its part to effectively manage the company inventory may result in an adverse effect on its business, revenue from manufacturing operations and financial condition.

The Company has a high working capital requirement and if the Company is unable to raise sufficient working capital the operations of the Company will be adversely affected.

The company is heavily dependent on machinery for its operations. Any break-down of its machinery will have a significant impact on the company business, financial results and growth prospects. its success and financial condition will depends on the company ability to maximise its manufacturing capacities.

The loss, shutdown or slowdown of operations at any of the Company's facilities could have a material adverse effect on the Company's results of operations and financial condition.

The company has incurred losses in the past. Losses in future could have an adverse impact on its growth prospectus and would also preclude it from undertaking actions such as declaring dividends.

Failure to meet quality standards required by its customers for the company products and processes may lead to cancellation of existing and future orders and expose it inter alia to warranty claims, including monetary liability.