KP Green Engineering Ltd IPO

The company has certain outstanding litigation against it, an adverse outcome of which may adversely affect its business, reputation and results of operations.

A significant portion of its revenue from for the period ended September 30, 2023 and for the financial year ended on March 31, 2023, 2022 and 2021 is attributable to the Sale of Products for various solutions. Any adverse changes in the Infrastructure Industry could adversely impact its business, results of operations and financial conditions.

Its revenues are highly dependent on the company's operations in geographical region of state of Gujarat. Any adverse development affecting its operations in this region could have an adverse impact on its business, financial condition and results of operations.

The Company is dependent on few numbers of customers for sales. Loss of any of this large customer may affect its revenues and profitability.

The Company is dependent on few suppliers for purchase of product. Loss of any of these large suppliers may affect its business operations.

Out of total cost of Plant & Machinery worth Rs. 14,114.47 lakhs, the company has not yet placed order for any of the Plant & Machinery.

Out of total cost of Plant & Machinery worth Rs. 14,114.47 lakhs, the company has to import plant and machinery worth Rs. 5,339.19 lakhs. The company is subject to risk arising from foreign exchange fluctuation.

The company may not be successful in implementing its growth strategies, particularly in setting up of a new manufacturing unit to expand its current production capabilities as well as expanding its current product portfolio including, High Masts, Floor Gratings, Pre-Engineered Buildings and Heavy Fabrications, which could have an adverse effect on its business, financial condition, cash flows and results of operations.

Its failure to perform in accordance with the standards prescribed in work order of its client could result in loss of business or payment of liquidated damages.

The Company had negative cash flow from operating activity in recent financial year, details of which are given below. Sustained negative cash flow could adversely impact its business, financial condition and results of operations.