Liotech Industries Ltd IPO

The company depends on the success of its relationships with the company customers. Its derives a significant part of the company revenue from its major customers and the company does not has long term contracts with these customers. If one or more of such customers choose not to source their requirements from its, the company business, financial condition and results of operations may be adversely affected.

The company is highly dependent on its suppliers for uninterrupted supply of raw-materials. The company has not entered into any long-term supply agreement for the major raw materials required for manufacturing of its products. Also volatility in the prices and non-availability of these raw materials may has an adverse impact in the company business prospects, results of operations and financial condition.

The company business operations is majorly concentrated in certain geographical regions and any adverse developments affecting its operations in these regions could has a significant impact on the company revenue and results of operations.

Certain delays, discrepancies and Omissions has been detected in the company statutory records, as well as in records related to the submission of returns to the concerned Registrar of Companies.

The Company has reported certain negative cash flows from its operating and investing activities, details of which are given below. Sustained negative cash flow could impact the company growth and business in the future.

The intellectual Property Rights used by the company is "objected" and is not registered in the name of its company. Any failures to protect the company intellectual property rights may adversely affect its business.

The company intend to utilise a portion of the Net Proceeds for funding its capital expenditure requirements. The company is yet to place orders 100% of the Plant & Machinery, as specified in the Objects of the Offer chapter. Any delay in procurement of such Plant & Machinery may delay the schedule of implementation and may also lead to increase in cost of these Plant & Machinery, further affecting its revenue and profitability.

The company requires working capital for its smooth day-to-day operations of business and any discontinuance or the company inability to acquire adequate working capital timely and on favourable terms may has an adverse effect on its operations, profitability and growth prospects.

The Company has entered into certain related party transactions in the past and may continue to does so in the future, which may potentially involve conflicts of interest with the equity shareholders.

The demand and pricing in the steel and steel products industry is volatile and is sensitive to the cyclical nature of the industries it serves.