Lohia Corp Limited IPO

Significant increases or fluctuations in prices of, or shortages of, or delay or disruption in supply of primary raw materials could affect its estimated costs, expenditures and timelines which may have a material adverse effect on its business, financial condition, results of operations and cash flows.

The company is heavily dependent on the performance of the plastic woven fabric machines market. The plastic woven fabric machines market depends on the growth of end-use industries such as agro-textiles, building-textiles, geo-textiles and packing-textiles. Any slowdown in these end-use industries or any other adverse changes in the conditions affecting the plastic woven fabric machines market can adversely impact its business, financial condition, results of operations, cash flows and prospects.

The company relies on the continued operations of its manufacturing facilities and any slowdown, shutdown or disruption in the company manufacturing facilities may be caused by natural and other disasters causing unforeseen damages which may lead to disruptions in its business and operations, which in turn could have an adverse effect on its business, results of operations, financial condition and cash flows.

The company face significant competitive pressures in its industry. The company inability to compete effectively would be detrimental to its business and prospects for future growth.

The company is exposed to foreign currency fluctuation risks, particularly in relation to import of raw materials and export of products, which may adversely affect its results of operations, financial condition and cash flows.

The current and continuing impact of the ongoing COVID-19 pandemic on our business and operations has been significant. The impact of the pandemic on its operations in the future, including its effect on the ability or desire of customers to purchase its products, is uncertain and may be significant and continue to have an adverse effect on its business prospects and future financial performance.

Its inability to handle risks associated with the company export sales could negatively affect its sales to customers in foreign countries, as well as the company operations and assets in such countries.

Under-utilization of its manufacturing capacity and an inability to effectively utilize the company manufacturing, developmental and support services infrastructure could have an adverse effect on its business, future prospects and future financial performance.

Information relating to its production capacities and the historical capacity utilization of its manufacturing facilities included in this Draft Red Herring Prospectus is based on various assumptions and estimates and future production and capacity utilization may vary.

The company business is manpower intensive. Its business may be adversely affected by work stoppages, increased wage demands by the company employees, or increase in minimum wages across various states,inability to attract or train skilled personnel and if its unable to engage new employees at commercially attractive terms.