Merritronix Ltd IPO

The company's business model as a B2B Electronics Systems Design and Manufacturing services ("ESDM") provider with limited brand recognition may restrict its pricing power, customer diversification and growth prospects.

The company may not qualify for or win bids to further expand its business in future, which may have an adverse effect on the company's business, financial condition, results of operations and prospects

The company typically does not obtain long-term commitments from its customers and they may cancel or change their production requirements. Such cancellations or changes may adversely affect the company's financial condition, cash flows and results of operations.

The company is subject to strict quality requirements, customer inspections and audits, and any failures to comply with quality standards may lead to cancellation of existing and future orders and could negatively impact our reputation and the company's business and results of operations and future prospects.

Increases in the prices of raw materials required for its operations could adversely affect the company's business and results of operations

The company's Order Book may not be representative of its future results and the company's actual income may be significantly less than the estimates reflected in its Order Book, which could adversely affect the company's results of operations.

The company has significant working capital requirements. If the company experiences insufficient cash flows from its operations or are unable to borrow to meet the company's working capital requirements, it may materially and adversely affect its business, cash flows and results of operations.

The majority of its product sales and services is concentrated in the region of Telangana. For the period ended for September 30, 2025, Fiscal 2025, 2024 and 2023 the company's revenue from sale of products and services in Telangana accounted for 97.47%, 95.63%, 88.85%, and 84.74% of its revenue from operations, respectively any adverse developments affecting the company's sales in these regions could have an adverse impact on its business, financial condition, results of operations and cash flows.

The Company has not adequately complied with some of the provisions of Companies Act, 2013. Any penalty or action taken by any regulatory authorities in future, for noncompliance with provisions of corporate and other law could impact the reputation and financial position of the Company to that extent.

The company has been unable to locate certain of its historical corporate records. The Company was incorporated in 1988 and certain corporate records and documents filed by the company with the RoC are not traceable.