Munish Forge Ltd IPO

Our existing international operations and our plans to expand into additional overseas markets are subject to various business, economic, political, regulatory and legal risks.

The Company is dependent on few numbers of customers for sales. The loss of any of these large customers may affect our revenues and profitability.

Our Promoter and Directors play a key role in our functioning and we heavily rely on their knowledge and experience in operating our business and therefore, it is critical for our business that our Promoter and Directors remain associated with us.

There are certain discrepancies / errors noticed in some of our corporate records relating to forms filed with the Registrar of Companies and other provisions of Companies Act, 2013. Any penalty or action taken by any regulatory authorities in future for non-compliance with provisions of corporate and other law could impact the financial position of the Company to that extent.

Unforeseen natural disasters or man-made incidents could disrupt operations, damage infrastructure, or result in data loss, potentially leading to downtime, increased costs, regulatory penalties, or a loss of investor confidence.

We have provided bank guarantees to third parties for business operations and statutory compliance. While these guarantees support business activities, they also expose the Company to financial, operational, and regulatory risks. if materialized, could adversely affect our financial condition.

Our company maintains high inventory levels, and any changes in the business model may lead to the scrapping of this inventory.

Our Company has a negative cash flow in its operating activities for the nine months period ended December 31, 2024, investing activities for the nine months period ended December 31, 2024, for the financial year ended on March 31, 2024 and March 31, 2023, and Financing activities for the financial years ended March 31, 2024, March 31, 2023 and March 31, 2022, details of which are given below. Sustained negative cash flow could impact our growth and business.

Our business depends on our manufacturing facility and the loss of or shutdown of operations of the manufacturing facility on any grounds could adversely affect our business or results of operations. Further, our business involves usage of manpower and any unavailability of our employees or any strikes, work stoppages may have an adverse impact on our cash flows and results of operations.

We are exposed to counterparty credit risk and any delay in receiving payments or non-receipt of payments may adversely impact our business, financial condition, cash flows and results of operations.