Narmadesh Brass Industries Ltd IPO

Our Company has been recently incorporated thus we have limited operating history as a Company which may make it difficult for investors to evaluate our historical performance or future prospects.

Our Company has negative cash flows from its operating and investing activities in the past years, details of which are given below. Sustained negative cash flow could impact on our growth and business.

An increase in the prices of our basic raw materials i.e. Brass Scrap, Copper and Zinc will raise our manufacturing costs and could adversely affect our profitability.

Under-utilization of our manufacturing capacities and an inability to effectively utilize our existing manufacturing capacities could have an adverse effect on our business, future prospects and future financial performance.

We require high working capital for our smooth day to day operations of business and any discontinuance or our inability to acquire adequate working capital timely and on favourable terms at a future date, may have an adverse effect on our operations, profitability and growth prospects.

Our business operates on a high volume-low margin model, which impacts our overall profitability.

Our top ten customers contribute majority of our revenues from operations. Any loss of business from one or more of them may adversely affect our revenues and profitability.

Certain typographical errors have been noticed in ROC filings at the time of conversion in URC-1 which was rectified at later stage by filing MGT-14.

We require certain approvals, licenses, registrations and permits to operate our business, and failure to obtain or renew them in a timely manner or maintain the statutory and regulatory permits and approvals required to operate our business may adversely affect our operations and financial conditions.

Failure to manage our trade receivables could have an adverse effect on our net sales, profitability, cash flow and liquidity.