New Swan Multitech Ltd IPO

The company depends significantly on the performance of automotive sector (particularly two-wheelers) and agricultural sector in India for sale of its products. Any adverse change in performance of these sectors could adversely affect its business and profitability.

The company's business is dependent on the sale of its products to few key customers. The loss of any of these customers or loss of revenue from sales to these customers could have a material adverse effect on its business, financial condition, results of operations and cash flows.

The cyclical and seasonal nature of automotive sales and production could adversely affect its auto-components business.

Its agricultural implements business is subject to climatic conditions and is cyclical in nature. Seasonal variations and unfavourable local and global weather patterns may have an adverse effect on its business, results of operations and financial condition.

The company depends on third parties for the supply of raw materials and certain finished products and such third parties could fail to meet their obligations, which may have a material adverse effect on its business, results of operations and financial condition.

The company does not have firm commitment long-term supply agreements with our customers. If its customers choose not to source their requirements from it, there may be a material adverse effect on its business and results of operations.

Pricing pressure from customers may affect its gross margin, profitability and ability to increase its prices.

Its Promoter Group Entities and Group Companies are engaged in similar line of business. There are no non - compete agreements between the Company and such Promoters Group entities and Group Companies. Its cannot assure that its Promoters will not favor the interests of such Companies over its interest or that the said entities will not expand which may increase its competition, which may adversely affect business operations and financial condition of the Company.

The company derives a substantial portion of its revenue from the auto-components segment as compared to agricultural implements segment. Further, the company has witnessed declining trend in revenue from agricultural implements segment. its dependency on auto-components or continuous decline in revenue of agricultural implements can have a material adverse effect on its business, financial condition, results of operations and cash flows.

The restated consolidated financial statements have been provided by peer reviewed chartered accountants who is not statutory auditor of the Company.