Nikita Papers Ltd IPO

Raw material cost fluctuations impact the profitability and stability of businesses across various industries, necessitating adaptive strategies for procurement and pricing.

The Company is dependent on few numbers of customers for sales. Loss of any of this large customer may affect its revenues and profitability.

The Company has negative cash flows from its operating activities, investing activities as well as financing activities in the current and past years, details of which are given below. Sustained negative cash flow could impact its growth and business.

Its production operations are geographically located in one area i.e., Shamli, Uttar Pradesh and any localized social unrest, natural calamities, etc. could have material adverse effect on business and financial operations.

The company is primarily dependent upon few key suppliers for procurement of raw materials. Any disruption in the supply of these raw materials or fluctuations in their prices could have a material adverse effect on its business operations and financial conditions.

Its may not be able to sustain historical growth in the company revenue from operations and profit for year in future periods, which could have an adverse impact on its financial condition and results of operation.

The Company has file certain forms with delayed fees and Company cannot assure that no proceedings or regulatory actions will be initiated against it in relation to the non-filing and delayed filing.

The Company was in non-compliance with certain provisions of the Companies Act 2013, which though have been made good by it, however the Company cannot assure that no proceedings or regulatory actions will be initiated against it in relation to those non-compliances.

The company requires a number of approvals, licenses including recurring licences, registration and permits for its business and failures to obtain or renew them in a timely manner may adversely affect its operations. In some cases, the company may be operating without all the required permissions, risking civil and criminal sanctions.

Any disruption to the steady and regular supply of workforce for its operations, including due to strikes, work stoppages or increased wage demands by its workforce or any other kind of disputes with the company workforce or its inability to control the composition and cost of its workforce could adversely affect its business, cash flows and results of operations.