Oswal Cables Limited IPO

Though the company serveds over 100 customers during the preceding three Fiscals, over 68% of its operating revenue came from the company's top ten customers in the said period. The loss of any of its top customers, or the loss of revenue from them could have a material adverse effect on the company's business and financial condition, results of operations.

While the company's supply to varied end-user industries, over 83% of its revenues was from energy transmission and distribution industry during the preceding three Fiscals. Any downturn in this industry and the other industries in which the company's customers operate, may create an adverse impact on its revenue from operations, cash flows and financial condition.

Given the critical application of our products, the Company and its products have been approved and enlisted by 50+ customers. Any inability to continue to comply with these approval requirements or obtain new approvals may limit our access to key customers and restrict the company's business scalability.

The company deriveds about 80-90% of its revenue from operations from repeat customers in the preceding three Fiscals, and any loss of, or a significant reduction in the repeat customers or revenue generated from them could adversely affect the company's business, results of operations, financial condition and cash flows.

While the company sourceds the company's raw materials from over 100 suppliers in last 3 fiscals, about 68-75% of its raw materials were procured from top 10 suppliers and about 78-90% of the company's raw material was sourced from repeat suppliers. An inability to find alternate sources of raw materials may affect its operations and financial performance.

Out of its revenue from operations from 22 states/union territories across India, about 21- 41% came from Uttar Pradesh, Rajasthan, Gujarat and Bihar, during the preceding three Fiscals. The company's reliance on a few states for a significant portion of revenue exposes the company to regional risks, and any adverse developments in these markets may impact its business performance.

While the company has maintained relationships with several key customers for over a decade, only a few of these are backed by long-term agreements. If these customers stop or reduce buying from the company, the company may not have any recourse against them and it may have an adverse effect on the company's business, financial condition, cash flows and results of operations.

While, the company's operations are spread across two Units, the company is significantly dependent upon the company's Jaipur Unit, which exposes its operations to potential risks arising from local and regional factors.

The company has not entered into long-term agreements with most of its raw material suppliers. If the company is unable to procure adequate quantities of raw materials or at competitive prices, the company's business, results of operations and financial condition may be adversely affected. Any fluctuation in prices of its raw materials, may have a material adverse effect on the company's business, results of operations, prospects and financial condition.

The company's products are used in across critical energy infrastructure uses which entail strict performance requirements, including, but not limited to, quality and delivery, by our customers, and any failures by the company to comply with these performance requirements may lead to reduction in the company's order value, recalls or liability claims.