Oval Projects Engineering Ltd IPO

There are outstanding legal proceedings involving the Company, Promoter and Directors. Any adverse decision in such proceedings may adversely affect its business, financial condition and results of operations.

The Company has experienced negative cash flows in the past. Its cannot assure you that we will achieve or sustain profitability and not continue to incur losses going forward.

The company business typically requires significant amounts of working capital and historically, its business growth has been dependent on high working capital requirements. If the experience insufficient cash flows or are unable to access suitable financing to meet working capital requirements and loan repayment obligations, The business, financial condition and results of operations could be adversely affected.

Its substantial portion of the revenue is dependent on government controlled entities including central and state government entities. However, delays or a lack of tenders from government entities, along with adverse changes in government policies, could materially impact its business through contract foreclosures, terminations, restructurings, or renegotiations, affecting the company operations and financial performance.

The company has Order Book of approximately Rs. 45,299.61 lakhs as on April 09, 2025. However, the company Order Book may not be representative of the company future results, as projects included in its Order Book particularly for the projects where its the lowest bidder, may be cancelled, modified, or delayed beyond the company control, leading to significant deviations from estimated income and adversely affecting its business, reputation, financial condition, and future prospects.

The Company is dependent on a few suppliers for purchases of materials. The Company has not entered intolong-term agreements with its suppliers for supply of materials. In the event its unable to procure adequate amounts of raw materials, at competitive prices the business, results of operations and financial condition may be adversely affected.

The Company operates under several statutory and regulatory permits, licenses and approvals. Its failure to obtain and/or renew any approvals or licenses in future may have an adverse impact on the business operations.

Contribution of the top customers has been diversified over the period. However, a significant portion of its revenue from operations is attributable to certain key customers and to projects located in India, and its business and profitability is dependent on the ability to win projects from such customers.

Majority of the revenues are from oil and gas sector. Significant social, political, or economic changes in the oil and gas sector could adversely affect its business, results of operations, financial condition, and cash flows.

If any of the projects are terminated prematurely, its may not receive payments due to it, which could adversely affect the business, financial condition and results of operation.