Prasol Chemicals Limited IPO

The company's business and the demand for its products is reliant on the success of the company's customers' products with end consumers and any decline in the demand for the end products could have an adverse impact on its business, results of operations, cash flows and financial condition.

The company's business is reliant on certain key customers. The company's top 10 customers contributed 23.91%, 21.96%, 18.46% and 23.27% of its total revenue from operations during three month period ended June 30, 2025, Fiscal 2025, Fiscal 2024 and Fiscal 2023, respectively. The loss of any of these customers or loss of revenue from sales to any key customers could have a material adverse effect on the company's business, financial condition, results of operations and cash flows.

The company's business is dependent on its manufacturing facilities and the company is subject to certain related risks. Unplanned slowdowns, unscheduled shutdowns or prolonged disruptions in its manufacturing operations or under - utilization of the company's manufacturing capacities could have an adverse effect on its business, results of operations, cash flows and financial condition.

The company does not have long-term agreements with most of its suppliers or customers and the loss of one or more of them or a reduction in their demand for the company's products could adversely affect its business, results of operations, financial condition and cash flows. Further, the company's inability to accurately forecast demand for its products or manage the company's inventory or working capital requirements may have an adverse effect on its business, results of operations and financial condition.

The company is susceptible to risks arising out of export of its products to 69 countries and with doing business internationally, including international market conditions and regulatory risks.

The company's inability to accurately forecast demand for its products and manage the company's inventory or working capital balances may have an adverse effect on its business, results of operations, cash flows and financial condition.

The company's operations depend on the availability of timely and cost-efficient transportation and other logistic facilities and any prolonged disruption may adversely affect its business, results of operations, cash flows and financial conditions.

Any increase in the cost of its raw material or other purchases or a shortfall in the supply of the company's raw materials, may adversely affect the pricing and supply of its products and have an adverse effect on the company's business, results of operations and financial condition.

Some of the raw materials that the company use, certain byproducts that are generated, as well as its finished products are hazardous, corrosive and flammable and require expert handling and storage, as applicable. Any accidents may result in loss of life or property and disrupt the company's operations which may have an adverse effect on its results of operation, cash flows and financial condition.

The company is subject to strict quality requirements, regular inspections and audits, and the success and wide acceptability of its products is largely dependent upon the company's quality controls and standards.