Prostarm Info Systems Ltd IPO

The Company has received a show cause notice for alleged violation under the Custom Act, 1962. Any adverse order passed against the company would materially affect its financial condition and business.

The company revenue from operations is dependent upon a limited number of customers and the loss of any of these customers or loss of revenue from any of these customers could have a material adverse effect on its business, financial condition, results of operations and cash flows.

Disruption in its relationships with third party dealers and distributors, changes in their business practices, their failures to meet payment schedules and provide timely and accurate information could adversely affect its business, operating cash flows and financial condition.

The company is heavily dependent on its suppliers and any disruptions in the supply or an increase in prices of materials and components could adversely affect its operations.

The company has received show cause notices from regulatory authorities in the past.

The company has experienced negative operating cash flows of Rs.1350.31 lakhs, Rs.780.18 lakhs and Rs.1,053.45 lakhs in prior years Fiscal 2023, Fiscal 2024 and in the nine month period ended December 31, 2024, respectively.

The company has derived a substantial portion of its revenue from the sale of its UPS System and sale of third party power solution products and other products and loss of sales due to reduction in demand for these products would have a material adverse effect on its business, financial condition, results of operations and cash flows.

The Company, Promoters, Directors, Subsidiary, KMPs and SMPs are parties to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.

Under-utilization of its manufacturing capacities and an inability to effectively utilize the company manufacturing capacities could have an adverse effect on its business, future prospects and future financial performance.

The company has contingent liabilities and its financial condition could be adversely affected if any of these contingent liabilities materializes.