Purple Wave Infocom Ltd IPO

The company is highly dependent on certain key customers for a substantial portion of its revenues. Loss of relationship with any of these customers may have a material adverse effect on the company profitability and results of operations.

The Company has not entered into any long-term contracts with its customers and the company typically operates on the basis of orders received on hand. Inability to maintain regular order flow would adversely impact its revenues and profitability.

Its business and profitability heavily relies on the consistent and timely availability of products. Any disruption in supply or price volatility of these products can negatively impact its operations and financial health. Additionally, the company dependence on third-party suppliers, without firm supply commitments or exclusive arrangements, poses a risk. The loss of any suppliers could adversely affect its business, operational outcomes, and financial condition.

Its future growth is dependent upon the company ability to identify and maintain new products, technologies and customers that achieve market acceptance with acceptable margins.

Its business is dependent on global suppliers/manufacturers effectively maintaining, promoting or developing their brands and maintaining standard quality products including launching new AV (Audio-Video) products at regular intervals.

Most projects the company operate have been awarded primarily through a competitive bidding process and its financial performance is largely dependent on the company successful bidding for new projects. Its may not always be able to qualify for, compete and win projects. If the company is not able to successfully bid for new projects, it may adversely affect its business operations and financial conditions.

The company has certain outstanding litigation against it, an adverse outcome of which may adversely affect its business, reputation and results of operations.

Any Penalty or demand raised by statutory authorities in future will affect financial position of the Company.

There are certain discrepancies/errors/delay filings noticed in some of its corporate records relating to forms filed with the Registrar of Companies and other provisions of Companies Act, 2013. Any penalty or action taken by any regulatory authorities in future, for non-compliance with provisions of corporate or any other law could impact the financial position of the Company to that extent.

The Company had negative cash flows in the past years, details of which are given below. Sustained negative cash flow could impact its growth and business.