Purv Flexipack Ltd IPO

Inadequate or interrupted supply and price fluctuation of packaging materials could adversely affect its business, results of operations, cash flows, profitability and financial condition.

The company is highly dependent upon a limited number of suppliers. 76.32%, 80.74% and 74.79% of its Total Purchases are derived from its top 5 suppliers for the Fiscal Years ended on March 31, 2023, 2022 and 2021.

The company has entered into Del Credere Associate (DCA) Agreement and Del Credere Associate Operated Polymers Warehouse (DOPW) Agreement with Indian Oil Corporation Ltd. ("IOCL"). Termination or non-renewal of the Agreement or any material modification to the existing terms under such agreement adverse to its interest will materially and adversely affect the company's ability to continue its business and operations and its future financial performance.

The Company requires significant amounts of working capital and 82.05%, 90.51% and 90.42% of its current assets comprises of trade receivables and inventories for the Fiscal Year ended on March 31, 2023, 2022 and 2021. Its inability to meet the company's working capital requirements including failure to realise receivables and inventories may have an adverse effect on its results of operations and overall business.

The introduction of alternative packaging materials caused by changes in technology or consumer preferences may affect demand for its existing products, which may adversely affect the company financial results and business prospects.

The company derives a portion of its revenue from certain customers, and the loss of one or more such customers, the deterioration of their financial condition or prospects, or a reduction in their demand for its products could adversely affect its business, results of operations, financial condition and cash flows.

Its Group Companies Purv Films Private limited, Apex Flexipack Private Limited, Millenium Plastipack Private Limited, Purv Ecoplast Private limited, Purv Packaging Private limited and its Subsidiary Company Cool Caps Industries Limited, is carrying on business activities similar to its business. This may be a potential source of conflict of interest for it and which may have an adverse effect on its business, financial conditions, and results of operations.

There is an increased awareness towards controlling pollution and many economies including India have joined in the efforts to ban plastic product. In case any plastic packaging products traded by the company is banned in India, it could have a material and adverse effect on its business and results of operations.

There are pending litigations against the company, its Promoters, its Directors and its Group Companies and any adverse decision in these proceedings may render it/them liable to liabilities/penalties and may adversely affect its business, result of operations and financial conditions.

The company has not entered into any long-term or definitive agreements with all its customers. If its customers choose not to source their requirements from it, the company's business, financial condition and results of operations may be adversely affected.