Rachit Prints Ltd IPO

Our Company is dependent on few numbers of customers for sales. Loss of any of this large customer may affect our revenues and profitability.

We have long-term agreements with two of our top 10 customers only, the loss of one or more of them or a reduction in their demand for our products could adversely affect our business, results of operations, financial condition and cash flows.

Our Company is dependent on few suppliers for purchase of raw material. Loss of any of these large suppliers may affect our business operations.

We have experienced negative cash flows in relation to our operating activities, investing activities and financing activities for the Financial Year 2022 - 23, 2023 - 24 and 2024 - 25. Any negative cash flows in the future would adversely affect our results of operations and financial condition.

Our Company has experienced multiple instances of minor delays in filing of returns required under the CGST Act, 2017, the Employees' Provident Fund and Miscellaneous Provisions Act, 1952 and Employee State Insurance.

Our Company was incorporated in the year 2003 and some of our corporate records including forms filed with the Registrar of Companies are not traceable. Certain forms we cannot assure you that these forms filings will be available in the future or that we will not be subject to any penalties imposed by the relevant regulatory authority in this respect which may impact our financial condition and reputation.

We do not own our Registered Office & our manufacturing facility and we have only lease rights over such premise. In the event we lose such rights or are required to negotiate it, our cash flows, business, financial conditions and results of operations could be adversely affected.

Our existing manufacturing facility is concentrated in a single region i.e., Meerut, Uttar Pradesh and the inability to operate and grow our business in this particular region may have an adverse effect on our business, financial condition, results of operations, cash flows and future business prospects.

Our business is working capital intensive. If we experience insufficient cash flows to meet required payments on our working capital requirements, there may be an adverse effect on the results of our operations.

We have experienced fire outbreak in our manufacturing facility on May 10, 2017. We regularly work with flammable materials and activities in our operation which can be dangerous and could cause injuries to people or property.