Rajputana Industries Ltd IPO

The company derives 51.33%, 90.60% and 93.66% of its revenue from the company Promoter Group Companies and Promoting Company for the Financial Years ended on March 31, 2024, 2023 and 2022 respectively. These or any future related party transactions may potentially involve conflicts of interest and there can be no assurance that the company could not have achieved better terms, had such arrangements been entered into with unrelated parties.

The company is highly dependent upon a limited number of suppliers 79.49%, 87.42% and 92.75% of its Total Purchases are derived from the company's top 10 suppliers for the Fiscal Years ended on March 31, 2024, 2023 and 2022. Further its 45.98%, 52.35%, and 73.18% of the company total purchases for Fiscal Years ended on March 31, 2024, 2023 and 2022 are procured from its holding and group companies. Any failures of the company suppliers to deliver these products in the necessary quantities or to adhere to delivery schedules, credit terms or specified quality standards and technical specifications may adversely affect its business and the company's ability to deliver orders on time at the desired level of quality.

The company has in the past entered into transactions with related parties and may continue to do so in the future. These or any future related party transactions may potentially involve conflicts of interest and there can be no assurance that the company could not have achieved better terms, had such arrangements been entered into with unrelated parties.

Its Promoters or Directors may have interests, either directly or indirectly, in ventures involved in a business similar to it or its Holding Company may be involved in a business similar to it, which may result in a real or potential conflict of interest.

The Company was operating with negative working capital for the fiscal year 2021 and 2022. Its inability to meet the company working capital requirement may have adverse effect on its results of operations.

Its manufacturing capacities may not reach their installed capacity and the company may also be unable to effectively utilize its expanded manufacturing capacities.

The Company has a negative cash flow from its operating, investing and financing activities in past three years, details of which are given below, sustained negative cash flow could impact its growth and business.

Its Promoter, Sheikh Naseem and Shivani Sheikh were alleged to be involved in a criminal matter relating to abetment of suicide. Though a negative final report has been filed by the police in the court and the complaints Amit Dusad has given his acceptance to abide by the police investigation (FR), yet a final disposal order is pending from the court. If an adverse order is delivered by the court in the matter, it may lead to re-opening of investigation and may have an impact on its business and reputation.

The Company, its Promoters and the company's Directors other than promoters are involved in certain legal proceedings. Any adverse decision in such proceedings may render it / them liable to liabilities / penalties and may adversely affect its business and results of operations.

The company's trademark is registered in the name of Sheikh Naseem, one of the promoters, and the Company has obtained license to use the trademark through a license agreement. Failure to protect intellectual property may adversely affect its reputation, goodwill and business operations.