Sedemac Mechatronics Ltd IPO

While we have maintained consistent growth in our business and financial metrics during the three months ended June 30, 2025, and Fiscals 2025, 2024 and 2023, there can be no assurances that we will continue to experience such growth going forward which could have an adverse impact on our business, cash flows and results of operations.

Our Company may not be successful in implementing its strategies, which may adversely affect our business, cash flows, results of operations and future prospects.

We have capital expenditure and working capital requirements to support our growth, innovation, and operational continuity. If we are unable to secure required financing when needed, our operations and future prospects may be materially and adversely affected.

Insufficient warranty reserves to cover future claims could adversely affect our financial condition, results of operations and business prospects.

Risks relating to the protection and enforcement of our intellectual property may materially and adversely impact our business, operations, and future prospects.

We have incurred indebtedness and an inability to comply with repayment and other covenants in our financing agreements could adversely affect our business, results of operations, cash flows and financial condition.

We are exposed to counterparty credit risk. As at June 30, 2025, March 31, 2025, 2024 and 2023, trade receivables from our top 10 customers were Rs. 631.99 million, Rs. 412.01 million, Rs. 257.12 million, and Rs. 131.19 million, respectively. Any delay in receiving payments or non-receipt of payments may adversely impact our business, financial condition, cash flows and results of operations.

We are dependent on third parties for transportation and timely delivery of our products to customers. Any significant disruption or failure by these providers, including one-time events such as strikes, port closures, or other logistical issues could result in delivery delays and increased costs, materially affecting our business.

We require to obtain, renew and maintain certain statutory and regulatory licenses, permits and approvals in the ordinary course of business, and the failure to obtain or retain them in a timely manner may materially adversely affect our operations.

Our Registered and Corporate office and current operational manufacturing facilities are located on leased premises. There can be no assurance that such lease agreements will be renewed upon termination or that we will be able to obtain other premises on lease on the same or similar commercial terms.