Sharp Chucks and Machines Ltd IPO

The Company as well as the Independent Director are party to certain tax proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.

The company Restated Financial Statements are prepared and signed by the Peer Review Auditor who is not Statutory Auditors of the Company as required under the provisions of SEBI (ICDR) Regulations 2018.

The company is heavily dependent on the performance of the tractor industry and automobile. Major upsets or slowdown adversely affecting the tractor industry and automobiles and its ancillary industries can impact the business, results of operations, financial condition and cash flows.

Substantial portion of the company revenues has been dependent upon its top five clients. The loss of any one or more of the major clients would have a material adverse effect on the business operations and profitability.

The company extend significant credit terms to the customers and are subject to counterparty credit risk. Any deterioration in such customers' financial position and their ability to pay or its inability to extend credit in line with market practice may adversely impact the profitability.

The company relies on third party suppliers to provide the raw materials and its have limited control over them and may not be able to obtain required quality raw materials on a timely basis or in sufficient quantity which may have a material adverse effect on the company results of operations.

The company's business is dependent on the manufacturing facilities which are located in Jalandhar, Punjab, India. Any loss or shutdown of operations at any of the manufacturing facilities may have an adverse effect on its business and results of operations.

Its products adhere to strict quality control requirements because of which its have gained the trust and confidence of the customers and the inability to maintain such quality standards on consistent basis could adversely impact the company business, results of operations and financial condition.

The company's business is subject to various operating risks at the factory, the occurrence of which can affect its results of operations and consequently, financial condition of the Company.

The Company has availed unsecured loan which are repayable on demand. Any demand from the lenders for repayment of such unsecured loan may affect its cash flow and financial condition.