Shivalik Engineering Industries Limited IPO

The company is dependent on its top five customers who contribute more than 60.00% of its revenue from operations for the nine months ended December 31, 2023 and in each of the last three Fiscals. Loss of any of these customers or a reduction in purchases by any of them could adversely affect its business, results of operations and financial condition.

Its business and profitability are substantially dependent on the availability and cost of its raw materials, and any disruption to the timely and adequate supply of raw materials, or volatility in the prices of raw materials may adversely impact its business, results of operations and financial condition.

The company derives a substantial portion of its revenue from the sale of wheel hubs and brake drums and loss of sales due to reduction in demand for these products would have a material adverse effect on its business, financial condition, results of operations and cash flows.

A significant portion of its revenue from operations is attributable to the commercial vehicle segment and tractor segment of the automotive industry. The company's business is also subject to seasonality of demand for commercial vehicles and tractors. Any adverse changes in these sectors and the seasonal nature of the demand for commercial vehicles and tractors could adversely impact its business, results of operations and financial condition.

The company does not have firm long term commitment agreements with any of its customers and hence may not realize all of the revenue expected from the company existing or new customers and may not be able to accurately forecast demand for its products and plan production schedules in advance.

The company is subject to strict compliance of quality requirements by its customers. Any failures in maintaining the company quality accreditations and certifications may negatively impact its brand and reputation which may adversely affect its business, results of operations, financial condition, cash flows and future prospects.

There may be flaws or defects in the products the company manufacture that could result in liability claims against it, reduced demand for its products and damage to the company reputation.

The company has experienced growth in recent years and may be unable to sustain its growth or manage it effectively.

Its manufacturing facilities are concentrated in the state of Chhattisgarh. Any significant social, political, economic or seasonal disruption, natural calamities or civil disruptions in Chhattisgarh could have an adverse effect on its business, results of operations, future cash flows and financial condition.

Its financing agreements contain covenants that limit the company flexibility in operating its business. The company inability to meet its obligations, including financial and other covenants under its debt financing arrangements could adversely affect the company's business, cash flows, results of operations and financial condition.