Shri Balaji Valve Components Ltd IPO

The company has a history of net losses in one of the year out of the last 3 financial years and any losses or its inability to achieve profitability may have an adverse effect on the company operations.

The business in the Company has been started post the purchase of assets and liabilities from the M/s Balaji Enterprises and M/s Shrinivas Engineering (Proprietorship firm of its Promoters) thus the company have limited operating history as a Company which may make it difficult for investors to evaluate its historical performance or future prospects.

Any increase in the cost of its raw material or other purchases or a shortfall in the supply of its raw materials, may adversely affect the pricing and supply of the company products and have an adverse effect on its business, results of operations and financial condition.

Its top five customers contribute majority of its revenues from operations. Any loss of business from one or more of them may adversely affect the company revenues and profitability.

The company is planning to expand its operations at its new plant constructed at Chakan Industrial area (Pune). Further, its propose to shift the existing forging facility to the said new plant. the company may face business or financial challenges which may adversely affect its profitability and results of operations.

In case of its inability to obtain, renew or maintain the statutory and regulatory licenses, permits and approvals required to operate its business it may have a material adverse effect on the company business.

The Company is dependent upon few suppliers for purchase of major portion of its raw material. Any loss of business with one or more of them may adversely affect its business operations and profitability.

The company failure to adapt to technological developments or industry trends could affect the performance and features of its products, and reduce the company attractiveness to its customers.

The company has not placed orders for the purchase of plant and machinery for which part of the funds are being raised through the Issue.

The company has had certain inaccuracy in relation to regulatory filings and the company has made non-compliances of certain provision under applicable law.