SK Minerals & Additives Ltd IPO

The company has certain outstanding litigations against us, an adverse outcome of which may adversely affect its business, reputation and results of operations.

The company's manufacturing operations at its facility in Khanna, Ludhiana, Punjab were commenced without receiving prior Consent to Establish from the State Pollution Control Board, which may expose the company's to regulatory and compliance-related risks.

The company were manufacturing certain products at the company's manufacturing facility for which the company did not have the CTO issued by the State Pollution Control Board.

The Company has significant purchases of traded goods from the related parties. The higher dependency on purchases with related parties exposes the Company to risk related to business.

Tthe company's revenues are significantly dependent on trading activities, with limited contribution from manufacturing operations, which exposes the company's to certain business and operational risks.

A significant portion of the company's purchases for trading operations comprise imported products, exposing it to global supply chain risks, foreign exchange fluctuations, and regulatory uncertainties.

The company derives a significant portion of the company's revenue from its top customer, top 5 customers and top 10 customers. The loss of one or more of such customers, the deterioration of their financial condition or prospects, or a reduction in their demand for our products could adversely affect its business, results of operations, financial condition and cash flows.

The company rely on third-party suppliers for the company's purchases and raw materials, and any disruption in their supply may adversely affect its business operations.

The company has experienced negative cash flows in relation to our operating activities and investing activities for the period ended August 31, 2025 and in Fiscal Year 2025, 2024 and 2023. Any negative cash flows in the future would adversely affect v results of operations and financial condition.

In the past funds have been blocked by intermediary bank of USA for the advance payment for the purchase order placed for goods by the Company, may impact the Company's financial statements in future.