Sky Alloys AND Power Limited IPO

The company's existing Manufacturing Unit and the sources of its raw materials are situated in the States Chhattisgarh and Odisha and any adverse developments affecting these regions could have an adverse effect on the company's business, results of operations and financial conditions.

100% of its revenue is from sale of the company's steel products such as Sponge Iron, MS Billets, TMT Bars & others related items. Volatility in the demand and pricing in the iron and steel industry is common and is cyclical in nature. A decrease in steel prices may have a material adverse effect on its business, results of operations, prospects and financial condition.

There is an income tax related litigation pending against the Company, the company's Promoter Group member namely Kunj Behari Singhal and its Group Company namely Supreme Road Transport Private Limited pursuant to the order of the Settlement Commission passed on January 21, 2021 as also certain appeals have been filed by the company's Company challenging certain demands raised by the Income-tax authorities in connection with search and seizure operations carried out by the Income-tax authorities at the Registered Office of the Company and other locations during August 2017 and December 2021, respectively. Any adverse outcome in such litigations could increase its tax liability and financial condition.

The company has had experienced negative cash flows from operating, investing and financing in the recent past, and the company may have negative cash flows in the future.The company's net cash flow for the period / years are set forth in the table below.

Capital expenditure to the tune of ? 900.00 million required towards part financing the Keshdabri Solar Power Plant and the Mopka Solar Power Plant would be funded out of the Net Proceeds of the Offer. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.

Total capital expenditure for the Keshdabri Solar Power Plant and the Mopka Solar Power Plant is ? 1,546.00 million and we have incurred ? 180.00 million till September 28, 2025. Any delay or inability of the contractor engaged by the company to execute the Solar Power Project in a timely manner, or at all and/or at the estimated costs as per the TEV Report, may result in time and cost over-runs.

The company is exposed to risks associated with time and cost overruns, delays or under-estimations of its costs of construction, which may affect the economic viability of our Solar Power Project. If we are unable to successfully implement the company's Solar Power Project, the company's results of operations and financial condition could be adversely affected.

The company is dependents on a few customers for a major part of its revenues. Further the company does not enter into long-term arrangements with the company's customers and any failures to continue the company's existing arrangements could adversely affect its business and results of operations.

Disruption of its relationships with the company's dealers and distributors, changes in their business practices, their failures to meet payment schedules and provide timely and accurate information, conflicts among the company's channels of distribution or its inability to further expand the company's distribution network could adversely affect its business, cash flows and results of operations.

Inadequate or interrupted supply and price fluctuation of its raw materials could adversely affect the company's business, results of operations, cash flows, profitability and financial condition.