Smarten Power Systems Ltd IPO

The company does not own the premises in which its registered office and the company warehouse are located and the same are on lease arrangement and further there exists an ongoing litigation with respect to its assembling unit. Any termination of such lease/license and/or non-renewal thereof and attachment by property owner could adversely affect its operations.

A significant portion of its revenue is derived from the states of Haryana and Uttar Pradesh, and any adverse developments in these states could adversely affect the company business.

The company has not entered into any long term agreements with its distributors. The company inability to maintain relationships with its distributors may adversely affect the company business, results of operations, cashflow and profitability.

Its top ten customers contribute approximately 33.40%, 42.29% and 37.74% of the company revenues from operations for the financial year ended March 31, 2025, March 31, 2024 and March 31, 2023 respectively. Any loss of business from one or more of them may adversely affect its revenues and profitability.

The company has significant working capital requirements. If its experience insufficient cash flows to meet the company working capital requirements, its business, results of operations and cashflows could be adversely affected.

The company relies on third parties for the supply of its raw materials for Home UPS Systems and Solar Inverters/Solar Power Conditioning Units (PCUs), and in the event such suppliers fail to meet their obligations, its may faces material adverse effect on the company business, results of operations and financial condition.

The company relies on third parties for the supply of batteries and solar panels for its trading business, and in the event such suppliers fails to meet their obligations, its may faces material adverse effect on the company business, results of operations and financial condition.

Significant portion of its revenues is dependent upon sale of Home UPS Systems, Solar Inverter / Solar Power Conditioning Units and Batteries. The loss in sales of the company assembled or traded products or a decrease in the demand or volume of such products, will materially and adversely affect its revenues and profitability.

A significant portion of its revenue from exports is dependent on Nigeria and West Africa. Any change in foreign policies and import-export regulations could have a material adverse effect on its business, financial condition, results of operations and cash flows of the Company.

Its investment in purchase of movable assets of the production line of battery manufacturing unit are subject to the risk of unanticipated delays in implementation and may be less profitable or may be lossmaking.