Srinibas Pradhan Constructions Ltd IPO

Its business operations are focused primarily in the State of Odisha. The company relies heavily on projects undertaken or awarded within Odisha, by entities such as the local authorities, municipal bodies, and other organizations operating in the state. As a result, its revenue streams are derived entirely from contracts with a limited number of entities, exposing it to risks arising from economic, regulatory, and other changes specific to Odisha. Any adverse changes in central or state government policies could potentially lead to foreclosure, termination, restructuring, or renegotiation of its contracts. Such developments could significantly impact the company business operations and financial results.

The company depends on certain key customers for its revenues. A decrease in the revenues the company derives from them could materially and adversely affect its business, results of operations, cash flows and financial condition.

The Company depends on the knowledge and experience of its Promoters, Ramakanta Pradhan and Srinibas Pradhan for its growth. The loss of their services may have a material adverse effect on its business, financial condition and results of operations.

The company has in past entered into related party transactions and its may continue to do so in the future.

Its may not maintain profitability in the future.

The Company has a negative cash flow from its operating and investing activities in past three years, details of which are given below, sustained negative cash flow could impact its growth and business.

The company may be exposed to liabilities arising from defects during construction, which may adversely affect its business, financial condition, results of operations and prospects.

Its business is capital intensive because of which the company may experience insufficient cash flows to meet required payments on its debt and working capital requirements, there may be an adverse effect on the results of its operations.

The company operates in a competitive industry and its failures to successfully compete may adversely affect the company business, financial condition and results of operations, and prospects.

Increases in the prices of materials & services such as construction materials, fuel, labor, equipment maintenance, and other construction related expenses could have an adverse effect on its business, results of operations and financial condition.