Standard Glass Lining Technology Ltd IPO

The company is dependent on its manufacturing facilities, all of which are situated in Telangana, India. The company is subject to risks in relation to its manufacturing process including accidents and natural disasters and also risks arising from changes in the economic or political conditions of Telangana, India which in turn will interfere with its operations and could have an adverse effect on the company business, results of operations and financial condition.

The company business is dependent on the availability and retainment of skilled labour and workforce, and if its unable to hire and engage the appropriate personnel, the company's business, results of operations and financial condition shall be adversely affected.

The company is dependent on a limited number of suppliers for its key raw materials such as stainless steel, carbon/ mild steel, nickel alloy, forgings, castings, chemicals and polytetra fluoroethylene powder. The loss of one or more of these suppliers could adversely impact its manufacturing processes and supply timelines, in turn adversely impacting its ability to comply with delivery schedules agreed with clients resulting in impact on its financial condition and results of operations.

Majority of its customers operate in the pharmaceuticals and chemical sectors. In each of the last three Fiscals and the six months period ended September 30, 2024, more than 88.20% of its revenue from operations were derived from the pharmaceutical and chemical sectors, combined. Factors that adversely affect these sectors or capital expenditure by companies within these sectors may adversely affect its business, results of operations and financial condition.

The company has witnessed negative cash flow from operating activities in the past. Any negative cash flows in the future would adversely affect its cash flow requirements, which may adversely affect the company ability to operate its business and the company financial condition.

The company does not have long term or exclusive contracts with majority of its customers and suppliers. If such customers choose not to source their requirements from it and or if such suppliers choose not to provide the company with the requisite raw materials, there may be a material adverse effect on its business, financial condition, cash flows and results of operations.

Under-utilization of its currently operational production lines at the company Manufacturing Facilities and an inability to effectively utilize its expanded manufacturing capacities could have an adverse effect on its business, future prospects, and future financial performance.

The company has incurred indebtedness and an inability to comply with repayment and other covenants in its financial arrangements could adversely affect the company business and financial condition. Further, certain of its financial agreements involve variable interest rates and an increase in interest rates may adversely affect its results of operations and financial condition.

One of its Promoters and SMP, Kudaravalli Punna Rao, and two of the company SMPs, Radhakrishna Bandi and Chamala Chandrasekhar Reddy, are unable to trace their educational documents. Accordingly, the company has not included the disclosure of their educational qualifications.

There may be delays or defaults in payment by its customers or the reduction in credit period for payments to be made to third-party service providers which could negatively affect its cash flows. As a result, the company experience significant working capital requirements and its inability to meet the company working capital requirements may materially and adversely affect its business, cash flows and financial condition.