Sundrex Oil Company Ltd IPO

The company's business is substantially dependent on certain key customers, from whom the company derive a significant portion of the revenue. The loss of any significant customer may has a material and adverse effect on the business and results of operations.

The company business is highly dependent on their suppliers for uninterrupted supply of Raw-Materials. Any shortfall in the supply of the raw materials, or an increase in the raw material costs and other input costs, may adversely affect the pricing and supply of the products with subsequently having an adverse effect on the business, results of operations and financial conditions of the company.

The pricing of the company base oil, which is its primary raw material, is tied to international indices. These indices are influenced by exchange rates, so any significant depreciation in the currency can lead to an increase in the company raw material costs.

Significant portion of the company's revenue has been generated from Eastern states of India, any loss of business from these states may adversely affect their revenues and profitability.

The Company operations require significant amount of working capital for a continuing growth. its inability to meet the company working capital requirements may adversely affect its results of operations.

The company raw materials are derived from crude oil, making it vulnerable to price spikes or supply disruptions from events like wars, directly impacting costs. Price increases are slow to pass through, squeezing margins and limiting ROI due to restricted working capital.

Fraud, theft, employee negligence or similar incidents may adversely affect the company results of operations and financial condition.

The company dependent on its promoters and senior management and other key personnel, and the loss of, or the company inability to attract or retain, such persons could affect its business, results of operations, financial condition and cash flows.

The company's dependent on third party transportation providers for the delivery of the company raw material and products. Accordingly, continuing increase in transportation costs or unavailability of transportation services for them, as well the extent and reliability of Indian infrastructure may has an adverse effect on its business, financial condition, results of operations and prospects.

The company has taken guarantees from Promoters and members of Promoter Group in relation to debt facilities provided to it.