Sunshine Pictures Ltd IPO

The company's success is primarily dependent on audience acceptance of its film, web series and TV serials, which is extremely difficult to predict and therefore inherently risky.

The company is dependent on the Indian box office success of its films from which a significant portion of the company's revenue is derived and its ability to exploit and monetize the company's project is limited to the rights that its retain or own.

The company's Promoters and members of the Promoter Group will continue jointly to retain majority control over the Company after the Offer, which will allow them to determine the outcome of matters submitted to shareholders for approval.

The company derives the majority of its revenue from the company's top 5 customers i.e., the Studios and independent distributors. Any loss of these customers or loss of revenue from any of these customers could have a material adverse effect on its business, financial condition, results of operations and cash flow.

Some viewers or civil society organisations may find the company's film content objectionable.

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

The company's ability to successfully complete its own productions, to enter into co-productions and to acquires content depends on its ability to maintain cordial relationships with creative talent and other industry participants.

The company has sustained negative cash flows from operating activities in the past and may experience earnings declines or operating losses or negative cash flows from operating activities in the future.

The company's business is working capital intensive. If the company experiences insufficient cash flows to enable it to make required payments on its debt or fund working capital requirements, there may be an adverse effect on the company's results of operations.

The company does not own the hardware or equipment required for its content production.