Systematic Industries Ltd IPO

The company's business is capital intensive in nature for which the company need to raise additional funds whenever required. Such excessive dependency on debt funds for capital expansion may result into increase in finance cost to the company and impact the profitability of the company, which could materially and adversely affect the company's business, financial position and results of operations.

The company requires certain approvals, licenses, registrations and permits to operate its business, and failures to obtain or renew them in a timely manner or maintain the statutory and regulatory permits and approvals required to operate the company's business may adversely affect its operations and financial conditions.

The company has not complied with certain statutory provisions of the Companies Act, 2013. Such non-compliance may attract penalties against the Company which could impact the financial position of the company to that extent.

The company's reliance on certain industries for a significant portion of the company's sales could have an adverse effect on the company's business.

The Company is dependent on limited number of suppliers, within limited geographical locations for procurement of raw materials. Any delay, interruption or reduction in the supply of raw materials required for the company's products may adversely affect its business, results of operations, cash flows and financial condition.

The company is subject to strict quality requirements and the success and wide acceptability of the company's products is largely dependent upon our quality controls and standards. Any failures to comply with quality standards may adversely affect its business prospects and financial performance, including cancellation of existing and future orders.

The company does not own the registered office, office and one factory from which the company carry out its business activities. In case of nonrenewal of rent agreements or dispute in relation to use of the said premise, the company's business and results of operations can be adversely affected.

The company's business is dependent and will continue to depend on the company's factories, and the company is subject to certain risks in the company's manufacturing process. Any slowdown or shutdown in the company's manufacturing operations due to power failures, machinery breakdown or strikes, work stoppages or increased wage demands by its employees that could interfere with its operations could have an adverse effect on the company's business, financial condition and results of operations.

The company has experienced negative operating cash flows in the past. Any operating losses or negative cash flows in the future could adversely affect its results of operations and financial conditions.

The restated financial statements have been provided by peer reviewed chartered accountants who is not statutory auditor of the Company.