Esprit Stones Ltd IPO

The Company is one of the key Engineered Stone players in the Indian Market.

The Company believes that quality and innovations are the bed-rock of success. The Company has developed quality control processes for inspecting the raw materials as well as the final products.

The Company is also engaged in the manufacturing of engineered quartz surfaces and the core raw material for manufacturing of engineered quartz are quartz grit and unstaturated polyester resin. This reduces its dependency on third-party raw material suppliers.

The Udaipur area in Rajasthan has abundant mineral deposits that are used for manufacturing of itsEngineered Stones. Its manufacturing facilities, located in the Udaipur district, benefit from the mineralrich ecology, resulting in economic and logistical advantages.

The Company believes that its Promoters have played a key role in the development of its business and the company benefits from its industry knowledge and expertise, vision and leadership. In addition to its Promoters, its key management and senior management team includes qualified, experienced and skilled professionals who possess requisite experience across various division of its business.

Major portion of its revenues are derived from exports to the United States of America and anyadverse developments in this market or restrained economic or political relations of India with theUnited States of America could adversely affect its business.

Its business is capital intensive. The company requires substantial financing for its business operations. Its indebtedness and the conditions and restrictions imposed on by its financing arrangements could adversely affect the companys ability to conduct its business.

Its Manufacturing Facilities are concentrated in the Udaipur, Rajasthan. Any disruption, breakdown or shutdown of its Manufacturing Facilities may have a material adverse effect on the companays business, financial condition, results of operations and cash flow.

The company does not own some of the business premises where its Registered office, branch office, storage facilities are located.

Its manufacturing activity is subject to availability of raw material and the costs of the raw materials. Any shortage in availability or fluctuations in raw material prices, may have a material adverse effect on its business, financial condition, results of operations and cash flows.

A significant majority of its revenues from operations are derived from a limited number ofcustomers.

The company requires certain approvals and licenses in the ordinary course of business and are required to comply with certain rules and regulations to operate its business, any failure to obtain, retain and renew such approvals and licences or comply with such rules and regulations may adversely affect its operations.

Its ability to access capital at attractive costs depends on the company credit ratings. Non- availability of credit ratings or a poor rating may restrict its access to capital and thereby adversely affect the companys business and results of operations.

The company has availed unsecured loans which are repayable on demand. Any demand for repayment ofsuch unsecured loans, may adversely affect its cash flows.

Its lenders have charge over the company movable and immovable properties in respect of finance availed by the company.