Liotech Industries Ltd IPO

Experienced & Qualified Team.

Compliance with Quality Standards & Consistency in Quality and Service.

Wide Range of Product Portfolio

The company depends on the success of its relationships with the companys customers. The company derives a significant part of its revenue from the companys major customers and the company does not have long term contracts with these customers. If one or more of such customers choose not to source their requirements from the company, the companys business, financial condition and results of operations may be adversely affected.

The company is highly dependent on its suppliers for uninterrupted supply of raw-materials.The company has not entered into any long-term supply agreement for the major raw materials required for manufacturing of its products. Also volatility in the prices and non-availability of these raw materials may have an adverse impact in the companys business prospects, results of operations and financial condition.

The companys business operations are majorly concentrated in certain geographical regions and any adverse developments affecting its operations in these regions could have a significant impact on the companys revenue and results of operations.

The Company has reported certain negative cash flows from its operating and investing activities, details of which are given below. Sustained negative cash flow could impact its growth and business in the future.

The intellectual Property Rights used by the company are objected and are not registered in the name of the company. Any failures to protect its intellectual property rights may adversely affect its business.

The company intend to utilise a portion of the Net Proceeds for funding its capital expenditure requirements. The company is yet to place orders 100% of the Plant & Machinery, as specified in the Objects of the Offer chapter. Any delay in procurement of such Plant & Machinery may delay the schedule of implementation and may also lead to increase in cost of these Plant & Machinery, further affecting the companys revenue and profitability.

The company requires working capital for its smooth day-to-day operations of business and any discontinuance or the companys inability to acquire adequate working capital timely and on favourable terms may have an adverse effect on its operations, profitability and growth prospects.

The Company has entered into certain related party transactions in the past and may continue to do so in the future, which may potentially involve conflicts of interest with the equity shareholders.

The demand and pricing in the steel and steel products industry is volatile and is sensitive to the cyclical nature of the industries it serves.

The Company has availed unsecured loan which are repayable on demand. Any demand from the lenders for repayment of such unsecured loan may affect its financial condition.