Paramount Syntex Ltd IPO

Experienced Promoter and Management Team.

Scalable Business Model.

Wide and diverse range of product offerings.

In-house manufacturing facility with equipped machines and processes. Further having in-house Quality Controland Research & Development facility.

The company has certain outstanding litigation against it, an adverse outcome of which may adversely affect the companys business,reputation and results of operations.

The companys business is dependent and will continue to depends on its manufacturing facilities, and the company is subject to certainrisks in its manufacturing process. Any slowdown or shutdown in the companys manufacturing operations or strikes, workstoppages or increased wage demands by its employees that could interfere with the company operations could have an adverseeffect on its business, financial condition and results of operations.

Majority of the companys revenue is dependent on single business segment i.e. manufacturing and trading of fiber, yarns andknitted cloth. Any adverse impact on sales of a product would adversely affect its operations and profitability.

The top ten customers of the companys product and top ten suppliers for raw material contribute a substantial part of its totalrevenue and source of Raw Material. The company does not have long term agreement with the customer or supplier. The loss ofany Customer or a decrease in the volume of order by any customer or any disruption in supply of raw material by anysupplier may adversely affect its revenues and profitability.

Certain assumptions have been made in the absence of historical data from 1996 to 2006; variations in Capital Structureand other factors could impact the accuracy of the RHP and affect Investment Decisions.

The Company is yet to place orders for 100% of the plant & machineries for its proposed object, as specified in theObjects of the Issue. Any delay in placing orders, procurement of plant & machineries may delay the companys implementationschedule and may also lead to increase in price of these plant & machineries, further affecting its revenue andprofitability.

Within the parameters as mentioned in the chapter titled Objects of this Issue beginning on page 85 of this RedHerring Prospectus, the fund requirement and deployment mentioned in the Objects of this Issue have not beenappraised by any bank or financial institution.

There are certain discrepancies and non-compliances noticed in some of the companys corporate records relating to forms filedwith taxation authorities and other public authorities.

The Company has a negative cash flow in its operating, investing activities and Net Increase / Decrease in Cash & CashEquivalents for the financial years ended March 31, 2026, March 31, 2025, and March 31, 2024 details of which aregiven below. Sustained negative cash flow could impact its growth and business.

Non-recovery of business advances may adversely impact the Companys financial position and cash flows.