Sampat Aluminium Ltd IPO

The Company is dependent on external suppliers for its major raw material, Aluminium. The demand and pricing in the aluminium industry is volatile and are sensitive to the cyclical nature of the industries it serves.

The company is generally do business with its customers on purchase order basis and do not enter into long term contracts with them. the company inability to maintain relationships with the company customers could have an adverse effect on its business, prospects, results of operations and financial condition.

The company is generate a substantial portion of revenue from Gujarat and Maharashtra Region. Any adverse developments affecting its operations in the Gujarat and Maharashtra Region could have an adverse impact on the company revenue and results of operations.

The company net cash flows from operating, activities have been negative in some years in the past. Any negative cash flow in the future may affect its liquidity and financial condition.

The company is Revenue from Aluminium Rods and Aluminium Wire contribute significantly to the company is revenue from operation. Any loss of business from such product may adversely affect its revenues and profitability.

Under-utilization of the company is manufacturing capacities could have an adverse effect on its business, future prospects and future financial performance.

There are certain outstanding legal proceeding involving the company Promoter and Promoter Entities which may adversely affect its business, financial condition and results of operations.

Any disruption in production at, or shutdown of, the company sole manufacturing facility could adversely affect its business, results of operations and financial condition.

There have been several instances of delay/ default in payment of statutory dues and filing of statutory returns by the Company in the past.

The Companys business activities are labour intensive and depend on availability of skilled and unskilled labourers. In case of unavailability of such labourers and / or inability to retain such personnel, strikes, work stoppages or increased wage demands by the company employees or any other kind of disputes with the company employees could adversely affect its business and results of operations.