Aik Pipes & Poly IPO

Customer satisfaction and revenues from long standing customer relationships.\r\nExperienced Promoter and Management Expertise.\r\nScalable Business Model.\r\nCost effective production and timely fulfillment of orders.\r\nExisting relationship with suppliers.\r\nQuality Assurance and Standards.

Any increase in the cost of the company raw material or other purchases or a shortfall in the supply of its raw materials, may adversely affect the pricing and supply of the products and have an adverse effect on the business, results of operations and financial condition.\r\nAny loss of or breakdown of the company machineries, at any of its manufacturing facility may have an adverse effect on business, financial condition and results of operations.\r\nAny inability on the company part to maintain quality standards could adversely impact its business, results of operations and financial condition.\r\nThe company manufacturing activities are dependent upon availability of skilled and unskilled labour.\r\nIn case of the company inability to obtain, renew or maintain the statutory and regulatory licenses, permits and approvals required to operate its business it may have a material adverse effect on the business.\r\nThe Restated Financial Statements have been provided by Peer Reviewed Chartered Accountants who is not Statutory Auditor of the Company.\r\nThe company top ten customers contribute majority of its revenues from operations. Any loss of business from one or more of them may adversely affect the company revenues and profitability.\r\nThe company top ten suppliers contribute majority of its purchases. Any loss of business with one or more of them may adversely affect of the business operations and profitability.\r\nIntense competition in the market of Pipes Industry could affect the company pricing, which could reduce its share of business from clients and decrease of the revenues and profitability.\r\nThere are outstanding legal proceedings involving the Company. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.\r\nThe company failure to adapt to technological developments or industry trends could affect the performance and features of the company products, and reduce its attractiveness to the customers.\r\nThe company has a substantial amount of outstanding indebtedness, which requires significant cash flows to service and are subject to certain conditions and restrictions in terms of its financing arrangements, which restricts the company ability to conduct of the business and operations in the manner its desire.\r\nIf the company is not successful in managing its growth, the business may be disrupted and the company profitability may be reduced.\r\nThe unsecured loan availed by the Company from Directors may be recalled at any given point of time.\r\nAny failure to comply with financial and other restrictive covenants imposed on it under the company financing agreements may affect its operational flexibility, business, results of operations and prospects.\r\nThe company has had certain inaccuracy in relation to regulatory filings and the company has made non-compliances of certain provision under applicable law.\r\nThe company operations are labour intensive and its manufacturing operations may be materially adversely affected by strikes, work stoppages or increased wage demands by the company employees or those of its suppliers.\r\nThe company has entered into and may enter into related party transactions in the future also.\r\nThe company's success is dependent on its Promoter, senior management and skilled manpower. The company inability to attract and retain key personnel or the loss of services of the Promoter or Managing Director and Whole Time Directors may have an adverse effect on its business prospects.\r\nThe company may not be able to prevent unauthorised use of trademarks obtained/ applied for by third parties, which may lead to the dilution of the company goodwill.\r\nIf there is a change in policies related to tax, duties or other such levies applicable to it, it may affect the company results of operations.\r\nThe company has experienced negative cash flows in the past. Any such negative cash flows in the future could affect its business, results of operations and prospects.\r\nThe company lenders have charge over its movable and immovable properties in respect of finance availed by it.\r\nThe property used by the Company for the purpose of its operations is not owned by it. Any termination of the relevant lease or leave and license agreement in connection with such property or the company failure to renew the same could adversely affect its operations.\r\nThe company marketing campaigns may not be successful in increasing the popularity of its products and offerings. If the company marketing initiatives are not effective, this may adversely affect of the business and results of operations.\r\nMisconduct or errors by manpower engaged by it could expose it to business risks or losses that could affect the company business prospects, results of operations and financial condition.\r\nThe company operating results could be adversely affected by weakening of economic conditions due to lock-down in all parts of India and other parts of world due to pandemic covid-19, or similar unforeseen events.\r\nThe company is exposed to the risk of delays or non-payment by its clients and other counterparties, which may also result in cash flow mismatches.\r\nThe company is subject to the risk of failure of, or a material weakness in, its internal control systems.\r\nThe company insurance coverage may not be adequate to protect us against all potential losses to which its may be subject and this may have a material effect on the company business and financial condition.\r\nThe company Promoters and Executive Directors hold Equity Shares in the Company and are therefore interested in the Company's performance in addition to their remuneration and reimbursement of expenses.\r\nThe company Promoters / Directors / Key Managerial Personnel(s) have given personal guarantees and properties in relation to certain debt facilities provided to the Company by its lender. In event of default on the debt obligations, the personal

guarantees may be invoked thereby adversely affecting the Promoters/ Directors / Key Managerial Personnel(s) ability to manage the affairs of the Company and consequently this may impact its business, prospects, financial condition and results of operations.\r\nThe company has significant ongoing funding requirements and may not be able to raise additional capital in the future. As a result, its may not be able to respond to business opportunities, challenges or unforeseen circumstances.\r\nThe company's business operations may be disrupted by an interruption in power supply which may impact its business operations.\r\nThe company could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect its financial condition, results of operations and reputation.\r\nThe company depends on third parties for a major portion of the transportation needs. Any disruptions may affect its operations, business and financial condition.\r\nThe capacity of the company current plant units is not fully utilized. Consecutively, if there is also any under utilization of its capacities in next three years, it could affect the company ability to fully absorb fixed costs and thus may adversely impact its financial performance.\r\nThe company's business is substantially affected by prevailing economic, political and other prevailing conditions in India.\r\nUse of Plastic may be prohibited by Concerned Government being combustible, Hazardous commodity which may cause several health concerns.\r\nThe present promoters of the Company are first generation entrepreneurs.\r\nThe future operating results are difficult to predict and may fluctuate or adversely vary from the past performance.\r\nAny failure to retain and attract skilled and professional employees, could have a material adverse effect on its business, financial condition and results of operations.\r\nThe company has not independently verified certain data in this Draft Prospectus.\r\nInformation relating to the production capacities and the historical capacity utilization of the company production facilities included in this Draft Prospectus is based on factual data and future production and capacity utilization may vary.\r\nThe company is susceptible to risks relating to unionization of its employees employed by it.\r\nAny Penalty or demand raise by statutory authorities in future will affect the financial position of the Company.\r\nThe company has not identified any alternate source of raising the working capital mentioned as its 'Objects of the Issue'. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.\r\nThe Company's management will have flexibility in utilizing the Net Proceeds from the Issue. The deployment of the Net Proceeds from the Issue is not subject to any monitoring by any independent agency.\r\nThe company funds requirements are based on internal management estimates, wherever possible, and have not been appraised by any bank or financial institution. Any increase in the actual deployment of funds may cause an additional burden on its finance plans. The company has not entered into definitive agreements to utilize of the Issue proceeds.\r\nAny variation in the utilization of the Net Proceeds as disclosed in this Draft Prospectus shall be subject to certain compliance requirements, including prior approval of the shareholders of the Company.\r\nPortion of the company Issue Proceeds are proposed to be utilized for general corporate purposes which constitute [0] of the Issue Proceed. As on date we have not identified the use of such funds.\r\nThe company has in the last 12 months issued Equity Shares at a price that may be at lower than the Issue Price.\r\nThe average cost of acquisition of Equity Shares by the company Promoters could be lower than the Issue Price.\r\nThe company has not paid any dividends in the last five Financial Years. Its ability to pay dividends in the future will depend upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.\r\nThe company will continue to be controlled by its Promoters and Promoter Group after the completion of the Issue, which will allow them to influence the outcome of matters submitted for approval of the shareholders.\r\nThe company Equity Shares have never been publicly traded and may experience price and volume fluctuations following the completion of the Issue, an active trading market for the Equity Shares may not develop, the price of the Equity Shares may be volatile and you may be unable to resell your Equity Shares at or above the Issue Price or at all.\r\nRights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.\r\nThe Issue Price of the company Equity Shares may not be indicative of the market price of its Equity Shares after the Issue and the market price of the Equity Shares may decline below the Issue Price and you may not be able to sell your Equity Shares at or above the Issue Price.\r\nA third party could be prevented from acquiring control of the Company because of anti-takeover provisions under Indian law.\r\nThe requirements of being a listed company may strain its resources and distract management.\r\nThe company may require further equity issuance, which will lead to dilution of equity and may affect the market price of the company Equity Shares or additional funds through incurring debt to satisfy of the capital needs, which its may not be able to procure and any future equity offerings by it.