Amic Forging IPO

Experienced Promoters and Management Team.\r\nScalable Business Model.\r\nLarge & Diverse Product Portfolio.\r\nAdvanced Manufacturing Processes.\r\nWell Developed Distribution Network.\r\nStrong Sales, Marketing and Distribution Capabilities.\r\nAdherence to quality standards.

There are outstanding legal proceedings involving the Company, Promoters and Directors. Any adverse decision in such proceeding may have a material adverse effect on its business, results of operations and financial condition.\r\nThe Company has negligible presence in export markets and hence prone to adversity in domestic market.\r\nFailure to obtain or maintain pre-qualifications from customers or loss of the company re-qualified status from its existing customers could adversely impact of the business.\r\nAny significant decline in the demand for the company products or introduction of alternative technology or consumer habits may adversely affect its profitability and business prospects.\r\nVolatility in the supply and pricing of raw material like alloy steel, low carbon and medium carbon steel may have an adverse effect on the company business, financial condition and results of operations. Its do not generally enter into agreements with the company raw material or traded goods suppliers. Any disruption in supplies from them may adversely affect of the production process.\r\nThe company business is capital intensive. If its experience insufficient cash flows to meet required payments on the company debt and working capital requirements, there may be an adverse effect on its operations.\r\nThe company has not Complied with the Accounting Standard 23 while preparing the financial statements.\r\nThe Company's failure to maintain the quality standards of the products could adversely impact its business, results of operations and financial condition.\r\nThe company operate in a highly competitive industry, which could limit our ability to grow.\r\nThe Company is dependent on third party logistics service providers, with whom its have no formal arrangements, for the delivery of the company finished goods and any disruption in their operations or a decrease in the quality of their services or an increase in the transportation costs could adversely affect the Company's reputation and results of operations.\r\nThe shortage or non-availability of power facilities may adversely affect the company manufacturing process and have an adverse impact on its results of operations and financial condition.\r\nThe industry in which the company operate is 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 manufacturing operations are critical to the company business and any shutdown of its manufacturing facilities may have an adverse effect on the business, results of operations and financial condition.\r\nIts ability to remain competitive may be adversely affected by rapid technological changes and its ability to access such technology.\r\nFailure to manage the company inventory could have an adverse effect on its net sales, profitability, cash flow and liquidity.\r\nOrders placed by customers may be delayed, modified, cancelled or not fully paid for by the company customers, which may have an adverse effect on its business, financial condition and results of operations.\r\nActivities involving the company manufacturing process can be dangerous and can cause injury to people or property in certain circumstances.\r\nThe company's business involves usage of manpower and any unavailability of its employees or shortage of contract labour or any strikes, work stoppages, increased wage demands by workmen or changes in regulations governing contractual labour may have an adverse impact on the company cash flows and results of operations.\r\nThe company could become liable to customers, suffer adverse publicity and incur substantial costs as a result of defects in its products, which in turn could adversely affect the value of the company brand, and its sales could be diminished if the company are associated with negative publicity.\r\nThe 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, and the failure to obtain, retain and renew such approvals and licences or comply with such rules and regulations, and the failure to obtain or retain them in a timely manner or at all may adversely affect the company operations.\r\nHeavy dependence on the company Promoters for the continued success of its business through his continuing services, strategic guidance and support.\r\nThe Company does not have any long-term agreements with their clients and is subject to uncertainties in demand for its services.\r\nThere are certain discrepancies / errors noticed in some of the company corporate records relating to forms filed with the Registrar of Companies and other provisions of Companies Act, 1956 / 2013. Any penalty or action taken by any regulatory authorizes in future for non-compliance with provisions of corporate and other law could impact the financial position of the Company to that extent.\r\nThe company requires several approvals, NOCs, licenses, registrations and permits in the ordinary course of its business. Some of the approvals are required to be transferred in the name of "Amic Forging Limited" from "Amic Forging Private Limited" pursuant to name change of the company and any failure or delay in obtaining the same in a timely manner may adversely affect its operations.\r\nThe company face significant risk with regard to length of time needed to complete each project and there could be unscheduled delays and cost overruns in relation to its ongoing and future projects.\r\nSignificant security breaches in the company computer systems and network infrastructure and fraud could adversely impact its business.\r\nThe average cost of acquisition of Equity Shares by the Promoters, may be less than the Issue Price.\r\nThe company's success depends in large part upon its qualified personnel, including the senior management, directors and key personnel and the company ability to attract and retain them when necessary.\r\nThe company continue to explore the diversification of its business and the implementation of new services. These diversifications and its other strategic initiatives may not be successful, which may adversely affect the company business and results of operations.\r\nThe company will continue to be controlled by its Promoters and certain related entities after the completion of the Issue.\r\nThe company is dependent on third party vendors for delivery of materials required to it from its suppliers and delivery of the products to the clients. Any failure on part of such vendors to meet their obligations could have a material

adverse effect on the company business, financial condition and results of operation.\r\nThe company's business may be affected by severe weather conditions and other natural disasters.\r\nThe company funding requirements and the deployment of Net Proceeds are based on management estimates and have not been independently appraised.\r\nBrand recognition is important to the success of the company business, and its inability to build and maintain the company brand names will harm of the business, financial condition and results of operation.\r\nGeneral economic and market conditions in India and globally could have a material adverse effect on the company business, financial condition, cash flows, results of operations and prospects.\r\nMajor fraud, lapses of internal control or system failures could adversely impact the company's business.\r\nThe company continue to explore the diversification of its business and the implementation of new products. These diversifications and the company other strategic initiatives may not be successful, which may adversely affect its business and results of operations.\r\nIts inability to manage growth could disrupt its business and reduce of the profitability. The company propose to expand its business activities in coming financial years.\r\nThe Company has a negative cash flow in its operating activities in the year 2023 and in its investing activities in the year 2023, 2022 and 2021 details of which are given below. Sustained negative cash flow could impact its growth and business.\r\nThe company has entered into related party transactions in the past and may continue to do so in the future.\r\nIf the company is unable to source business opportunities effectively, its may not achieve the company financial objectives.\r\nThe nature of the company business exposes it to liability claims and contract disputes and its indemnities may not adequately protect it. Any liability in excess of the company reserves or indemnities could result in additional costs, which would reduce its profits.\r\nEmployee fraud or misconduct could harm it by impairing the company ability to attract and retain clients and subject it to significant legal liability and reputational harm.\r\nThe company operations may be adversely affected in case of industrial accidents at its working sites.\r\nThe company operating expenses include overheads that may remain fixed in the medium term. In case there is any decline in its operating performance, the company may be unable to reduce such expenses.\r\nDelays or defaults in payments from the company clients could result into a constraint on its cash flows. The efficiency and growth of the company business depends on timely payments received from the clients.\r\nThe company insurance coverage may not adequately protect it against losses, and successful claims against it that exceed its insurance coverage could harm the company results of operations and diminish of the financial position.\r\nThere are no alternate arrangements for meeting the company requirements for the Objects of the Issue. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.\r\nThe company actual results could differ from the estimates and projections used to prepare its financial statements.\r\nGuarantees from Promoters & Directors as well as others have been taken in relation to the debt facilities provided to it.\r\nThe company ability to pay dividends in the future will depends upon its future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in the company financing arrangements.\r\nAny future acquisitions, joint ventures, partnerships, strategic alliances, tie-ups or investments could fail to achieve expected synergies and may disrupt the company business and harm the results of operations and its financial

condition.\r\nThe company future funds requirements, in the form of fresh issue of capital or securities and/or loans taken by it, may be prejudicial to the interest of the shareholders depending upon the terms on which they are eventually raised.\r\nSome of the KMPs is associated with the company for less than one year.\r\nThere is no guarantee that the company Equity Shares will be listed on the Stock Exchanges in a timely manner or at all.\r\nThe deployment of funds raised through this Issue shall not be subject to any Monitoring Agency and shall be purely dependent on the discretion of the management of the Company.\r\nNegative publicity could adversely affect the company revenue model and profitability.\r\nForging Industry information included in this Draft Red Herring Prospectus has been derived from industry reports commissioned by it for such purpose. There can be no assurance that such third-party statistical, financial and other industry information is either complete or accurate.\r\nThe requirements of being a public listed company may strain our resources and impose additional requirements.\r\nThere are restrictions on daily/weekly/monthly movements in the price of the Equity Shares, which may adversely affect a shareholders' ability to sell, or the price at which it can sell, Equity Shares at a particular point in time.\r\nAfter this Issue, the price of the Equity Shares may be highly volatile, or an active trading market for the Equity Shares may not develop.\r\nYou will not be able to sell immediately on Stock Exchange any of the Equity Shares you purchase in the Issue until the Issue receives appropriate trading permissions.\r\nThe Issue price of the company Equity Shares may not be indicative of the market price of its Equity shares after the issue.\r\nSale of Equity Shares by the company Promoters or other significant shareholder(s) may adversely affect the Trading price of the Equity Shares.