Deepak IPO

Wide range of products with ability to customize.\r\nLong standing relationships with diversified customers across geographies.\r\nIn-house manufacturing facility with equipped machines and processes.\r\nFocus on Quality, Environment, Health and Safety.\r\nStable and consistent financial performance.\r\nExperienced Promoters and Senior Management with extensive domain knowledge.

The company's business is dependent and will continue to depends on its manufacturing facilities, and the company is subject to certain risks in its manufacturing process. Any slowdown or shutdown in its manufacturing operations or strikes, work stoppages or increased wage demands by its employees that could interfere with the company operations could have an adverse effect on its business, financial condition and results of operations.\r\nThe company derives a significant part of its revenue from 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 it, its business, financial position and results of operations may be adversely affected.\r\nIts reliance on certain industries for a significant portion of its sales could have an adverse effect on the company's business.\r\nThe company derives a majority portion of its revenues from exports and are subject to risk of international trade.\r\nExchange rate fluctuations may adversely affect its results of operations as its sales from exports and a portion of its expenditures are denominated in foreign currencies.\r\nThe company is subject to strict quality requirements, regular inspections and audits, and the success and wide acceptability of its products is largely dependent upon its quality controls and standards. Any failure to comply with quality standards may adversely affect its business prospects and financial performance, including cancellation of existing and future orders.\r\nInventories and trade receivables form a major part of its current assets. Failure to manage the company inventory and trade receivables could have an adverse effect on its sales, profitability, cash flow and liquidity.\r\nThe company is subject to increasingly stringent environmental, health and safety laws, regulations and standards. Noncompliance with and adverse changes in health, safety, labour, and environmental laws and other similar regulations to its manufacturing operations may adversely affect its business, results of operations and financial condition.\r\nAny adverse changes in regulations governing its business, products and the products of the company customers, may adversely impact its business, prospects and results of operations.\r\nThere are certain discrepancies/errors noticed in some of its corporate records relating to forms filed with the Registrar of Companies and other provisions of Companies Act, 1956/2013. Some of its corporate records are not traceable. Any penalty or action taken by any regulatory authorities in future, for non-compliance with provisions of corporate and other law could impact the reputation and financial position of the Company to that extent.\r\nThe company does not have long-term agreements with suppliers for its raw materials and an increase in the cost of, or a shortfall in the availability or quality of such raw materials could have an adverse effect on its business, financial condition and results of operations.\r\nThe company face competition from both domestic as well as multinational corporations and its inability to compete effectively may have a material adverse impact on its business, financial condition and results of operations.\r\nIts manufacturing facility is located in Ratnagiri District in Maharashtra exposing it to regulatory and other geography specific risks such as labour unrests, terrorist attacks, other acts of violence and occurrence of natural and man-made disasters.\r\nThe logo used by the Company is not registered under the Trade Marks Act, 1999. Failure to protect its intellectual property rights may adversely affect its competitive business position, financial condition and profitability.\r\nThe company is dependent on its promoter and senior management and other key personnel, and the loss of, or its inability to attract or retain, such persons could affect its business, results of operations, financial condition and cash flows.\r\nThe Company and promoters are involved in certain legal proceedings and potential litigations. Any adverse decision in such proceedings may render it/ them liable to liabilities/ penalties/ prosecutions and may adversely affect its business and results of operations.\r\nThe improper handling, processing or storage of its raw materials or products, or spoilage of and damage to such raw materials and products, or any real or perceived contamination in its products, could subject it to regulatory action, damage its reputation and have an adverse effect on its business, results of operations and financial condition.\r\nThe Company operates under several statutory and regulatory approvals in respect of its operations. Failure to obtain or maintain licenses, registrations, permits and approvals may affect its business and results of operations.\r\nIf the company is unable to manage its growth effectively and further expand into new markets its business, future financial performance and results of operations could be materially and adversely affected.\r\nIts contingent liabilities as stated in its Restated Financial Statements could affect the company financial condition.\r\nIf its fail to identify and effectively respond to changing consumer tastes and preferences and spending patterns in a timely manner, the demand for its products could decrease, causing its business, results of operations, financial condition and cash flows to be adversely affected.\r\nThe cost of implementing new technologies for its operations could be significant and could adversely affect its business, financial condition and results of operations.\r\nIts insurance coverage may not be adequate to protect it against all potential losses to which its may be subject and this may have a material effect on its business and financial condition.\r\nThe company is dependent on third party transportation providers for the delivery of its raw material and products. Accordingly, continuing increases in transportation costs or unavailability of transportation services may have an adverse effect on its business, financial condition, results of operations and prospects.\r\nThe company has significant working capital requirements. If its experience insufficient cash flows from its operations or are unable to borrow to meet the company working capital requirements, it may materially and adversely affect its business, cash flows and results of operations.\r\nActivities involving its manufacturing process can cause injury to people or property in certain circumstances. A significant disruption at any of its manufacturing facilities may adversely affect the company production schedules, costs, sales and ability to meet customer demand.\r\nIts corporate office is on rented premises.\r\nThe markets in which the company compete are characterized by consumers and their rapidly changing tastes and preferences and therefore as a result the Company may be affected by any disruptions in the industry.\r\nThe company has in the past entered into related party transactions and may continue to do so in the future. There can be no assurance that such transactions, individually or in the aggregate, will not have an adverse effect on the Company's financial condition and results of operations.\r\nSome of its Promoter Group Entities are engaged in similar line of business. Any conflict of interest in future may occur between its promoter group entities and it may adversely affect its business, prospects, results of operations and financial condition.\r\nThe Company has taken unsecured loans that may be recalled by the lenders at any time.\r\nRelevant copy of educational qualifications of some of its Directors is not traceable.\r\nUnder-utilization of its manufacturing capacities may have an adverse effect on its business, future prospects and future financial performance. Moreover, information relating to capacity utilization of its production facility included in this Draft Red Herring Prospectus is based on certain assumptions and has been subjected to rounding off, and future production and capacity utilization may vary.\r\nThe Objects of the Issue for which funds are being raised, are based on its management estimates and have not been appraised by any bank or financial institution or any independent agency.\r\nAny variation in the utilization of the Net Proceeds as disclosed in this Draft Red Herring Prospectus shall be subject to certain compliance requirements, including prior approval of the shareholders of the Company.\r\nIndustry information included in this Draft Red Herring Prospectus has been derived from industry sources. There can be no assurance that such third-party statistical, financial and other industry information is complete, reliable or accurate.\r\nIts 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 has not identified any alternate source of funding and hence any failure or delay on its part to mobilize the required resources or any shortfall in the Issue proceeds may delay the implementation schedule.\r\nAny Penalty or demand raised by statutory authorities in future will affect financial position of the Company.\r\nIts ability to pay any dividends will depends upon future earnings, financial condition, cash flows and working capital requirements.\r\nThere is no monitoring agency appointed by the Company to monitor the utilization of the Issue proceeds.\r\nTechnology failures or Cyber-attacks or other security breaches could have a material adverse effect on its business, results of operation or financial condition.\r\nThe average cost of acquisition of Equity Shares by its Promoters is lower than the face value of Equity Share.\r\nIts Promoters and the Promoter Group will jointly continue to retain majority shareholding in the Company after the issue, which will allow them to determine the outcome of the matters requiring the approval of shareholders.\r\nIts may requires further equity issuance, which will lead to dilution of equity and may affect the market price of its Equity Shares or additional funds through incurring debt to satisfy its capital needs, which the company may not be able to procure and any future equity offerings by it.\r\nThe Issue price of its Equity Shares may not be indicative of the market price of the company Equity Shares after the Issue and the market price of its 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\nCertain data mentioned in this Draft Red Herring Prospectus has not been independently verified.\r\nQIBs and Non-Institutional Bidders are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid and Retail Individual Investors are not permitted to withdraw their Bids after Bid/Issue Closing Date.