Here are some strengths of Global Surfaces Limited:
Has shown consistent growth and has grown from a single to multiple category stone manufacturing unit.
Has a wide product portfolio and offers multiple designs. This helps them meet the trends and changing demands of customers.
Established presence in international markets, including USA, Canada, Middle East, and Australia.
Has developed quality control processes that help them minimise losses.
In-house R&D facility that helps in new product development.
Aims at increasing its global footprint and augmenting growth in present geographies.
The company is setting up a strategically located manufacturing facility in Dubai, UAE.
Invested in the latest technology and focuses on plant automation to deliver high quality products.
Here are some risk factors associated with Global Surfaces Limited:
The business is dependent on a few customers for a majority of their revenue. Moreover, it does not enter into long term arrangements with customers and any loss in the existing customers can impact revenues significantly.
The company does not have long term arrangements with suppliers and an inability to procure the desired raw material on time can have an adverse effect on the company’s business operations and cash flows.
The company’s revenue is majorly derived from exports to the US. Any changes or instability in the US market or any restrained political relations between India and USA can adversely impact the company financials.
The business is capital-intensive. Insufficient cash flows or inability to borrow funds to meet working capital requirements can significantly impact business operations.
A delay in setting up the Proposed Facility or cost overruns regarding the same can have a material adverse impact on the business operations, growth prospects, and financial condition of the company.
The company’s office premises and units are located on leasehold bases. If the agreements are terminated or not renewed, it can materially impact the business.
The company is in the process of expanding to regions where they don’t have a significant presence or prior experience. Failure to expand to these regions can affect the sales and cash flows of the company.
In the past, the company has entered into related party transactions and may do so in the future as well. This can potentially have conflicts of interest with equity shareholders.
The company has borrowed funds from commercial banks. An inability to make repayment can adversely affect business results and financial performance.
Through a wholly owned subsidiary, the company is setting up a Proposed Facility for manufacturing in Dubai. Such a facility may not be profitable or justify the investment, adversely impacting growth, operations, and finances.
The company, along with its promoters and directors, is party to certain legal proceedings. An unfavourable outcome in such proceedings can adversely impact the company’s reputation, operations, and cash flows.