Indifra Limited operates from a leased registered office, which poses a risk of instability. Should they need to relocate, it could disrupt operations and potentially increase costs, adversely affecting the business and financial condition.
The company’s electrical appliance distribution operates on a high volume-low margin basis. This model necessitates consistently high turnover to sustain profitability, making the business vulnerable to market fluctuations and operational inefficiencies.
A significant portion of Indifra’s revenue comes from a limited number of clients. Loss of any major client or a decline in business from these clients could severely impact revenues and operations.
The business requires significant working capital, with reliance on additional borrowings. Fluctuations in working capital needs, due to delayed customer payments or business growth, could strain financial resources.
The company has experienced negative cash flow from operating activities in recent fiscal years. Persistent negative cash flow could adversely impact business growth and financial stability.
Past instances of erroneous statutory filings under the Companies Act, 2013, indicate potential weaknesses in internal controls and compliance, which could lead to financial and legal repercussions.
Delays in filing GST returns and depositing statutory dues have led to late fees and interests. Continued practices of this nature could negatively impact cash flows and invite regulatory actions.
Ongoing litigation matters could result in adverse outcomes, affecting Indifra’s business, reputation, and financial operations. Legal proceedings also carry the risk of unanticipated liabilities.
The business relies on a master distributor agreement with V-guard Industries Limited for electrical appliances distribution. Non-renewal or termination of this agreement could adversely impact operations.
A significant revenue portion from gas pipeline management operations comes from a single customer, CGSML. Loss of this customer could critically affect revenues and profitability.
Reliance on third-party industry reports for prospectus information, without independent verification, raises concerns about the accuracy and completeness of data presented.
Unappraised Business Objectives: The company’s business objectives, including the use of issue proceeds, have not been appraised by any financial institution, adding uncertainty to project cost estimates and operational sustainability.