OBSC Perfection Ltd IPO

Its business largely depends upon the company's top 10 customers which contributed 70.10%, 64.66% and 66.34% in the Fiscal 2024, 2023 and 2022. The loss of any of these customers could have a material adverse effect on its business, financial condition, results of operations and cash flows.

Its business is dependent on the performance of the automotive industry. Economic cyclicality coupled with reduced demand in these other industries, in India or globally, could adversely affect its business, results of operations and financial condition.

The Company is dependent on a domestic market for its sales and any downturn in it could reduce the company sales.

Its business and profitability are substantially dependent on the availability and cost of its raw materials and any disruption to the timely and adequate supply or volatility in the prices of raw materials may adversely impact its business, results of operations, cash flows and financial condition.

The company does not have long-term agreements with its suppliers for raw materials and an inability to procure the desired quality, quantity of its raw materials in a timely manner and at reasonable costs, or at all, may have a negative impact on its business, results of operations, financial condition and cash flows.

Its three manufacturing facilities are located in Pune, Maharashtra and Thiruvallur, Tamilnadu which exposes its operations to potential risks arising from local and regional factors such as adverse social and political events, weather conditions and natural disasters.

A significant portion of its domestic sales are derived from the West zone and South zone, any adverse developments in this market could adversely affect its business.

Its may faces several risks associated with the proposed expansion of its manufacturing units, which could hamper the company growth, prospects, cash flow its business and financial condition.

Its Restated Financial Statements are Prepared and Signed by the Peer Review Auditors who is not Statutory Auditors of the Company as required under the provisions of ICDR.

The company has significant working capital requirements for its smooth day to day operations of business and discontinuance or its inability to acquire adequate working capital timely and on favorable terms may have an adverse effect on its operations, profitability and growth prospects.