Tejas Cargo India Ltd IPO

There are outstanding legal proceedings against the Company, Promoter, and one of its Director. Any adverse decision in such proceedings may render it/them liable to liabilities/penalties and may adversely affect its business, results of operations and financial condition.

Its business is dependent on the network of roads and the company ability to utilize its vehicles in an uninterrupted manner. Any disruptions which affect its ability to utilize the company transportation network in an uninterrupted manner could result in delays, additional costs or a loss of reputation or profitability.

The Company operates without any truck drivers on its payroll and outsources drivers on an adhoc basis. The company inability to source skilled and experienced drivers may adversely impact its business, results of operations and financial results.

The company depends significantly on its customers from different industries and are highly dependent on the performance of their industry. A loss of, or a significant decrease in their business could adversely affect the company business and profitability.

There have been instances of discrepancies/ errors/delayed filings and statutory non compliances in the past. The company may be subject to legal proceedings or regulatory actions by statutory authorities and its business, financial condition and reputation may be adversely affected.

Brand recognition is important to the success of its business, and the company inability to build and maintain its brand names will harm the company business, financial condition and results of operation.

The company requires a number of approvals, licenses, registrations and permits in the ordinary course of its business. Some of the approvals are required to be transferred in the name of Tejas Cargo India Limited from Tejas Cargo India Private Limited pursuant to name change of the Company and any failures or delay in obtaining the same in a timely manner may adversely affect its operations.

The Company is yet to apply for Professional Tax Registration for some branch offices. Failures to obtain such registrations may adversely impact its business, financial conditions, results of operations, and cash flows.

As of September 30, 2024, its debt-to-equity ratio is significantly high at 3.27. We have availed a substantial debt amounting to Rs. 20,498.63 lakhs, primarily for investments in fixed assets such as commercial vehicles. Any inability to service this debt or adhere to the covenants stipulated in its financing agreements could materially and adversely impact the company business operations, financial condition, and overall performance".

The company business is dependent on technology which is outsourced by the Company and any disruptions of or failures to update such technology or automation could have an adverse effect on its results and operations.