Vedant Poly Fabs IPO

Risk: Orders are received verbally from customers without formal written purchase orders, which may cause order discrepancies and customer dissatisfaction.

Risk: Dependence on a limited number of key customers, with top ten customers contributing a large share of sales.

Risk: Significant working capital requirements, with working capital increasing continuously over the periods presented.

Risk: Revenue is concentrated in Eastern India, mainly West Bengal, and loss of business in these states may affect revenues and profitability.

Risk: Fluctuations in prices of major raw materials such as LDPE Plastic Granules, Metallocene Plastic Granules and Polyester Film.

Risk: Commenced manufacturing operations before obtaining statutory registration under the West Bengal Shops and Establishments Rules, which may expose the company to regulatory action and penalties.

Risk: Trade receivables and inventories form a significant part of current assets, and failure to manage them could affect cash flow and liquidity.

Risk: Negative operating and investing cash flows in recent periods, which may necessitate external financing or dilution.