Jainik Power Cables Ltd

Risks

• The Company, only has one year of prior experience in manufacturing of aluminium goods which could adversely affect the results of operations and financial condition of the Company.

• The company does not have firm commitments, or long-term agreements with its customers. If the company customers choose not to source their requirements from it or manufacture such products in-house, its business and results of operations may be adversely affected.

• Its business is dependent on effective inventory management and demand forecasting. Any inability to accurately predict demand and manage inventory levels may adversely affect its business, financial condition, results of operations, and cash flows.

• Volatility in the supply and pricing of its raw materials may have an adverse effect on its business, financial condition and results of operations. The company raw material suppliers could fails to meet their obligations, which may have a material adverse effect on its business, results of operations and financial condition.

• Its lack of prior experience in manufacturing may have a material adverse effect on the company business, operations, and financial performance.

• The company relies on third-party transportation providers for procurement of raw materials and for supply of its products and failures by any of its transportation providers could result in loss in sales.

• The company faces competition in its product line, including from competitors that may have greater financial and marketing resources. Failures to compete effectively may have an adverse impact on its business, financial condition, results of operations and cash flows.

• The Company is dependent on few suppliers for purchase. Loss of any of these large suppliers may affect its business operations.

• The company has working capital requirements and may requires additional financing to meet those requirements, which could have an adverse effect on its business, results of operations and financial condition.

• The Company is dependent on few numbers of customers for sales. The loss of any of this large customer may affect its revenues and profitability.

• Its may not be able to maintain our current levels of profitability due to increased costs or reduced trading spreads or margins.

• The geographical concentration of its manufacturing facilities may restrict the company operations and adversely affect its business, results of operations and financial conditions.

• Its continued operations are critical to the company business and any disruption to power or fuel sources or any shutdown of its manufacturing facilities may have an adverse effect on its business, results of operations, financial condition and cash flows.

• The Company, Promoters, and Directors are not involved in certain legal and regulatory proceedings. Any legal matter which may arise in future may have a material adverse effect on its business, financial condition, cash flows and results of operations.

• The Company is yet to place orders for the machinery for the expansion of the proposed business operation. Any delay in placing orders of such machinery may delay the schedule of implementation and possibly increase the cost of commencing operations.

• The directors of the company don`t have the experience of the listed company and the requirements of being a listed company may strain its resources.

• The Company has experienced delays in paying statutory dues, which could result in penalties by the concerned authorities.

• Our Company has experienced delays in paying statutory dues, which could result in penalties by the concerned authorities.

• The company does not own the premises on which the registered office of the Company are situated and are on lease arrangement any termination of such lease/license and/or non-renewal thereof and attachment by Property Owner could adversely affect its operations.

• We do not own the premises on which the registered office of our Company are situated and are on lease arrangement any termination of such lease/license and/or non-renewal thereof and attachment by Property Owner could adversely affect our operations.

• The Company has entered certain related party transactions and may continue to do so in the future.

• The company has a large work force and its employee benefits expense is one of the components of its fixed operating costs. An increase in employee benefits expense could reduce its profitability. Further, the company operations could be adversely affected by work stoppages, shortage of labour, or increased wage demands by its employees or any other kind of disputes with its employees.

• The Company has obtained insurance coverage which may not adequately cover all potential losses to which its may be subject to, and this may have a material adverse effect on its business, result of operations and financial conditions.

• The company has issued equity shares pursuant to a bonus issue prior to the Issue, and the company will be eligible to issue equity shares pursuant to a bonus issue only when the company has sufficient reserves.

• Its manufacturing process is dependent on Quality inspection and supervision. Any inability to successfully inspect or procure prescribed quality product will adversely affect its business.

• The objects of the issue have not been appraised by any bank or financial institution. Its funding requirements and proposed deployment of the net proceeds are based on management estimates and may be subject to change based on various factors, some of which are beyond its control. Any variation in the utilization of the net proceeds or in the terms of the conditions as disclosed in this Red Herring Prospectus would be subject to certain compliance requirements, including prior shareholders` approval.

• Its Logo "JAINK POWER & CABLES LTD" is not registered. In case of no registration its brand building efforts may be hampered which might lead to an adverse effect to its business.

• Few entities forming part of the company`s promoter group were not desirous of being named as such in the draft offer document/ offer document filed by the company.

• Under-utilization of its manufacturing capacities and an inability to effectively utilize its expanded manufacturing capacities could have an adverse effect on its business, future prospects and future financial performance.

• Under-utilization of our manufacturing capacities and an inability to effectively utilize our expanded manufacturing capacities could have an adverse effect on our business, future prospects and future financial performance.

• The Company has negative cash flows from its investing activities as well as financing activities in the current and past years, details of which are given below. Sustained negative cash flow could impact its growth and business.

• The company has incurred substantial indebtedness which exposes it to various risks which may have an adverse effect on its business and results of operations.

• The company has not independently verified certain data in this Red Herring Prospectus.

• The requirements of being a listed company may strain its resources.

• Its ability to pay dividends in the future will depends upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.

• The company faces foreign exchange risks that could adversely affect its results of operations and cash flows.

• The Equity Shares have never been publicly traded, and, after the issue, the equity shares may experience price and volume fluctuations, and an active trading market for the equity shares may not develop. Further, the price of the equity shares may be volatile, and you may be unable to resell the equity shares at or above the issue price, or at all.

• The company requires a number of approvals, NOCs, licences, registrations and permits in the ordinary course of its business. Some of the company approvals are required to be transferred in the name of "Jainik Power Cables Limited" from "Jainik Power and Cables Private Limited" pursuant to conversion of the company and failures or delay in obtaining the same in a timely manner may adversely affect its operations.

• The trading volume and market price of the equity shares may be volatile following the issue.

• Rights of shareholders of companies under Indian law may be more limited than under the laws of other jurisdictions.

• Holders of Equity Shares may be restricted in their ability to exercise pre-emptive rights under Indian law and thereby may suffer future dilution of their ownership position.

• Delay in raising funds from the IPO could adversely impact the growth rate.

• Changing laws, rules and regulations and legal uncertainties in India and other countries may adversely affect our business and financial performance.

• Financial instability in other countries may cause increased volatility in Indian and other financial markets.

• If the company fails to maintain an effective system of internal controls, its may not be able to successfully manage or accurately report its financial risk.

• The deployment of funds raised through this Issue shall be monitored by Infomerics Valuation and Rating Private Limited, which has been voluntarily appointed as the Monitoring Agency by the Company.

• There are restrictions on daily weekly monthly movement in the price of the equity shares, which may adversely affect the shareholder`s ability to sell for the price at which it can sell, equity shares at a particular point in time.

• Sale of Equity Shares by its Promoters or other significant shareholder(s) or any future issue of Equity Shares may dilute your shareholding and adversely affect the trading price of the Equity Shares.

• The prices the company is able to obtain for its products that the company trade depend largely on prevailing market prices.

• The company could be exposed to risks arising from misconduct, fraud and trading errors by its employees and Business Associates.

• Failures to procure inventory could have an adverse effect on its net sales, profitability and cash flow.

• Delays or defaults in customer payments could result in a reduction of its profits and cash flows.

• The company cannot assure you that its equity shares will be listed on the NSE Emerge in a timely manner or at all, which may restrict your ability to dispose of the equity shares.