What companies tell SEBI before an IPO

Large related-party dealings. Related-party transactions are 795.8% of revenue.

Risk factor. The Company derives most of its revenues from renting furniture and appliances (97.90%, 98.20% and 98.19% of revenue from operations for Fiscals 2026, 2025 and 2024, respectively). Consequently, any decline in the demand for renting such products may adversely affect the business, results of operati

Risk factor. The Company has acquired the variable data printing and secure logistics division (VDP) business of Manipal Technologies Limited (MTL) and the smart tagging and internet of things solutions business of MTL. The Company may pursue other strategic acquisitions for inorganic growth. The Company may not

Risk factor. Our inability to collect receivables outstanding and due to be paid by our customers, in a timely manner, or at all, may adversely affect our business, financial condition, results of operations and cash flows.

Risk factor. Our business is substantially dependent on the India Expo Centre and Mart, our sole large-format exhibition venue, which is operated on a leasehold basis. Any disruption to its operations, including structural damage, fire, flooding, power failure, regulatory enforcement action, lockdown, civil dist

Risk factor. The majority of our manufacturing facilities are located in Maharashtra, India, accounting for 90.84%, 98.61% and 99.18% of total revenue from operations in Fiscals 2026, 2025 and 2024, respectively, exposing operations to potential risks arising from local and regional factors.

Mostly an exit. 84% of the offer is an Offer for Sale, so most proceeds go to selling shareholders, not the company.

Risk factor. A significant portion of revenue (83.43% in Fiscal 2026) is derived from the Transformer Manufacturing Business, which is dependent on the power transmission, railways, and renewable energy sectors.

Risk factor. The Company's business is highly dependent on a limited number of key clients, with top 10 clients contributing 86.40%, 78.13% and 88.56% of revenue from operations in Fiscals 2026, 2025 and 2024, respectively. The loss of one or more of these clients could have an adverse effect on the business pro

Risk factor. Our revenue and profits are largely dependent on the value and composition of our AUM, and any adverse change in our AUM may impact our revenue and profit.

Risk factor. The success of our business is closely tied to the strength and reputation of our flagship brand, 'Kataria Jewellers', and the legacy of the Kataria family in central India. Any inability to maintain or enhance this brand, or any reputational damage to the brand, name or logo, could have an adverse

Risk factor. Our business is highly concentrated in the MCGM Region, which accounted for 99.70%, 99.69% and 99.50% of revenue from operations for Fiscal 2026, Fiscal 2025 and Fiscal 2024 respectively, exposing us to varying market conditions, regulatory changes, and natural disasters in this specific area.

Risk factor. A substantial portion of revenue (64.51%, 65.78%, 67.15% in Fiscals 2026, 2025, 2024) is derived from CRO solutions, making the business dependent on the continued outsourcing of R&D by innovator pharmaceutical and biotechnology companies.

Risk factor. A significant portion of revenue is derived from a small number of key offtakers, with the top 10 offtakers contributing 75.10%, 76.57% and 82.61% of gross revenue from power generation (billed) for Fiscals 2026, 2025 and 2024, respectively.

Risk factor. Our business is entirely concentrated in the state of Kerala, and our performance is therefore highly dependent on residential real estate market conditions, regulatory developments, economic factors and climatic events in Kerala, any of which could adversely affect our business, financial condition

Risk factor. Our revenue is substantially dependent on sales of appliances in our Home Appliances segment, comprising fans and smart locks, which accounted for 89.08% of total revenue from operations in 2026.

Risk factor. A significant portion of our business operations and revenue generation is concentrated in Southern India, representing 94.37%, 98.33% and 99.55% of total revenue for Fiscal 2026, Fiscal 2025 and Fiscal 2024 respectively. This regional concentration could expose our Company to economic, cultural, ge

Risk factor. The Offer size majorly consists of an Offer for Sale by the Corporate Promoter and Promoter Selling Shareholder, Avaada Ventures Private Limited, from which the Company will not receive any proceeds.

Risk factor. Our cloud computing infrastructure may become obsolete due to the development of new systems to deliver power to or eliminate heat from the servers or as a result of the development of new server technology. In addition, our power and cooling systems are difficult and expensive to upgrade. According

Risk factor. Our Promoters, Narayan Prasad Malpani and Ram Prakash Malpani and certain members of our promoter group, are involved in a criminal proceeding and are subject to investigations by law enforcement agencies, including the Economic Offences Wing and the Enforcement Directorate. Any adverse outcome in r

Risk factor. Our inability to maintain or grow our brands Friends and Teddyy, which contributed 37.85%, 37.65% and 37.42%, and 39.63%, 38.26%, and 35.87%, respectively, of our revenue from operations in Fiscals 2026, 2025 and 2024, may adversely affect our business, results of operations, financial condition and

Risk factor. We rely substantially on our top 10 suppliers of raw materials, including stainless steel scrap, billets, and ferro alloys, and do not enter into long-term contracts with suppliers, exposing us to price volatility, supply shortages, and disruptions that could materially adversely affect our business

Risk factor. A substantial portion of our operating revenue is derived from a limited number of customers in the gems and jewellery industry. Our top five customers accounted for 33.36% of our revenue from operations for the period ended June 30, 2026. The loss or reduction of sales to any of our key customers,

Risk factor. We import a significant portion of our raw materials from international suppliers, exposing us to geopolitical disruptions, foreign exchange fluctuations, and transportation hazards.

Risk factor. Our business and revenues are substantially dependent on orders received from state-owned electricity boards (SEBs) and public sector power utilities. 53.12%, 79.89% and 85.58% of our revenue from operations in the Fiscal 2026, 2025 and 2024, respectively, is from government entities and in the even

Shrinking revenue. Restated revenue CAGR of -53.8%.

Risk factor. A significant portion of capital expenditure, comprising immovable fit-outs on leased premises, may not be recoverable if a lease is not renewed, terminated, or if a centre is closed or moved.

Mostly an exit. 91% of the offer is an Offer for Sale, so most proceeds go to selling shareholders, not the company.

Risk factor. We derived more than 90.00% of our revenue from operations from our telecom infrastructure and sewerage infrastructure verticals during Fiscals 2026, 2025 and 2024, respectively. Any slowdown in telecom sector, sewerage sector or decrease in demand of any services provided by us could materially and

Risk factor. Our total income is dependent on the performance of the funds managed and advised by us, with Management Fee constituting 38.07% of total income in Fiscal 2026.

Risk factor. Our business is significantly exposed to fluctuations in the market prices of gold and silver, which are influenced by a wide range of global and domestic factors including macroeconomic conditions, interest rates, inflation expectations, currency movements, geopolitical developments, and changes in

Risk factor. Concentration of revenue from a few customers, with top 10 customers contributing 45.32%, 42.02% and 48.72% of revenue from operations in Fiscal 2026, 2025 and 2024 respectively. The share of total revenues attributable to the 10 largest customer groups has increased in Fiscal 2026 as compared to Fi

High leverage. Debt-to-equity of 4.35x.

High leverage. Debt-to-equity of 6.56x.

High leverage. Debt-to-equity of 3.93x.

Large related-party dealings. Related-party transactions are 176.2% of revenue.

Shrinking revenue. Restated revenue CAGR of -8.0%.

Risk factor. We incurred restated loss for the year from continuing operations of ₹9,643.93 million, ₹2,150.69 million and ₹8,525.31 million for Fiscals 2026, 2025 and 2024, respectively, and certain of our Subsidiaries have incurred losses in the past. Any similar losses in the future may adversely affect our b

Criminal proceedings disclosed. The Assistant Registrar of Companies, Maharashtra, Mumbai has filed a miscellaneous application (No. 687/MISC/2025) before the Hon'ble Metropolitan Magistrate, 40th Court, Girgaon, Mumbai against Sunshine Pictures Limited and its directors (Vipul Amrutlal Shah, Shefali Vipul Shah, Anil S. Masand, an

Risk factor. The Company generates significant revenues from its top 10 customers, which accounted for 38.00%, 39.91% and 37.81% of revenue from operations in Fiscal 2026, 2025 and 2024 respectively. The loss of such customers or a significant reduction in revenue from them will have a material adverse impact on

Risk factor. Our revenues have been significantly dependent on the sale of gold jewellery, which accounted for 92.33%, 94.58% and 93.96% of our revenue from operations for the Financial Years 2026, 2025 and 2024, respectively. Any factors adversely affecting the procurement of gold or our sales of gold jewellery

Criminal proceedings disclosed. A FIR No. 0172 of 2025 dated December 12, 2025, has been registered with the Police Station - Economic Offences Wing, Delhi pursuant to a complaint filed by PG Paper Company Limited, United Kingdom, naming Skyways Air Services Limited as Accused No. 3 and its subsidiary, Brace Port Logistics Limited

Risk factor. The loss of any of our top 5 customers could have a material adverse effect on our business, financial condition, results of operations and cash flows. Our top 5 customers contributed 84.09%, 79.15% and 75.45% of revenue from operations in the Fiscals 2026, 2025 and 2024, respectively.

Risk factor. Our business is dependent on certain key customers, with Top 5 customers accounting for 59.33% of total revenue from operations in Financial Year 2026 and Top 10 customers accounting for 78.27%.

Risk factor. The Company is subject to ongoing proceedings initiated by the Income Tax Department regarding spot verification, alleged cash transaction reporting under Form No. 61A, cash deposit reconciliation, and invoicing practices. Any adverse outcome may expose the Company to tax demands, penalties, prosecu

Auditor qualification. Emphasis of Matter paragraph regarding fraud and provision of ₹ 199.00 Million against earnest money deposits (EMD) of Prognosys Medical Systems Private Limited. Qualifications/Modifications under section Other Legal and Regulatory Requirements for years ended March 31, 2026, March 31, 2025 and Marc

Risk factor. The Company incurred significant losses of ₹5,951.81 million in Fiscal 2024 and ₹792.45 million in Fiscal 2026. Failure to generate adequate revenue growth and manage expenses could prevent achieving profitability, which could materially and adversely affect the value of your investment.

Mostly an exit. 100% of the offer is an Offer for Sale, so most proceeds go to selling shareholders, not the company.

Risk factor. The Company is significantly reliant on a small number of key customers, particularly large oil and gas PSU companies, with 94.91% of revenue from operations in Fiscal 2026 derived from its top 10 customers, and the top customer alone contributing 35.45% of revenue.

Risk factor. We derived a significant portion of our revenue from operations from the two-wheeler (2W) automotive sector in India (₹29,626.97 million, i.e. 65.47% in Fiscal 2026) and the three-wheeler (3W) automotive sector in India (₹5,817.77 million, i.e. 12.86% in Fiscal 2026), and our revenue from operations

Large related-party dealings. Related-party transactions are 15.6% of revenue.

Auditor qualification. The auditor's report on the financial statements of the Company included qualifications in the report on the Companies (Auditor’s Report) Order, 2020 issued by the Central Government of India in terms of sub section (11) of section 143 of the Act (CARO 2020) as at and for the year ended March 31, 20

Risk factor. A significant portion of our business operations and revenue generation is concentrated in the western and southern India, which accounted for ₹13,097.97 million, ₹10,710.56 million and ₹8,630.10 million representing 77.94%, 70.83% and 67.81% of our revenue from operations in Fiscals 2026, 2025 and

Risk factor. Our Gross Stage 3 Loans comprised 0.79%, 0.67% and 1.13% of our Total Gross Loans as at March 31, 2026, March 31, 2025 and March 31, 2024 respectively. We cannot assure you that we will be able to maintain or reduce our current levels of Gross Stage 3 Loans or Net Stage 3 Loans in the future. Any fu

Risk factor. An inability to maintain or grow trading volumes on our electronic exchange platform may adversely affect our business, financial condition, results of operations and cash flows.

Risk factor. Our top ten customers contributed 82.10%, 79.35% and 96.89% of our revenue from operations for Financial Years 2026, 2025 and 2024, respectively. We do not have long-term contracts with our major customers, and any reduction in purchases by or loss of these customers could adversely affect our busin

High leverage. Debt-to-equity of 3.77x.

Risk factor. Loss of any of our top customers, top 5 customers, or top 10 customers could have a material adverse effect on our business, financial condition, results of operations and cash flows. The revenue from our top customer was ₹ 4,745.56 million, ₹ 3,804.08 million and ₹ 3,352.94 million and contributed

Risk factor. A substantial number of our hospitals are located in Karnataka. We derived 46.40%, 51.55%, and 59.98% of our revenue from operations in Fiscals 2026, 2025 and 2024, respectively, from our hospitals in Karnataka. Any loss of business or disruption in the operations of these hospitals or geopolitical

Loss-making. The latest restated fiscal year reports a net loss.

Primarily fresh capital. 100% of the offer is fresh issue, so most proceeds fund the company.

Risk factor. The Company is heavily dependent on the performance of the woven raffia machines market, deriving 88.16% of revenue from operations in Fiscal 2026, 87.28% in Fiscal 2025, and 85.68% in Fiscal 2024 from this segment.

Risk factor. A significant portion of revenue (38.41% in Fiscal 2026) is derived from the top 10 customers, and the loss of these customers or a significant reduction in demand from them could adversely affect the business, results of operations, financial condition and cash flows.

Criminal proceedings disclosed. The litigation section discloses criminal proceedings involving the company, promoters or directors.

Risk factor. Our mining operations are subject to operating risks such as accidents, flooding, machinery and equipment failures, and unavailability of diesel fuel and water, which could result in decreased production or increased cost of production.

Risk factor. Our business largely depends on our top 10 customers, which contributed 72.14%, 68.87% and 53.37% of our Revenue from Operations in Fiscals 2026, 2025 and 2024. The loss of any of these customers could have an adverse effect on our business, financial condition, results of operations and cash flows.

Risk factor. The substantial portion of our revenues has been dependent upon our top 10 customers, which accounted for 70.33%, 70.19% and 71.86% of our revenue from operations for Fiscal 2026, Fiscal 2025 and Fiscal 2024 respectively, with whom we do not have any firm commitments.

Loss-making. The latest restated fiscal year reports a net loss.

Risk factor. We derive a significant portion of our revenue from operations from the state of Telangana (contributed 90.78%, 91.81% and 90.90% of our revenue from operations in Fiscals 2026, 2025 and 2024, respectively). Any unfavourable developments affecting our operations in these states could have an adverse

Risk factor. A material decline in quarterly average assets under management (QAAUM) due to market movements, redemptions, or other factors could significantly impact financial performance, as revenues and profitability are directly linked to QAAUM.

Shrinking revenue. Restated revenue CAGR of -9.5%.

Risk factor. The Company derives a substantial portion of its revenue from the sale of transformers to the railways sector, which accounted for 42.19%, 28.41% and 30.66% of revenue from operations in Fiscal 2026, Fiscal 2025 and Fiscal 2024 respectively. Any delay in tendering, award and execution of railways pr

Shrinking revenue. Restated revenue CAGR of -10.6%.

Risk factor. A significant portion of revenue is derived from South India, which accounted for approximately 78.30%, 85.60%, 87.28% and 82.14% of total revenue from operations in the nine months period ended December 31, 2025 and for the Fiscal years 2025, 2024 and 2023, respectively.