Prostarm Info Systems Limited

Import and foreign-exchange exposure

Our Company imports raw material from overseas markets. Any adverse events affecting the country could have a significant adverse impact on our results from operations. The Company is also subject to foreign currency exchange rate fluctuations.

supply chain · medium (p.38, 39)

MSME creditor identification

Our company has not identified the MSME creditors as on the date of this Draft Prospectus. Failure to identify the MSME creditors may subject the company to penal provisions of the MSMED Act, 2006.

accounting and compliance · medium (p.40)

Uninsured Ahmedabad facility

Our company has not obtained insurance policies for our manufacturing facility for solar products located in Ahmedabad, Gujarat. Therefore, there is a risk of possible loss in case any unforeseen event happens.

operational · medium (p.40)

Negative operating cash flow history

Our Company has negative cash flows from its operating activities in the past one year out of past three years. Sustained negative cash flows could impact our growth and business.

financial · medium (p.44, 202)

Related party transactions

We have in the past entered into related party transactions and may continue to do so in the future. It is difficult to ascertain whether more favorable terms would have been achieved had such transactions been entered with unrelated parties.

governance · medium (p.44, 239, 240, 241, 242, 243)

No independent monitoring agency

The deployment of funds raised through this Issue shall not be subject to any Monitoring Agency and shall be purely dependent on the discretion of the management of our Company.

issue · medium (p.45, 99)

Post-issue promoter control

Our Promoters and members of the Promoter Group will continue jointly to retain majority control over our Company after the Issue. The document states they will collectively own 73.42% of the Equity Shares.

issue and governance · medium (p.46)