Newmalayalam Steel Limited

1. Widespread distribution network and presence across various retail channels.

2. Diversified Product Basket.

3. Brand recall and established track record.

4. Existing client and supplier relationships.

5. Quality Assurance and Quality Control of our products.

6. Strategically located manufacturing facilities with modern infrastructure and integrated manufacturing facilities with a core focus on quality.

7. Cost efficient sourcing and locational advantage.

8. Well experienced management team with proven project management and implementation skills.

1. The company depend on its dealers for a significant portion of the company revenue, and any decrease in revenues or sales from any one of its key intermediaries may adversely affect the company's business and results of operations.

2. Its operations have significant raw material requirements in the form of pre-galvanised coils, and the company may not be able to ensure the availability of the same for its operations at competitive prices and in a timely manner, which could have an adverse effect on its business, financial condition, results of operations and prospects.

3. The company is dependent on Jaihind Steel Private Limited, one of its Promoter Group entity for a portion of the company's revenue and business. The company also purchase raw materials from Jaihind Steel Private Limited and are dependent on it for part of its raw materials requirements. In the event, of loss of business from such Promoter Group entity or delay in receiving raw materials, its business and results of operations could be adversely affected.

4. Its manufacturing unit and the company's operations are geographically concentrated in Kerala. Consequently, the company is exposed to risks from economic, regulatory and other developments in the eastern region which could have an adverse effect on its business, results of operations and financial condition. Further, its continued operations are critical to the company's business and any shutdown of its manufacturing unit may adversely affect the company's business, results of operations and financial condition.

5. The steel industry is highly cyclical and a decrease in steel prices may have an adverse effect on the Company's results of operations.

6. Due to the seasonal nature of the industry the company operates in, its may not be able to achieve complete utilisation of the manufacturing unit, which in turn could materially and adversely affect its business, prospects, financial condition and results of operation.

7. The company is dependent on its manufacturing unit, and any loss, or shutdown, or under- utilization of the production capacities of its manufacturing unit may have an adverse effect on its business, financial condition and results of operations.

8. Manufacturing of steel involve hazardous processes that can cause personal injury and loss of life, severe damage to and destruction of property and equipment, which could result in incurring material liabilities, loss of revenues and increased expenses.

9. The company has experienced growth in the previous years on account of expansion in dealer base and increased production capacities of its manufacturing unit, which may not recur in the future and accordingly, its revenues may decline and the company may be unable to sustain its profitability and thus, the company historical financials as included in this Red Herring Prospectus may not be comparable for future results.

10. Its Group Companies may have conflict of interest with it as they are engaged in similar industry segment and may compete with the company. Further, any conflict of interest which may occur between its business and any other similar business activities pursued by its Promoters and Directors could have a material adverse effect on its business and results of operations.