Diffusion Engineers Ltd IPO

Synergistic business models focused on forward integration.

Serving industry major players directly as well as through OEMs.

Consistent financial performance.

Long-standing relationships with customers across industries.

Experienced promoters and strong management team.

Strategically located manufacturing facilities.

The Company is increasingly dependent on a domestic market for its sales and any a downturnin it could dent its market share.

The Company had negative cash flows during certain fiscal years in relation to its operating,investing and financing activities. Sustained negative cash flows in the future would adverselyaffect its results of operations and financial condition.

The company operates from four Manufacturing Facilities all of which are located in Nagpur, Maharashtra and therefore, any localized social unrest, natural disaster or breakdown of services or any other natural disaster in and around, Nagpur, Maharashtra or any disruption in production at, or shutdown of, all its manufacturing units could have material adverse effect on its business and financial condition.

Its business is dependent on the performance of certain other industries. Economic cyclicalitycoupled with reduced demand in these other industries, in India or globally, could adverselyaffect its business, results of operations and financial condition.

Its proposed plans with respect to funding the capital expenditure requirements as per itsObjects of the Issue is subject to the risk of unanticipated delays in obtaining approvals andimplementation.

If there are delays in setting up the Proposed Facility or Proposed Expansion or if the costs ofsetting up and the possible time or cost overruns related to the Proposed Facilities or the purchaseof plant and machinery for the Proposed Facilities are higher than expected, it could have amaterial adverse effect on our financial condition, results of operations and growth prospects.

Its business and profitability is substantially dependent on the availability and cost of its rawmaterials and any disruption to the timely and adequate supply or volatility in the prices of rawmaterials may adversely impact its business, results of operations, cash flows and financialcondition.

The Company had made allotment of equity shares in the past which was allotted to more than49 investors, which may have been in non- compliance with the Companies Act, 1956.

Conflict of interest may arise as some of its Group Companies and Subsidiaries are authorizedto carry on similar line of business as the Company which may lead to real or potential conflicts of interest for its Promoters or Directors.

Its inability to collect receivables and default in payment from the company customers could result in the reduction of its profits and affect the company cash flows.