Bansal Wire Industries Limited
Climate Impact & Sustainability Data (2022-04-01 to 2024-03-31)
Reporting Period: 2022-04-01 to 2024-03-31
Environmental Metrics
Climate Goals & Targets
Environmental Challenges
- Shortages, delay or disruption in the supply of raw materials.
- Disruption, breakdown or shutdown of manufacturing facilities.
- Inability to renew existing leases or relocate operations.
- Volatility in raw material costs.
- Inability to maintain distribution network or attract additional dealers.
- Dependence on skilled personnel.
- Related-party transactions.
- Substantial working capital requirements.
- Objects of the issue not appraised by banks or financial institutions.
- Difficulty benchmarking financial performance against peers.
- Low EBITDA and PAT margins.
- Dependence on steel wires market performance.
- Negative cash flows in prior periods.
- Inability to maintain and enhance brands.
- Concentration of primary markets in North India.
- Dependence on a few representatives for overseas market distribution.
- Geographic concentration of manufacturing facilities.
- Outstanding legal proceedings.
- Failure to comply with statutory and regulatory licenses, permits, and approvals.
- Product defect issues or failure to comply with quality standards.
- Hazardous materials and activities in operations.
- Factual inaccuracies in corporate records and filings.
- Counterfeit products.
- Disruption to power sources.
- Dependence on key personnel (Arun Gupta and Pranav Bansal).
- Improper storage, processing, and handling of materials.
- Inability to handle risks associated with export sales.
- Contingent liabilities and commitments.
- Restrictive covenants in financing agreements.
- Unsecured borrowings.
- Use of non-GAAP financial measures.
- Inability to execute growth strategies.
- Compliance and internal control risks.
- Failure to maintain optimum inventory levels.
- Information on capacity utilization based on assumptions and estimates.
- Failure or disruption of information technology systems.
- Suppliers and customers engaging in transactions subject to international sanctions.
- Inadequate insurance coverage.
- Potential conflicts of interest due to related business activities.
- Majority shareholding retained by Promoters post-issue.
- Lack of director experience on listed company boards.
- Frequent changes in statutory auditors.
- Uncertainty regarding future dividend payments.
- Inability to anticipate product trends and consumer preferences.
- Labor-intensive industry and stringent labor laws.
- Significant competitive pressures.
- Differences between Ind AS and other accounting principles.
- Changes in trade policies.
- Potential for pre-emptive surveillance measures (ASM and GSM).
- Competition law in India.
- Regulation of greenhouse gas emissions and climate change.
- Prevailing economic, political, and other conditions.
- Terrorist attacks, communal disturbances, and other acts of violence.
- Downgrading of India's debt rating.
- Increased Indian price inflation.
- Dilution of shareholding from future equity issuances.
- Restrictions on exercising pre-emptive rights.
- Price and volume fluctuations of Equity Shares post-issue.
- Inability to enforce rights under agreements.
- Stamp duty and capital gains taxes.
- Difficulty enforcing judgments obtained in foreign courts.
- Foreign investment restrictions.
Mitigation Strategies
- Maintaining 35-45 days of raw material inventory.
- Implementing robust quality control checks.
- Increasing selling prices proportionately to offset raw material price increases.
- Offering discounts to dealers based on sales levels.
- Implementing various information technology solutions.
- Adopting a policy of selective hedging of foreign currency risks.
- Obtaining insurance policies.