Investor FAQ document

Part 1-Competitive landscape and market position

1. What is your competitive advantage?
2. What are the barriers to entry into the business?
3. Who are your main competitors? From whom have you been gaining/losing market share?

Part2 -Customer base/suppliers

1. How many customers do you have? What is the geographic concentration of your top 50
customers?
2. What % of customers are repeat buyers? How will this trend evolve going forward?
3. Who are the key decision makers for the customers? How long is the entire sales process
from order being placed to delivery?
4. Please describe your most recent customer wins and losses. What were the main reasons?
5. How many suppliers do you have? What is the concentration of your top suppliers? How
large of a customer are you to them? What is the average length of the relationship? How
often are your supply contracts renegotiated?
6. If you receive price increases from your suppliers, do you have to pass it through to your
customers?

Part 3-Capital requirement

1. What percentage of expenditures is growth capital vs. opex?
2. How cyclical is the business? Are there any severe seasonal changes in demand? What are
the factors influencing this?
3. What is the normal working level of cash to run the business for a year?
4. What would be your biggest concern to stay afloat in a downside scenario? How will you
address it?

Part 4-Marketing
1. Which specific marketing channels are you using?
2. Why are you using these marketing channels?
3. What is your current marketing spend? How will it change with funds coming in?

Part 5-Accounting related

1. Accounting Data for the Historical Period. (Tally Backup / Quickbooks login / Xero.com Login
or any other accounting software used for the historical period)
2. Internal Audit Reports (if any)

Part 6-Incorporation
1. Copy of PAN, TAN, Registration Certificates of VAT, Service Tax, GST, Excise, PF, ESIC, PT,
Shop and Establishments for all premises used, IEC code, and any other registration
certificate as applicable to the company
2. List of Sister Concerns / holding and subsidiaries along with ROC Master Data
 3. Certificate of Incorporation, MOA and AOA.

Part 7-Financials and Key Metrics

1. Gross margin
2. EBITDA
3. What is the tax structure like?

Part 8-Risks and Mitigation

1. What do you see as the principal risks to the business? How do you plan to mitigate them?

Part 9-Capital raised

2. How will these funds be allocated?
3. How much will be spent on founders’ salaries?
4. How much will be spent on overhead versus expansion?
5. What if you don’t get all the money you are asking for? How will it impact revenue growth
and exit of the investor?
6. What assets will be invested in with this capital?
7. What are your milestones?
8. Why are you choosing this method of raising capital?

Part 10-Corporate structure

1. How the company is currently organized? Org chart indicating breakdown of employees by
key departments/teams
2. Indication of departments/teams where additional employees will be hired in the coming
few months, and the nature of talent being hired
3. Key employee’s details
4. How are shares split?
5. Is there an existing board or advisors?
6. Where is the company registered?
7. Who handles accounting?
8. Who filed the company? When was company filed?

Part 11-Financing and valuation

1. What is your exit goal? (i.e. IPO, M&A)?What is your expected time frame for this? What
returns will it provide? Can exit happen without any incremental capital or follow on round
apart from this round?
2. How will exit be impacted if only half of sought funds are received? What will be the return
metrics in that case?
3. When do you expect you will be conducting a follow up round of fundraising?
4. How much is your pre-money valuation? How are you determining current valuation?

Part 12-IT and HR

1. What are the IT functionalities and ERP systems etc?
2. What are the processes in place for HR?
3. How is payroll managed?
Part 13-Strategy/business
1. What is the estimated steel demand for next 2 years from you? Who are the major expected
buyers?
2. What is pricing per ton expected to be like for this demand?
3. How much of this is repeat demand and how much of this is new?
4. How will this demand be impacted by COVID 19 intensifying?