Aelea

Expand its existing manufacturing capacities to capitalize on industry opportunities.

Increasing Operational efficiency.

Continue to focus on innovation and grow its business across customer segments.

Enhance customer base by entering new geographies to establish long-term relationships.

Branding the finished product.

Procuring Raw Material in advance to manage price fluctuation and market demands.

The company has certain outstanding litigation against it, an adverse outcome of which may adversely affect its business, reputation and results of operations.

Its reliance on certain industries for a significant portion of its sales could have an adverse effect on the company`s business.

Its business is dependent and will continue to depends on the company manufacturing facilities, and the company is subject to certain risks in its manufacturing process. Any slowdown or shutdown in its manufacturing operations or strikes, work stoppages or increased wage demands by its employees that could interfere with the company operations could have an adverse effect on its business, financial condition and results of operations.

The top ten customers of its product and top ten suppliers for raw material contribute a substantial part of its total revenue and source of Raw Material. The company does not have long term agreement with the customer or supplier. The loss of any Customer or a decrease in the volume of order by any customer or any disruption in supply of raw material by any supplier may adversely affect its revenues and profitability.

The company has not yet placed orders in relation to the funding Capital Expenditure towards construction of factory building which is proposed to be financed from the Issue proceeds of the IPO. In the event of any delay in placing the orders, or in the event the vendors are not able to provide the equipment in a timely manner, or at all, may result in time and cost over-runs and its business, prospects and results of operations may be adversely affected. Its proposed capacity expansion plans via one of its proposed manufacturing facilities are subject to the risk of unanticipated delays in implementation due to factors including delays in construction, obtaining regulatory approvals in timely manner and cost overruns.

Within the parameters as mentioned in the chapter titled "Objects of this Issue" beginning on page 85 of this Red Herring Prospectus, the Company`s management will have flexibility in applying the proceeds of the Issue. The fund requirement and deployment mentioned in the Objects of this Issue have not been appraised by any bank or financial institution.

There are certain discrepancies and non-compliances noticed in some of its financial reporting and/or records relating to filing of returns and deposit of statutory dues with the taxation and other statutory authorities.

The Company has not entered into any written agreements or contracts with the company customers for sale of its products.

There are certain discrepancies and non- compliances noticed in some of its statutory compliances reporting and/or records relating to filing of returns with the concerned Registrar of Companies.

The Company had negative cash flows in the past years, details of which are given below. Sustained negative cash flow could impact its growth and business.

The company derives a significant part of its revenue from major customers. If one or more of such customers choose not to source their requirements from it or to terminate their contracts with its, the company`s business, financial condition and results of operations may be adversely affected.

The Processing of Raw Cashew nuts involves number of stages and during the process the cashew nuts may get broken resulting in reduction in sale price.

The prices the company is able to obtain for its commodities products that the company trade depends largely on prevailing market prices.

Its existing and proposed manufacturing facility are concentrated in a single region i.e., Surat, Gujrat and the inability to operate and grow its business in this particular region may have an adverse effect on the company`s business, financial condition, results of operations, cash flows and future business prospects.

If the company are not able to procure Quality Raw Material in a timely manner, its business, results of Operations and financial conditions may be adversely affected.

Compliance and Risk Management of Related Party Transactions entered into by the Company in accordance with Companies Act, 2013.

The company is subject to counterparty credit risk and a significant delay in receiving large payments or non-receipt of large payments may adversely impact its results of operations.

The average cost of acquisition of Equity shares by its Promoters is lower than the Issue price. Its promoters average cost of acquisition of Equity shares in the Company is lower than the Issue Price of Equity shares as given below.:

Risk Associated with foreign Subsidiary Company.

The company is subject to strict quality requirements and any product defect issues or failures by it or its raw material suppliers to comply with quality standards may lead to the cancellation of existing and future orders, recalls and exposure to potential product liability claims.

If the company is unable to accurately estimate the demand for its products, its business, financial condition and results of operation may be adversely affected.

Its manufacturing facility is critical to the company`s business operations and any shutdown of its manufacturing facilities may have an adverse effect on its business, results of operations and financial condition.

The company does not have long-term agreements with suppliers for its raw materials and an increase in the cost of, or a shortfall in the availability or quality of such raw materials could have an adverse effect on its business, financial condition and results of operations.

If the company is not able to attract and retain sufficient qualified and trained personnel at its processing and packaging units which may adversely affect its business.

Any failures in the company quality control and procurement process may adversely affect its business, results of operations and financial condition.

The company has been recently converted into public limited company and any non-compliance with the provisions of Companies Act, 2013 may attract penalties against the Company which could impact its financial and operational performance and reputation.

The procurement of raw material is subject to seasonal factors. Consequently, its inability to accurately forecast demand for the company products, may have an adverse effect on its business, results of operations, cash flows and financial condition.

Its success largely depends upon the knowledge and experience of the company Promoters, Directors, its Key Managerial Personnel and Senior Management as well as its ability to attract and retain personnel with technical expertise. Any loss of its Promoter, Directors, Key Managerial Personnel, Senior Management or its ability to attract and retain them and other personnel with technical expertise could adversely affect its business, financial condition and results of operations.

Its ability to maintain the company competitive position and to implement its business strategy is dependent to a significant extent on its senior management team and other key personnel, in particular, its Promoters.

The company has to update the name of the company in some of the statutory approvals and certificates due to the Change in the name upon conversion of the Company in to Public Limited Company.

The company faces competition from both domestic as well as multinational corporations and its inability to compete effectively may have a material adverse impact on its business, financial condition and results of operations.

Its business requires the company to obtain and renew certain registrations, licenses and permits from government and regulatory authorities and the failures to obtain and renew them in a timely manner may adversely affect its business operations.

In addition to normal remuneration, other benefits and reimbursement of expenses to its Promoters and Directors; they are interested to the extent of their shareholding and dividend entitlement thereon in the Company and for the transactions entered into between the Company and themselves as well as between the Company and its Group Company / Entities.

Its inability to successfully implement some or all the company`s business strategies in a timely manner or at all could have an adverse effect on its business. Further, its inability to effectively manage any of these issues may adversely affect its business growth and, as a result, impact the company`s businesses, financial condition and results of operations.

If the company is unable to manage its growth effectively and further expand into new markets its business, future financial performance and results of operations could be materially and adversely affected.

The company has entered into certain transactions with related parties. These transactions or any future transactions with its related parties could potentially involve conflicts of interest.

Its Promoters, Directors and Key Managerial Personnel may have interest in the Company, other than reimbursement of expenses incurred or remuneration.

Its insurance coverage may be inadequate to satisfy future claims against it.

Its Promoters and members of the Promoter Group will continue jointly to retain majority control over the Company after the Issue, which will allow them to determine the outcome of matters submitted to shareholders for approval.

The issue price of the Equity Shares may not be indicative of market price of its equity shares after the issue and the market price of its Equity shares may decline below the issue price.

There is no monitoring agency appointed by the Company and the deployment of funds are at the discretion of its Management and the company Board of Directors, though it shall be monitored by its Audit Committee.

Its ability to pay dividends in the future will depends upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.

The company has not independently verified certain data in this Red Herring Prospectus.

Its funding requirements and proposed deployment of the Net Proceeds are based on management estimates and have not been independently appraised, and may be subject to change based on various factors, some of which are beyond its control.

Certain information contained in this Red Herring Prospectus is based on management estimates and the company cannot assure you of the completeness or accuracy of the data.

Any variation in the utilisation of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders` approval.

Any future issuance of Equity Shares may dilute the shareholding of the Investor or any sale of Equity Shares by its Promoter or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.

The company could be exposed to risks arising from misconduct, fraud and trading errors by its employees and Business Associates.

QIBs and Non-Institutional Investors are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid.