Aesthetik

Risks

• The Company is involved in certain legal proceedings/litigations. Any adverse decision in such proceedings may render it/them liable to penalties and may adversely affect its business and result of operations.

• Failures to obtain the required certification or qualify the tests can adversely affect its business operations.

• The company does not own its registered office and factory premises, the same are taken on rent by the company.

• Its business is subject to seasonal and other environmental factors, that can adversely affect its business and result of operations.

• The company has incurred losses in one out of three previous financial years.

• Generally, the company does not enter long term contracts with its suppliers and therefore, there may be potential unavailability of raw materials in future, which may adversely affect its business operations.

• Its certain projects requires the product and services of third parties, including suppliers and subcontractors, which may have an adverse effect on its business operations.

• The Company operation and growth is dependent upon successfully implementation its business strategies.

• If the company experience delays and/or defaults in client payments, its may be unable to recover all expenditures.

• Significant portion of its revenue has been generated from state of West Bengal, any loss of business from this states may adversely affect the company revenues and profitability.

• Some of its projects are secured through meeting specific pre-qualification standards and competitive bidding. Its business and the company financial condition may be adversely affected if new projects are not awarded to it.

• The Company has negative cash flows from its operating activities, investing activities and financing activities in the current and past years, details of which are given below. Sustained negative cash flow could impact its growth and business.

• The Company has obtained unsecured loans amounting to Rs. 44,285.00 Thousands that may be recalled by the lenders at any time.

• Its top ten customers contribute significant portion of the company revenues during the current and previous financial years. Any loss of business from one or more of them may adversely affect its revenues and profitability.

• Its inability to effectively manage project execution may lead to project delays which may affect the company`s business and results of operations.

• Failures to anticipate and develop new products & services and enhance existing capabilities with rapid changes in technology and industry can adversely affect its business and the result of operations.

• Its business operations are subject to various operating risks at the company sites, the occurrence of which can affect its results of operations and consequently, financial condition of the Company.

• The Company operations requires significant amount of working capital for a continuing growth. Its inability to meet the company working capital requirements may adversely affect the company`s results of operations.

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

• The Company may incur penalties or liabilities for non-compliances with certain provisions of the GST Act, Income Tax Act, and other applicable laws in the past Years.

• The Logo of the Company has not been registered under the Trade Marks Act, 1999.

• The average cost of acquisition of Equity Shares by its Promoters is lower than the issue price.

• Its Promoters, Directors have provided personal guarantees to loan facility availed by it, which if revoked may requires alternative guarantees, repayment of amount due or termination of the facilities.

• Its profitability and business operations is significantly dependent on the company`s ability to successfully anticipate the industry and client requirements. Any failures on its part to do so, may have an impact on the company`s operations, which could have an adverse effect on its revenue, reputation, financial conditions, results of operations and cash flows.

• The Company has entered into certain related party transactions in the past and may continue to do so in the future.

• The company operates in highly competitive markets and its inability to compete effectively may lead to lower market share or reduced operating margins, and adversely affect its results of operations.

• In addition to normal remuneration, other benefits and reimbursement of expenses some of the company Directors (including its Promoters) and Key Management Personnel are interested in the Company to the extent of their shareholding and dividend entitlement in the Company.

• If the company fails to maintain an effective system of internal controls, its may not be able to successfully manage or accurately report its financial risk.

• Certain Agreements, deeds or licenses, statutory approvals and certificates may be in the previous name of the company, the company has to update the name of the company in all the statutory approvals and certificates due to the conversion of the Company.

• The company is subject to stringent labour laws or other industry standards and any strike, work stoppage, Lock-out or increased wage demand by its employees or any other kind of disputes with the company employees could adversely affect its business, financial condition and results of operations.

• The company is dependent on its promoters and the company management team and the loss of, or its inability to hire, retain, train, and motivate qualified personnel could adversely affect its business, results of operations and financial condition.

• Its Promoters, together with the company`s Promoter Group, will continue to retain majority shareholding in the Company after the Issue, which will allow them to exercise significant control over it. The company cannot assure you that its Promoters and Promoter Group will always act in the best interests of the Company or you.

• The company is subject to various laws and regulations and required to comply with several regulatory compliance requirement, in jurisdictions where the company operates, including environmental and health and safety laws and regulations, which may subject it to increased compliance costs, which may in turn result in an adverse effect on its financial condition.

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

• The Company has not paid any dividend in past 3 financials years and its ability to pay dividends in the future may be affected by any material adverse effect on its future earnings, financial condition or cash flows.

• Industry information included in this Red Herring Prospectus has been derived from an industry report from various websites. The reliability on the forecasts of the reports could be incorrect and would significantly impact its operations.

• The Company`s future funding requirements, in the form of further issue of capital or other securities and/or loans that might be availed by it, may turn out to be prejudicial to the interest of the shareholders depending upon the terms and conditions on which they are raised.

• There are certain restrictions on daily movements in the price of Equity Shares, which may adversely affect a shareholder`s ability to sell, or the price at which it can sell, Equity Shares at a particular point in time.

• After this Issue, the price of the Equity Shares may be highly volatile, or an active trading market for the equity Shares may not develop.

• Market price of its share will be decide by market forces and issue price of equity share may not be indicative of the market price its share price after the issue.