Ambey

Risks

• A few of its properties including Registered Office of the Company, are not owned by it. In the event, the company is unable to renew the lease/ rent agreements, or if such agreements are terminated, its may suffer a disruption in the company operations.

• Rajasthan State Pollution Control Board has directed the company to deposit the amount to the tune of Rs.1,92,02,400 towards environment compensation.

• Its Board of Directors and Management may change the company operating policies and strategies without prior notice or shareholders` approval.

• Some of the raw materials that the company use as well as its finished products are hazardous, corrosive and flammable and require expert handling and storage, as applicable. Any accidents may result in loss of life or property and disrupt its operations which may have an adverse effect on the company results of operation, cash flows and financial condition.

• Its funding requirements and deployment of the issue proceeds are based on management estimates and have not been independently appraised by any bank or financial institution and actual cost may vary compared with the estimated amount.

• Substantial portion of its revenues has been dependent upon the company few clients. The loss of any one or more of its major clients would have a material adverse effect on the company`s business operations and profitability.

• The Company, Promoters, Directors and group Companies are involved in certain litigations including tax related litigations, which if determined against them/it, can affect financial conditions of the company.

• The company requires a number of approvals, licenses, registration and permits for its business and failure to obtain or renew them in a timely manner may adversely affect its operations. In some cases, the company may be operating without all the required permissions, risking civil and criminal sanctions.

• Its results of operations could be adversely affected by strikes, work stoppages or increased wage demands by its employees / workers or any other kind of disputes with the company employees / workers.

• The Company has obtained insurance coverage which may not adequately cover all potential losses to which its may be subject to, and this may have a material adverse effect on its business, result of operations and financial conditions.

• The seasonality of the business of the issuer may affect the business of the issuer.

• Its business and the demand for the company products is reliant on the success of its customers` products with end consumers and any decline in the demand for the end products could have an adverse impact on its business, results of operations, cash flows and financial condition.

• Its Promoters, directors and group company has given personal guarantees in relation to certain debt facilities provided to the company.

• Its business is dependent on its manufacturing facilities and the company is subject to certain related risks. Unplanned slowdowns, unscheduled shutdowns or prolonged disruptions in its manufacturing operations or underutilization of its manufacturing capacities could have an adverse effect on the company`s business, results of operations, cash flows and financial condition.

• Its existing manufacturing operation is geographically located at one place. Hence, its may face the risk of geographical non- diversification of manufacturing facilities.

• The company is subject to strict quality requirements, regular inspections and audits, and the success and wide acceptability of its products is largely dependent upon its quality controls and standards.

• Any increase in the cost of its raw material or other purchases or a shortfall in the supply of its raw materials, may adversely affect the pricing and supply of its products and have an adverse effect on the company`s business, results of operations and financial condition.

• The Company has allotted Equity Shares at a price lower than the Issue Price during last 12 (twelve) months preceding the date of this Draft Red Herring Prospectus.

• The company is dependent on its management team for success whose loss could seriously impair the ability to continue to manage and expand business efficiently.

• The company has a negative cash flow in some of the previous years, details of which are given below. Sustained negative cash flow could impact its growth and business. The company has a negative cash flow in some of the previous years, details of which are given below. Sustained negative cash flow could impact its growth and business.

• The Company is reliant on certain suppliers and customers for the majority of its operations. The loss of any one or more of them would have a material adverse effect on its business operations and profitability.

• If the company is unable to establish and maintain an effective system of internal controls and compliances, its business and reputation could be adversely affected.

• The company depends on the accuracy and completeness of information about customers and counterparties and any misrepresentation, errors in or incompleteness of such information could cause its business to suffer.

• All of its product verticals are extremely competitive segments and the company faces risk of competition affecting its margins and profitability as the company scale its operations.

• Failures to procure inventory could have an adverse effect on its net sales, profitability and cash flow.

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

• Its insurance coverage may not be sufficient or adequate to protect the company against all material hazards or business losses, which may adversely affect its business, results of operations and financial condition.

• The company has certain contingent liabilities, which, if materialized, may affect its financial condition and results of operations.

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

• The company depends on certain brand names and its corporate name and logo that the company may not be able to protect and/or maintain.

• Changes in technology may affect its business by making its equipment or products less competitive or obsolete.

• Delays in customer payments could result in a reduction of its profits and cash flows.

• 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.

• One of its Director is unable to provide the company an authentic copy of her degree.

• The company has incurred substantial indebtedness which exposes it to various risks which may have an adverse effect on its business and results of operations.

• The Company has availed unsecured loans which are repayable on demand. Any demand from lenders for repayment of such unsecured loans, may adversely affect its cash flows.

• The Company has file certain forms with delayed fees and company cannot assure that no proceedings or regulatory actions will be initiated against it in relation to the non-filing and delayed filing.

• Delay in making any Statutory payments viz. Tax Deducted at Source, Income Tax, Good and Service Tax, Employee Provident Fund, ESIC or any other Statutory dues which may attract any penalty or demand raised by statutory authorities in future will affect financial position of the Company.

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

• In the event there is any delay in the completion of the Issue, there would be a corresponding delay in the completion of the objects of this Issue which would in turn affect its revenues and results of operations.

• Certain of its old corporate records are not available with the company.