Amkay Products

Risks

• The company generate its major portion of revenue from certain geographical regions and any adverse developments affecting its operations in these regions could have an adverse impact on the company revenue and results of operations.

• The company generates its major portion of revenue from certain geographical regions and any adverse developments affecting its operations in these regions could have an adverse impact on its revenue and results of operations.

• The company depends on third parties to manufacture some of its products. If these organizations are unable or unwilling to manufacture its products, or if these organizations fail to comply with other applicable regulations or otherwise fail to meet its requirements, will adversely affect the company business.

• The company depends on third parties to manufacture some of its products. If these organizations are unable or unwilling to manufacture its products, or if these organizations fail to comply with other applicable regulations or otherwise fail to meet its requirements, will adversely affect the company`s business.

• The company faces risk relating to sourcing of raw materials and components for manufacturing and assembly of its medical devices and disposables from third parties. Any disruption in the supply of the raw materials or fluctuations in their prices could have a material adverse effect on its business operations and financial conditions.

• The company face risk relating to sourcing of raw materials and components for manufacturing and assembly of its medical devices and disposables from third parties. Any disruption in the supply of the raw materials or fluctuations in their prices could have a material adverse effect on its business operations and financial conditions.

• Substantial portion of its revenues has been dependent upon few customers, with which the company does not have any firm commitments. Loss of its key customers or significant reduction in demand from, the company significant customers may materially and adversely affect its business and financial performance.

• Substantial portion of its revenues has been dependent upon few customers, with which the company does not have any firm commitments. Loss of its key customers or significant reduction in demand from, the company significant customers may materially and adversely affect its business and financial performance.

• The company is required to obtain, renew or maintain certain statutory and regulatory permits and approvals required to operate its business and if its fail to do so in a timely manner or at all and the company business, financial conditions, results of operations, and cash flows may be adversely affected.

• The company is required to obtain, renew or maintain certain statutory and regulatory permits and approvals required to operate its business and if the company fail to do so in a timely manner or at all and its business, financial conditions, results of operations, and cash flows may be adversely affected.

• Quality problems and product liability claims could lead to recalls or safety alerts, reputational harm, adverse verdicts or costly settlements, and could have an adverse effect on its business, results of operations, financial condition and cash flows.

• Quality problems and product liability claims could lead to recalls or safety alerts, reputational harm, adverse verdicts or costly settlements, and could have an adverse effect on its business, results of operations, financial condition and cash flows.

• Its Business is dependent on the company`s manufacturing facilities. any disruption, breakdown or failure of machinery, disruption to power sources or any temporary shutdown of its manufacturing facility, may have a material adverse effect on its business, results of operations, financial condition and cash flows.

• The company Business is dependent on its manufacturing facilities. any disruption, breakdown or failure of machinery, disruption to power sources or any temporary shutdown of its manufacturing facility, may have a material adverse effect on its business, results of operations, financial condition and cash flows.

• The company has been experiencing a decline in its revenue of operations from the past two financial years.

• Inventories and trade receivables form a major part of the company current assets. Failure to manage its inventory and trade receivables could have an adverse effect on the company net sales, profitability, cash flow and liquidity.

• Inventories and trade receivables form a major part of its current assets. Failure to manage the company inventory and trade receivables could have an adverse effect on its net sales, profitability, cash flow and liquidity.

• The company insurance coverage may not be adequate to protect it against certain operating hazards and this may have a material adverse effect on its business.

• Its insurance coverage may not be adequate to protect the company against certain operating hazards and this may have a material adverse effect on its business.

• The company has experienced inaccuracies in regulatory filings with the Registrar of Companies (RoC), resulting in non-compliance with specific provisions under applicable laws.

• The company has not complied with certain statutory provisions of the Companies Act, 2013. Such non-compliance may attract penalties against the Company which could impact the financial position of it to that extent.

• The Company is involved in certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.

• The Company is involved in certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.

• The company derives a significant portion of its revenue from its top two product categories, and the company business may be adversely affected if products in these categories do not perform as well as expected.

• The company appoint contract labour for carrying out certain of its operations and the company may be held responsible for paying the wages of such labourers, if the independent contractors through whom such workers are hired default on their obligations, and such obligations or non- availability of such labourers could have an adverse effect on its results of operations and financial condition.

• The company derives a significant portion of its revenue from its top two product categories, and the company`s business may be adversely affected if products in these categories do not perform as well as expected.

• The company contingent liabilities as stated in its Restated Financial Statements could affect its financial condition.

• The company has experienced negative operating, investing and financing cash flows in the past. Any operating losses or negative cash flows in the future could adversely affect its results of operations and financial conditions.

• The company may be subject to risks associated with the product warranty.

• The company appoints contract labour for carrying out certain of its operations and its may be held responsible for paying the wages of such labourers, if the independent contractors through whom such workers are hired default on their obligations, and such obligations or non- availability of such labourers could have an adverse effect on its results of operations and financial condition.

• The company sells its products majorly through network of dealers and any inability to expand or effectively manage its growing distribution and sales network may have an adverse effect on its business, results of operations and financial condition.

• Its contingent liabilities as stated in the company Restated Financial Statements could affect its financial condition.

• The company face competition from other large and established competitors, and its may fail to compete successfully against existing or new competitors, which may reduce the demand for its products which may lead to reduced prices, operating margins, profits and further result in decline in revenue.

• The company may be subject to risks associated with the product warranty.

• The company depends on spending in the healthcare industry and any decline in the spending on healthcare infrastructure in India, could adversely affect its business and profitability.

• The company sell its products majorly through network of dealers and any inability to expand or effectively manage its growing distribution and sales network may have an adverse effect on its business, results of operations and financial condition.

• The company have been experiencing a decline in its revenue of operations from the past two financial years.

• The company faces competition from other large and established competitors, and its may fail to compete successfully against existing or new competitors, which may reduce the demand for its products which may lead to reduced prices, operating margins, profits and further result in decline in revenue.

• The company depends on spending in the healthcare industry and any decline in the spending on healthcare infrastructure in India, could adversely affect its business and profitability.

• The company does not own the warehouse where its store its finished goods and raw material. In case of non-renewal of rent agreements or dispute in relation to use of the said premise, its business and results of operations can be adversely affected.

• The company does not own the warehouse where its store its finished goods and raw material. In case of non-renewal of rent agreements or dispute in relation to use of the said premise, its business and results of operations can be adversely affected.

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

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

• Adverse publicity regarding its products could negatively impact it.

• Adverse publicity regarding its products could negatively impact the company.

• The company operations are subject to high working capital requirements. Its inability to maintain an optimal level of working capital required for its business may impact the company operations adversely.

• Its operations are subject to high working capital requirements. Its inability to maintain an optimal level of working capital required for its business may impact the company operations adversely.

• The company lenders have charge over its immovable and movable properties in respect of finance availed by it.

• Its lenders have charge over the company immovable and movable properties in respect of finance availed by the company.

• As its continue to grow, the company may not be able to effectively manage its growth and the increased complexity of the company business, which could negatively impact its brand and financial performance.

• As the company continue to grow, the company may not be able to effectively manage its growth and the increased complexity of its business, which could negatively impact the company brand and financial performance.

• Restrictions on import and an increase in shipment cost may adversely impact its business, cash flows and results of operations.

• Restrictions on import and an increase in shipment cost may adversely impact its business, cash flows and results of operations.

• The company is heavily dependent on its Promoters and Key Managerial Personnel for the continued success of its business through their continuing services and strategic guidance and support.

• The company is heavily dependent on its Promoters and Key Managerial Personnel for the continued success of its business through their continuing services and strategic guidance and support.

• Dependence upon third party transportation services for supply and transportation of its products are subject to various uncertainties and risks, and delays in delivery may result in rejection of products by customer.

• The company have experienced negative operating, investing and financing cash flows in the past. Any operating losses or negative cash flows in the future could adversely affect its results of operations and financial conditions.

• Dependence upon third party transportation services for supply and transportation of its products are subject to various uncertainties and risks, and delays in delivery may result in rejection of products by customer.

• The average cost of acquisition of Equity Shares by its Promoters, is lower than the face value of Equity Share.

• The average cost of acquisition of Equity Shares by its Promoters, is lower than the face value of Equity Share.

• The company Promoters, Directors and Promoter Group members/entities have provided personal guarantees for loan facilities obtained by the Company, and any failure or default by the Company to repay such loans in accordance with the terms and conditions of the financing documents could trigger repayment obligations on them, which may impact their ability to effectively service their obligations as its Promoters/ Directors and thereby, impact the company business and operations.

• Its Promoters, Directors and Promoter Group members/entities have provided personal guarantees for loan facilities obtained by the Company, and any failure or default by the Company to repay such loans in accordance with the terms and conditions of the financing documents could trigger repayment obligations on them, which may impact their ability to effectively service their obligations as its Promoters/ Directors and thereby, impact the company`s business and operations.

• The company Promoter and the Promoter Group will jointly continue to retain majority shareholding in the Company after the issue, which will allow them to determine the outcome of the matters requiring the approval of shareholders.

• Its Promoter and the Promoter Group will jointly continue to retain majority shareholding in the Company after the issue, which will allow them to determine the outcome of the matters requiring the approval of shareholders.

• The Company depends on Axis Bank Limited and SIDBI in respect of loan facilities obtained by the Company.

• The Company depends on Axis Bank Limited and SIDBI in respect of loan facilities obtained by the Company.

• Fluctuation in foreign currency exchange rates could affect its financial condition and results of operations.

• Fluctuation in foreign currency exchange rates could affect its financial condition and results of operations.

• Under-utilization of its manufacturing capacities may have an adverse effect on the company`s business, future prospectus and future financial performance. Moreover, information relating to capacity utilization of its production facilities included in this Draft Red Herring Prospectus is based on certain assumptions and has been subjected to rounding off, and future production and capacity utilization may vary.

• Under-utilization of its manufacturing capacities may have an adverse effect on the company business, future prospectus and future financial performance. Moreover, information relating to capacity utilization of its production facilities included in this Draft Prospectus is based on certain assumptions and has been subjected to rounding off, and future production and capacity utilization may vary.

• Compliance with, and changes in, safety, health and environmental laws and labour regulations may adversely affect its business, prospects, financial condition and results of operations.

• Compliance with, and changes in, safety, health and environmental laws and labour regulations may adversely affect its business, prospects, financial condition and results of operations.

• The company may requires further equity issuance, which will lead to dilution of equity and may affect the market price of its Equity Shares or additional funds through incurring debt to satisfy our capital needs, which its may not be able to procure and any future equity offerings by the company.

• The company may requires further equity issuance, which will lead to dilution of equity and may affect the market price of its Equity Shares or additional funds through incurring debt to satisfy the company capital needs, which its may not be able to procure and any future equity offerings by it.

• The company has not identified any alternate source of funding and hence any failure or delay on its part to mobilize the required resources or any shortfall in the Issue proceeds may delay the implementation schedule.

• The company have not identified any alternate source of funding and hence any failure or delay on its part to mobilize the required resources or any shortfall in the Issue proceeds may delay the implementation schedule.

• The Objects of the Issue for which funds are being raised have not been appraised by any bank or financial institution. Any variation between the estimation and actual expenditure as estimated by the management could result in execution delays or influence its profitability adversely.

• The Objects of the Issue for which funds are being raised have not been appraised by any bank or financial institution. Any variation between the estimation and actual expenditure as estimated by the management could result in execution delays or influence its profitability adversely.

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

• Information relating to its production capacities and the historical capacity utilization of the company production facilities included in this Draft Prospectus is based on certain assumptions and has been subjected to rounding off, and future production and capacity utilization may vary.

• Information relating to its production capacities and the historical capacity utilization of its production facilities included in this Draft Red Herring Prospectus is based on certain assumptions and has been subjected to rounding off, and future production and capacity utilization may vary.

• The activities carried out at its manufacturing facilities can cause injury to people or property in certain circumstances.

• The activities carried out at its manufacturing facilities can cause injury to people or property in certain circumstances.

• Fraud, theft, employee negligence or similar incidents may adversely affect its results of operations and financial condition.

• Fraud, theft, employee negligence or similar incidents may adversely affect its results of operations and financial condition.

• The deployment of funds raised through this Issue shall not be subject to any Monitoring Agency and shall be purely dependent on the discretion of the management of the Company.

• The deployment of funds raised through this Issue shall not be subject to any Monitoring Agency and shall be purely dependent on the discretion of the management of the Company.

• The company is subject to restrictive covenants under its credit facilities that limit the company operational flexibility.

• The company is subject to restrictive covenants under its credit facilities that limit the company operational flexibility.

• Certain key performance indicators for certain listed industry peers included in this Draft Prospectus have been sourced from public sources and there is no assurance that such financial and other industry information is complete.

• Certain key performance indicators for certain listed industry peers included in this Draft Red Herring Prospectus have been sourced from public sources and there is no assurance that such financial and other industry information is complete.

• Any future issuance of Equity Shares may dilute your shareholdings, and sale of the Equity Shares by its major shareholders may adversely affect the trading price of its Equity Shares.

• Any future issuance of Equity Shares may dilute your shareholdings, and sale of the Equity Shares by its major shareholders may adversely affect the trading price of its Equity Shares.

• Certain data mentioned in this Draft Red Herring Prospectus has not been independently verified.

• Certain data mentioned in this Draft Prospectus has not been independently verified.

• Its ability to pay dividends in the future will depends upon the company`s future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in its financing arrangements.

• The company ability to pay dividends in the future will depend upon its future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in its financing arrangements.

• Any Penalty or demand raised by statutory authorities in future will affect its financial position of the Company.

• Any Penalty or demand raised by statutory authorities in future will affect its financial position of the Company.