Arvind & Company

Risks

• The company revenues are highly dependent on its operations in the geographical region of state of Gujarat. Any adverse development affecting the company operations in this region could have an adverse impact on its business, financial condition and results of operations.

• Its revenue and profits are largely dependent on chartering of barges.

• The company`s top 5 customers contribute a significant portion of its revenue from operations.

• The company is involved in certain legal proceedings which are pending at different levels of adjudication before various courts, tribunals, enquiry officers, and appellate authorities.

• The Company has in the past has made certain inadvertent erroneous filings under Companies Act, 1956 and Companies Act, 2013. Further, there have also been instances where the Company has inadvertently filed incorrect information with the RoC in its statutory filings.

• Some of its corporate records, including forms filed with the Registrar of Companies are not traceable. The company cannot assure you that these forms of filings will be available in the future or that its will not be subject to any penalties imposed by the relevant regulatory authority in this respect.

• The company does not own registered Office and one of its hotel viz. Hotel 999 is used by it.

• The Company operates under several statutory and regulatory permits, licenses and approvals. Its failure to obtain and/or renew any approvals or licenses in future may have an adverse impact on its business operations.

• The company have incurred substantial indebtedness which exposes it to various risks which may have an adverse effect on its business and the 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 lenders have charge over its movable and immovable properties in respect of finance availed by it.

• The company has availed credit facility from banks, and it is subject to certain restrictive covenants. Any Delay in issuing No Objection Certificate for the proposed issue may delay its proposed Initial public offering.

• The hospitality industry is affected by consumer preferences and perceptions.

• If the company is not able to obtain, renew or maintain the statutory and regulatory permits and approvals required to operate its business it may have an adverse effect on the company business.

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

• There may be potential conflict of interests between the Company and group entity/ company promoted by its Promoters cum Director.

• The company Promoters and Promoter Group will continue to exercise control post completion of the Issue and will have considerable influence over the outcome of matters.

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

• The company inability to successfully implement its business plan, expansion and growth strategies could have an adverse effect on its business, financial condition, cash flows and results of 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 Companies/ Entities.

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

• The hotel industry is cyclical and sensitive to changes in the economy, and this could have a significant impact on its operations and financial results. The company is subject to operating risks common in the hotel industry.

• The company is subject to the restrictive covenants of banks in respect of the Loan/Credit Limit and other banking facilities availed from them.

• The company Object has not been appraised by any Bank or Financial Institution. Any significant deviation in the Object could adversely impact its operations and sustainability in the absence of any independent monitoring agency.

• 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.

• The company Promoters, members of Promoter Group and director have mortgaged their properties and provided personal guarantees to certain loan facilities availed by it, which if revoked may require alternative guarantees, repayment of amounts due or termination of the facilities.

• The sectors in which the company operates are capital intensive in nature, and its may not be able to raise the required capital for acquisition of Barges, which could have a material adverse effect on its ability to complete the company projects.

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

• Any misconduct by employees or its failure to comply with laws or regulations could weaken the company ability to win contracts, which could result in reduced revenues and profits.

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

• In the event there is any delay in the completion of the Issue, or delay in schedule of implementation, 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.

• Its success largely depends on the company`s Board and Key Managerial Personnel and its ability to attract and retain them. Any loss of its director and key managerial personnel could adversely affect the company business, operations and financial condition.

• The compay have not made any alternate arrangements for meeting its capital requirements for the Objects of the issue. Further its have not identified any alternate source of financing the "Objects of the Issue". Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.

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

• The requirements of being a public listed company may strain its resources and impose additional requirements.