Aspire & Innovat

Risks

• The company is dependent upon third parties for trading and supply of all of the products the company sell, with whom its may not have long term contracts or exclusive supply arrangements. Any delay or failure on the part of such vendors to deliver products, may adversely affect its business, profitability and reputation.

• Its historical performance is not indicative of the company`s future growth or financial results and its may not be able to sustain the company`s historical growth rates.

• Its future growth is dependent upon the company`s ability to identify and maintain new products, technologies and customers that achieve market acceptance with acceptable margins.

• The company does not own the registered office and corporate office from which its carry out the company`s business activities. In case of nonrenewal of rent agreements or dispute in relation to use of the said premise, its business and results of operations can be adversely affected.

• Dependence upon third party for transportation and warehousing 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. If warehousing lease agreements are not renewed/inadequately executed, its operations may be affected adversely.

• The company is highly dependent on certain key intermediaries like NBFCs, NBFC-MFIs etc. for selling of its products to the company`s customers and generate substantial portion of its revenues. Loss of relationship with any of these intermediaries may have a material adverse effect on its profitability and results of operations.

• A significant portion of its revenue is generated from sales of the company`s top five products. The loss of customers who purchase these products, or a significant reduction in the production and sales of, or demand for said products may adversely affect its business, financial condition, results of operations and prospects.

• The restated financial statements have been provided by peer reviewed chartered accountants who is not statutory auditor of the Company.

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

• Expansion into existing and new geographic regions and markets may subject it to various challenges.

• The company has had certain inaccuracy in relation to regulatory filings to be made with the RoC and the company has made noncompliances of certain provision under applicable laws.

• The Company`s logo Aspire & Innovative is not registered as on date of this Draft Red Herring Prospectus. Its may be unable to adequately protect the company`s intellectual property. Furthermore, its may be subject to claims alleging breach of third party intellectual property rights which could have a material adverse effect on its business, results of operations and financial condition.

• Inventories and trade receivables form a major part of its current assets. The company purchase inventory in anticipation of sales, and if its fail to manage its inventory and trade receivables effectively, the company`s business and results of operations could be adversely affected.

• 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.

• Its proposed capacity expansion plans relating to open new warehouse facilities are subject to the risk of unanticipated delays in implementation and cost overruns.

• The company has experienced negative operating 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 requires certain approvals or licenses in the ordinary course of business and the failure to renew, obtain or retain them in a timely manner, or at all, may adversely affect its operations.

• The company is subject to competition from both organized and unorganized players in the market, which may significantly affect the fixation and realization of the price for its product, which may adversely affect the company`s business operation and financial condition.

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

• Adverse publicity regarding any product the company sell could negatively impact it.

• Its Group Company i.e. Boatman Advisers Private Limited operate in the same line of business as it, which may lead to conflict of interest.

• If the company is not able to successfully manage its growth, its business and results of operations may be adversely affected.

• The sale of its owned brand products subjects it to unique risks and enhances certain other risks.

• Certain of its investments may be subject to market risk and the company has not made any provisions for a possible decline of the value of such investments.

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

• The company has in the past entered into related party transactions and may continue to do so in the future. There can be no assurance that such transactions, individually or in the aggregate, will not have an adverse effect on the Company`s financial condition and results of operations.

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

• The company may not be successful in implementing its business strategies.

• 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.

• Technology failures or Cyber-attacks or other security breaches could have a material adverse effect on its business, results of operation or financial condition.

• Its Statutory Auditor has included an emphasis of matter in the company`s Audited Financial Statements for the Financial Years 2020-21.

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

• 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.

• Loans availed by the Company has been secured on personal guarantees of its Promoters and Directors. Its business, financial condition, results of operations, cash flows and prospects may be adversely affected in case of invocation of any personal guarantees provided by its Directors.

• Excessive dependence on ICICI Bank Ltd in respect of loan facilities obtained 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 its capital needs, which the company may not be able to procure and any future equity offerings by the company..

• 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 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.

• Any variation in the utilization of the Net Proceeds as disclosed in this Draft Red Herring Prospectus shall be subject to certain compliance requirements, including prior approval of the shareholders of the Company.

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

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

• 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.

• Its 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 cannot guarantee the accuracy or completeness of facts and other statistics with respect to India, the Indian economy and industry in which the company operates contained in the Draft Red Herring Prospectus.

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

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

• 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 the company`s Equity Shares.

• There is no guarantee that the Equity Shares issued pursuant to the Issue will be listed on the Emerge Platform of NSE Platform in a timely manner or at all.

• The Equity Shares have never been publicly traded, and, after the Issue, the Equity Shares may experience price and volume fluctuations, and an active trading market for the Equity Shares may not develop. Further, the price of the Equity Shares may be volatile, and you may be unable to resell the Equity Shares at or above the Issue Price, or at all.