Avax Apparels

Company`s Core Business.

Qualified & Experienced Team.

Customers Base.

Geographic Exposure.

Competitive Advantage.

Corporate Governance.

Industry Growth Trends.

Wide Product Range.

The company Promoters are not the original promoters of the Company.

The company does not have long term contracts with most of its suppliers and customers.

Its Promoters have limited experience in the current line of business.

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

The company depends on a limited number of customers for a significant portion of its revenue. The loss of any of the company major customer due to any adverse development or significant reduction in business from its major customer may adversely affect the company`s business, financial condition, results of operations and future prospects.

The company has experienced negative cash flows from operating and investing activities in the past.

The Company is dependent on few suppliers for purchase of product. Loss of any of these large suppliers may affect its business operations.

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

Reliance has been placed on declarations and affidavits furnished by its Directors and Key Management Personnel, for details of their details included in this Prospectus.

The Company has delayed payment of Statutory dues.

Some of the statutory and key approvals taken by the Company are required to be transferred in the name of "Avax Apparels and Ornaments Limited" from "Avax Soft Technologies Private Limited / Avax Soft Technologies Limited", pursuant to conversion from private limited to public limited company. Any failure to obtain and renew them or failure to transfer them in name of "Avax Apparels and Ornaments Limited" in a timely manner may affect our business operations.

The company does not own its registered office.

The Company in future may have only one line of business which is the textile business and the trading in silver ornaments may be negligible or may not exist at all.

Its technology infrastructure and the technology infrastructure of the company third-party providers are susceptible to security breaches and cyberattacks.

The company is partly dependent on third party transportation providers for delivery of goods and materials to it from its suppliers and delivery of goods and materials to the company clients. Any failures on part of such service providers to meet their obligations could have a material adverse effect on its business, financial condition and results of operation.

The company could face customer complaints or negative publicity about its customer service.

If the company fails to identify and effectively respond to changing consumer preferences and spending patterns or changing fashion trends in a timely manner, the demand for its products could decrease, causing the company`s business, results of operations, financial condition and cash flows to be adversely affected.

Its brand and reputation are critical to the success of the company`s business and may be adversely affected due to various reasons, which could have an adverse effect on its business, financial condition, cash flows and results of operations.

The launch of new brands or products that prove to be unsuccessful could affect its growth plans which could adversely affect the company`s business, financial condition, cash flows and results of operations.

The Company changed its name from M/s Avax Soft Technologies Ltd. to M/s Avax Apparels and Ornaments Ltd. An addendum to this effect has not been executed with CDSL and NSDL. This may result in improper reflection of name in CDSL and NSDL depositories.

The company dependence on third-party manufacturers for all its products subjects the company to risks, which, if realized, could adversely affect its business, results of operations, cash flows and financial condition.

If the company is unable to identify consumer demand accurately and maintain an optimal level of inventory, the company`s business, results of operations, cash flows and financial condition may be adversely affected.

The company may not be able to adequately protect its intellectual property, which may result in the inability to prevent the company competitors from developing, using or commercializing products that are functionally equivalent or similar to its products.

The company insurance coverage may not adequately protect it against certain operating risks and this may have an adverse effect on the results of its business.

The company warehousing operations are being conducted on premises that have been taken on lease. Any difficulty in seeking renewal or extension of such lease terms may cause disruption in its operations.

The company silver ornaments inventory is kept in custody of a custodian.

Its business depends upon the user behaviour, growth of online commerce industry in India and continued acceptance of digital platforms.

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

The company may requires additional financing in the form of debt or equity to meet its business requirements.

The current geographic concentration of its operations creates an exposure to local economies, regional downturns and severe weather or other catastrophic occurrences.

The company may be unable to grow its business in additional geographic regions, international markets or online.

The company income and sales are subject to seasonal fluctuations and lower income in a peak season may have a disproportionate effect on its results of operations and may have a negative impact on the company`s business.

The company may be subject to fraud, theft, employee negligence or similar incidents.

Ineffective execution of marketing programs and reduced marketing expenditure could have an adverse effect on its sales.

Silver purchases are discretionary and are often perceived to be a luxury purchase. Any factor which may bring discretionary spending by consumers under pressure may adversely affect its business, results of operations and financial condition.

The company does not register its designs under the Designs Act, 2000 and the company may fails to protect its jewellery designs that may be unique and relative to the company brand.

There may be potential conflicts of interest if its Promoters or Directors are involved in any business activities that compete with or are in the same line of activity as its business operations.

The company Promoters play key role in its functioning and the company heavily relies on their knowledge and experience in operating its business and therefore, it is critical for the company business that its Promoters remain associated with the company.

The company success depends largely on its senior management and its ability to attract and retain the company key personnel.

In addition to normal remuneration or benefits and reimbursement of expenses, its Promoters, the company Directors and Key Managerial Personnel are interested in the Company to the extent of their shareholding, and dividend entitlements etc.

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

The Objects of the Issue for which funds are being raised, are based on its management estimates and any bank or financial institution or any independent agency has not appraised the same. The deployment of funds in the project is entirely at its discretion, based on the parameters as mentioned in the chapter titles "Objects of the Issue".

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 the Audit Committee.

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

The company future funds requirements, in the form of fresh issue of capital or securities and/or loans taken by it, may be prejudicial to the interest of the shareholders depending upon the terms on which they are eventually raised.

Delay in raising funds from the IPO could adversely impact the implementation schedule.

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

Third party industry and statistical data in this Prospectus may be incomplete, incorrect or unreliable.

The company cannot assure you that its equity shares will be listed on the SME platform of BSE Limited in a timely manner or at all, which may restrict your ability to dispose of the equity shares.

Sale of Equity Shares by its Promoters or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.

Its operations are subject to high working capital requirements. The company inability to maintain sufficient cash flow, credit facilities and other sources of funding, in a timely manner, or at all, to meet requirement of working capital or pay out debts, could adversely affect its operations.

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

The company is exposed to the risk of delays or non-payment by its clients and other counterparties, which may also result in cash flow mismatches.

Industry information included in this Prospectus has been derived from industry reports. There can be no assurance that such third-party statistical financial and other industry information is either complete or accurate.

Any future issue of Equity Shares may dilute your shareholding and sales of its Equity Shares by the company Promoters or other major shareholders may adversely affect the trading price of the Equity Shares.

There are restrictions on daily movements in the price of the 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.

The Issue price of its Equity Shares may not be indicative of the market price of the company Equity Shares after the Issue and the market price of its Equity Shares may decline below the issue price and you may not be able to sell your Equity Shares at or above the Issue Price.

The Issue price of its Equity Shares may not be indicative of the market price of the company Equity Shares after the Issue and the market price of its Equity Shares may decline below the issue price and you may not be able to sell your Equity Shares at or above the Issue Price.