Beezaasan Exp.

One Stop Solution for Explosives Product.

Long Standing Relationship with key Customers & Suppliers.

Experienced Management team.

Technical manpower.

Continuous focus on developing novel and innovative products

Quality products.

Products manufactured by the company is operated in highly regulated sector. Any failures to obtain registrations for its products or the company inability to comply with the regulations or in case of its inability to obtain, renew or maintain the statutory and regulatory licenses, permits and approvals required to operate its business it may adversely affect the company business, results of operations, cash flows and financial condition.

Few of the raw materials used and products manufactured by the Company are hazardous in nature. If any accidents occur involving such hazardous raw materials and products, its may be held liable for consequent damages and litigation.

Its Registered Office and Corporate office are not owned by the company. In the event its lose such rights, the company Business, Financial Condition and Results of Operations and Cash Flows could be adversely affected.

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

The company depends on a certain supplier for its raw materials required for the company operations and the company does not have long-term agreements with suppliers for its raw materials and an increase in the cost of, or a shortfall in the availability or quality of such raw materials could have an adverse effect on its business, financial condition and results of operations.

The company is highly dependent on certain key customers for a substantial portion of its revenues and the company does not have long term contracts with all of these customers. Loss of relationship with any of these customers may have a material adverse effect on its profitability and results of operations.

The Restated Consolidated Financial Statements have been provided by Peer Reviewed Chartered Accountants who is not Statutory Auditor of the Company.

Manufacturing and supply of commercial explosives are subject to strict quality requirements and any failure to comply with quality standards may lead to cancellation of existing and future orders.

The company also operate on a tender based business. There are several inherent risks associated with a tender-based business which could affect its profit margins thereby materially affecting the company business and results of operations.

The company has certain outstanding litigation against it, an adverse outcome of which may adversely affect the company business, reputation and results of operations.

There are certain discrepancies/errors/delay filings noticed in some of its corporate records relating to forms filed with the Registrar of Companies and other provisions of Companies Act, 2013. Any penalty or action taken by any regulatory authorities in future, for non-compliance with provisions of corporate or any other law could impact the financial position of the Company to that extent.

Failures to meet the company production timelines could impact its reputation and could also lead to penalty or cancellation of the company contracts, which can adversely impact the business operations and financial condition of the Company.

Its Order Book may not be representative of the company future results. Contracts included in its Order Book may be delayed, cancelled or not fully paid for by the company customers, which could materially harm its cash flow position, revenues and earnings.

A significant proportion of its revenues are derived from Slurry Explosives, and any reduction in the demand for such product could have an adverse effect on its business, results of operations and financial condition.

The company generate its major portion of sales from its operations in certain geographical regions especially, Gujarat and Rajasthan. Any adverse developments affecting its operations in these regions could have an adverse impact on its revenue and results of operations.

The company source is majority of raw materials from domestic market i.e. Gujarat and Maharashtra. Any adverse developments affecting its procurement in these regions could have an adverse impact on its revenue and results of operations.

There are certain discrepancies and non- compliances noticed in some of its financial reporting and/or records relating to filing of returns and deposit of statutory dues with the taxation and other statutory authorities.

The company has entered into and may enter into related party transactions in the future, however, there can be no assurance that such transactions, individually or taken together, will not have an adverse effect on its business, prospects, results of operations and financial condition.

The company has not yet placed orders in relation to Funding the Capital expenditure towards civil construction required for Expansion of existing manufacturing unit for Emulsion Explosive-3 Plant, Emulsion Bulk Explosive Plant and Detonating Fuse Plant at the existing Manufacturing facility situated at Bhanthala, Mahisagar, Gujarat. In the event of any delay in placing the orders, or in the event the vendors are not able to complete the civil construction in a timely manner, or at all, may result in time and cost over-runs and its business, prospects and results of operations may be adversely affected. The company proposed capacity expansion plans are subject to the risk of unanticipated delays in implementation due to factors including delays in construction, obtaining regulatory approvals in timely manner and cost overruns.

The company has not yet placed orders in relation to Funding of Capital expenditure towards civil construction required for Expansion of additional magazine (Storage) facility required for Emulsion Cartridge Explosives and Detonating Fuse at the existing location situated at Felsani, Gujarat. In the event of any delay in placing the orders, or in the event the vendors are not able to complete the civil construction in a timely manner, or at all, may result in time and cost over-runs and its business, prospects and results of operations may be adversely affected. The company proposed capacity expansion plans are subject to the risk of unanticipated delays in implementation due to factors including delays in construction, obtaining regulatory approvals in timely manner and cost overruns.

The company intend to utilise a portion of the Net Proceeds for funding its Capital Expenditure for purchase of certain Machineries. The company is yet to place orders for such Capital Expenditure Machinery.

The company intend to utilise a portion of the Net Proceeds for Purchase of Commercial Vehicle. The company is yet to place orders for such Purchase.

The company propose to repay or prepay all or a portion of certain outstanding borrowings availed by the Company, However, no assurance can be made that the Company will not requires further funding and that such funding will be available at attractive rates or that by repaying the borrowings, will in fact improve its available funding alternatives.

Compliance with, and changes in, safety, health and environmental laws and other related laws and regulations impose additional costs and may adversely affect its results of operations and the company financial condition.

The company has certain contingent liabilities, which, if they materialize, may adversely affect its results of operations, financial condition and cash flows.

The company Group Company which is also a Promoter Group Company is in the same line of business and consequently the interest of this Company may be in conflict with the interest of the Company.

Its existing manufacturing facility are concentrated in a single region i.e., Mahisagar District in the state of Gujarat and therefore, any localized social unrest, natural disaster or breakdown of services or any other natural disaster in and around Gujarat and the inability to operate and grow its business in this particular region may have an adverse effect on its business, financial condition, results of operations, cash flows and future business prospects.

Its business is dependent and will continue to depend on the company manufacturing facilities, and the company is subject to certain risks in its manufacturing process. Any slowdown or shutdown in its manufacturing operations or strikes, work stoppages or increased wage demands by the company workers that could interfere with its operations could have an adverse effect on the company business, financial condition and results of operations.

Any inability to protect its Intellectual Property or any claims that the company infringe on the Intellectual Property Rights of others could have a material adverse effect on it.

Volatility in the supply and pricing of its raw materials may have an adverse effect on the company business, financial condition and results of operations.

The Company`s manufacturing activities are labour intensive and depend on availability of labour. In case of unavailability of such labour, its business operations could be affected.

Its operations are dependent on the company R&D capabilities and an inability to continue to design complex chemistries may adversely affect its business.

Its Promoters and members of the Promoter Group will continue jointly to retain majority control over the Company after the Issue, which will allow them to determine the outcome of matters submitted to shareholders for approval.

Within the parameters as mentioned in the chapter titled "Objects of the Issue" beginning on page 99 of this Red Herring Prospectus, the Company`s management will have flexibility in applying the proceeds of the Issue. The fund requirement and deployment mentioned in the Objects of this Issue have not been appraised by any bank or financial institution.

Portion of its Issue Proceeds are proposed to be utilized for general corporate purposes which constitute [+]% of the Issue Proceed.

The average cost of acquisition of Equity Shares by its Promoters could be lower than the Price Band to be decided by the Company in consultation with the Book Running Lead Manager in accordance with the SEBI ICDR Regulations.

The company has an in-house testing laboratory to conduct raw material and final product sample testing. If the company fails to test the quality of raw material and final product as required, its business, financial condition, cash flows and operations will be adversely affected.

Information relating to historical installed capacity of its manufacturing facility included in this Red Herring Prospectus is based on various assumptions and estimates and the company future production and capacity utilization may vary. Underutilization of its manufacturing capacity and an inability to effectively utilize the company expanded manufacturing facilities may have an adverse effect on its business, future prospects and future financial performance.

The company has significant power and fuel requirements and any disruption to power sources could increase its production costs and adversely affect the company results of operations and cash flows.

The Company has availed unsecured loans that may be recalled by the lenders on demand.

Its inability to accurately forecast demand or price for the company products and manage its inventory may adversely affect the company business, results of operations and financial condition.

The company has issued Equity Shares during the last one year at a price below the Issue Price.

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 dependent on third-party transportation providers for the supply of raw materials and delivery of its finished products.

The company has incurred indebtedness, In addition, certain of its financing agreements involve variable interest rates and an increase in interest rates may adversely affect its results of operations and financial condition.

The company is exposed to counterparty credit risk and any delay in receiving payments or non-receipt of payments may adversely impact its results of operations.

The Company engages contract labourers at its Manufacturing Facilities, any requirement to fund their wage requirements may have an adverse impact on its results of operations and the company financial conditions.

Its Promoters have provided personal guarantees for loan facilities obtained by the Company, and any failures 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 and thereby, impact its business and operations.

Its success largely depends upon the knowledge and experience of the company Promoters, Directors, Key Managerial Personnel and Senior Management as well as its ability to attract and retain personnel with technical expertise. Any loss of its Promoters, Directors, Key Managerial Personnel, Senior Management or the company inability to attract and retain them and other personnel with technical expertise could adversely affect its business, financial condition and results of operations.

The company faces competition from domestic market and its inability to compete effectively may have a material adverse impact on its business, financial condition and results of operations.

If the company fails to maintain an effective system of internal controls, its may not be able to successfully manage, or accurately report, the company financial risks. Despite its internal control systems, the company may be exposed to operational risks, including fraud, petty theft and embezzlement, which may adversely affect its reputation, business, financial condition, results of operations and cash flows.

The company might infringe upon the intellectual property rights of others and may be susceptible to claims from third parties, affecting its operations and financial condition.

Failures to deal effectively with fraudulent activities on emails would increase its fraud losses and harm the company business and could severely diminish seller and consumer confidence in and use of its services.

Failures or disruption of its information technology systems may adversely affect the company business, financial condition, results of operations, cash flows and prospects.

Certain of its Promoters may be interested in it other than in terms of remuneration and reimbursement of expenses, and this may result in conflict of interest with the company.

The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Issue. Further the company has 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, business operations and financial condition.

Its may not be fully insured for all losses the company may incur.

Employee misconduct including misuse of confidential data and failures to maintain confidentiality of information could harm its and is difficult to detect and deter.

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

The company has not commissioned an industry report for the disclosures made in the section titled ndustry Overview` and made disclosures on the basis of the data available on the internet and such data has not been independently verified by it.

Any increase in interest rates would have an adverse effect on its results of operations and will expose the Company to interest rate risks.

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 determination of the Price Band is based on various factors and assumptions and the Issue Price of the Equity Shares may not be indicative of the market price of the Equity Shares upon listing on the Stock Exchange.

Significant differences exist between Indian GAAP and other accounting principles, such as US GAAP and IFRS, which may be material to investors assessments of the Company`s financial condition. The company failures to successfully adopt IFRS may have an adverse effect on the price of its Equity Shares. The proposed adoption of IFRS could result in its financial condition and results of operations appearing materially different than under Indian GAAP.