Broach

Risks

• The Company has been formed specifically for the purpose of acquisition of the business of Dr. Vyas`s Hospital (proprietorship concern of its Promoter i.e., Dr. Jaykumar Narendra Vyas) thus the company has limited operating history as a Company which may make it difficult for investors to evaluate its historical performance or future prospects.

• The company is highly dependent on its doctors and other healthcare professionals, as well as other key personnel and the loss of, or inability to attract or retain, such persons could adversely affect its business and results of operations.

• The company is significantly dependent on its Promoters, Dr. Jaykumar Narendra Vyas, Dr. Shachi Jaykumar Vyas, and any loss of their services could adversely affect its business and results of operations.

• Its operations are geographically located in Bharuch and Ankleshwar in Gujarat at present and any localized social unrest, natural calamities, etc. could have material adverse effect on business and financial operations.

• The company is a boutique hospital, primarily provide services relating to interventional cardiac services. Any material impact on its earnings from these fields will impact the company`s financial condition and results of operations significantly.

• The company derives a significant portion of its revenues from its tie up arrangements with insurance companies, third party administrators and corporations. The loss of any one or more of its major customers would have a material effect on its business operations and profitability.

• Delay in receipt of payment from its patients / customers may affect its cash flows, which may, in turn affect the company`s financial condition and results of operations.

• Its ability to provide affordable healthcare depends on the maintenance of a high volume of patients, occupancy rates, managing operating and effective capital management. Any increase in such costs could adversely affect its business, financial condition and results of operations.

• Its failures to compete effectively against existing and new competitors, other multispecialty and/or super specialty hospitals and/or medical practitioners, could adversely affect its market share, business, financial condition, results of operations and prospects.

• Its industry is highly regulated and requires it to obtain, renew and maintain statutory and regulatory permits, accreditations, licenses and comply with applicable safety, health, environmental, labour and other governmental regulations. Any regulatory changes or violations of such rules and regulations may adversely affect its business, financial condition and results of operations.

• The Company is dependent on limited number of external suppliers for its medicine and consumables requirements. Any delay or failure on the part of such suppliers to deliver products at acceptable prices, may adversely affect its business, profitability and reputation.

• Any negative cash flows in the future would adversely affect its cash flow requirements, which may adversely affect the company`s ability to operate its business and implement its growth plans, thereby affecting its financial condition.

• 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 has not entered into tie-ups with Governmental agencies for providing medical services under various government schemes.

• The company is exposed to legal claims and regulatory actions arising from the provision of healthcare services and may be subject to liabilities arising from claims of malpractice and medical negligence which could materially and adversely affect its reputation and prospects.

• The Company has acquired sole proprietorship firms of its Promoter after its incorporation vide Business Transfer Agreement (BTA) dated July 17, 2023. Any future acquisition of other businesses could result in operating difficulties, integration issues and other adverse consequences due to its limited past experience in businesses.

• There have been certain instances of non- compliances/ discrepancies, including with respect to certain secretarial/ regulatory filings for corporate actions taken by the Company in the past. Consequently, the company may be subject to regulatory actions and penalties for any such non-compliance/ discrepancies and its business, financial position and reputation may be adversely affected.

• If the company is unable to maintain bed occupancy rates at sufficient levels, the company may not be able to generate adequate returns on its capital expenditure, could adversely affect the company`s operating efficiencies and its profitability.

• If the company is unable to keep pace with technological changes, new equipment and service introductions, changes in patients` needs and evolving industry standards, its business and financial condition may be adversely affected.

• The company does not own the land on which its registered office and hospitals have been set-up. Any revocation or adverse changes in the terms of the lease may have an adverse effect on its business, prospects, results of operations and financial condition.

• The company has not yet placed orders in relation to the capital expenditure to be incurred for the purchase of equipment / machinery. In the event of any delay in placing the orders, or in the event the vendors are not able to provide the equipment / machinery or other materials in timely manner, or at all, may result in time and cost overruns and its business, prospects and results of operations may be adversely affected.

• Lack of health insurance in India may affect its business, cash flows and results of operations.

• Most of its radiology and diagnostic imaging equipment contain radioactive and nuclear materials or emit radiation during operation which could make it liable for damages.

• Its trademark and logo is not registered with the trademark registration authority, and the company may be unable to protect its logo from being infringed by others which may adversely affect its business value, financial condition and results of operations.

• One of its Promoters is involved in certain tax proceedings. Further, the Company may be party to certain litigations and claims during the course of its business. Any adverse decision may make it liable to liabilities/penalties and may adversely affect its reputation, business and financial status.

• Any downtime for maintenance and repair of its medical equipment could lead to business interruptions that could be expensive and harmful to its reputation and to the company`s business.

• Its Promoters and Promoter Group will be able to exercise significant influence and control over its operations after the issue and may have interests that are different from those of its other shareholders.

• The company`s insurance coverage may not adequately protect it against potential risk, and this may have a material adverse effect on its business.

• The company has not independently verified certain data in this Draft Prospectus.

• The company may be subject to labor unrest, slowdowns and work stoppages, which could affect its reputation, business, financial condition and results of operations.

• Its Promoter, Directors and Key Managerial Personnel may have interest in the Company, other than reimbursement of expenses incurred, remuneration or other benefits received.

• The average cost of acquisition of Equity Shares by its Promoters may be lower than the Issue Price.

• The company has in the past entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interest with the equity shareholders.

• The company could be exposed to risks relating to the handling of personal information, including medical data.

• The company is vulnerable to failures of its information technology system, which could adversely affect the company`s business.

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

• 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.

• In the event there is any delay in the completion of the Issue, there would be a corresponding delay in the completion of the objects / schedule of implementation of this Issue which would in turn affect its revenues and results of operations.

• The company may requires additional funding to finance its operations, which may not be available on terms acceptable to it, or at all, and if the company is unable to raise funds, the value of your investment in it may be negatively impacted.

• Its ability to pay dividends in the future will depends on its earnings, financial condition, working capital requirements, capital expenditures and restrictive covenants of its financing arrangements.

• Its hospital is susceptible to risks arising on account of fire and other incidents.

• If the company is unable to establish and maintain an effective internal control, its business and reputation could be adversely affected.

• 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.

• 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.

• Any future issuance of Equity Shares may dilute your shareholding and sale of Equity Shares by the Promoters may adversely affect the trading price of the Equity Shares.

• 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.

• There are restrictions on daily weekly monthly movement in the price of the Equity Shares, which may adversely affect the shareholder`s ability to sell for the price at which it can sell, Equity Shares at a particular point in time.

• There are restrictions on daily weekly monthly movement in the price of the equity shares, which may adversely affect the shareholder`s ability to sell for the price at which it can sell, equity shares at a particular point in time.