Clinitech Lab

Risks

• Its business and prospects may be adversely affected if the company is unable to maintain and grow its brand name and brand image.

• Any inability on its part to maintain quality standards could adversely impact its business, results of operations and financial condition.

• The company does not own its Registered Office and diagnostic centres from which the company operates.

• 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 has experienced negative cash flows in the past. Any such negative cash flows in the future could adversely affect its business, results of operations and prospects.

• The company depends on skilled personnel and if its unable to recruit and retain skilled personnel, the company`s ability to operate or grow its business could be affected.

• Its operations are concentrated in Thane and Navi Mumbai, and any loss of business in such region could have an adverse effect on its business, results of operations and financial condition.

• Substantial portion of its purchases has been dependent upon limited number of vendors/ suppliers.

• The Company has allotted Equity Shares during the preceding one year from the date of the Prospectus which are lower than the Issue Price.

• The company has not entered into long-term contracts with its customers and typically operates on the basis of orders from its walk-in customers, any loss of customers could adversely impact its revenues and profitability.

• The Company and Promoter Directors are involved in certain legal proceedings and potential litigations. Any adverse decision in such proceedings may render it/them liable to liabilities/penalties which may adversely affect its business, financial condition and results of operations.

• Its Promoters and Executive Directors, Jagdish Umakant Nayak and Jyoti Jagdish Nayak plays key role in its functioning and the company heavily rely on their knowledge and experience in operating its business and therefore, it is critical for the company`s business that its Promoters remain associated with the company. Its success also depends on its key managerial personnel and its ability to attract and retain them. Any loss of its key person could adversely affect the company`s business, operations and financial condition.

• If the company is unable to attract new clients or retain its existing clients or default in payments, the growth of its business and cash flows will be adversely affected.

• Failures to establish and comply with appropriate quality standards when testing and diagnostics services could result in litigation and liability for it and could materially and adversely affect its reputation and results of operations.

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

• Negative publicity with respect to its services or the industry in which the company operates could adversely affect its business, financial condition and results of operations.

• Because the company operates in a highly competitive industry, its revenues, profits or market share could be harmed if the company is unable to compete effectively.

• The company is subject to risks arising from interest rate fluctuations, which could adversely affect its results of operations, planned expenditures and cash flows.

• The company has referred to the data derived from third party industry data aggregators and government publications, publicly available information, and sources.

• The company depends on third-parties to provide it its testing equipment and reagents, and any failures to continue to do so or recall of existing testing equipment and reagents could adversely affect its business, results of operations and financial condition.

• Failures to establish and comply with appropriate quality standards when testing and diagnostics services could result in litigation and liability for it and could materially and adversely affect its reputation and results of operations.

• Its may be subject to customer complaints and to litigation relating to its diagnostic healthcare services, which could have a material and adverse effect on its reputation and the company`s business.

• Any inadequacy in collection of, or failures or delay in the delivery of, specimens to its processing laboratories could compromise or destroy the integrity of such specimens, which could adversely affect its business, results of operations and financial condition.

• Implementation of pricing policies by the Government or other authorities could adversely affect its business, results of operations and financial condition.

• Failures to introduce new tests, services and technologies or acquire new or improved equipment could adversely affect its business, results of operations and financial condition.

• Cyber threats and non-compliance with and changes in privacy laws and regulations may adversely affect its business, results of operations and financial condition and cash flows.

• Its insurance coverage may not be sufficient or adequate in protecting it against all or certain operating hazards and from all or certain losses and this may have an adverse impact on the financial conditions of the business.

• Its ability to attract individual patients is largely dependent on the disposable income and increasing general health awareness of India`s general population, which could decline due to a variety of factors.

• Employee misconduct, errors or fraud could expose it to business risks or losses that could adversely affect its business prospects, results of operations and financial condition.

• Failures or malfunction of its equipment could adversely affect its ability to conduct the company`s operations.

• Its inability to manage growth could disrupt the company`s business and reduce its profitability.

• The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Offer. Further the company has not identified any alternate source of financing the `objects of the Offer`. Any shortfall in raising/ meeting the same could adversely affect its growth plans, operations, and financial performance.

• Its results of operations are likely to vary from year to year and be unpredictable, which could cause the market price of the Equity Shares to be volatile.

• 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.

• Any variation in the utilization of the Net Proceeds as disclosed in this Prospectus shall be subject to certain compliance requirements, including prior Shareholders` approval.

• Its funding requirements and deployment of the Offer Proceeds are based on management estimates and have not been independently appraised by any bank or financial institution.

• The Company`s management will have flexibility in utilizing the Net Proceeds. There is no monitoring agency appointed by the Company and the deployment of funds is at the discretion of its Management and its Board of Directors, though it shall be monitored by its Audit Committee.

• The Company has availed certain unsecured loans that are recallable by the lenders at any time.

• The company has not made any dividend payments in the past and its ability to pay dividends in the future will depends upon future earnings, financial condition, cash flows, working capital requirements, capital expenditures and restrictive covenants in its financing arrangements.

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