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The company operate in highly competitive markets, and the scale and resources of some of its competitors may allow them to compete more effectively than its can, which could result in a loss of its market share and a decrease in the company net revenues and profitability.
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The company future success depends on its ability to promote its brand and protect the company reputation. The company failure to establish and promote its brand and any damage to its reputation will hinder the company growth.
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If the company fail to successfully develop and commercialize new products, services and technologies that are well received by
consumers in a timely manner, its operating results may be materially and adversely affected.
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The company is highly dependent on certain key customers for a substantial portion of its revenues. Loss of relationship with any of these customers may have a material adverse effect on its profitability and results of operations.
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The company is susceptible to supply shortages and interruptions, long lead times, and price fluctuations for raw materials and
components, any of which could disrupt its supply chain and have a material adverse impact on its results of operations.
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The company is significantly dependent on the sale of its two product verticals viz: Gas Stoves and Pressure Cookers. An inability to anticipate or adapt to evolving upgradation of these products or inability to ensure product quality or reduction in the demand of these products may adversely impact its revenue from operations and growth prospects.
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The markets in which its compete are characterized by consumers and their rapidly changing preferences, advancement in technology and therefore as a result the Company may be affected by any disruptions in the industry.
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The company business may be adversely impacted by product defects and liability issues which may adversely affect its business, reputation and results of operations.
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The company is heavily reliant on its relationships with certain online marketplaces and offline distributors. Disruptions to such relationships, changes in their business practices, their failure to meet payment schedules and provide timely and accurate information, or conflicts among its channels of distribution could adversely affect the company business, cash flows and results of operations.
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The company may not be able to optimally utilise its backward integration to enhance and support
the company business which may affect its operations, reputation and profitability.
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Expansion into new geographic regions and markets may subject it to various challenges.
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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.
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The company operating results may fluctuate from period to period which may affect its business and financial condition.
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The company has experienced negative cash flows from operations in the recent past, and its may have negative cash flows in the future.
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Pricing pressure from its competitors may affect its ability to maintain or increase the company product prices and, in turn, its revenue from product sales, gross margin and profitability, which may materially and adversely affect its business, cash flows, financial condition and results of operations.
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The company business is dependent on its manufacturing facilities and its subject to certain risks in the company manufacturing process. Obsolescence, destruction, theft, breakdowns of its major plants or machineries or failures to repair or maintain the same may affect its business, cash flows, financial condition and results of operations.
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The Company has not adequately complied with some provisions of Companies Act, 1956/2013. There are certain Discrepancies /errors noticed in some of its corporate records relating to forms filed with the Registrar of Companies and other provisions of Companies Act, 1956/2013. Any penalty or action taken by any regulatory authorities in future,
for non-compliance with provisions of corporate and other law could impact the reputation and financial position of the Company to that extent.
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The company had not prepared Consolidated Financial Statements in the past with its then Subsidiary Companies, Greenchef Manufacturers and Distributors Private Limited and Modulus Springs Private Limited.
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The company may not be able to adequately protect or continue to use its intellectual property.
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The emergence of modern trade channels in the form of supermarkets and online retailers may adversely affect its pricing ability, and result in temporary loss of retail shelf space and disrupt sales of kitchen appliances, which may have an adverse effect on its results of operations and financial condition.
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The Company and Directors are involved in certain legal proceedings and potential litigations. Any adverse decision in such proceedings may render it/them liable to liabilities /penalties/ prosecutions and may adversely affect its business and results of operations.
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The company business is operating under various laws which require its to obtain approvals from the concerned statutory/regulatory authorities in the ordinary course of business and its inability to obtain, maintain or renew requisite statutory and regulatory permits and approvals for its business operations could materially and adversely
affect its business, prospects, results of operations and financial condition.
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The company plan relating to construction of new manufacturing facility and installation of additional plant and machinery is subject to the risk of unanticipated delays in implementation and cost overruns.
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The company operating results could be materially harmed if its are unable to accurately forecast consumer demand for its products or manage the company inventory.
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The company insurance coverage may not be adequate to protect it against certain operating hazards and this may have a material adverse effect on its business.
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The company has in the past entered into related party transactions and may continue to do so in the future.
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The company operateits business from rented premises.
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The Objects of the Issue for which funds are being raised, are based on its management estimates and the same have not been appraised by any bank or financial institution or any independent agency. 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".
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If the company fail to identify and effectively respond to changing consumer preferences and spending patterns in a timely manner, the demand for its products could decrease, causing the company business, results of operations, financial condition and cash flows to be adversely affected.
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The company Promoter Group Entity, M/s Siddhartha Enterprises was engaged in similar line of business primarily in manufacturing and importing of components for kitchen appliances. Any conflict of interest in future may occur between the business of M/s Siddhartha Enterprises and it which may adversely affect its business, prospects, results of operations and financial condition.
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The company contingent liabilities as stated in its Restated Financial Statements could affect its financial condition.
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The company depend on third party service providers for logistics and some portion of aftersales services.
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The company has significant working capital requirements. If its experience insufficient cash flows from the company operations or are unable to borrow to meet its working capital requirements, it may materially and adversely affect its business, cash flows and results of operations.
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Trade receivables form a major part of its current assets. Failure to manage the company trade receivables could have an adverse effect on its net sales, profitability, cash flow and liquidity.
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The activities carried out at its manufacturing facilities can cause injury to people or property in certain circumstances.
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If the company is unable to service its debt obligations in a timely manner or to comply with various financial and other covenants and other terms and conditions of its financing agreements, it may adversely affect the company business, prospects, results of operations and financial condition.
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The company Promoter Group Entity has incurred losses in past, any operating losses in the future could adversely affect the results of operations and financial conditions of its group.
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The company may be subject to labour unrest, operating risks, slowdowns, increased wage costs, and shut-downs.
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The company appoint contract labour for carrying out certain of its operations and the company may be held responsible for paying the wages of such workers, if the independent contractors through whom such workers are hired default on theirvvobligations, and such obligations could have an adverse effect on its results of operations and financial condition.
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Changes in technology may render the company current technologies obsolete or require it to make substantial investments.
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The Company has taken unsecured loans that may be recalled by the lenders at any time.
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Excessive dependence on Canara Bank Limited in respect of Loan facilities obtained by the Company.
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Under-utilization of its manufacturing capacities could have an adverse effect on the company business, future prospects and future financial performance.
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The company is dependent on its Promoters, the company senior management and other key personnel, and the loss of, or its inability to attract or retain, such persons could affect the company business, results of operations, financial condition and cash flows.
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The company has not entered into any definitive arrangements to utilize certain portions of the Net Proceeds of the Issue. Its funding requirements and deployment of the Net Proceeds of the Issue are based on management estimates and quotations from vendors and have not been independently appraised.
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The average cost of acquisition of Equity Shares by its Promoters, could be lower than the issue price.
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The company could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect its financial condition, results of operations and reputation.
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Fraud, theft, employee negligence or similar incidents may adversely affect its results of operations and financial condition.
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Information relating to its installed capacities and the historical capacity utilization of its manufacturing facilities included in this Red Herring Prospectus is based on various assumptions and estimates and future production and capacity utilization may vary.
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The company ability to pay any dividends will depend upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.
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The company Promoter and the Promoter Group will jointly continue to retain majority shareholding in the Company after the offer, which will allow them to determine the outcome of the matters requiring the approval of shareholders.
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Any future issuance of its Equity Shares may dilute prospective investors` shareholding, and sales of the company Equity Shares by its major shareholders may adversely affect the trading price of its Equity Shares.
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The Offer price of its Equity Shares may not be indicative of the market price of the company Equity Shares after the Offer and the market price of the company Equity Shares may decline below the Offer Price and you may not be able to sell your Equity Shares at or above the Offer Price.
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Investors other than retail (including non-institutional investors, QIBs and Corporate Bodies) are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Amount) at any stage after submitting an Application.
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The company Promoters and Directors have provided personal guarantees for financing facilities availed by the Company and may in the future provide additional guarantees and any failure or default by the Company to repay such facilities in accordance with the terms and conditions of the financing agreements could trigger repayment obligations on them, which may impact their ability to effectively service their obligations as its Promoters and Directors and thereby, adversely impact its business and operations.
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Non-compliance with increasingly stringent safety, health, environmental and labour laws and other applicable regulations, may adversely affect its business, results of operations, cash flows and financial condition.
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Industry information included in this Red Herring Prospectus has been derived from an industry report issued by CARE Advisory Research & Training Ltd dated March 22, 2023 ("CareEdge Report"). There can be no assurance that such third-party statistical, financial and other industry information is complete, reliable or accurate.
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Certain data mentioned in this Red Herring Prospectus has not been independently verified.
