Medicamen Organ.

Risks

• The Company, its Directors and its Promoters are party to certain litigation and claims. These legal proceedings are pending at different levels of adjudication before various forums and regulatory authorities. Any adverse decision may make it liable to liabilities/penalties and may adversely affect its reputation, business and financial status.

• The company requires a number of approvals, licenses, registrations and permits in the ordinary course of its business and any failures or delay in obtaining the same in a timely manner may adversely affect its operations.

• Its business activities are exposed to fluctuations in the prices of raw materials.

• The Company is dependent on few numbers of customers for sales. Loss of any of this large customer may affect its revenues and profitability.

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

• The restated examination report by its peer review auditor on Restated Financial Statements has provided a matter of emphasis paragraph for the company has not accounted for interest provisions as per MSMED Act, 2006.

• Its Registered Office and the company factories are located on premises which are not owned by it and has been obtained on lease basis. Disruption of its rights as licensee/ lessee or termination of the agreements with its licensors/ lessors would adversely impact the company operations and, consequently, its business, financial condition and results of operations.

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

• Its may be unable to sufficiently obtain, maintain, protect, or enforce the company intellectual property and other proprietary rights.

• Some of its corporate records relating to changes in the share capital of the Company, allotments made by the Company, and transfers and acquisitions of Equity Shares made by its Promoters, not traceable. There have been instances of non-filing of certain ROC forms which were required to be filed as per the reporting requirements under the Companies Act, 2013 to RoC.

• Any non-compliance or delays in GST Return Filings may expose it to penalties from the regulators.

• Any non-compliance or delays in EPF Return Filings may expose it to penalties from the regulators.

• The company is dependent on third parties for the distribution and marketing of its products. If the company does not maintain and increase the number of its arrangements for the marketing and distribution of its products, the company`s business, financial condition and results of operations could be adversely affected.

• Its may not be able to detect or prevent fraud or other misconduct committed by the company employees or third parties.

• Delay or failures in the performance of its contracts, may adversely affect the company`s business, financial condition and results of operations.

• If the company cannot respond adequately to the increased competition its expect to faces, the company will lose market share and its profits will decline, which will adversely affect the company`s business, results of operations and financial condition.

• The products that the company commercialize may not perform as expected which could adversely affect its business, financial condition and results of operations.

• The availability of counterfeit drugs, such as drugs passed off by others as its products, could adversely affect the company goodwill and results of operations.

• Its appoint contract labor for carrying out certain of the company operations and its may be held responsible for paying the wages of such workers if the independent contractors through whom such workers are hired default on their obligations, and such obligations could have an adverse effect on its financial condition, results of operations and cash flows.

• If the company inadvertently infringe on the patents of others, its business may be adversely affected.

• The Company`s failures to maintain the quality standards of the products or keep pace with the technological developments could adversely impact its business, results of operations and financial condition.

• Its global operations expose it to numerous and sometimes conflicting legal and regulatory requirements, and violation of these regulations could harm its business.

• The company is subject to risks associated with expansion into new markets.

• The company is subject to foreign currency exchange rate fluctuations which could have a material and adverse effect on its results of operations and financial conditions.

• The Company is dependent on third party transportation for the delivery of products and any disruption in their operations or a decrease in the quality of their services could affect the Company`s reputation and results of operations.

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

• Any delays and/or defaults in payments could result in increase of working capital investment and/or reduction of the Company`s profits, thereby affecting its operation and financial condition.

• The Company requires significant amount of working capital for a continuing growth. Its inability to meet the company working capital requirements may adversely affect its results of operations.

• Its Promoter, Directors, Key Managerial Personnel and Senior Management have interests in the Company other than reimbursement of expenses incurred or normal remuneration or benefits.

• Information relating to the installed manufacturing capacity, actual production and capacity utilization of its manufacturing facilities included in this Red Herring Prospectus are based on various assumptions and estimates and future production and capacity may vary.

• Its Promoter and members of the Promoter Group have significant control over the Company and have the ability to direct its business and affairs; their interests may conflict with your interests as a shareholder.

• The average cost of acquisition of Equity Shares held by its Promoter could be lower than the Issue Price.

• Its future fund requirements, in the form of further 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.

• In addition to its existing indebtedness for the company existing operations, its may incur further indebtedness during the course of business. The company cannot assure that its would be able to service its existing and/ or additional indebtedness.

• 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, operations and financial performance.

• Its success largely depends upon the knowledge and experience of the company Promoter, Directors, its Key Managerial Personnel and the company Senior Management. Loss of any of its Directors and key managerial personnel or the company`s ability to attract and retain them could adversely affect its business, operations and financial condition.

• The Company has experienced negative cash flow in the past and may continue to do so in the future, which could have a material adverse effect on its business, prospects, financial condition, cash flows and results of operations.

• Its Group Company, Redline Health Care Private Limited may have conflict of interest with it as it is engaged in similar business and may compete with the company.

• Its lenders have charge over the company movable and immovable properties in respect of finance availed by it.

• 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.

• Any variation in the utilisation of the Net Proceeds or in the terms of any contract as disclosed in the Red Herring Prospectus would be subject to certain compliance requirements, including prior shareholders` approval.

• The requirement of funds in relation to the objects of the Issue has not been appraised.

• Its inability to procure and/or maintain adequate insurance cover in connection with its business may adversely affect our operations and profitability.

• Its ability to pay dividends in the future may be affected by any material adverse effect on its future earnings, financial condition or cash flows.

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

• The requirements of being a listed company may strain its resources.

• The Equity Shares have never been publicly traded and the Issue may not result in an active or liquid market for the Equity Shares.

• There is no guarantee that the Equity Shares issued pursuant to the Issue will be listed on the SME Platform of National Stock Exchange of India Limited in a timely manner or at all.

• There is no existing market for its Equity Shares, and the company does not know if one will develop to provide you with adequate liquidity. Further, an active trading market for the Equity Shares may not develop and the price of the Equity Shares may be volatile.

• The price of the Equity Shares may be highly volatile after the Issue.

• There are restrictions on daily movements in the trading price of the Equity Shares, which may adversely affect a shareholder`s ability to sell Equity Shares or the price at which Equity Shares can be sold at a particular point in time.

• The price of the Equity Shares may be volatile, which could result in substantial losses for investors acquiring the Equity Shares in the Issue.

• Any future issuance of Equity Shares, or convertible securities or other equity-linked securities by the Company may dilute your shareholding and any sale of Equity Shares by its Promoter or members of the company Promoter Group may adversely affect the trading price of the Equity Shares.

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

• Rights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.