Mish Designs

Risks

• The company requires certain approvals and licenses in the ordinary course of business and are required to comply with certain rules and regulations to operate its business, and the failure to obtain, retain and renew such approvals and licenses or comply with such rules and regulations, and the failure to obtain or retain them in a timely manner or at all may adversely affect its operation.

• The company derives majority of its revenue from prominent E-Commerce players. The company inability to maintain, renew or enhance relationships with them could adversely affect its business, results of operations and financial condition.

• The company sells its products through established e-commerce players and therefore, cannot control the pricing strategies employed by such e-commerce platforms to entice customers. It may adversely affect its pricing ability, which may have an adverse effect on the company results of operations and financial condition.

• The company has not entered into any agreement with the marketing agents as specified in the objects of the Issue. Further the amount allocated for brand awareness and website up gradation are based on the quotation received from relevant vendor.

• The company`s business is primarily concentrated on the sale of women`s western wear and is vulnerable to variations in demand and changes in consumer preferences which could have an adverse effect on its business, results of operations and financial condition.

• In addition to normal remuneration, other benefits and reimbursement of expenses its directors (including the company Promoter group companies) and Key Management Personnel are interested in the Company to the extent of their shareholding and dividend entitlement in the Company. Further its have entered in related party transaction with them.

• The Company has availed certain unsecured loans that may be recalled by the lenders at any time.

• The company`s success significantly depends upon the services of its Promoters and other Key Managerial Personnel and the company ability to retain them. Its inability to attract, hire, train and retain key managerial personnel may adversely affect the operations of the Company.

• The company has reported negative net cash flows in the past and may do so in the future.

• Reliance has been placed on declarations furnished by Kaushal Goenka, one of its Promoters, for details of his profile included in this Draft Prospectus.

• The company is dependent on a few suppliers for supply of raw materials and any major disruption to the timely and adequate supplies of its raw materials could adversely affect the company business, results of operations and financial condition.

• Higher rates of logistic and commission charges for the sale of its products through the prominent e-channels will increase the company cost may reduce its profit margin.

• The Company does business with customers on Purchase Order basis and do not enter into any agreement with the company customer and its not have fixed customer base. There can be no assurance that its may get repeat order flows from the company customers.

• If the company is unable to accurately identify customer demand and maintain an optimal level of inventory in its stores, the company business, results of operations and cash flows may be adversely affected.

• The company industry is highly competitive in both the offline and the online channels, with the potential to adversely affect its pricing ability and disrupt its sales. The company inability to compete effectively may adversely affect its business and results of operations.

• Majority of its products are sold under brand, ISH`. Any inability to effectively market the company products, or any deterioration in public perception of its brand, could affect consumer demand and consequently adversely impact its business, financial condition, cash flows and results of operations.

• The company does not own its registered office, manufacturing unit and warehouse which is being used by it currently.

• The company is subject to sales return risk owing due to majority of its products being sold through digital platform.

• The company have offered Equity Shares during the last one year at a price below the Offer Price.

• Its growth and profitability depends on the level of consumer confidence and spending in India and foreign countries in which the company operate.

• The company is dependent on third party transportation providers for the delivery of its products to the company customers.

• The company has applied for few trademarks which are pending registration and one of its logo is not registered. A delay in, or failure to obtain, registration may result in the company inability to adequately defend intellectual property rights. Any infringement of its corporate logo or failure to get it registered may adversely affect the company business.

• The deployment of the Net Proceeds from the Fresh Issue are based on management estimates and have not been independently appraised by any bank or financial institution and is not subject to any monitoring by any independent agency and the Company`s management will have flexibility in utilizing the Net Proceeds from the Fresh Issue.

• The Company is dependent on the continuing operation of its manufacturing facility.

• The average cost of acquisition of Equity Shares by its Promoters could be lower than the price determined at time of registering the Draft Prospectus.

• The Company`s manufacturing activities are labour intensive and depend on availability of skilled and unskilled labourers in large numbers. In case of unavailability of such labourers and / or inability to retain such personnel, its business operations could be affected.

• 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.

• If the company is unable to protect the data related to electronic mode of payments, or any other personal information that its collect from customers, the company brand reputation could be significantly harmed.

• If the company is unable to manage its growth effectively or if its estimates or assumptions used in developing the company strategic plan are inaccurate or its are unable to execute the company strategic plan effectively, its business and prospects may be materially and adversely affected.

• The company cost of production is exposed to fluctuations in the prices of raw materials required for the manufacture as well as its availability.

• Industrial accidents at its manufacturing facility may adversely affect the company operation.

• Any delay or defaults in receipt of payments or dues from its customers could result in a reduction of the company profits.

• The company insurance coverage may not be sufficient or may not adequately protect it against any or all hazards, which may adversely affect its business, results of operations and financial condition.

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

• The requirements of being a public listed company may strain its resources and impose additional requirements.

• The company is subject to stringent labour laws and its workmen are unionised under a number of trade unions. Labour disputes could lead to lost production and increased costs.

• The company operations are prone to fire and could expose it to the risk of liabilities, lost revenues and increased expenses.

• Non-compliance with and changes in, safety, health and environmental laws and other applicable regulations, might adversely affect the Company`s results of operations and its financial condition.

• The outbreak of COVID-19 or outbreak of any other severe communicable disease could have a potential impact on its business, financial condition and results of operations.

• There is no existing market for its Equity Shares, and the company do not know if one will develop. its stock price may be highly volatile after the Issue and, as a result, you could lose a significant portion or all of your investment.

• Investors can be subject to Indian taxes arising out of capital gains on the sale of the Equity Shares.

• The ability of Indian companies to raise foreign capital may be constrained by Indian law.

• Any downgrading of India`s debt rating by a domestic or international rating agency could adversely affect the Company`s business.

• Conditions in the Indian securities market and stock exchanges may affect the price and liquidity of its Equity Shares.

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