Rappid Valves

Risks

• The Company had negative cash flows in the past years, details of which are given below. Sustained negative cash flow could impact its growth and business.

• Any delays, interruptions or reduction in the supply of raw materials to manufacture its products and any abrupt fluctuations in the prices of the company raw materials may adversely affect the pricing of its products and may have an impact on the company Business, Results of Operation, Financial Condition and Cash Flows.

• The company derives a significant portion of its revenues from a limited number of customers. The loss of, or a significant reduction in the revenues the company receive from, one or more of these customers, may adversely affect its business.

• The company has certain outstanding litigation against it, an adverse outcome of which may affect its results of operations.

• The company derives a significant portion of its revenue from Ball Valves, Gate Valves, Globe Valves, Butterfly Valves and Check valves, any reduction in demand or in the production of such products could have an adverse effect on its business, results of operations and financial condition.

• The Company sells its products for specific use by certain Industries. Any reduction in the demand or requirement of its products in such Industries may result in loss of Business and may affect the company Financial Performance and Financial Condition.

• The company source its 100 % raw materials from domestic market i.e. Gujarat and Maharashtra. Any adverse developments affecting its procurement in these regions could have an adverse impact on the company revenue and results of operations.

• The company generate its major portion of sales from its operations in certain geographical regions especially, Maharashtra, New Delhi and Gujarat. Any adverse developments affecting its operations in these regions could have an adverse impact on its revenue and results of operations.

• The Restated Financial Statements have been provided by Peer Reviewed Chartered Accountants who is not Statutory Auditor of the Company.

• Any disruption, breakdown or shutdown of its Manufacturing operations at the company Manufacturing Facility could have an adverse effect on its Business, Financial Condition and Results of Operations.

• There are certain outstanding litigations against two of the promoter group members, an adverse outcome of which may affect its reputation.

• In case of its inability to obtain, renew or maintain the statutory and regulatory licenses, permits and approvals required to operate its business it may have a material adverse effect on the company`s business.

• The company is unable to trace few of its historical records, Also, in the past, there have been some instances of delays/non-filings/ non- compliance with certain statutory authorities, In the event the company is found not to be in compliance with any applicable regulations in relation to the regulatory filings or corporate actions, its may be subject to regulatory actions or penalties for any such possible non-compliance/ non-filing/ delay and its business, financial condition and reputation may be adversely affected.

• Overcapacity and Oversupply in the Global Valve Industry may adversely affect the Company`s Profitability.

• The company intend to utilise a portion of the Net Proceeds for funding its Capital Expenditure for purchase of certain Machineries and software. The company is yet to place orders for such Capital Expenditure Machinery and software.

• The company has not yet placed orders in relation to the funding Capital expenditure for renovation of registered office and existing Manufacturing unit for which it is proposed to be financed from the Issue proceeds of the IPO. In the event of any delay in placing the orders, or in the event the renovation is not completed in a timely manner, or at all, may result in time and cost over-runs and its business, prospects and results of operations may be adversely affected. The company proposed capacity expansion plans are subject to the risk of unanticipated delays in implementation due to factors including delays in construction, obtaining regulatory approvals in timely manner and cost overruns.

• The deployment of the portion of the Net Proceeds towards its strategic acquisitions and investments may not take place within the period currently intended, and may be reduced or extended.

• The Company in the usual course of Business does not have any long-term contracts with its customers and the company relies on purchase orders for delivery of its products and the company customers may cancel or modify their orders, change quantities, delay or change their sourcing strategy. Loss of one or more of its top Customers or a reduction in their demand for the company products or reduction in revenue derived from them may adversely affect its Business, Results of Operations and Financial Condition.

• The company does not have long-term Agreements /Contracts with suppliers for its raw materials and an increase in the cost of, or a shortfall in the availability or quality of such raw materials could have an adverse effect on its Business, Financial Condition and Results of Operations.

• Pricing pressure from customers 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 adversely affect its business, financial condition and results of operations.

• The company ability to anticipate changes in Industry trends to meet customers` demands and any variations in the Government Regulations/policies or Technology Upgradation is a significant factor to remain competitive, any failures to identify and understand the trends may materially adversely affect its Business.

• Any Penalty or demand raise by statutory authorities in future will affect its financial position of the Company.

• The company is dependent on third-party transportation providers for the supply of raw materials and delivery of its finished products.

• Its may not be able to accurately manage the company inventory, this may adversely affect its goodwill and business, financial condition and results of operations.

• Exchange rate fluctuations may materially and adversely affect its business, financial performance, cash flows and prospects as some portion of its revenues and expenditures are denominated in foreign currencies.

• The company has entered into and may enter into related party transactions in the future also.

• High debt-equity ratio of the Company in the previous Financial years.

• The company has incurred indebtedness. In addition, certain of its financing agreements involve variable interest rates and an increase in interest rates may adversely affect its results of operations and financial condition.

• The company propose to repay or prepay all or a portion of certain outstanding borrowings availed by the Company.

• The company faces competition from domestic market and its inability to compete effectively may have a material adverse impact on its business, financial condition and results of operations.

• The Company`s Logo "RAPID VALUES" is registered with Registrar of Trademark and Brand name".

• Its inability to effectively manage the growth could have an adverse effect on its business, results of operations and financial condition.

• The company is subject to strict quality requirements and any product defects or any failures by it to comply with quality standards may lead to the cancellation of existing and future orders, product recalls and exposure to potential product liability claims, warranty claims and other disputes.

• Grants of stock options under any employee stock option plans may result in a charge to its statement of profit and loss and, to that extent, reduce the company profitability and financial condition.

• Non-compliance with and changes in, safety, health and environmental laws and other applicable regulations, may adversely affect its business, results of operations and financial condition.

• A shortage or non-availability of electricity or power may adversely affect its manufacturing operations and have an adverse effect on its business, results of operations and financial condition.

• Failures to deal effectively with fraudulent activities on emails would increase its fraud losses and harm the company`s business and could severely diminish seller and consumer confidence in and use of its services.

• Its success largely depends upon the company ability to attract and retain its Promoters, Directors, Key Managerial personnel and Senior Management with technical expertise. The company inability to attract and retain them and other personnel with technical expertise could adversely affect its business, financial condition and results of operations.

• Its inability to meet the changes in technology or advancement requirements in its current manufacturing process, may render the company current technologies obsolete or may requires additional investments which may have an adverse effect on the Business, financial condition and results of operations.

• Its Promoter may be interested in the company other than in terms of remuneration and reimbursement of expenses, and this may result in conflict of interest with it.

• Some of KYC documents of its promoter and one of the company Director is not renewed.

• In case of any inability arise to source business opportunities effectively, its may not achieve the company financial objectives.

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

• The industry in which the company operates is labour intensive and its manufacturing operations may be materially adversely affected by strikes, work stoppages or increased wage demands by oitsemployees or those of the company suppliers.

• Its funding requirements and proposed deployment of the Net Proceeds are based on management estimates and the company has not entered into any definitive arrangements to utilize the Net Proceeds of the Issue and the Objects have not been independently appraised by a bank or a financial institution. Any variation in the utilisation of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders` approval.

• Its Promoter and members of the company Promoter Group will be able to exercise significant influence and control over it after the Issue and may have interests that are different from or conflict with those of its other shareholders.

• Portion of its Issue Proceeds are proposed to be utilized for general corporate purposes which constitute [0]% of the Issue Proceed.

• 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.

• The orders placed by customers may be delayed, modified or cancelled, which may have an adverse effect on its business, financial condition and results of operations.

• The company has taken guarantees from its directors, promoter and promoter group member in relation to Debt Facilities provided to it.

• The company may not be fully insured for all losses its may incur.

• The company`s business may expose it to potential product liability claims, which could adversely affect its results operation, goodwill and the marketability of the company products.

• Failures or disruption of its IT, manufacturing automation systems may adversely affect its business, financial condition and results of operations.

• The company ability to pay dividends will depends upon future earnings, financial condition, cash flows, working capital requirements, capital expenditures and other factors.

• Employee misconduct including misuse of confidential data and failure to maintain confidentiality of information could harm it and is difficult to detect and deter.

• 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 the company.

• 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 the company.

• An investment in the Equity Shares is subject to general risk related to investments in Indian Companies.

• The determination of the Price Band is based on various factors and assumptions and the Issue Price of the Equity Shares may not be indicative of the market price of the Equity Shares upon listing on the Stock Exchange.

• The determination of the Price Band is based on various factors and assumptions and the Issue Price of the Equity Shares may not be indicative of the market price of the Equity Shares upon listing on the Stock Exchange.

• There is no guarantee that the Equity Shares issued pursuant to the Issue will be listed on the NSE Emerge in a timely manner or at all.

• There is no guarantee that the Equity Shares issued pursuant to the Issue will be listed on the NSE Emerge in a timely manner 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.

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

• Significant differences exist between Indian GAAP and other accounting principles, such as US GAAP and IFRS, which may be material to investors assessments of the Company`s financial condition. Its failure to successfully adopt IFRS may have an adverse effect on the price of its Equity Shares. The proposed adoption of IFRS could result in its financial condition and results of operations appearing materially different than under Indian GAAP.

• Significant differences exist between Indian GAAP and other accounting principles, such as US GAAP and IFRS, which may be material to investors assessments of the Company`s financial condition. Its failures to successfully adopt IFRS may have an adverse effect on the price of its Equity Shares. The proposed adoption of IFRS could result in its financial condition and results of operations appearing materially different than under Indian GAAP.