Royal

Risks

• The Company has been recently incorporated and post incorporation has taken-over the running business of M/s Royal Traders, PHT and Anaya (Proprietorship firms of the Promoter) thus the company has limited operating history as a Company which may make it difficult for investors to evaluate its historical performance or future prospects.

• The company depends significantly on customers and their spending in the healthcare industry and any decline in the spending on healthcare infrastructure in India, could adversely affect its business and profitability.

• The company relies on suppliers for medical devices and equipment manufacturers for its trading goods. In case of any disruption in supply of these goods, the company business, results of operations and financial condition may be adversely affected.

• Orders placed by customers may be delayed, modified, cancelled or not fully paid for by the company customers, which may have an adverse effect on its business, financial condition and results of operations.

• The company are required to obtain, renew or maintain certain statutory and regulatory permits and approvals required to operate its business and if the compay fail to do so in a timely manner or at all and its business, financial conditions, results of operations, and cash flows may be adversely affected.

• Quality problems and product liability claims could lead to recalls or safety alerts, reputational harm, adverse verdicts or costly settlements, and could have an adverse effect on its business, results of operations, financial condition and cash flows.

• The Company is depends on few numbers of customers and suppliers for sales and purchase from top customers and Top suppliers. Loss of any of these large customer and supplier will significantly affect our revenues and profitability.

• The company is heavily depends on its Promoter for the continued success of the business through his continuing services, strategic guidance and support.

• The company operations are geographically located in one area i.e., Delhi NCR and any localized social unrest, natural calamities, etc. could have material adverse effect on business and financial operations.

• The company net cash flows from operating and investing activities have been negative. Any negative cash flow in the future may affect its liquidity and financial condition.

• The company do not own the registered office and warehouse from which we carry out its business activities. Any dispute in relation to use of the premises would have a material adverse effect on the company business and results of operations.

• The company also sell its products through network of distributors and dealers and any inability to expand or effectively manage of the growing distribution and sales network may have an adverse effect on the company business, results of operations and financial condition.

• The company products have Shelf-Life, any inability on its part to deliver the company products at the right time in the markets could have a material adverse effect on its business and financial condition.

• The company inability to maintain an optimal level of Stock for its business may impact the company operations adversely.

• The company is in the process of registration of its Product wordmark "ROYAL SENSE" in the name. If the company fail to obtain registration its brand building efforts may be hampered which might lead to adverse effect on its business.

• Non-compliance with increasingly stringent safety, health, environmental and labour laws and other applicable regulations, may adversely affect the company business, results of operations, cash flows and financial condition.

• The company face competition in its business from organized and unorganized players, which may adversely affect its business operation and financial condition.

• The company face competition and may not be able to keep pace with the rapid technological changes in the industry.

• The company is depends on its Promoters, management team, a number of Key Managerial Personnel and persons with technical expertise and the loss of or the company inability to attract or retain such persons could adversely affect its business, results of operations and financial condition.

• Major fraud lapses of internal control or system failures could adversely impact the company`s business.

• If the company is unable to manage its growth effectively, the company business, future financial performance and results of operations could be materially and adversely affected.

• The company Promoters, Directors and Key Management Personnel have interest in the Company, other than reimbursement of expenses incurred or remuneration.

• The company has not identified any alternate source of funding and hence any failure or delay on its part to mobilize the required resources or any shortfall in the Issue proceeds may delay the implementation schedule.

• The Company has during the preceding time from the incorporation to the date of the Draft Prospectus allotted Equity Shares at a price which is may be lower than the Issue Price.

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

• The Objects of the Issue for which funds are being raised, are based on its management estimates and have not been appraised by any bank or financial institution or any independent agency.

• the company ability to pay any dividends will depend upon future earnings, financial condition, cash flows and working capital requirements.

• There is no monitoring agency appointed by the Company to monitor the utilization of the Issue proceeds.

• Any future issuance of Equity Shares, or convertible securities or other equity linked securities by us and any sale of Equity Shares by the company significant shareholders may dilute your shareholding and adversely affect the trading price of the Equity Shares.

• The company Promoters and the Promoter Group will jointly continue to retain majority shareholding in the Company after the issue, which will allow them to determine the outcome of the matters requiring the approval of shareholders.

• The Issue price of the company Equity Shares may not be indicative of the market price of its Equity Shares after the Issue and the market price of the Equity Shares may decline below the issue price and you may not be able to sell your Equity Shares at or above the Issue Price.

• Certain data mentioned in this Draft Prospectus has not been independently verified.