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There are outstanding legal proceedings involving the Company, its Group Entity, Promoters and Directors. Any adverse decision in such proceeding may have a material adverse effect on its business, results of operations and financial condition.
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The Company was classified as a `Defaulter` by CIBIL and `Wilful Defaulter` by Watchout Investors for the default committed in the year 2016.
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Being a pharmaceutical company, the company operate in a highly regulated and controlled industry environment. Its business is dependent on approvals from relevant regulatory and health authorities. Any delay or failure to obtain or renew such required regulatory approvals, registrations or any change in the regulatory environment in relation to marketing its products in regulated markets may significantly impact the company business and strategy affecting its overall profitability.
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The company business requires it to obtain and renew certain registrations, licenses and permits from government and regulatory authorities and the failure to obtain and renew them in a timely manner may adversely affect its business operations.
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The company business largely depends on the performance of its distributors. Any non-performance by these distributors may adversely affect the company business operations, profitability and cash flows.
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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, results of operation and financial condition.
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Changes in customer preferences could affect its business, financial condition, results of operations and prospects.
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The company inability to maintain an optimal level of Stock for its business may impact the company operations adversely.
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The company ability to retain the clients is heavily dependent upon various factors including its reputation and the company ability to maintain a high level of service quality including its satisfactory performance for the customers. Any failure by it to retain or attract customers may impact its business and revenues.
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The company require a number of approvals, NOCs, licenses, registrations and permits in the ordinary course of its business. Some of the approvals are required to be obtained by its Issuer Company and any failure or delay in obtaining the same in a timely manner may adversely affect its operations.
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The availability of counterfeit drugs, such as drugs passed off by others as the company products, could adversely affect its goodwill and results of operations.
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Introduction of alternative pharmaceutical products caused by changes in technology or consumer needs may affect demand for its existing products which may adversely affect the company financial results and business prospects.
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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 financial position of the Company to that extent.
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The company Promoter Group Entity is engaged in the line of business similar to the Company. There are no non-compete agreements between the Company and such Promoter Group Entity. The company cannot assure that its Promoters will not favour the interests of such entity over its interest or that the said entities will not expand, which may increase its competition and may adversely affect business operations and financial condition of the Company.
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If the company cannot respond adequately to the increased competition the company expect to face, its will lose market share and its profits will decline, which will adversely affect the company business, results of operations and financial condition.
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If the company inadvertently infringe on the patents of others, its business may be adversely affected.
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The company global operations expose it to numerous and sometimes conflicting legal and regulatory requirements, and violation of these regulations could harm its business.
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The company is subject to risks associated with expansion into new markets.
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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.
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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.
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The company operational results substantially rely on mass public consumers.
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Some of its products may cause unexpected or undesirable side effects unknown to it which may result in costly product returns or recalls.
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The Company does not have any long-term contracts with its clients and suppliers, which may adversely affect the company results of operations.
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The company engage in a highly competitive business and any failure to effectively compete could have a material adverse effect on it.
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Under-utilization of its manufacturing capacities and an inability to effectively utilize its expanded manufacturing capacities could have an adverse effect on its business, future prospects and future financial performance.
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The COVID-19 pandemic has had, and is expected to have, a material adverse effect on its business, financial condition, results of operations and cash flows.
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The company business is substantially dependent on its key customers from whom the company derive a significant portion of its revenues. The loss of any significant clients may have a material and adverse effect on its business and results of operations.
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The company revenues are dependent upon its meeting specific customer requirements largely on a case-to-case basis. Any failure or limitation on its ability to provide services may detrimentally affect its future growth.
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Stringent environmental, health and safety laws and regulations or stringent enforcement of existing environmental, health and safety laws and regulations may result in increased liabilities and increased capital expenditures.
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Significant security breaches in its computer systems and network infrastructure and fraud could adversely impact the company business.
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Some of the details mentioned in the respective KYC Documents of our Promoters and Directors are not same in all KYC documents.
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An inability to protect, strengthen and enhance its existing brand could adversely affect the company business prospects and financial performance.
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The company business is subject to various operating risks at its sites, the occurrence of which can affect the company results of operations and consequently, financial condition of the Company.
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Inability to meet the quality standard norms prescribed by the central and state governments could result in the sales of its products being banned or suspended or becoming subject to significant compliance costs, which could have a material adverse effect on its business growth and prospects, results of operations, financial condition, and cash flows.
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Improper storage, processing and handling of raw materials and finished products may cause damage to its inventory leading to an adverse effect on its business, results of operations and cash flows.
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Information relating to the installed manufacturing capacity and capacity utilization of the company manufacturing facilities included in this Draft Prospectus are based on various assumptions and estimates and future production and capacity may vary.
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The company business is manpower intensive and its business operations may be materially adversely affected by strikes, work stoppages or increased wage demands by its employees or those of the company suppliers.
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Inability to meet the quality standard norms prescribed by the central and state governments could result in the sales of its products being banned or suspended or becoming subject to significant compliance costs, which could have a material adverse effect on its business growth and prospects, results of operations, financial condition, and cash flows.
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The company is still in the process of compiling information with respect to Total Outstanding Due to MSME Creditors.
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The company success depends in large part upon its qualified personnel, including the company senior management, directors and key personnel and its ability to attract and retain them when necessary.
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The company will continue to be controlled by its Promoters and certain related entities after the completion of the Issue.
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The shortage or non-availability of power facilities may adversely affect its business and have an adverse impact on the company results of operations and financial condition.
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The company inability to accurately forecast demand or price for its products and manage the company inventory may adversely affect its business, results of operations, financial condition, and cash flows. The company business depends on its estimate of the demand for the company products from dealers.
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The company face competition in its business from organized players, which may adversely affect the company business operation and financial condition.
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General economic and market conditions in India and globally could have a material adverse effect on its business, financial condition, cash flows, results of operations and prospects.
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If the company is unable to respond to the demands of its existing and new clients, or adapt to technological changes or advances, the company business and growth could be adversely affected.
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Major fraud, lapses of internal control or system failures could adversely impact the company`s business.
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The company continue to explore the diversification of its business and the implementation of new services. These diversifications and the company other strategic initiatives may not be successful, which may adversely affect its business and results of operations.
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The company inability to manage growth could disrupt its business and reduce the company profitability. Its propose to expand the company business activities in coming financial years.
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The company is subject to Foreign Exchange Rate fluctuation and strict compliance of The Foreign Exchange Regulations Act, 1973 (FERA) and the provisions of FEMA.
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The Company has a negative cash flow in its Operating Activities in the year 2021 and 2020, from Investing and Investing Activities in stub period and in the year 2022 & from Financing Activities in the stub period, details of which are given below. Sustained negative cash flow could impact its growth and business.
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The company has entered into related party transactions in the past and may continue to do so in the future.
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The company has applied for registration of names of its Products and do not own the trademark legally as on date. The company may be unable to adequately protect its intellectual property. Furthermore, the company may be subject to claims alleging breach of third-party intellectual property rights.
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If the company is unable to source business opportunities effectively, its may not achieve the company financial objectives.
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The nature of its business exposes it to liability claims and contract disputes and the company indemnities may not adequately protect it. Any liability in excess of its reserves or indemnities could result in additional costs, which would reduce its profits.
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Employee fraud or misconduct could harm its by impairing the company ability to attract and retain clients and subject it to significant legal liability and reputational harm.
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The company operations may be adversely affected in case of industrial accidents at its working sites.
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The company operating expenses include overheads that may remain fixed in the medium term. In case there is any decline in its operating performance, the company may be unable to reduce such expenses.
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Delays or defaults in payments from its clients could result into a constraint on the company cash flows. The efficiency and growth of its business depends on timely payments received from its clients.
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The company insurance coverage may not adequately protect it against losses, and successful claims against the company that exceed its insurance coverage could harm the company results of operations and diminish its financial position.
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There are no alternate arrangements for meeting its requirements for the Objects of the Issue. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.
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The company actual results could differ from the estimates and projections used to prepare its financial statements.
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Guarantees from Promoters & Director as well as others have been taken in relation to the debt facilities provided to it.
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The company ability to pay dividends in the future will depend upon its future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in its financing arrangements.
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Any future acquisitions, joint ventures, partnerships, strategic alliances, tie-ups or investments could fail to achieve expected synergies and may disrupt its business and harm the results of operations and the company financial condition.
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The company future funds requirements, in the form of fresh 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.
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There is no guarantee that its Equity Shares will be listed on the Stock Exchanges in a timely manner or at all.
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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.
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Negative publicity could adversely affect its revenue model and profitability.
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Pharma Industry information included in this Draft Prospectus has been derived from industry reports commissioned by it for such purpose. There can be no assurance that such third-party statistical, financial and other industry information is either complete or accurate.
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The requirements of being a public listed company may strain its resources and impose additional requirements.
