Shri Ahimsa

Risks

• The Primary Object to issue is Investment in Wholly Owned Subsidiary which is setting up a manufacturing unit ("Proposed Project"). Such Proposed Project is subject to the risk of unanticipated delays in implementation, cost overruns and certain Government approvals and licenses. If the company is unable to implement the expansion plans at the planned cost or time or unable to obtain Government approvals and licenses, it could materially and adversely impact its business, results of operations and financial condition.

• Its Statutory Auditors have included certain qualifications in the annexure to their audit reports, for half year ended September 30, 2024 and the years ended March 31, 2024, March 31, 2023 and March 31, 2022.

• The Company plans to invest an estimated sum of Rs. 3,500 lakhs out of the Net proceeds of the Issue in its Wholly Owned Subsidiary namely "Shri Ahimsa Healthcare Private Limited" for setting up a manufacturing unit ("Proposed Project"). In the event of any delay in placing these orders, or if the vendors are not able to provide the equipment / machinery or complete the civil and related works etc. in a timely manner, or at all, may result in time and cost over-runs.

• A significant majority of its revenues from operations are derived from a limited number of customers.

• The company is dependent on third parties for the supply of raw materials and such providers could fail to meet their obligations, which may have a material adverse effect on its business, results of operations and financial condition.

• Some of the immediate relatives of its Promoters, who are deemed to be a part of the Promoter Group under SEBI ICDR Regulations have not provided consent and / or any confirmations, undertakings for them to be included as a members of the Promoter Group.

• Its cost of production is exposed to fluctuations in the prices of raw material particularly Crude Caffeine and the Company has not entered into any agreement with respect to long-term supply for raw materials required.

• Relevant documents of the Secretarial Records are not traceable by the Company.

• The Company has not complied with certain financial covenants of the financing facility and debt facility in past.

• In the Past, one of its Independent Director, Mr. Rakesh Kumar, was involved in a legal investigation by the Directorate General of GST Intelligence (DGGI).

• The company hase experienced growth in the past few years and if the company is unable to sustain or manage its growth, the company business and results of operations may be adversely affected.

• The company is subject to risks resulting from foreign exchange rate fluctuations, which could adversely affect its results of operations.

• The company does not own some of the business premises where its, Registered Office, Offices and Manufacturing Facility, Storage & Warehouse facilities are located.

• The Company is required to comply with certain conditions under approvals, applicable laws and regulations as an Export Oriented Unit (EOU). The non-fulfillment of which may expose Company to penalties and affect its business operations and its financial condition.

• Its intend to utilise a portion of the Net Proceeds for Investment in Wholly Owned Subsidiary which is setting up a manufacturing unit ("Proposed Project") which have not been appraised by any independent agency and are based on thirdparty consultants and may be subject to change based on various factors, some of which are beyond its control.

• Its business is dependent on its manufacturing facilities, and the company is subject to certain risks in the company manufacturing process, any disruption, breakdown or shutdown of its Manufacturing Facilities may have a material adverse effect on its business, financial condition, results of operations and cash flow.

• Rajasthan State Industrial Development and Investment Corporation (RIICO) has granted us the lease hold rights of an industrial plot, complying with certain terms and condition of the lease may affect its business and financial condition.

• The Company is dependent on third party transportation providers for transportation of raw materials and finished goods. Accordingly, any increase in transportation costs or unavailability of transportation services for it products or transportation strikes may have an adverse effect on its business.

• There has been certain non-compliance with labour laws by the Company. Consequently, its may be subject to regulatory actions and penalties for such non-compliance and its business and financial condition may be adversely affected.

• Its Promoter has provided personal guarantees for Its loans and any failure or default by it to repay such loans in accordance with the terms and conditions of the financing documents could trigger repayment obligations, which may adversely affect its Promoters` ability to manage the company affairs.

• The company has had negative cash flows in the past. Sustained negative cash flow could adversely impact its business, financial condition and results of operations.

• The Company, its Promoters and Directors are parties to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.

• Its may be subject to potential risk associated with past criminal proceedings involving one of the Promoter the Company.

• There have been certain instances of delays in filing GSTR-3B returns by the Company in the past. Any failures or delay in filing GST returns may expose it to statutory and regulatory action, as well as significant penalties, and may adversely impact its business, results of operations, cash flows and financial condition.

• Its may not be able to successfully manage the growth of the company operations and execute its growth strategies which may have an adverse effect on its business, financial condition, results of operations and future prospects.

• Its dependent upon the business experience and skill of the company promoters, key managerial personnel and senior management personnel. Loss of its Senior Management or the company inability to attract or retain such qualified personnel, could adversely affect its business, results of operations and financial condition.

• 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, any failure to obtain, retain and renew such approvals and licences or comply with such rules and regulations may adversely affect its operations.

• The company has in past entered into related party transactions and its may continue to do so in the future.

• An inability to renew quality accreditations in a timely manner or at all, or any deficiencies in the quality of the company products may give rise to product liability claims and negatively affect its business prospects and financial performance.

• Its generally do business with its customers on a purchase order basis and our customers does not make long-term commitments with us and may cancel or change their production requirements. Such cancellations or changes may adversely affect its financial condition, cash flows and results of operations.

• Its inability to accurately forecast demand or price for the company products and manage its inventory may adversely affect its business, results of operations, financial condition and cash flows.

• The Company will not receive any proceeds from the Offer for Sale portion, and the Promoter Selling Shareholders shall be entitled to the Offer Proceeds to the extent of the Equity Shares offered by them in the Offer for Sale.

• The company has availed unsecured loans which are repayable on demand. Any demand for repayment of such unsecured loans, may adversely affect its cash flows.

• Its lender has charge over our movable and immovable properties in respect of finance availed by it.

• The company has identified certain inaccuracy, delayed and incorrect filings that are required to be made with the Registrar of Companies (RoC) by the Company and its Wholly-Owned Subsidiary Company.

• Information relating to the installed production capacity and capacity utilization of our production Units included in this Red Herring Prospectus are based on various assumptions and estimates and future production and capacity may vary.

• Its business is dependent on the delivery of adequate and uninterrupted supply of electrical power and water at a reasonable cost and any shortage, disruption or non- availability of power and water may adversely affect its entire processing requirements and have an adverse impact on its business, results of operations and financial condition.

• The company has contingent liabilities that have not been provided for in the Company`s financials which if materialised, could adversely affect its financial condition.

• Its Promoter, Key Managerial Personnel and Directors are interested in the Company in addition to their normal remuneration and reimbursement of expenses incurred.

• The company has allotted 8,04,000 equity shares within the last twelve months, which may be at a price below the Issue Price.

• Its management will deploy net proceeds pending utilization for objects to issue in scheduled commercial banks and there is no assurance that the objects of the Issue will be achieved within the time frame expected or at all, or that the deployment of the Net Proceeds in the manner intended by us will result in any increase in the value of your investment. Any variation in the utilisation of the Net Proceeds or in the terms as disclosed in the Red Herring Prospectus would be subject to certain compliance requirements, including prior shareholders` approval.

• Its may not be able to protect its trademarks from infringement.

• Relevant copies of educational qualifications of some of its Directors and Promoters are not traceable.

• Relevant copy of Domain Registration Certificate of the Company is not available / traceable.

• If the company is subject to any frauds, theft, or embezzlement by its employees, suppliers or customers, it could adversely affect the company reputation, results of operations, financial condition and cash flows.

• Its insurance may be insufficient to cover all losses associated with the company business operations.

• Its may be subject to unionization, work stoppages or increased labour costs, which could adversely affect its business and results of operations.

• If the company fails to maintain an effective system of internal controls, its may not be able to successfully manage, or accurately report, its financial risks.

• The company has not entered into any formal arrangement for technical support service for maintenance and smooth functioning of its equipment`s and machineries, which may affect its performance.

• All of its directors does not have any prior experience of being a director in any other listed company in India.

• The inability to protect, strengthen and enhance its existing reputation could adversely affect the company business prospects and financial performance.

• Its ability to pay dividends in the future will depends upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures