Vasa Denticity

Risks

• The company is dependent upon third parties for manufacture and supply of substantially all of its products with which it do not have long term contracts or exclusive supply arrangements. Any delay or failure on the part of such vendors to deliver products, may adversely affect its business, profitability and reputation.

• The company future success depends on its ability to promote its brand and protect the company reputation. The company failure to establish and promote the company brand and any damage to its reputation will hinder its growth.

• The company future growth is dependent upon its ability identify and maintain new products, technologies and customers that achieve market acceptance with acceptable margins.

• The sale of its owned brand products subjects it to unique risks and enhances certain other risks.

• The company purchase inventory in anticipation of sales, and if its fail to manage its inventory effectively, the company business and results of operations could be adversely affected.

• The company business depends on the growth of the digital commerce industry in India and its ability to effectively respond to changing user behaviour on digital platforms.

• The company operate in highly competitive markets, and the scale and resources of some of its competitors may allow them to compete more effectively than its can, which could result in a loss of its market share and a decrease in its net revenues and profitability.

• If the company fail to retain existing customers or fail to maintain AOV levels, its may not be able to sustain its revenue base and margins, which would have a material adverse effect on its business and results of operations.

• 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, 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 reputation and financial position of the Company to that extent.

• If the company is unable to manage its growth or execute its strategies effectively, the company business plan and expansion may not be successful, and its business and prospects may be adversely affect.

• The company require certain approvals, licenses, registrations and permits to operate its business, and failure to obtain or renew them in a timely manner or maintain the statutory and regulatory permits and approvals required to operate its business may adversely affect the company operations and financial conditions.

• The company relies upon the performance, reliability and security of network and mobile infrastructure, third-party data centre hosting facilities, and other third-party providers.

• The company business depends on its ability to maintain and scale its technology. Any interruptions or delays in service on the company mobile applications or websites or any undetected errors or design faults could result in limited capacity, reduced demand, processing delays, and loss of customers or suppliers.

• The geographical concentration of its warehousing facility may restrict the company operations and adversely affect our business, results of operations and financial conditions.

• The company depend on third party service providers for logistics and some portion of aftersales services.

• The company may not be able to adequately protect or continue to use its intellectual property.

• Security breaches and any disruption to its information technology could adversely impact the company business.

• The company do not own the registered office and Warehouse from which its carry out the company business activities. In case of non-renewal of rent agreements or dispute in relation to use of the said premise, its business and results of operations can be adversely affected.

• The company has experienced negative cash flows from operations in the recent past, and its may have negative cash flows in the future.

• Fluctuation in foreign currency exchange rates could affect its financial condition and results of operations.

• Some of its Group Companies and Promoter Group Entities operate in the same line of business as it, which may lead to conflict of interest.

• Restrictions on import and an increase in shipment cost may adversely impact its business, cash flows and results of operations.

• The company insurance coverage may not be adequate to protect it against certain operating hazards and this may have a material adverse effect on its business.

• If the company is unable to service its debt obligations in a timely manner or to comply with various financial and other covenants and other terms and conditions of its financing agreements, it may adversely affect the company business, prospects, results of operations and financial condition.

• Loans availed by the Company has been secured on personal guarantees of its Directors/Promoters. The company business, financial condition, results of operations, cash flows and prospects may be adversely affected in case of invocation of any personal guarantees provided by its Directors /Promoters.

• The Company has taken unsecured loans that may be recalled by the lenders at any time and the Company may not have adequate working capital to make timely payments or at all.

• The company lenders have imposed certain restrictive conditions on under its financing arrangements. This may limit the company ability to pursue its business and limit its flexibility in planning for, or reacting to, changes in the company business or industry.

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

• The average cost of acquisition of Equity Shares by its Promoters, are lower than the face value of Equity Share.

• The company depend on the performance of management and other highly-qualified and skilled personnel, and if its unable to attract, retain, and motivate these and other well-qualified employees, its business could be harmed.

• The Promoters (including Promoter Group) and Directors hold 95% of the Equity Shares of the Company and are therefore interested in the Company`s performance in addition to their remuneration and reimbursement of expenses.

• The company could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect its financial condition, results of operations and reputation.

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

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

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

• The company has relied on a third party industry report which has been used for industry related data in this Draft Red Herring Prospectus and such data have not been independently verified by it.

• The Company has during the preceding one year from the date of the Draft Red Herring Prospectus allotted Equity Shares at a price which is may be lower than the Offer Price.

• The Objects of the Offer for which funds are being raised, are based on its management estimates and the same have not been appraised by any bank or financial institution or any independent agency. The deployment of funds in the project is entirely at its discretion, based on the parameters as mentioned in the chapter titles "Objects of the Offer".

• Increases in operational costs could adversely affect its results of operations.

• Certain key performance indicators for certain listed industry peers included in this Draft Red Herring Prospectus have been sourced from public sources and there is no assurance that such financial and other industry information is complete.

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

• The company may require equity issuance, which will lead to dilution of equity and may affect the market price of its Equity Shares or additional funds through incurring debt to satisfy its capital needs, which its may not be able to procure and any future equity offerings by it.

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

• Investors other than retail (including non- institutional investors, QIBs and Corporate Bodies) are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Amount) at any stage after submitting an Application.