Vilin Bio Med

Risks

• There are certain outstanding legal proceeding against the company which may adversely affect its business, financial condition and results of operations.

• There are outstanding criminal legal proceedings involving the Company which may adversely affect its business, financial condition and results of operations.

• There were certain NCLT cases that have been filed against the Company in the past.

• The company conduct its business activities on a purchase order basis and therefore have not entered into long-term agreements with its customers.

• The Company is reliant on the demand from the pharmaceutical industry for a significant portion of its revenue. Any downturn in the pharmaceutical industry or an inability to increase or effectively manage its sales could have an adverse impact on the Company`s business and results of operations.

• The company highly depend on its major raw materials and a few key suppliers who help its procure the same. The Company has not entered into long-term agreements with its suppliers for supply of raw materials. In the event its unable to procure adequate amounts of raw materials, at competitive prices its business, results of operations and financial condition may be adversely affected.

• The company continued operations are critical to its business and any shutdown of its manufacturing unit may adversely affect the company business, results of operations and financial condition.

• Any failure in its quality control processes may adversely affect the company business, results of operations and financial condition. Its may face product liability claims and legal proceedings if the quality of its products does not meet the company customers` expectations.

• Any adverse change in regulations governing its products and the products of the company customers, may adversely impact its business prospects and results of operations.

• Any delays and/or defaults in customer payments could result in increase of working capital investment and/or reduction of the Company`s profits, thereby affecting its operation and financial condition.

• The Company requires significant amount of working capital for a continuing growth. Its inability to meet its working capital requirements may adversely affect the company results of operations.

• The company are 100% dependent on third party transportation providers for delivery of raw materials to its from the company suppliers and delivery of the company products to its customers. The company has not entered into any formal contracts with its transport providers and any failure on part of such service providers to meet their obligations could adversely affect its business, financial condition and results of operation.

• The company inability to manage inventory in an effective manner could affect its business.

• If the Company is unable to protect its intellectual property, or if the Company infringes on the intellectual property rights of others, its business may be adversely affected.

• The company has historically derived, and may continue to derive, a significant portion of its income from the company top 10 customers.

• The company operate in a competitive business environment and its inability to compete effectively may adversely affect the company business, results of operations, financial condition and cash flows.

• The company Audit Report for FY 2020 includes following remarks by Statutory Auditor w.r.t. the CARO for default on payment of Statutory Dues.

• There have been delays in GST returns and EPF payments by the Company.

• One of the Group Company, Pharmaids Pharmaceuticals Limited was declared as "Wilful Defaulter".

• The company might face claims / liabilities / suits from its customers should they perceive any deficiency in service or in the event of bodily harm / injury to them during its events organized by the company.

• The company Promoters, Directors and Key Managerial Personnel have interests in the Company other than reimbursement of expenses incurred or normal remuneration or benefits.

• The company Promoters and members of the Promoter Group have significant control over the Company and have the ability to direct its business and affairs; their interests may conflict with its interests as a shareholder.

• The average cost of acquisition of Equity Shares held by its Promoters could be lower than the Issue Price.

• The company has in the past entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interest with the equity shareholders.

• Increased losses due to fraud, employee negligence, theft or similar incidents may have an adverse impact on it.

• The company agreements with lenders for financial arrangements contain restrictive covenants for certain activities and if its unable to get their approval, it might restrict the company scope of activities and impede its growth plans.

• 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.

• Operational risks are inherent in its business as it includes rendering services at high quality standards. A failure to manage such risks could have an adverse impact on its business, results of operations and financial condition.

• The Company has availed certain unsecured loans from the Promoters and Promoter Group that are recallable by the lenders at any time.

• The company has referred to the data derived from internal Company reports and industry and government publications, publicly available information, and sources.

• The company success depends largely upon the services of its Promoters, Managing Directors and other key managerial personnel and its ability to attract and retain them.

• The company inability to manage growth could disrupt its business and reduce the company profitability.

• The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the issue. Further its have not identified any alternate source of financing the `objects of the Issue`. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations, and financial performance.

• The objects of the Issue include funding working capital requirements of the Company, which are based on certain assumptions and estimates and such working capital requirements may not be indicative of the actual requirements of the Company. Additionally, its financing requirements and the deployment of the net proceeds of the Issue are based on management estimates and have not been independently appraised.

• Operating Expenses constitute a significant percentage of the Company`s total expenses. Any increase in prices and any decrease in the supply would materially adversely affect the Company`s business.

• Any failure to keep abreast with the latest trends in the technologies may adversely affect its cost competitiveness and ability to develop new products.

• The business which we undertake may be delayed, modified, cancelled, or not fully paid for by its clients and therefore, could materially affect the company business, results of operations and financial condition.

• The company do not own its registred office from which we operate.

• The company results of operations are likely to vary from year to year and be unpredictable, which could cause the market price of the Equity Shares to be volatile.

• Any variation in the utilization of the Net Proceeds as disclosed in this Prospectus shall be subject to certain compliance requirements, including prior Shareholders` approval.

• The company funding requirements and deployment of the issue proceeds are based on management estimates and have not been independently appraised by any bank or financial institution.

• The Company`s management will have flexibility in utilizing the Net Proceeds. There is no monitoring agency appointed by the Company and the deployment of funds is at the discretion of its Management and its Board of Directors, though it shall be monitored by the company Audit Committee.

• The company has experienced negative cash flows in the past. Any such negative cash flows in the future could adversely affect its business, results of operations and prospects.

• The company has not made any dividend payments in the past and its ability to pay dividends in the future will depend upon future earnings, financial condition, cash flows, working capital requirements, capital expenditures and restrictive covenants in its financing arrangements.

• The requirements of being a listed company may strain its resources.