Accretion Nutraveda Ltd IPO

Objects of the Offer

• Strengthening Sales and Marketing Network.

• Enhancing Global Presence through Direct Exports.

• Expanding and Differentiating Product Portfolio.

• Leveraging Market Relationships and Industry Engagement.

• Sustaining Competitive Advantage.

• Customer Satisfaction and Retention.

• The company`s manufacturing operations are subject to risks, including equipment failures, accidents, and natural disasters, which could disrupt production.

• There are certain discrepancies and non-compliances noticed in some of its corporate records relating to forms filed with the Registrar of Companies, taxation authorities and other public authorities. Any penalty or action taken by any regulatory authorities in future for non- compliance with provisions of all applicable law could impact on the financial position of the Company to that extent.

• The Company is dependent on few numbers of customers for sales. Loss of any of this large customer may affect its revenues and profitability.

• The company has historically derived, and may continue to derives, a significant portion of its supply from top 10 Suppliers.

• Too much Geographical concentration of the company`s Business on specific location can impact its Business.

• The company`s Registered Office and Factory is located on premises which are not owned by the company and has been obtained on leased. Disruption of its rights as licensee/ lessee or termination of the agreements with the company`s licensors/ lessors may adversely impact its operations and, consequently,the company`s business, financial condition and results of operations.

• The Company is yet to place orders for the equipment, plant and machinery for the Proposed Expansion. Any delay in placing orders or procurement of such equipment, plant and machinery may delay the schedule of implementation and possibly increase the cost of commencing operations.

• The company may faces several risks associated with the construction of the building of the Proposed Expansion, which could hamper its growth, prospects, cash flows and business and financial condition.

• The Company has reported certain negative cash flows from its investing activity and financing activity, details of which are given below. Sustained negative cash flows could impact its growth and business.

• The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Issue

• The company`s expansion into new product categories and business verticals and a substantial increase in the number of products offered may expose the company to new challenges and more risks.

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

• 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 and as per the Companies Act, 2013 and other applicable laws.

• There have been certain instances of delays in payment of statutory dues by the Company in the past. Any delay in payment of statutory dues by the Company in the future may result in the imposition of penalties and in turn may have an adverse effect on the Company`s business, financial condition, results of operation and cash flows.

• There may be potential conflicts of interest if the company`s Promoters or Directors get involved in any business activities that compete with or are in the same line of activity as its business operations.

• The company has incurred indebtedness and an inability to comply with repayment and other covenants in the company`s financing agreements could adversely affect its business and financial condition.

• Certain statutory and regulatory approvals for the company`s proposed expansion are pending, and any delay or failures in obtaining them could adversely impact its project timelines and operations.

• The company may be unable to meet its repayment obligations in respect of its secured and unsecured borrowings, which could adversely impact the company`s cash flows and operations.

• The Company /Promoters/Directors/Promoter Group/Group Companies is involved in certain legal proceeding(s) and potential litigations. Any adverse decision in such proceeding(s) may render them liable to liabilities/penalties.

• The company has certain outstanding litigation against the company, an adverse outcome of which may adversely affect its business, reputation and results of operations.

• Regulatory proceedings and penalties imposed by SEBI against one of the Group Companies may adversely affect the reputation of the Group and may result in increased regulatory scrutiny and diversion of management

• The company highly depend on its major raw materials suppliers who help the company procure the same. The Company has not entered into long-term agreements with its suppliers for supply of raw materials. In the event the company is 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`s success depends largely upon the knowledge and experience of its Promoters, other Key Managerial Personnel and Senior Management. Any loss of the company`s key managerial personnel or its ability to attract and retain them could adversely affect the company`s business, operations and financial.

• The average cost of acquisition of Equity Shares by the company`s Promoters is lower than the issue price.

• The company`s customer`s brands and reputation are critical to the success of its business and may be adversely affected due to various reasons, which could have an adverse effect on the company`s business, financial condition, cash flows and results of operations.

• Product liability claims and product recalls could harm its reputation, business, financial condition, cash flows and results of operations.

• The company dependents on several third-party service providers to sell or distribute the company`s products to consumer, and on third party technology providers for certain aspects of its operations. Any disruptions or inefficiencies in these operations may adversely affect the company`s business, financial condition, cash flows and results of operations.

• The company relies on third party providers for carrying out testing of the products manufactured by the company. While the company does not have direct control over such tests, any occurrence of non-compliance with applicable regulations, or any errors or omissions during the testing process could adversely affect its business, results of operations and financial condition.

• The Company faces significant regulatory scrutiny, which imposes significant compliance costs and exposes the Company to government investigations, legal actions and penalties.

• The company`s inability to accurately forecast demand for its products or manage the company`s inventory or working capital requirements may have an adverse effect on its business, results of operations and financial condition.

• The company`s Promoters and some of its Directors have interests in the Company other than the reimbursement of expenses and normal remuneration or benefits. Any such interests may result in a conflict of interest, which may have an adverse effect on its business.

• Any failures in the company`s quality control processes may adversely affect its business, results of operations and financial condition.

• The company export its products to geographies viz. Sri Lanka, Singapore and USA and a failures to comply with the regulatory and other requirements of such markets could have an adverse effect on its business, financial condition, results of operations and cash flows.

• The company`s working capital requirements, towards which the company intend to deploy Rs. 550 Lakhs from the Net Proceeds, are based on certain assumptions. Any change in working capital requirements on account of such assumptions may materially adversely affect its results of operations and profitability

• There are potential risks associated with the protection, enforcement, and defense of its intellectual property rights, and how could these risks impact the company`s business operations and financial performance.

• The company`s existing manufacturing facility are concentrated in a single region i.e., Chacharwadi, Sanand, Ahmedabad and the inability to operate and grow its business in this particular region may have an adverse effect on the company`s business, financial condition, results of operations, cash flows and future business prospects.

• The company`s manufacturing activities are dependent upon availability of skilled and unskilled labour.

• The company rely on its information technology systems in managing the company`s supply chain, logistics and other integral parts of its business. Any failures in the company`s information technology systems could adversely affect its financial condition, cash flows and results of operations.

• Environmental, health, employee and safety laws and regulations may expose the company to liability and result in an increase of its costs and a decrease in our profits.

• 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.

• The company operates in a highly competitive industry and its failures to compete effectively could have a negative impact on the success of the company`s business and/or impact our margins.

• The company requires certain approvals and licenses in the ordinary course of business, and the failures to obtain or retain them in a timely manner all may adversely affect its operations.

• High merchandise returns or interruption in the company`s shipping operations could negatively impact its business.

• Some of the details mentioned in the respective KYC Documents of persons forming part of Promoter group are not same in all KYC documents.

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

• The company`s business activities are exposed to fluctuations in the prices of raw materials.

• The company`s funding requirements and the proposed deployment of Net Proceeds have not been appraised by any bank or financial institution or any other independent agency and its management will have broad discretion over the use of the Net Proceeds

• Continued operations of its manufacturing facility are critical to the company`s business and any disruption in the operation of the company`s manufacturing facility may have a material adverse effect on its business, results of operations and financial condition.

• The company`s business and operations could be adversely impacted by labor shortages, strikes, regulatory changes, wage demands, or industrial accidents at its worksites.

• The nature of the company`s business exposes the company to liability claims and contract disputes and its indemnities may not adequately protect the company. Any liability in excess of its reserves or indemnities could result in additional costs, which would reduce the company`s profits.

• Some of the KMPs is associated with the company for less than one year.

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

• The availability of counterfeit drugs, such as drugs passed off by others as the company`s products, could adversely affect its goodwill and results of operations.

• The company conducts the company`s business activities on a purchase order basis and therefore, have not entered into longterm agreements with its customers.

• The company`s insurance coverage may not adequately protect the company against all material hazards, which may adversely affect its business, results of operations and financial condition.

• Changes in government regulations or their implementation could disrupt its operations and adversely affect the company`s business and results of operations.

• Malpractices by some players in the industry affect overall performance of emerging companies.

• The company`s efforts to introduce new formulation and combination are dependent on the success of its formulation development team initiatives.

• The improper handling, processing or storage of the company`s products or raw materials, or spoilage of and damage to such products or raw materials, or any real or perceived contamination in the company`s products or raw materials, could subject the company to regulatory action, damage its reputation and have an adverse effect on the company`s business, results of operations and financial condition.

• The company is dependents on third party transportation and logistics providers. Any disruptions in logistics and transportation or significant increase in freight charges could adversely affect its business.

• The company may pursue strategic acquisitions for inorganic growth. However, the integration of such acquisitions could result in operating difficulties, dilution and other adverse consequences.

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

• Unauthorized Use or Disclosure of Confidential Information could have negative impact on the overall performance of the Company.

• Significant disruptions in the company`s information technology systems or breaches of data security could affect its business and reputation.

• Operational Disruptions Due to Lack of Backup Power Supply

• The Company has not paid any dividends till now and there can be no assurance that the company will pay dividends in future. The company`s ability to pay dividends in the future will depend upon a variety of factors such as future earnings, financial condition, cash flows, working capital requirements, and restrictive covenants in the company`s financing arrangements.

• Sale of Equity Shares by its Promoters or other significant shareholder(s) may adversely affect the Trading price of the Equity Shares.

• Any future issuance of Equity Shares may dilute your shareholdings, and sales of the Equity Shares by the company`s major shareholders may adversely affect the trading price of its Equity Shares.

• You will not be able to sell immediately on Stock Exchange any of the Equity Shares you purchase in the Issue until the Issue receives appropriate trading permissions.

• The Issue Price of its Equity Shares may not be indicative of the market price of the company`s Equity Shares after the Issue.

• The price of its Equity Shares may be volatile, or an active trading market for its Equity Shares may not develop.

• There are restrictions on daily movements in the price of the Equity Shares, which may adversely affect a shareholder`s ability to sell, or the price at which it can sell, Equity Shares at a particular point in time.

• In the event there is any delay in the completion of the Issue, there would be a corresponding delay in the completion of the objects / schedule of implementation of this Issue which would in turn affect the company`s revenues and results of operations.

• The requirements of being a public listed company may strain its resources and impose additional requirements.

• Political instability or a change in economic liberalization and deregulation policies could seriously harm business and economic conditions in India generally and the company`s business.

• Financial instability in Indian Financial Markets could adversely affect the Company`s results of operation and financial condition.

• The company cannot guarantee the accuracy or completeness of facts and other statistics with respect to India, the Indian economy and its industry contained in this Red Herring Prospectus.

• Global economic, political and social conditions may harm its ability to do business, increase the company`s costs and negatively affect the company`s stock price.

• Foreign investors are subject to foreign investment restrictions under Indian law that limits our ability to attract foreign investors, which may adversely impact the market price of the Equity Shares.

• Natural calamities could have a negative impact on the Indian economy and cause the Company`s business to suffer.

• The company has a very limited operating history as a Company, which may make it difficult for investors to evaluate its historical performance or future prospects.

• Any downgrading of India`s sovereign rating by an independent agency may harm its ability to raise financing.

• Expansion into new markets carries inherent risks

• The company`s insurance coverage may not adequately protect the company against all material hazards, which may adversely affect its business, results of operations and financial condition.