Sacheerome Ltd

Risks

• The success of its products depends on the company ability, as well as that of its customers, to anticipate market trends and understand customer preferences early on, leveraging this information successfully. Failures to do so could negatively impact its cash flows, business performance, financial condition, and overall operational results.

• Success in its fragrances and flavors business relies on a limited pool of highly specialized employees, making recruitment and retention critical to its ability to compete and achieve strategic objectives.

• A significant portion of its revenues is dependent on a few key customers, with whom the company does not have firm commitments. The loss of any one or more of these major customers could have a material adverse effect on its business, cash flows, results of operations, and financial condition.

• Increasingly stringent regulatory environment with regard to food, cosmetic ingredients and FMCG could result in stricter standards being applied to its products, which could cause it to incur substantial costs, which may have an adverse effect on its business and results of operations.

• Disproportionate increases in raw materials prices and significant dependence on a limited number of suppliers for unique raw materials could adversely affect its business, results of operations and cash flows.

• Its operations could be adversely affected by strikes, work stoppages or increased wage demands by its employees or any other kind of disputes with its employees.

• There have been instances of delays of certain forms which were required to be filed as per the reporting requirements under the Companies Act, 2013 to ROC

• Increasing Competition and Industry Consolidation May Adversely Impact its Business

• Intense competition and consolidation in the FMCG industry may lead to increased price pressure on its customers. If the company is unable to compete effectively, its sales and results of operations will suffer.

• Its ability to successfully implement the company growth strategy is subject to various internal and external factors that may impact its expansion plans, operational efficiency, and overall business performance.

• Conflicts of interest may arise out of common business undertaken by the Company and its Group Entity

• Its reliance on certain industries for a significant portion of the company sales could have an adverse effect on its business.

• Its performance may be adversely affected if the company is not successful in managing its inventory or working capital balances.

• Any non-compliance or delays in EPF Return Filings may expose us to penalties from the regulators.

• Some of its Group Company has incurred losses in the last three financial years.

• The sale of its products is concentrated in state of Uttar Pradesh. Any adverse developments affecting its customers operations in such region, could have an adverse impact on its business, financial condition, results of operations and cash flows.

• Its Manufacturing facility and Corporate Office is not owned by the company.

• The company is required to obtain certain approvals and licenses as part of its regular business operations and must comply with various rules and regulations. Any failures to secure, retain, or renew these approvals and licenses, or to adhere to these rules and regulations, could have a negative impact on its operations.

• Any failures of its information technology systems could adversely affect its business and the company operations.

• The company is required to obtain certain approvals and licenses as part of its regular business operations and must comply with various rules and regulations. Any failures to secure, retain, or renew these approvals and licenses, or to adhere to these rules and regulations, could have a negative impact on its operations.

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

• Its may be unable to sufficiently obtain, maintain, protect, or enforce its intellectual property and other proprietary rights

• Its operations could be adversely affected by strikes, work stoppages or increased wage demands by its employees or any other kind of disputes with its employees.

• Fraud, theft, employee negligence or similar incidents may adversely affect its results of operations and financial condition.

• The company is susceptible to risks relating to unionization of its employees employed by the company.

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

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

• 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.

• The Company is party to certain litigation and claims. Any adverse decision may make it liable to liabilities/penalties and may adversely affect its reputation, business and financial status.

• Any non-compliance or delays in EPF Return Filings may expose its to penalties from the regulators.

• The company intend to utilise certain portion of the Net Proceeds for purchase of plant and machinery for setting up a new manufacturing facility. The company is yet to place orders for some of the machinery.

• There have been instances of delays of certain forms which were required to be filed as per the reporting requirements under the Companies Act, 2013 to ROC.

• Its Promoters and Directors have provided personal guarantees for financing facilities availed by the Company and may in the future provide additional guarantees and any failures or default by the Company to repay such facilities in accordance with the terms and conditions of the financing agreements could trigger repayment obligations on them, which may impact their ability to effectively service their obligations as its Promoters and Directors and thereby, adversely impact the company business and operations.

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

• The average cost of acquisition of Equity Shares by our Promoters could be lower than the Issue price.

• Its individual Promoters plays key role in the company functioning and its heavily relies on their knowledge and experience in operating its business and therefore, it is critical for its business that its Promoter and Executive Directors remain associated with it. The company success also depends upon the services of its key managerial personnel and its ability to attract and retain key managerial personnel and its inability to attract them may affect its operations.

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

• Its Promoters and Executive Directors hold Equity Shares in the Company and are therefore interested in the Company`s performance in addition to their remuneration and reimbursement of expenses.

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

• The Objects of the Issue 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 titled "Objects of the Issue".

• The company has issued shares at a price which may be lower than the issue price in preceding one year.

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

• Industry information included in this Red Herring Prospectus has been derived from industry sources. There can be no assurance that such third-party statistical, financial and other industry information is complete, reliable or accurate.

• Certain data mentioned in this Red Herring Prospectus has not been independently verified.