Harshdeep IPO

Diverse range of products across consumer preferences.\r\nConsistent focus on Quality.\r\nRevenue from multiple geographies.\r\nIn-house Manufacturing capabilities.\r\nExperienced and Qualified Management.

The company is generate its major portion of sales from its operations in certain geographical regions and any adverse developments affecting its operations in these regions could have an adverse impact on its revenue and results of operations.\r\nThe company is primarily dependent upon few key suppliers within limited geographical location for procurement of raw materials. Any disruption in the supply of the raw materials or fluctuations in their prices could have a material adverse effect on its business operations and financial conditions.\r\nThe company has very short span of operating history as company.\r\nThe company does not own the registered office, manufacturing unit and stores from which its carry out its business activities. In case of nonrenewal of rent agreements or dispute in relation to use of the said premise, its business and results of operations can be adversely affected.\r\nThe company has not registered the trademarks which its using for the company's business in the name of the company. Its may be unable to protect its intellectual property or knowhow from third party infringement which could harm its brand and services.\r\nThe company operates in a price sensitive industry wherein the purchasing decisions of consumers are highly influenced by the product price. Its inability to continue to offer the company products at competitive prices may adversely affect its business, results of operations and financial condition.\r\nInventories and trade receivables form a major part of its current assets. Failure to manage its inventory and trade receivables could have an adverse impact on its net sales, profitability, cash flow and liquidity.\r\nThe company requires 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 its operations and financial conditions.\r\nIts insurance coverage may not be adequate to protect it against certain operating hazards and this may have a material adverse effect on its business.\r\nThe company has to update the name of the company in some of the statutory approvals and certificates due to the takeover of Proprietorship Firm into the Company.\r\nThe company has had certain inaccuracy in relation to regulatory filings to be made with the RoC.\r\nThe company face competition from other large and established competitors, and its may fail to compete successfully against existing or new competitors, which may reduce the demand for its products which may lead to reduced prices, operating margins, profits and further result in decline in revenue.\r\nThe company is yet to received NOC from Karnataka Bank Limited for undertaking the initial public offer of equity shares.\r\nAdverse publicity regarding its products could negatively impact it.\r\nAs the company is continue to grow, its may not be able to effectively manage its growth and the increased complexity of the company's business, which could adversely impact its brand and financial performance.\r\nThere is an increased awareness towards controlling pollution and many economies including India have joined in the efforts to ban plastic products. In case any plastic made product manufactured by it is banned in India or in any of the markets where its export the company products, it could have a material and adverse effect on its business and results of operations.\r\nIts Promoter and Directors are parties to certain legal proceedings.\r\nThe company has incurred indebtedness which exposes it to various risks which may have an adverse effect on its business and results of operations.\r\nIts operations are subject to high working capital requirements. The company inability to maintain an optimal level of working capital required for its business may impact its operations adversely.\r\nThe company has in the past entered into related party transactions and may continue to do so in the future. There can be no assurance that such transactions, individually or in the aggregate, will not have an adverse effect on the Company's

financial condition and results of operations.\r\nIts continued operations at its manufacturing facilities are critical to the company's business and any disruption, breakdown or failure of machinery, disruption to power sources or any temporary shutdown of its manufacturing facility, may have a material adverse effect on its business, results of operations, financial condition and cash flows.\r\nA notable portion of its revenue is from limited number of customers, the loss of such customers, the deterioration of their financial position or prospects, or a reduction in their demand for its products could affect its business, financial position and future prospects of the Company.\r\nThe company is heavily dependent on its Promoter and Key Managerial Personnel for the continued success of its business through their continuing services and strategic guidance and support.\r\nCompliance with, and changes in, safety, health and environmental laws and labour regulations may adversely affect its business, prospects, financial condition and results of operations.\r\nDependence upon third party transportation services for supply and transportation of its products are subject to various uncertainties and risks, and delays in delivery may result in rejection of products by customer.\r\nIts may not be successful in implementing the company's business strategies.\r\nThe average cost of acquisition of Equity Shares by its Promoter is lower than the face value of Equity Share.\r\nThe company has negative operating cash flows in the past. Any operating losses or negative cash flows in the future could adversely affect its results of operations and financial conditions.\r\nIts Promoter 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.\r\nIts Promoter, Directors and Promoter Group members/entities have provided personal guarantees for loan facilities obtained by the Company, and any failure or default by the Company to repay such loans in accordance with the terms and

conditions of the financing documents could trigger repayment obligations on them, which may impact their ability to effectively service their obligations as its Promoter/ Directors and thereby, impact the company's business and operations.\r\nExcessive dependence on Kotak Mahindra Bank and Karnataka Bank Ltd in respect of loan facilities obtained by the Company.\r\nIts may requires further 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 the company may not be able to procure and any future equity offerings by it.\r\nThe company has not identified any alternate source of funding and hence any failure or delay on its part to mobilize the required resources or any shortfall in the Issue proceeds may delay the implementation schedule.\r\nThe Objects of the Issue for which funds are being raised have not been appraised by any bank or financial institution. Any variation between the estimation and actual expenditure as estimated by the management could result in execution delays

or influence its profitability adversely.\r\nInformation relating to its production capacities and the historical capacity utilization of its production facilities included in this Draft Red Herring Prospectus is based on certain assumptions and has been subjected to rounding off, and future

production and capacity utilization may vary.\r\nThe activities carried out at its manufacturing facilities can cause injury to people or property in certain circumstances.\r\nFraud, theft, employee negligence or similar incidents may adversely affect its results of operations and financial condition.\r\nThe company is subject to restrictive covenants under its credit facilities that limit its operational flexibility.\r\nThe 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.\r\nIts ability to pay dividends in the future will depend upon its future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in its financing arrangements.\r\nCertain data mentioned in this Draft Red Herring Prospectus has not been independently verified.\r\nAny Penalty or demand raised by statutory authorities in future will affect its financial position of the Company.\r\nAny future issuance of Equity Shares may dilute your shareholdings, and sale of the Equity Shares by its major shareholders may adversely affect the trading price of its Equity Shares.\r\nThere is no guarantee that the Equity Shares issued pursuant to the Issue will be listed on the BSE SME Platform in a timely manner or at all.\r\nThe Equity Shares have never been publicly traded, and, after the Issue, the Equity Shares may experience price and volume fluctuations, and an active trading market for the Equity Shares may not develop. Further, the price of the Equity Shares may be volatile, and you may be unable to resell the Equity Shares at or above the Issue Price, or at all.