Aaradhya Disposal Industries Ltd IPO

The Company, its Promoters, Directors, Group Entities and Key Managerial Personnel are parties to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.

A portion of its revenues are generated from exports. Any adverse changes in the conditions affecting these exports and the company inability to grow its business in new geographic markets may adversely impact the company business, results of operations, profitability and margins, cash flows and financial condition.

An increase in the cost of raw materials or a shortfall in the availability of raw materials such as Paper Cup Board, Craft Paper, Granules for PE and PLA coating, Ink and Food Grade Chemicals - OGR, OTR and MTR from its suppliers due to various reasons could have a material adverse effect on the company business, results of operations, cash flows and financial condition as its may not be able to pass on such costs to the company customers.

The company has experienced fire outbreak in its manufacturing facility on May 05, 2023. The compay regularly work with flammable materials and activities in its operation which can be dangerous and could cause injuries to people or property.

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

Restated Standalone Financial Statements disclosed in the Draft Red Herring Prospectus may differ from that of disclosed in this Red Herring Prospectus

The company derives a significant portion of its revenue from the company top 5 & top 10 customers. The loss of one or more such customers, the deterioration of their financial condition or prospects, or a reduction in their demand for its products could adversely affect the company business, results of operations, financial condition and cash flows.

Its manufacturing capacity may not reach their installed capacity and the company may also be unable to effectively utilize its expanded manufacturing capacities.

Its business is largely concentrated in two states i.e. Madhya Pradesh and Gujarat ("States") and is affected by various factors associated with these states.

The Company procures more than 85% of its total raw material requirements mainly from five suppliers, any dispute with them or any delay/ disruption/ strike/ lock-outs in their business operation could have a material adverse effect on its business, production, sales and financial condition.