Accretion Pharmaceuticals Ltd IPO

We have certain outstanding litigation against us, an adverse outcome of which may adverselyaffect our business, reputation and results of operations.

Our Company operates in pharmaceutical sector, which is extensively regulated, any failure onour part to comply with the existing and future statutory and/or regulatory requirements in thepharmaceutical sector could adversely affect our business, results of operations and financialcondition.

Our manufacturing units are subject to periodic inspections and audits by regulatory authoritiesand clients. We may be subject to regulatory action which may damage our reputation leadingto an adverse effect on our business, results of operations, financial condition and cash flows.

We have a very limited operating history as a Company, which may make it difficult for investorsto evaluate our historical performance or future prospects.

We have only one Manufacturing Facility, continued operations of our manufacturing facility iscritical to our business and any disruption in the operation of our manufacturing facility mayhave a material adverse effect on our business, results of operations and financial condition.

We generate a significant percentage of our revenue from few clients. The loss of any one or more of our major clients would have a material adverse effect on our business operations and profitability.

Our top ten suppliers contribute majority of our purchases. Any loss of business with one or more of them may adversely affect our business operations and profitability.

Our business operations are concentrated in the Gujarat, any adverse developments affectingour operations in this region could have a significant impact on our revenue and results ofoperations.

We rely on third party providers for carrying out testing of the products manufactured by us.While we do not have direct control over such tests, any occurrence of non-compliance withapplicable regulations, or any errors or omissions during the testing process could adverselyaffect our business, results of operations and financial condition.

We do not have long-term agreements with most of our customers and the loss of one or moreof them or a reduction in their demand for our products could adversely affect our business,results of operations, financial condition and cash flows.