Resourceful Automobile Ltd IPO

The company has transferred all outstanding loans from Hero Fincorp Limited, NBFC to Deutsche Bank AG w.e.f. 05th February, 2024. There has been a change of Borrower in Objects of the Issue after filing of the Draft Prospectus by the company with the exchange. A significant deviation in the Object could adversely impact the operations and sustainability in absence of any independent monitoring agency.

A large portion of its business revenue is derived from the company dealership of Yamaha (Commercial). Any adverse developments in the growth, demand or sales for these OEMs could have an adverse effect on its business, results of operations and financial condition.

The automotive industry is sensitive to changing economic conditions and various other factors. Any decline in demand for vehicles by individuals or entities may adversely impact its business prospects and results of operations.

The company is subject to the significant influence of, and restrictions imposed by its OEMs pursuant to the terms of its dealership agreements that may adversely impact the company's business, results of operations, financial condition and prospects, including its ability to expand into new territories and acquire additional dealerships.

The Company had negative cash flows in recent fiscals, details of which are given below. Sustained negative cash flow could adversely impact its business, financial condition and results of operations.

Increasing competition among automotive dealerships through online and offline marketing reduces its profit margins on vehicle sales and related businesses.

Its vehicle sales are impacted by the incentive, marketing, and other programs of the OEMs. Further, any adverse impact on its sales directly impacts the company profit margins and adversely affects its financial conditions and results of operations.

The company has had certain inaccuracy in relation to regulatory filings to be made with the RoC and the company has made non-compliances of certain provision under applicable law.

The company may fails to successfully implement its growth strategy, which includes acquiring existing dealerships, diversifying its portfolio and penetrating deeper into existing geographic locations which may adversely affect its financial condition and results of operations.

The company may be subject to labour unrest, slowdowns and increased wage costs. Increase in any such cost could impact its profitability which may adversely affect the company's business and results of operations.