Citichem India

Increase Market Presence.

Focus on increasing its domestic sales.

Increasing Operational efficiency.

Increase by targeting unexplored markets.

Expand its scope by adding more products.

Continue to strive for cost efficiency.

Scale up branding, promotional, and digital activities.

Improving operational efficiencies.

Asset-light model.

There are outstanding actions and litigation proceedings against the Company, Promoter and Directors. Any adverse outcome in such proceedings may have an adverse impact on its reputation, business, financial condition, results of operations and cash flows.

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.

Majority of its revenues are dependent on few customers and the loss of, or a significant reduction in purchases by such customers could adversely affect its financial performance.

The company business involves trading of the hazardous, corrosive and flammable industrial chemicals, which require expert handling and storage, as applicable and which entails significant risks and could also result in enhanced obligations. Any accidents may result in loss of life or property and disrupt its operations which may have an adverse effect on the company results of operation, cash flows and financial condition.

The Company does not have any registered Trademarks.

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

The Company has not placed orders for transportation vehicles and accessories required by it for which funds are being raised through this Issue. Any delay in placing the orders or supply of these equipment`s may result in time and cost overruns and may affect its profitability.

The Company`s hasn`t taken any insurance coverage and the said would not protect it against all material hazards which may result in disruptions of operations/monetary loss on account of stoppage of work.

The company does not own its Registered Office and Corporate Office from where the company carry out its business activities. Any dispute in relation to use of the premises would have a material adverse effect on its business and results of operations.

An inability to comply with repayment and other covenants in the financing agreements could adversely affect its business, financial condition, and cash flows.

There have been instances of non-compliance of the Companies Act, and non-filing / delays / incorrect filings in the past with certain Regulatory Authorities. If the Regulatory Authorities impose monitory penalties on it or take certain punitive actions against the company in relation to the same, its business, financial condition and results of operations could be adversely affected.

If the company is unable to maintain and enhance its brand, the sales of its products may suffer which would have a material adverse effect on its business operations.

Material Related Party Transactions with HM Megabrand Private Limited.

The company is dependent on various kinds of Suppliers for the supply of raw materials and finished goods.

Risk Related to Non-Traceability of Key Documents.

The Company requires significant amounts of working capital for a continued growth. Its inability to meet the company working capital requirements may have an adverse effect on its results of operations.

Any delays and/or defaults in customer payments could result in increase of working capital investment and/or reduction of the Company`s profits, thereby affecting its operation and financial condition.

The company engage contract labour for carrying out certain business operations.

Its Promoter has provided personal guarantee for loan facilities obtained by the Company, and any failures 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 and thereby, impact the company business and operations.

The Company requires certain approvals and/or licenses in the ordinary course of business to operate. Failures to obtain and/or renew in a timely manner may affect the operations of the company.

Non-compliance with and changes in, safety, health, environmental and labour laws and other applicable regulations, may adversely affect its business, financial condition and results of operations.

The company faces significant competition and its business, financial condition, results of operations, and cash flows could be materially harmed if the company is unable to compete effectively.

Its business reputation is critical for growing the company`s business and any adverse publicity regarding it or its Promoters, directors and investors may have a material adverse effect on its business, prospects, financial condition and results of operations.

The company depends on its Key Managerial Personnel and other skilled and the loss of their services could have a material adverse effect on its business, financial condition, results of operations and cash flows.

Its Promoters and certain of the company Directors and Key Managerial Personnel may have interests other than reimbursement of expenses incurred and normal remuneration or benefits. Further, some of its Directors may have interests in entities in businesses similar to its or are associated with the securities market, which may result in conflicts of interest with the company.

Any Penalty or demand raised by statutory authorities in future will affect its financial position of the Company.

Its ability to pay dividends in the future will depends upon the company future results of operations, financial condition, cash flows and working capital and capital expenditure requirements.

The company has entered into certain related party transactions in the Financial Years ending 2024, 2023, 2022 and for the three-months period ended June 30, 2024. The company will continue to enter into related party transactions, and there can be no assurance that its could not have achieved more favourable terms had such transactions not been entered into with related parties.

The average cost of acquisition of Equity Shares by the Promoters is less than the Issue price.

The company has in the past 12 months issued Equity Shares at a price which could be lower than the Issue price. The price at which the Company has issued Equity Shares during the last one year from the date of this Prospectus may not be indicative of the future price.

Being a part of the chemical industry its revenue are largely dependent upon the growth and expansion of the chemical industry.

Any variation in the utilization of the Net Proceeds from the issue as disclosed in this Prospectus shall be subject to certain compliance requirements, including prior Shareholders` approval.

The company has in this Prospectus included certain non-GAAP financial measures and certain other industry measures related to its operations and financial performance. These non-GAAP measures and industry measures may vary from any standard methodology that is applicable across the industry in which the company operates, and therefore may not be comparable with financial or industry related statistical information of similar nomenclature computed and presented by other companies.

Its funding requirements and the proposed deployment of Net Proceeds have not been appraised and the Company has broad discretion over the use of the Net Proceeds and may use them in ways with which you does not agree and in ways that may not enhance its operating results or the price of the company Equity Shares.

The Promoters and members of the Promoter Group will continue jointly to retain majority control over the Company after the Issue, which will allow them to determine the outcome of matters submitted to shareholders for approval.

Its may not be successful in implementing the company`s business strategies.

The future funds` requirements of the company, in the form of fresh issue of capital or securities and/or loans, may be prejudicial to the interest of the shareholders depending upon the terms on which they are eventually raised.

In the event there is any delay in the completion of the Issue, there would be a corresponding delay in the completion of the objects / schedule of implementation of this Issue which would in turn affect its revenues and results of operations.

The company could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect its financial condition, results of operations and reputation.

There is no monitoring agency appointed by the Company and the deployment of funds are at the discretion of its Management and the company Board of Directors, though it shall be monitored by its Audit Committee.

Investors other than Retail (including non- institutional investors and Corporate Bodies) are not permitted to withdraw or lower their Application (in terms of quantity of Equity Shares or the Amount) at any stage after submitting an application.

Currency exchange rate fluctuations may affect the value of the Equity Shares.

Industry information included in this prospectus has been derived from industry reports. There can be no assurance that such third-party statistical, financial and other industry information is either complete or accurate.