1. The company has appointed one of its Promoter Group entities, M/s. Amderma Healthcare LLP as a carrying and forwarding agent for storing, delivering and distributing its products. Consequently, the company derives all of its revenue from M/s. Amderma Healthcare LLP. Any non-performance or breach of covenants of the carrying and forwarding agreement executed with M/s. Amderma Healthcare LLP may adversely affect its business operations, profitability and cash flows.
2. The company relies on third party contract manufacturers for manufacturing products of the Company.
3. Its commercial success is largely dependent upon the company's ability to develop and devise problem solving dermacosmetic products. The company has developed a limited number of products since incorporation and therefore, its ability to innovate new products might be limited, which may have an adverse impact on its revenue and profitability.
4. The company derives a significant portion of its revenue from certain of the company products. If sales volume or price of such products declines in the future, or if the company is unable to sell such products for any reason, its business, financial condition, cash flows and results of operations could be adversely affected.
5. Its business and prospects may be adversely affected if the company is unable to maintain and grow the image of its brands. Further, pursuant to the Memorandum of Understanding dated March 31, 2020 executed between M/s. Amwill Healthcare and the Company ("Asset Transfer MoU"), its Promoter Anand Gandhi has transferred all the trademarks which were previously owned by M/s. Amwill Healthcare. The Company has made applications before the Registrar of Trademarks for registering the Asset Transfer MoU and change in ownership of the aforementioned trademarks, which are presently pending.
6. If the company is unable to anticipate and respond to changes in the market trends and changing customer preferences in a timely and effective manner, or if the company fails to maintain its reputation, brand value or increase the market for its products, the demand for the company products may decline.
7. Its business largely depends on the performance of the company marketing team. Further, the success of its products are dependent upon dermatologists and medical professionals accepting its products and prescribing them to their patients. Any non-performance by our marketing team to market its products before the dermatologists and medical professionals, may adversely affect its business operations, profitability and cash flows.
8. Its operations are concentrated in the states of Karnataka, Andhra Pradesh and Telangana. If revenues from these states decline, its business, results of operations and financial condition would be adversely affected.
9. If the company or M/s. Amderma Healthcare LLP are unable to collect its dues and receivables from end users, its results of operations and cash flows could be adversely affected.
10. Some of its Promoter Group entities may have conflicts of interest as they are engaged in similar industry segment and may compete with it.