Studds Accessories Limited IPO

The sales of our products will suffer if we are unable to maintain and/ or enhance the tudds' and MK' brands, which would have a material adverse effect on our business, financial condition, results of operations and brand equity.

The sale of two-wheeler helmets manufactured by us contributes a significant portion to total sales (92.56%, 92.44%, 91.91% and 94.27% for the six months ended September 30, 2024 and Fiscals 2024, 2023, and 2022, respectively). Any decrease in motorcycle sales could have an adverse effect on our business, cash flows, results of operation and financial position.

Our continued operations at our manufacturing facilities are critical to our business and any disruption, breakdown or shutdown of our manufacturing facilities may have a material adverse effect on our business, financial condition, results of operations and cash flows.

We incur significant expenses in relation to the procurement of our primary raw materials. In the event we are unable to procure adequate amounts of raw material, at competitive prices, our business, results of operations and financial condition may be adversely affected. Further, we do not generally enter into agreements with the suppliers and accordingly may face disruptions in supply from the current suppliers.

If we are unable to provide new designs or update our product catalogue in accordance with customer preference, it may adversely affect our business prospects, results of operations and cash flows.

We are dependent on certain raw material suppliers (which accounted for more than 40% in the six months ended September 30, 2024 and Fiscals 2024, 2023 and 2022). Any disruption in their operations or the inability of such suppliers to supply the raw materials in the quantities we require, may have an adverse effect on our business, results of operations and financial condition.

We depend on sale of our products to OEMs and government customers, which accounted for more than 15% in each of the six months ended September 30, 2024, and Fiscal 2024. An economic slowdown or factors affecting demand of our products by OEMs and government customers may have an adverse effect on our business, financial condition and results of operations.

Our inability to protect or use our intellectual property rights may adversely affect our business.

Our Company has been delayed in filing Form FC-GPR for allotment of shares to certain NRI shareholders pursuant to the bonus issue undertaken by our Company on January 11, 2025. We have been unable to file the form FC-GPR on account on lack of clarity on the mode of investment of certain NRI shareholders or due to non-filing of the Form FC-TRS by certain other NRI shareholders at the time of their investment in our Company. We cannot assure that we will able to file the Form FC-GPR in a timely manner, and consequently we may be subject to regulatory actions and penalties/compounding fees, as applicable.

We have made certain issuances and allotments of our Equity Shares which were not in compliance with section 67(3) of the Companies Act, 1956.