Hoac Foods

Further enhance its presence in its core market of Delhi-NCR and other Metropolitan cities.

Continue to strengthen its existing product portfolio and diversify into products with attractive growth and profitability prospects.

Modernization and Expansion in the existing manufacturing facility.

Increasing Same Store Sales Growth.

Focus on meeting quality standards.

Maintaining cordial relationships with its Suppliers, Franchisee Owners, customers, and employees.

Scale up branding, promotional and digital activities.

Experienced Management team having domain knowledge to scale up and expand into new opportunities.

Unique and Sustainable business model.

Diversified Product Portfolio capable of capturing growing Indian Spice market.

Omni channel Approach.

Cluster-based distribution through retail outlet network.

Increasing Same Store Sales Growth through incentives & training to retail outlet employees and for its sales team.

In-house Manufacturing capabilities.

Consistent focus on quality and maximum nutritional value.

Strong and stable management team with proven ability.

Long Standing Relationship with its customers.

Robust Supply-chain Management.

Strategic Location of its Warehousing Units.

Scalable Business Model.

The company is required to obtain, renew or maintain statutory and regulatory permits, licenses and approvals to operate its business and the company`s manufacturing facility, and any delay or inability in obtaining, renewing or maintaining such permits, licenses and approvals could result in an adverse effect on its results of operations.

The company does not manufacture some of its products such Pulses, Rice, Raw or Sabut Spices, Grains and Millets and Sugar and jaggery etc in its own capacity but procure the same from third party suppliers.

The company operates in highly competitive markets, and the scale and resources of some of its competitors may allow them to compete more effectively than the company can, which could result in a loss of its market share and a decrease in its net revenues and profitability.

The Company has applied for registration of the trademarks in its name. Until such registration is granted, the company may not be able to prevent unauthorised use of such trademarks by third parties, which may lead to the dilution of its goodwill.

Any non-compliance or delays in GST Return Filings, TDS EPF Payments may expose it to penalties from the regulators.

The company does not have long term agreements with suppliers for its raw materials and an increase in the cost of or a short fall in the availability of such raw materials could have an adverse effect on its business, results of operations and financial condition.

The company conduct its business activities on a purchase order basis and therefore, have not entered into long-term agreements with its customers.

The improper handling, processing or storage of its raw materials or products, or spoilage of and damage to such raw materials and products, or any real or perceived contamination in its products, could subject it to regulatory action, damage its reputation and have an adverse effect on the company business, results of operations and financial condition.

Its business is dependent on the company processing units for few products. The loss of or shutdown of operations of its processing units may have a material adverse effect on its business, financial condition and results of operations.

Its operations are considerably located in Delhi -NCR and failure to expand its operations may restrict the company`s growth and adversely affect its business.

Its continued operations are critical to its business and any shutdown of the company`s manufacturing units may adversely affect its business, results of operations and financial condition.

Any failure in its quality control processes may adversely affect the company`s business, results of operations and financial condition. Its may faces product liability claims and legal proceedings if the quality of its products does not meet its customers` expectations.

Any adverse change in regulations governing its products and the products of the company customers, may adversely impact its business prospects and results of operations.

Its inability to expand or effectively manage the company sales and marketing network may have an adverse effect on its business, results of operations and financial condition.

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 requires significant amount of working capital for a continuing growth. Its inability to meet the company working capital requirements may adversely affect its results of operations.

The company is dependent on information technology systems in carrying out its business activities and it forms an integral part of the company`s business. Further, if the company is unable to adapt to technological changes and successfully implement new technologies or if the company faces failure of its information technology systems, the may not be able to compete effectively which may result in higher costs and would adversely affect its business and results of operations.

The company may be unable to grow its business in additional geographic regions or international markets, which may adversely affect its business prospects and results of operations.

The Company has experienced negative cash flow in the past and may continue to do so in the future, which could have a material adverse effect on its business, prospects, financial condition, cash flows and results of operations.

The Company has availed certain unsecured loans which may be recalled at any time.

Its inability to manage inventory in an effective manner could affect the company`s business.

The company has significant power requirements for continuous running of its manufacturing unit. Any disruption to its operations on account of interruption in power supply or any irregular or significant hike in power tariffs may have an effect on its business, results of operations and financial condition.

The company operates in a competitive business environment and its inability to compete effectively may adversely affect the company business, results of operations, financial condition and cash flows.

Its Promoters, Directors and Key Managerial Personnel have interests in the Company other than reimbursement of expenses incurred or normal remuneration or benefits.

Its Promoters and members of the Promoter Group have significant control over the Company and have the ability to direct its business and affairs; their interests may conflict with your interests as a shareholder.

The average cost of acquisition of Equity Shares held by its Promoters could be lower than the Issue Price.

Its future fund requirements, in the form of further issue of capital or securities and/or loans taken by it, may be prejudicial to the interest of the Shareholders depending upon the terms on which they are eventually raised.

The company has in past entered into related party transactions and its may continue to do so in the future.

Its Promoter has extended personal guarantees with respect to various loan facilities availed by the Company. Revocation of any or all of these personal guarantees may adversely affect its business operations and financial condition.

Its agreements with lenders for financial arrangements contain restrictive covenants for certain activities and if the company is unable to get their approval, it might restrict its scope of activities and impede its growth plans.

Stringent food safety, consumer goods, health and safety laws and regulations may result in increased liabilities and increased capital expenditures.

In addition to its existing indebtedness for the company existing operations, its may incur further indebtedness during the course of business. The company cannot assure that its would be able to service the company existing and/ or additional indebtedness.

The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Issue. Further, the company has not identified any alternate source of financing the `Objects of the Issue`. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.

Its success largely depends upon the knowledge and experience of its Promoters, Directors, and the company Key Managerial Personnel. Loss of any of its Directors and key managerial personnel or the company ability to attract and retain them could adversely affect its business, operations and financial condition.

Its Registered Office and one of the company manufacturing units are located on premises which is not owned by it and has been obtained on lease basis. Disruption of its rights as licensee/ lessee or termination of the agreements with its licensors/ lessors would adversely impact the company manufacturing operations and, consequently, its business, financial condition and results of operations.

Any defect in title/ ownership of owner (s) (including the Promoters/ Promoter Group), from whom the Company has bought space/ taken space on lease, may adversely affect the operations of the Company resulting in loss of business.

Land on which its Registered Office and one of the company manufacturing units is located are not owned by it. In the event, the company is unable to renew the rent/leave and license agreements, or if such agreements are terminated, its may suffer a disruption in its operations.

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

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.

Information relating to the historical capacity of its production facilities included in this Draft Prospectus is based on various assumptions and estimates and future production and capacity may vary.

The requirement of funds in relation to the objects of the Issue has not been appraised.

Its funding requirements and proposed deployment of the Net Proceeds are based on management estimates and have not been independently appraised, and may be subject to change based on various factors, some of which are beyond its control.

Its inability to procure and/or maintain adequate insurance cover in connection with its business may adversely affect the company operations and profitability.

Its ability to pay dividends in the future may be affected by any material adverse effect on its future earnings, financial condition or cash flows.

Increased losses due to fraud, employee negligence, theft or similar incidents may have an adverse impact on it.

The deployment of funds is entirely at its discretion and as per the details mentioned in the chapter titled "Objects of the Issue".

The company has not independently verified certain data in this Draft Prospectus.

The requirements of being a listed company may strain its resources.

The Equity Shares have never been publicly traded and the Issue may not result in an active or liquid market for the Equity Shares.

There is no guarantee that the Equity Shares issued pursuant to the Issue will be listed on the SME Platform of National Stock Exchange of India Limited in a timely manner or at all.

There is no existing market for its Equity Shares, and the company does not know if one will develop to provide you with adequate liquidity. Further, an active trading market for the Equity Shares may not develop and the price of the Equity Shares may be volatile.

The price of the Equity Shares may be highly volatile after the Issue.

You will not be able to sell immediately on the Stock Exchanges any of the Equity Shares you purchase in the Issue.

There are restrictions on daily movements in the trading price of the Equity Shares, which may adversely affect a shareholder`s ability to sell Equity Shares or the price at which Equity Shares can be sold at a particular point in time.

The price of the Equity Shares may be volatile, which could result in substantial losses for investors acquiring the Equity Shares in the Issue.

Any future issuance of Equity Shares, or convertible securities or other equity-linked securities by the Company may dilute your shareholding and any sale of Equity Shares by its Promoters or members of the company Promoter Group may adversely affect the trading price of the Equity Shares.

Sale of Equity Shares by its Promoters or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.

Rights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.