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The Company, Promoter Group and Group Entities are parties to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, result of operations and financial conditions.
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Increase in the prices of its raw material may have an adverse effect on the company`s business.
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The company`s business is dependent on certain suppliers and the loss of one or more of them would have a material adverse effect on the business.
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Any reduction in the demand for its products could lead to underutilisation of the company manufacturing capacity.
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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.
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The company currently have low operating margins. Its business is a high volume and low margin business which may continue in future.
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Demand of its products are dependent of other external factors. Any unfavourable situations may leads to less demand of its product.
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If the company is unable to successfully implement its proposed expansion plans; its results of operations and financial condition could be adversely affected.
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The Company is yet to place orders for purchase of plant and machinery. Any delay in placing orders or procurement of such plant and machinery may delay the schedule of implementation and possibly increase the cost of commencing operations.
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Some of the details mentioned in the respective KYC Documents of its promoters and Directors are not same as other KYC documents.
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The availability of look-alikes, counterfeit products, primarily in its domestic markets, manufactured by other companies and passed off as its products, could adversely affect its goodwill and results of operations.
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The improper handling, processing or storage of its products or raw materials, or spoilage of and damage to such products or raw materials, or any real or perceived contamination in its products or raw materials, could subject it to regulatory action, damage its reputation and have an adverse effect on its business, results of operations and financial condition.
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Its inability to manage the company inventory and foresee accurate demand for its products for a future period may adversely affect its reputation, business, results of operation and the company financial performance.
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Its operations are subject to high working capital requirements. If the company is unable to generate sufficient cash flows to allow it to make required payments, there may be an adverse effect on its results of operations.
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Substantial portion of its revenues has been dependent upon few customers. The loss of any one or more of its major customers would have a material effect on its business operations and profitability.
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The company has only one manufacturing facility.
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Delays or defaults in customer payments could adversely affect its financial condition.
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Its success depends on stable and reliable logistics and transportation infrastructure. Disruption of logistics and transportation services could impair its ability to deliver its products to our customers and/ or increase the company transportation costs, which may adversely affect its operations.
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Its business is subject to seasonal and other fluctuations that may affect its cash flows and business operations.
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The company is subject to certain government regulation and if its fail to obtain, maintain or renew its statutory and regulatory licenses, permits and approvals required to operate its business, its business and results of operations may be adversely affected.
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The company operates in an industry with several competitors and its may fail to compete successfully against existing or new competitors, which may reduce the demand for its products and services which may lead to reduced prices, operating margins, profits and further result in loss of market share across product categories.
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Its majorly sell the company products in Gujarat and any adverse developments affecting its operations in these regions could have an adverse impact on its revenue and results of operations.
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The Company requires significant amount of working capital for continues growth. Its inability to meet its working capital requirements may have an adverse effect on its results of operations.
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Its business is dependent on developing and maintaining continuing relationships with its brokers/agents or customers. The loss of any significant broker or customer could have a material adverse effect on its business, financial condition and results of operations.
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The company has issued Equity Shares in the last 12 (twelve) months at a price which is lower than the Issue Price.
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The average cost of acquisition of Equity Shares by its Promoters is lower than the Issue Price.
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The success of its business strategy depends on its ability to enhance its own brands and product portfolio. If its fail to maintain and enhance its brand and reputation, consumers` recognition of its brands, and trust in it, the company`s business may be materially and adversely affected.
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Shortage or non-availability of essential utilities such as electricity could affect its manufacturing operations and have an adverse effect on its business, results of operations and financial condition.
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The Company` insurance policies may not protect it against certain operational risks or claims by its employees.
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The Company`s manufacturing activities are labour intensive and depends on availability of skilled and unskilled labourers in large numbers. In case of unavailability of such labourers and / or inability to retain such personnel, its business operations could be affected.
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Its actual results could differ from the estimates and projections used to prepare its financial statements.
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The company has entered into certain related party transactions and may continue to do so.
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In addition to its existing indebtedness for its operations, its may be required to obtain further loan during the course of business. There can be no assurance that its would be able to service its existing and/or additional indebtedness.
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Its debt financing agreements contain certain restrictive covenants that may adversely affect the Company`s business, credit ratings, prospects, results of operations and financial condition.
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Its management will have broad discretion in how the company apply the Net Proceeds of the Issue and there is no assurance that the Objects of the Offer will be achieved within the time frame expected, or at all, or that the deployment of Net Proceeds in the manner intended by it will result in an increase in the value of your investment.
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Its revenues are highly dependent on clients located in India. Any decline in the economic health of India could adversely affect its business, financial condition and results of operations.
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Its Directors and certain Key Management Personnel hold Equity Shares in the Company and are therefore interested in the Company`s performance in addition to their remuneration and reimbursement of expenses.
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The company is dependent on a number of key personnel, including its senior management, and the loss of or its inability to attract or retain such persons could adversely affect its business, results of operations and financial condition.
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Certain relevant copies of education qualification and experience certificates of its promoters/ Directors are not traceable.
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Non-availability of initial period secretarial/ statutory records of the company filed with ROC since incorporation.
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The Company has availed certain unsecured loan which can be recalled at any time.
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The deployment of funds raised through this Issue shall not be subject to any Monitoring Agency and shall be purely dependent on the discretion of the management of the Company.
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The company is 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.
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Major fraud, lapses of internal control or system failures could adversely impact the company`s business.
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Its may not be successful in implementing its business strategies.
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Some of the approvals are required to be updated consequent to the change in the name of the Company.
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Its lenders have charge over its Machinery, book debts, stocks in respect of finance availed by it.
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Excessive dependence on HDFC Bank in respect of Loan facilities obtained by the Company.
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Some of the Logo used by the Company is currently not registered under Trade Marks Act, 1999. Failure to protect its intellectual property rights may adversely affect its competitive business position, financial condition and
profitability.
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Its Promoters have provided personal guarantees for loans availed by the Company. Its business, financial condition, results of operations, cash flows and prospects may be adversely affected by the invocation of all or any personal guarantees provided by its Promoter.
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The company has not made any alternate arrangements for meeting its regular working capital requirements. If the company operations do not generate the necessary cash flow, its working capital requirements may negatively affect its operations and financial performance.
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Its funding requirements and the proposed deployment of the Net Proceeds are based on management estimates and have not been independently appraised.
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Any destruction, breakdown, theft its major plants or machinery or failures to repair or maintain the same may adversely affect its business, cash flows, financial condition and results of operations.
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Its manufacturing Unit is situated in Rajkot, Gujarat and the company operations may be affected by various factors associated with the region where its operate.
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Some of the KMPs is associated with the company for less than one year.
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Its operations are subject to a variety of environmental laws and regulations. Any failure to comply with applicable environmental laws and regulations could have an adverse effect on its financial condition and results of operations.
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Its Promoters and Promoter Group will continue to retain control over the Company after completion of the Issue, which will allow them to influence the outcome of matters submitted for approval of its shareholders.
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The company is subject to risks arising from interest rate fluctuations, which could adversely affect its business, financial condition and results of operations.
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The future operating results are difficult to predict and may fluctuate or adversely vary from the past performance.
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Portion of its Issue Proceeds are proposed to be utilized for general corporate purposes amounting to Rs. 400.00 lakhs which constitute 20.58% of the total Issue Proceeds.
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Information in relation to its installed capacity and capacity utilization of the company manufacturing facility included in this Prospectus is based on various assumptions and estimates, and future production and capacity utilization may vary.
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The company has expanded its production capacity from 18,126 MT per annum to 22,896 MT per annum of Maize Oil and 36,252 MT per annum to 45,792 MT per annum of Maize Cake.
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Its Capacity utilisation was lower in past years.
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The Company does not have any listed peer companies for comparison of performance and therefore, investors must rely on their own examination of accounting ratios of the Company for the purposes of investment in the Issue.
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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.
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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 of this Issue which would in turn affect our revenues and results of operations.
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There is no guarantee that its Equity Shares will be listed on the SME Platform of BSE Limited in a timely manner or at all.
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The Issue Price of its Equity Shares may not be indicative of the market price of its Equity Shares after the Issue.
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After this Issue, the price of its Equity Shares may be volatile, or an active trading market for its Equity Shares may not be sustained.
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The investors will not be able to sell immediately on an Indian stock exchange any of the Equity Shares they purchase in the Issue.
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There are restrictions on daily movements in the price of the Equity Shares, which may adversely affect a shareholder`s ability to sell, or the price at which it can sell, Equity Shares at a particular point in time.
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Any future issuance of Equity Shares may dilute the investors` shareholdings or sales of its Equity Shares by its Promoters or Promoter Group may adversely affect the trading price of its Equity Shares.
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The requirements of being a public listed company may strain its resources and impose additional requirements.
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The Company has not paid any dividends till now and there can be no assurance that its will pay dividends in future.
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Its ability to pay dividends in the future will depend upon its future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in its financing arrangements.
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You may be subject to Indian taxes arising out of capital gains on sale of Equity Shares.
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Foreign investors may be restricted in their ability to purchase or sell Equity Shares.
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Applicants to this Issue are not allowed to withdraw their Applications after the Issue Closing Date.
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The investors may be restricted in their ability to exercise pre-emptive rights under Indian law and may be adversely affected by future dilution of their ownership position.
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Rights of shareholders under Indian law may be more limited than under the laws of other jurisdictions.
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Its Equity Shares are quoted in Indian Rupees in India, and therefore investors may be subject to potential losses arising out of exchange rate risk on the Indian Rupee and risks associated with the conversion of Indian Rupee proceeds into foreign currency.
