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Its business is dependent on the performance of the agricultural sector in which its fertilizers are used. Any developments affecting the performance of the agricultural sector are likely to affect its business, results of operations and financial condition.
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Its business is subject to climatic conditions and is cyclical in nature. Seasonal variations and
unfavourable local and global weather patterns may have an adverse effect on its business, results of
operations and financial condition.
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The fertilizer industry in India is a regulated industry. Any change in Government policies towards the agriculture sector or a reduction in subsidies and incentives provided to farmers could adversely affect its business and results of operations.
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The company has only one manufacturing facility until the completion of the Goa Transaction. Unplanned slowdowns or shutdowns in its manufacturing facility or underutilization of its manufacturing capacities could have an adverse effect on its business, results of operations and financial condition.
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The extent to which the coronavirus disease (COVID-19) affects its business, results of operations and financial condition will depend on future developments, which are uncertain and cannot be predicted.
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The company is intend to acquire the Goa Facility, which has incurred a loss after tax in each of the past three Financial Years and the nine months ended December 31, 2021, and any delay to acquire the Goa Facility or realize the anticipated benefits of this acquisition or any acquisition, joint venture or partnership that its may undertake in the future, may have an adverse effect on its business, results of operations and financial condition.
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There are outstanding litigations involving its Company, its Promoters and its Directors. Any adverse outcome in any of these proceedings may adversely affect its results of operations and financial condition.
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The company has historically derived a significant portion of its revenues from operations from a limited number of states and any adverse developments in these states could adversely affect its business.
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Some of its Promoters are involved in ventures that may operate in similar lines of business as the Company and certain of its Directors are also on the board of directors of, or have interests in, such ventures which are in the same line of business as the Company.
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Certain portion of the Net Proceeds are proposed to be paid to one of its Promoters, ZACL.
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If the company is unable to obtain or maintain regulatory approvals for its products, its may be unable to sell such products, which could adversely affect its business and results of operations.
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Non-compliance with and changes in, safety, health and environmental laws and other applicable
regulations, may adversely affect its business, results of operations and financial condition. Further, its may not be able to renew or maintain its statutory and regulatory permits and approvals required to operate its business.
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Its may become subject to more stringent labour laws or other industry standards, which may increase its compliance costs and adversely affect its profitability, business, results of operations and financial condition.
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Its inability to expand or effectively manage its distribution network may have an adverse effect on its business, results of operations and financial condition.
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The Company will not receive any proceeds from the Offer for Sale.
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The company is dependent on a limited number of suppliers to supply its key raw materials and any delay, interruption or reduction in the supply of raw materials to manufacture its products may adversely affect its business, results of operations and financial condition.
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Its inability to accurately forecast demand for the company fertilizers and manage its inventory may have an adverse effect on its business, results of operations and financial condition.
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A shortage or non-availability of electricity, water, fuel or RLNG or an increase in fuel prices may adversely affect its production operations and have an adverse effect on its business, results of
operations and financial conditions.
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Its business depends on its strong and trusted brands and trademarks and may not be adequately
protected against third party infringement.
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The company has in the past entered into related party transactions and will continue to do so in the future and its cannot assure you that its could not have achieved more favourable terms if such transactions had not been entered into with related parties.
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The Unaudited Pro Forma Condensed Combined Financial Information included in this Red Herring
Prospectus may not accurately reflect its future financial condition, results of operations and business.
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The Special Purpose Carve-out Financial Statements included in this Red Herring Prospectus may not
accurately reflect the financial condition, results of operations and business of the Goa Facility.
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The company has certain contingent liabilities, which, if materialized, may adversely affect its financial condition.
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Its Statutory Auditor, the Current Statutory Auditor of the Goa Facility and the Previous Statutory Auditor of the Goa Facility have included an emphasis of matter paragraph and a material uncertainty related to going concern in their respective auditors` reports on certain financial statements as of and for the nine months ended December 31, 2021 and the Financial Years ended March 31, 2021, March 31, 2020 and March 31, 2019, as applicable.
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The company has had negative cash flows in the past and may continue to have negative cash flows in the future.
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Its operations depend on the availability of timely and cost-efficient transportation and other logistic facilities for the delivery of raw materials to its manufacturing facility and for the delivery of finished products to its distributors, retailers and farmers and any prolonged disruption may adversely affect its
business and results of operations.
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Its inability to introduce new fertilizers and respond to changing customer preferences in a timely and effective manner, may have an adverse effect on its business, results of operations and financial condition.
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The fertilizers and related products industry is intensely competitive and its inability to compete
effectively may adversely affect its business, results of operations and financial condition.
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Competition from organic farming, bio fertilizers and water soluble fertilizers and any related increased usage and acceptance may reduce demand for its fertilisers.
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Changes in technology may render its current technologies obsolete or require it to incur substantial capital expenditure.
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Its management team and other key personnel are critical to its continued success and the loss of such personnel could adversely affect its business.
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The company face foreign exchange risks that could adversely affect its results of operations.
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The company is susceptible to product liability claims that may not be covered by insurance, which may require substantial expenditure and may adversely affect its reputation and if successful, could require it to pay substantial sums.
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The availability of counterfeit products passed off by others as its products, could adversely affect its reputation, goodwill and results of operations.
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Its insurance coverage may not be sufficient or adequate to protect it against all material hazards, which may adversely affect its business, results of operations and financial condition.
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Its may be affected by strikes, work stoppages or increased wage demands by its employees that could
interfere with its operations.
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If the company is unable to raise additional capital, its business, results of operations and financial condition could be adversely affected.
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Its ability to access capital at attractive costs depends on its credit ratings. Non-availability of credit ratings or a poor rating may restrict its access to capital and thereby adversely affect its business and results of operations.
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Certain of its trade receivables are pending beyond the general terms of receipt. Any inability to receive full payment may adversely affect its business, financial condition and results of operations.
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Harmful effects of fertilizer overuse on soil fertility may adversely impact the fertilizer industry or its operations and markets.
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Climate change and climate change related laws and regulations concerning the fertilizer industry may
adversely impact its operations and markets.
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Its lenders have imposed certain restrictive conditions on it under its financing agreements. This may limit its ability to pursue its business and limit th company flexibility in planning for, or reacting to, changes in its business or industry.
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Its inability to meet the quality norms prescribed by the Government may be detrimental in its business.
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Significant disruptions of information technology systems or breaches of data security could adversely affect its business.
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Its Promoters will be able to exercise significant influence and control over the Company after this
Offer and may have interests that are different from those of its other shareholders.
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Certain of its Directors are, or for the five years prior to the date of this Red Herring Prospectus, have been on the board of directors of listed companies whose shares were suspended from being traded on the Calcutta Stock Exchange Limited, during their tenure. Further, certain of its Directors have been or are on the board of directors of listed companies which were delisted from stock exchanges in India, during their tenure.
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Information relating to the historical installed capacity of its manufacturing facility included in this Red Herring Prospectus is based on various assumptions and estimates and its future production and capacity may vary.
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The company has commissioned an industry report from CRISIL Limited which has been used for industry related data in this Red Herring Prospectus. Accordingly, prospective investors are advised not to place undue reliance on such information.
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The company has been unable to locate certain of its historical corporate records.
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The company has not been able to obtain certain records of the educational qualifications of a Director and have relied on the declaration and affidavit furnished by such Director for details of his profile included in this Red Herring Prospectus.
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Its ability to pay dividends in the future will depend upon its earnings, financial condition, cash flows and capital requirements.
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The company engage independent contract labour for carrying out certain business operations and are exposed certain wage payments where independent contractors default.
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Its Promoters and certain of its Directors have interests in the Company other than their normal
remuneration or benefits and reimbursement of expenses.
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If the company is unable to manage its growth strategy effectively, its business and prospects may be adversely affected.
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Its management will have broad discretion in how the company apply the Net Proceeds 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 its will result in any increase in the value of your investment.
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Its statutory auditors have made certain comments in the compsny Restated Consolidated Financial Information.