Rajgor Castor

Risks

• The company`s Promoters are party to certain litigation and claims. These legal proceedings are pending at different levels of adjudication before various regulatory authorities. Any adverse decision may make it liable to liabilities/ penalties and may adversely affect its reputation, business and financial status.

• The company Registered Office from where its operate is not owned by it.

• The company`s business is subject to seasonal volatility, which may contribute to fluctuations in its results of operations and financial condition.

• Its cost of production is exposed to fluctuations in the prices of its raw material such as Castor Seeds.

• The company generally does business with its customers on a purchase order basis and does not enter into long-term contracts with most of them.

• The Company is dependent on few numbers of customers for sales. Loss of any of this large customer may affect its revenues and profitability.

• The company highly depends on its major raw materials and a few key suppliers who help it procure the same. The Company has not entered into long-term agreements with its suppliers for supply of raw materials. In the event its unable to procure adequate amounts of raw materials, at competitive prices its business, results of operations and financial condition may be adversely affected.

• The price, at which the company is able to obtain the raw material for manufacture of its finished products depends largely on prevailing market prices. Increase in costs of its raw materials could have a material adverse effect on the Company`s sales, profitability and results of operations.

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

• The company has availed credit facility from banks, and it is subject to certain restrictive covenants. Any Delay in issuing No Objection Certificate for the proposed issue may delay its proposed Initial public offering.

• The company requires a number of approvals, NOCs, licenses, registrations and permits in the ordinary course of its business. Any failure or delay in obtaining the same in a timely manner may adversely affect its operations.

• Changes in technology may render its current technologies obsolete or require the company to make substantial capital investments.

• There have been some instances of non-filing/ delays /incorrect filings in the past with certain statutory authorities. If the authorities impose monetary penalties on it or take certain punitive actions against the Company in relation to the same, its business, financial condition and results of operations could be adversely affected.

• The company manufacturing facilities are located at Harij, Gujarat. Any delay in production at, or shutdown of, or any interruption for a significant period of time, in these facilities may in turn adversely affect its business, financial condition and results of operations.

• The company inability to maintain distribution network can adversely affect its Revenues.

• Any defects in its products could make the Company liable for customer claims, which in turn could affect the Company`s results of operations.

• The company depends on certain brand names and its corporate name and logo that its may not be able to protect and/or maintain.

• Non-compliance with amendment in Safety, Health and Environmental laws and other applicable regulations, may adversely affect the Company`s results of operations and its financial condition.

• The Company`s failure to maintain the quality standards of the products could adversely impact its business, results of operations and financial condition.

• The company`s business is dependent on the adequate and uninterrupted supply of electrical power and water at a reasonable cost. Failure on account of unavailability of electrical power and water may restrict it in utilizing the company full capacity and hence, may impact its business and results of operations.

• Its operates in a competitive business environment, both globally and domestically. Competition from existing players and new entrants and consequent pricing pressures may adversely affect its business, financial condition and results of operations.

• The Company requires significant amounts of working capital for continued growth. Its inability to meet our working capital requirements may have an adverse effect on the results of operations.

• The Company has negative cash flows from its operating activities in the past 3 years, details of which are given below. Sustained negative cash flow could impact its growth and business.

• The Company is dependent on third party transportation for the procurement of raw materials and delivery of finished products and any disruption in their operations or a decrease in the quality of their services could affect the Company`s reputation and results of operations.

• In addition to normal remuneration, other benefits and reimbursement of expenses to its Promoters and Directors; they are interested to the extent of their shareholding and dividend entitlement thereon in the Company and for the transactions entered into between the Company and themselves as well as between the Company and our Group Companies/Entities. The Company in future may enter in related party transactions subject to necessary compliances.

• Its success depends heavily upon its Promoters, Directors and Key Managerial Personnel for their continuing services, strategic guidance and financial support. Its success depends heavily upon the continuing services of Promoters, Directors and Key Managerial Personnel who are the natural person in control of the Company.

• Continued operations of its manufacturing facilities are critical to the comapany business and any disruption in the operation of our manufacturing facilities may have a material adverse effect on its business, results of operations and financial condition.

• If the company is unable to source business opportunities effectively, its may not achieve the company financial objectives.

• The company may not be successful in implementing its business strategies.

• The company 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.

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

• 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.

• Within the parameters as mentioned in the chapter titled `objects of this Offer` beginning on page 77 of this Draft Red Herring Prospectus, the Company`s management will have flexibility in applying the proceeds of this Issue. The fund requirement and deployment mentioned in the Objects of this Issue have not been appraised by any bank or financial institution.

• The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the issue. Further the company have 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 Promoters and members of the Promoter Group will continue jointly to retain majority control over the Company after the Issue, which will allow them to determine the outcome of matters submitted to shareholders for approval.

• The Company has availed unsecured loans which are repayable on demand. Any demand for a loan from lenders for repayment of such unsecured loans, may adversely affect its cash flows.

• The company future funds requirements, in the form of 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 ability to pay dividends in the future will depends upon its future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in its financing arrangements.

• The company has issued Equity Shares in the last twelve months, the price of which is lower than the Issue Price.

• Industry information included in this Draft Red Herring 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.

• The Equity Shares have never been publicly traded, and, after the Issue, the Equity Shares may experience price and volume fluctuations, and an active trading market for the Equity Shares may not develop. Further, the price of the Equity Shares may be volatile, and you may be unable to resell the Equity Shares at or above the Issue Price, or at all.

• The Issue price of its Equity Shares may not be indicative of the market price of the company Equity Shares after the Issue and the market price of our Equity Shares may decline below the issue price and you may not be able to sell your Equity Shares at or above the Issue Price.

• The sale of Equity Shares by our Promoters or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.