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Its business is subject to government policies. If the company fails to comply with the applicable regulations prescribed by governments and regulatory agencies, its business, results of operations and financial condition could be adversely affected.
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The company requires certain approvals and licenses in the ordinary course of business and are required to comply with certain rules and regulations to operate its business, any failures to obtain, retain and renew such approvals and licenses or comply with such rules and regulations may adversely affect its operations.
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If the company is not able to obtain, renew or maintain the statutory and regulatory permits and approvals required to operate its business it may
the company may faces resistance to change from existing users of conventional fossil fuel.
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Its production is based on competitive bidding process by government authorities/bodies. The company may not be able to qualify for, compete and win future projects, which could adversely affect its business and results of operations.
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The availability, quality and timely delivery of raw material is an important factor for its business, any fluctuation, delay or increase in
cost in same may affect its business and prices.
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The company financial performance is dependent primarily on the sale of Biodiesel.
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Absence of entry barriers into bio-fuel production may attract many players from both organized and unorganized sectors which will escalate competition and resultant price pressure on the products.
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Its top ten customers contribute majority of the company revenues from operations. Any loss of business from one or more of them may adversely affect its revenues and profitability
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The company`s top ten suppliers contribute majority of its purchases. Any loss of business with one or more of them may adversely affect the company`s business operations and profitability.
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In past, there has been instances of delayed filing of Statutory Returns.
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Any delay in production at, or shutdown of its manufacturing facilities, could adversely affect its business, results of operations and financial condition.
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The company does business with its customers on purchase order basis and does not have long-term contracts with them.
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Its products are being manufactured from the company sole manufacturing facility in Phulera, Rajasthan, India.
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Information relating to its production capacities and the historical capacity utilization of its production facilities included in this Red
Herring Prospectus is based on factual data and future production and capacity utilization may vary.
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Its majority of directors does not have any prior experience of directorship of any listed entity
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Prices of bio-fuel might be more than non- renewable conventional fossil fuel. Moreover, decline in price of fossil fuel may affect the
demand for bio-fuel.
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The property used by the Company for the purpose of its operations is not owned by it. Any termination of the relevant lease or leave and
license agreement in connection with such property or the company failures to renew the same could adversely affect its operations.
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The company does not have any long-term agreement or contract for supply of raw materials & consequently are exposed to price and supply fluctuations for its raw materials.
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There are outstanding legal proceedings involving the Company and Directors/Promoters. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.
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Its top ten suppliers contribute majority of the company`s purchases. Any loss of business with one or more of them may adversely affect its business operations and profitability.
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The COVID-19 pandemic, or any future pandemic or widespread public health emergency, could materially and adversely impact its business, financial condition, cash flows and results of operations.
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The company failures to adapt to technological developments or industry trends could affect the performance and features of its products, and reduce demand of the company customers.
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The company has entered into and may enter into related party transactions in the future also.
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The company has a substantial amount of outstanding indebtedness, which requires significant cash flows to service and are subject to certain conditions and restrictions in terms of its financing arrangements, which restricts the company ability to conduct its business and operations in the manner the company desire.
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There are certain discrepancies and non- compliances noticed in some of its corporate records relating to forms filed with the Registrar
of Companies.
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If the company is not successful in managing its growth, its business may be disrupted and the company`s profitability may be reduced.
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The unsecured loan availed by the Company from Directors and Promoters may be recalled at any given point of time.
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Any failures to comply with financial and other restrictive covenants imposed on it under its financing agreements may affect the company operational flexibility, business, results of operations and prospects.
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Its Promoters, Directors and other has provided personal guarantees and personal property 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 & Personal Properties.
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Its success is dependent on the company Promoters, senior management and skilled manpower. Its inability to attract and retain key personnel or the loss of services of its Promoters or Managing Director and Whole Time Director may have an adverse effect on its business prospects.
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If there is a change in policies related to tax, duties or other such levies applicable to the company, it may affect its results of operations.
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Misconduct or errors by manpower engaged by it could expose the company to business risks or losses that could affect its business prospects, results of operations and financial condition.
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The company is subject to the risk of failures of, or a material weakness in, its internal control systems.
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Its trademark is registered in the name of the Company. Its may be unable to adequately protect its intellectual property. Furthermore, the company may be subject to claims alleging breach of third-party intellectual property rights.
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Failures of its machines, information technology and other technological systems could significantly increase testing turnaround time and
otherwise disrupt its operations.
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The company has experienced negative cash flows in the past. Any such negative cash flows in the future could affect its business, results of operations and prospects.
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Any increase in or occurrence of its contingent liabilities and commitments may adversely affect its financial condition.
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Its lenders have charge over the company immovable properties in respect of finance availed by it.
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Its insurance coverage may not be adequate to protect the company against all potential losses to which its may be subject and this may have a material effect on the company`s business and financial condition.
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The company has significant ongoing funding requirements and may not be able to raise additional capital in the future. As a result, its may not be able to respond to business opportunities, challenges or unforeseen circumstances.
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In addition to normal remuneration, other benefits and reimbursement of expenses some of its directors are interested in the Company to the extent of their shareholding and dividend entitlement in the Company.
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Any disruption in transportation arrangements or increases in transportation costs may adversely affect its results of operations.
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Failures to comply with environmental laws and regulations could lead to unforeseen environmental litigation which could impact its future net earnings.
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Information relating to its production capacities and the historical capacity utilization of the company production facilities included in this Red
Herring Prospectus is based on factual data and future production and capacity utilization may vary.
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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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Any failurew to retain and attract additional skilled and unskilled employees, could have a material adverse effect on its business, financial
condition and results of operations.
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Its continued success is dependent on the company Promoters, KMPs and skilled manpower. Its inability to attract and retain key personnel or
the loss of services of the company Promoter or Managing Director may have an adverse effect on its business prospects.
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The Company`s management will have flexibility in utilizing the Net Proceeds from the Issue. The deployment of the Net Proceeds from the Issue is not subject to any monitoring by any independent agency.
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The company has not independently verified certain data in this Red Herring Prospectus.
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Portion of its Issue Proceeds are proposed to be utilized for general corporate purposes of the Issue Proceed. As on date the company has not identified the use of such funds.
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The company is susceptible to risks relating to unionization of its employees employed by the company.
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The present promoters of the Company are first generation entrepreneurs in the Biodiesel industry.
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Any Penalty or demand raised by statutory authorities in future will affect its financial position of the Company.
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The company has not identified any alternate source of raising the working capital mentioned as its `objects of the Issue`. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.
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Any variation in the utilization of the Net Proceeds as disclosed in this Red Herring Prospectus shall be subject to certain compliance
requirements, including prior approval of the shareholders of the Company.
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The average cost of acquisition of Equity Shares by its Promoters could be lower than the Issue Price.
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The company has not paid any dividends in the last five Financial Years. Its ability to pay dividends in the future will depends upon future earnings,
financial condition, cash flows, working capital requirements and capital expenditures.
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The company will continue to be controlled by its Promoters and Promoter Group after the completion of the Issue, which will allow them to influence the outcome of matters submitted for approval of its shareholders.
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Its Equity Shares have never been publicly traded and may experience price and volume fluctuations following the completion of the Issue, an active trading market for the Equity Shares may not develop, the price of its Equity Shares may be volatile and you may be unable to resell your Equity Shares at or above the Issue Price or at all.
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Rights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.
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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 and the market price
of the company 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.
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A third party could be prevented from acquiring control of the Company because of anti-takeover provisions under Indian law.
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Its may requires further equity issuance, which will lead to dilution of equity and may affect the market price of its Equity Shares or additional funds through incurring debt to satisfy the company`s capital needs, which its may not be able to procure and any future equity offerings by the company.