1. The company does not own its Registered Office, Corporate Office and manufacturing facility. A failures to renew its existing lease arrangements at commercially favourable terms or at all may have a material adverse effect on its business, financial condition, and results of operations.
2. As of the date of this Red Herring Prospectus, there are outstanding legal proceedings involving the Company, its Subsidiaries and the company Promoters and Directors. Any adverse outcome in such legal proceedings may affect its reputation, business, results of operations and financial condition.
3. The Company is dependent on few numbers of customers for sales. Loss of any of this large customer may affect its revenues and profitability.
4. The company derives 69.44%, 70.35%, 77.63% and 74.50% of its revenue from operation from top two customer during the period ended on June 30, 2024 and fiscal year ending on March 31, 2024, 2023 and 2022 respectively. If such customers choose not to source their requirement from it, the company business, financial condition and result of operation may be adversely affected.
5. The company does not have long-term agreements with suppliers for its raw materials and an increase in the cost of, or a shortfall in the availability or quality of such raw materials could have an adverse effect on its business and results of operations.
6. The Company markets its products through Krishak Bharati Co-operative Limited. In case of non- fulfillment of agreement obligations or cancellation of the agreement, under its terms or pre-maturely, its may not be able to generate the required sales and lose market share, thus affecting its revenues and profitability.
7. There are certain discrepancies and delay filing in its statutory records relating to filing of necessary filing with the concerned Registrar of Companies.
8. Its Promoters were director of a company which has been struck off by Registrar of Companies, Gwalior, Madhya Pradesh.
9. One of the business vertical of its business is Fertiliser & the same is dependent on the performance of the agricultural sector in which our fertilizers are used. Any developments affecting the performance of the agricultural sector are likely to affect its business, results of operations and financial condition.
10. The company's current manufacturing facility in Shahjahanpur, U.P which is pivotal to its exclusive production of goods. Any unscheduled slowdowns, shutdowns, or underutilization of this facility could significantly impact business, financial condition, and operational results.