1. The Company, Directors, Promoters and Group Companies are parties to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.
2. The company is highly dependent on the sale of cotton seeds and its business is exposed to risks related to product concentration, which could materially and adversely affect its business, financial condition, results of operations, and prospects.
3. The company is dependent on the success of its research and development activities and a failures to develop new and improved products could adversely affect the company's business.
4. 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 the company's business operations and profitability.
5. The average cost of acquisition of Equity Shares by its Promoters is lower than the Issue Price.
6. 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.
7. The company has issued Equity Shares in the last 12 (twelve) months at a price which is lower than the Issue Price.
8. Weather conditions, crop diseases and pest attacks could adversely affect the production of its seed products, as well as the demand for the company seed products, which may adversely affect its business, financial condition, results of operations and prospects.
9. The company relies on third-party farmers who assist it in growing seeds to produce its seeds, and any problems with such Seed Grower/Organizer may negatively affect the company's sales, cash flows from operations and results of operations, and may further expose it to reputational risk.
10. Its inability to consistently meet the expectations of the company end consumers could materially and adversely affect its business, results of operations, financial condition and prospects.