1. There are certain outstanding legal proceeding involving its Promoter and Promoter Entities which may adversely affect its business, financial condition and results of operations.
2. The company intends to use a portion of the Net Proceeds to prepay / repay certain loan facilities.
3. The company proposes to utilize a portion of its Net Proceeds towards setting up of manufacturing unit in Tillor Khurdh area in Indore district, Madhya Pradesh.
4. If the company is unable to attract new clients or retain its existing clients or default in payments, the growth of its business and cash flows will be adversely affected.
5. The company is dependent upon few suppliers for the material requirements of its business. Further, the company does not have definitive agreements or fixed terms of trade with most of its suppliers. Failure to successfully leverage the company relationships with existing suppliers or to identify new suppliers could adversely affect its business operations.
6. The Company's business operations are done PAN India specifically from Central India, Northern India, Western India and any downturn and/ or any economic, regulatory, social and political change in any of the Indian states in which its operate or seek to operate may affect its market share and/ or may adversely affect the company's business, financial condition and results of operations.
7. The company has working capital requirements. If its experience insufficient cash flows to make required payments on its debt or fund working capital requirements, there may be an adverse effect on its results of operations.
8. Its business involves usage of manpower and any unavailability of its employees or shortage of contract labour or any strikes, work stoppages, increased wage demands by workmen or changes in regulations governing contractual labour may have an adverse impact on its cash flows and results of operations.
9. Any contamination or deterioration of its confectionery products could result in legal liability, damage its reputation and adversely affect its business prospects and consequently its financial performance.
10. Its business is primarily dependent upon a continuing relationship with dealers/ distributors for sales of its products. Any reduction or interruption in the business of these dealers/ distributors, or a substantial decrease in orders placed by these dealers/distributors may have an adverse impact on the revenues and operations of the Company.