1. Majority of its revenues are generated from state of Uttar Pradesh. Any adverse development affecting its operations in this region could have an adverse impact on its business, financial condition and results of operations.
2. The company has certain outstanding litigation against it, an adverse outcome of which may adversely affect its business, reputation and results of operations.
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 is dependent on few suppliers for purchase of product. Loss of any of these large suppliers may affect its business operations.
5. Its business is dependent and will continue to depend on the company's manufacturing facilities, and the company is subject to certain risks in its manufacturing process such as the breakdown or failure of equipment, industrial accidents, severe weather conditions and natural disasters.
6. The Company is reliant on the demand from the food and beverage industry for a significant portion of its revenue. Any downturn in the food and beverage industry or an inability to increase or effectively manage its sales could have an adverse impact on the Company's business and results of operations.
7. Volatility in the supply and pricing of its raw materials, restrictions on import of raw materials or failure by suppliers to meet their obligations, may have an adverse effect on its business, cash flows, financial condition and results of operations.
8. The Company does not have any documentary evidence for the education qualifications and work experience of some of its Key managerial Personnel (KMP).
9. The company is subject to the restrictive covenants of banks in respect of the Loan/Credit Limit and other banking facilities availed from them. Further as on the date of the Red Herring Prospectus the Company has not received "No objection" certificate from its lender(s) to undertake this issue. Non receipt of such "No- Objection" certificate could lead to non-compliance of the terms of loan agreements entered into by the Company with said lender(s).
10. The company has certain contingent liabilities that have not been provided for in the Company's financials which if materialized, could adversely affect its financial condition.