-
The company`s operations are dependent on the supply of raw material. Inadequate or non-availability and
fluctuations in the cost of raw material could adversely affect its business, results of operations, cash
flows, profitability and financial conditions.
-
During the peak arrival season of paddy harvesting,the Company procures significant quantities of
basmati paddy which is the company`s primary raw material and for the purpose of doing the same, significant
amount of working capital is required.The company`s business being working capital intensive, insufficient cash
flows or inability to borrow funds to meet its working capital requirements may materially and adversely
affect the company`s business and operations.
-
The company`s packaging units are located in non-conforming industrial areas in Delhi, which may expose the company to
regulatory risks, potential relocation, and business disruption.
-
The company relies on procurement agents to procure sufficient raw materials of the desired quality for its processing
requirements. Further, the company does not have long-term contracts with its procurement agents and engage them
by way of purchase orders. Any failures on the part of such agents to procure, in a timely manner, the
desired quality and quantity of raw materials at commercially favourable terms, may adversely affect its
operations.
-
A significant portion of its income is derived from the company`s export of basmati rice, which may be dependent
on the policies passed by the GoI and the governments of the countries where the company exports and any
unfavorable change in such policies may adversely affect its business.
-
The company is subject to quality requirements from its customers, and any failures to comply with quality
standards may lead to cancellation of existing and future orders and could negatively impact the company`s business,
results of operations, cash flows and financial condition.
-
If the company is subject to product liability and other civil claims and costs incurred because of product recalls, it
could expose the company to costs and liabilities and adversely affect its reputation, business, revenues and
profitability.
-
In the nine months ended December 31, 2024, the company deriveds more than 40% of its revenue from operations
from top 10 customers, more than 20% of its revenue from operations from the company`s top three customers, with
our single largest customer contributing more than 5% of its revenue from operations in these periods.
Loss of any of these customers or a reduction in purchases by any of them could adversely affect the company`s
business, results of operations, cash flows and financial condition.
-
The company`s relationship with its distributors is critical to the company`s business. The company does not enter into long-term
arrangements with the company`s distributors, and the company cannot assure you that the company will be able to sell the quantities the company
has historically supplied, which could have an adverse impact on its sales, business growth and
prospects, results of operations and financial condition.
-
Any decrease in the market price of Basmati rice between purchasing raw materials and selling Basmati
rice may adversely affect its financial condition.
-
Improper storage, processing and handling of raw materials and basmati rice may cause damage to its
inventory leading to adverse effect on the company`s business and results of operations.
-
The company has recently entered into the business of distributing FMCG products which is a relatively new
business for the Company. If the company`s FMCG products fails to gain market acceptance, the company`s overall profitability
may be adversely affected.
-
The company is unable to trace some of its historical records with respect to secretarial forms filed with the
Registrar of Companies. Additionally, there are certain discrepancies/errors/non-filing/non-availability
which have occurred in some of our corporate records relating to forms filed with the RoC and other
provisions of Companies Act, 1956 and Companies Act, 2013. Any penalty or action taken by any
regulatory authorities in future, for non-compliance with provisions of corporate or any other law could
impact the financial position of the Company to that extent.
-
There are outstanding legal proceedings against the Company, the company`s Promoters, and some of its Directors.
Any adverse decision in such proceedings may render the company/them liable to liabilities/penalties and may
adversely affect its business, results of operations, cash flows and financial condition.
-
Delay/ default in payment of statutory dues may attract penalties and in turn have an adverse impact on
its business, results of operations, cash flows and financial condition.
-
The company may incur higher advertising and marketing expenses to enhance our brand image and its
business may be adversely affected if the company is unable to maintain and grow its brand image.
-
The company`s success largely depends upon the knowledge and experience of its Promoters, Directors, Key
Managerial Personnel, and Senior Management as well as our ability to attract and retain personnel with
technical expertise. The company`s inability to retain its Promoters, Directors, Key Managerial Personnel and Senior
Management or the company`s ability to attract and retain other personnel with technical expertise could adversely
affect its business, results of operations, cash flows and financial condition.
-
The company`s business is dependent and will continue to depend on its processing facilities, and the company is subject to
certain risks in the company`s processing operations. Any slowdown or shutdown in the company`s processing operations that
could interfere with its operations could have an adverse effect on its business, results of operations,
cash flows and financial condition.
-
Uncertainty of supply contracts for its basmati rice from customers could adversely affect the company`s business
and results of operations.
-
The company`s business faces the prospect of increased competition due to increased consolidation in the fragmented
basmati rice sector, which may adversely affect its market share and business.
-
The company has currently obtained on lease its Registered and Corporate Office, the company`s packaging facility and some
of its storage facilities. If these leases are terminated or not renewed on terms acceptable to the company, it could
have a material adverse effect on the company`s business, financial condition and results of operations.
-
Under-utilization of its installed processing capacities and an inability to effectively utilize these capacities
could have an adverse effect on its business, future prospects and future financial performance. Further,
the company`s inability to accurately forecast demand for its products may have an adverse effect on the company`s business,
results of operations, cash flows and financial condition.
-
If the company is unable to adapt to change of customer preference, the company`s growth will be adversely affected.
-
The company may be subject to industrial unrest and increased employee costs, which may adversely affect its
business and results of operations.
-
The company is dependents on contract labour and any disruption to the supply of such labour for its processing
facilities or the company`s inability to control the composition and cost of its contract labour could adversely affect
the company`s operations.
-
The company uses third party transportation and logistics service providers for delivery of its products to its
customers and distributors as well as raw materials to the company`s processing facilities. Any delay in delivery of
its products or raw materials or increase in the charges of these entities could adversely affect the company`s
business, results of operations, cash flows and financial condition. The company also may be exposed to the risk of theft, accidents and/or loss of its products in transit.
-
The company dependents on third parties for the supply of utilities, such as electricity, water and fuel and any
disruption in the supply of such utilities could adversely affect its processing operations.
-
Failures or disruption of its IT systems may adversely affect the company`s business, results of operations, cash flows
and financial condition.
-
The company`s employees may engage in misconduct, fraud or other improper activities, including non-compliance
with regulatory standards and requirements.
-
If the company is unable to establish and maintain an effective internal controls and compliance system, the company`s
business and reputation could be adversely affected.
-
The company has substantial capital expenditure and may require additional financing to meet future capital
expenditure requirements, which could have an adverse effect on its business, results of operations, cash
flows and financial condition.
-
The company`s inability to collect receivables in time or at all and default in payment from its distributors, B2B
customers, modern trade channels and e-commerce platforms could result in the reduction of the company`s profits
and affect its cash flows.
-
The company could incur losses under its purchase orders with the company`s customers and distributors or be subjected to
disputes or contractual penalties as a result of delays in delivery or failures to meet contract specifications
or delivery schedules which may have a material adverse effect on its business, results of operations, cash
flows and financial condition.
-
The company has incurred indebtedness, and an inability to comply with repayment and other covenants in the company`s
financing agreements could adversely affect its business, results of operations, cash flows and financial
condition.
-
The company`s contingent liabilities could materially and adversely affect its business, results of operations, cash
flows and financial condition.
-
The company may not have sufficient insurance coverage to cover its economic losses as well as certain other risks,
not covered in the company`s insurance policies, which could adversely affect business, results of operations, cash
flows and financial condition.
-
Exchange rate fluctuations may adversely affect its results of operations as the company`s sales outside India and a
portion of its expenditures are denominated in foreign currencies.
-
The company has experienced negative cash flows in the past. Any negative cash flows in the future would adversely
affect its cash flow requirements, which may adversely affect the company`s ability to operate its business and
implement the company`s growth plans, thereby affecting its financial condition.
-
Any adverse changes in regulations governing its business, products and the products of the company`s customers,
may adversely impact its business, prospects and results of operations.
-
Non-compliance with and changes in, safety, health, environmental laws and other applicable regulations
in India, may adversely affect the company`s business, results of operations, cash flows and financial condition.
-
Any inability to protect the company`s intellectual property or any claims that the company infringe on the intellectual property
rights of others could have a material adverse effect on the company. Any deterioration in the reputation and market
perception of its brands, or if the company`s sales and marketing efforts are ineffective, it could adversely affect its
sales, profitability and the implementation of the company`s growth strategy.
-
The company requires various licenses and approvals for undertaking its businesses and the failures to obtain or
retain such licenses or approvals in a timely manner, or at all, may adversely affect the company`s business, results
of operations, cash flows and financial condition.
-
The company has in the past entered into related party transactions and may continue to do so in the future, which
may potentially involve conflicts of interest with the Shareholders.
-
The company`s Subsidiary, Promoters, certain members of its Promoter Group and certain Directors of the
Company are in business similar to the company`s and may enter into ventures that may lead to real or potential
conflicts of interest with its business. Further, the company`s Promoters and certain Directors have interests in the
Company other than reimbursement of expenses incurred or normal remuneration or benefits. Any real
or potential conflicts of interest that may arise in this regard may materially adversely impact its business,
financial condition, results of operations and cash flows.
-
After the completion of the Issue, the company`s Promoters will continue to collectively hold substantial shareholding
in the Company exercising influence over the company.
-
As a publicly listed company, the company will be subject to additional compliance requirements and increased
scrutiny. All of its directors do not have any prior experience of directorship of listed entities, which may
affect the ability to meet these additional compliance requirements.
-
The company or the company`s customers or counterparties may engage in transactions in or with countries or persons that
may have in the past been or may currently be subject to U.S. and other sanctions.
-
Any variation in the utilization of the Net Proceeds as disclosed in this Draft Red Herring Prospectus shall
be subject to certain compliance requirements, including prior Shareholders` approval.
-
The company`s funding requirements and the proposed deployment of Net Proceeds have not been appraised by any
bank or financial institution or any other independent agency and its management will have broad
discretion over the use of the Net Proceeds.
-
The company`s inability to successfully implement some or all its business strategies in a timely manner or at all
could have an adverse effect on the company`s business.
-
If the company does not continue to invest in new technologies and equipment, the company`s machines and equipment may
become obsolete and its production costs may increase relative to the company`s competitors, which may have an
adverse impact on its business, results of operations, cash flows and financial condition.
-
Any downgrade of its credit ratings could adversely affect the company`s business. Additionally, a downgrade in
ratings of India and other jurisdictions the company operates in may affect the trading price of the Equity Shares.
-
There can be no assurance that the Company will be in a position to pay dividends in the future. The company`s
ability to pay dividends in the future may be affected by any material adverse effect on its future earnings,
financial condition or cash flows.
-
The company`s Subsidiary may not pay cash dividends on shares that the company holds in them. Consequently, the company`s Company
may not receive any return on investments in its Subsidiary.
-
Information relating to the installed capacity and storage capacity of its facilities included in this Draft
Red Herring Prospectus are based on various assumptions and estimates and future production and
capacity may vary.
-
Certain sections of this Draft Red Herring Prospectus contain information from the CARE Report which
the company commissioned and purchased and any reliance on such information for making an investment decision
in the Issue is subject to inherent risks.
-
The company has in this Draft Red Herring Prospectus included certain Non-GAAP Measures that may vary from
any standard methodology that is applicable across the rice industry and may not be comparable with
financial information of similar nomenclature computed and presented by other companies.
-
The company has issued Equity Shares at a price that may be lower than the Issue Price in the last 12 months.
-
The company has made bonus issuances of securities in the past, and the company cannot guarantee that the company will be able to
make such issuances in the future.
-
The company has in the past issued Equity Shares for consideration other than cash, and the company cannot guarantee the
consideration received by its was commensurate with the value of the Equity Shares issued.
-
The company`s packaging units are located in non-conforming industrial areas in Delhi, which may expose the company to regulatory risks, potential relocation, and business disruption.
-
The company`s operations are dependent on the supply of raw material. Inadequate or non-availability and fluctuations in the cost of raw material could adversely affect its business, results of operations, cash flows, profitability and financial conditions.
-
During the peak arrival season of paddy harvesting, the Company procures significant quantities of basmati paddy which is its primary raw material and for the purpose of doing the same, significant amount of working capital is required. The company`s business being working capital intensive, insufficient cash flows or inability to borrow funds to meet its working capital requirements may materially and adversely affect the company`s business and operations.
-
The company relies on procurement agents to procure sufficient raw materials of the desired quality for its processing requirements. Further, the company does not have long-term contracts with its procurement agents and engage them by way of purchase orders. Any failures on the part of such agents to procure, in a timely manner, the desired quality and quantity of raw materials at commercially favourable terms, may adversely affect its operations.
-
The company has a high debt equity ratio and have incurred indebtedness, and an inability to comply with repayment and other covenants in the company`s financing agreements could adversely affect its business, results of operations, cash flows and financial condition.
-
A significant portion of the company`s income is derived from its export of basmati rice, which may be dependent on the policies passed by the GoI and the governments of the countries where the company exports and any unfavorable change in such policies may adversely affect its business.
-
The company is subject to quality requirements from its customers, and any failures to comply with quality standards may lead to cancellation of existing and future orders and could negatively impact the company`s business, results of operations, cash flows and financial condition.
-
If the company is subject to product liability and other civil claims and costs incurred because of product recalls, it could expose the company to costs and liabilities and adversely affect its reputation, business, revenues and profitability.
-
In the six months ended September 30, 2025, The company deriveds 45.03% of its revenue from operations from the company`s top 10 customers, 28.92% of its revenue from operations from its top five customers, with our single largest customer contributing to 9.35% of the company`s revenue from operations in this periods. Loss of any of these customers or a reduction in purchases by any of them could adversely affect its business, results of operations, cash flows and financial condition.
-
The company`s relationship with our distributors is critical to its business. The company does not enter into long-term arrangements with its distributors, and the company cannot`s assure you that the company will be able to sell the quantities the company has historically supplied, which could have an adverse impact on the company`s sales, business growth and prospects, results of operations and financial condition.
-
Any decrease in the market price of Basmati rice between purchasing raw materials and selling Basmati rice may adversely affect its financial condition.
-
Improper storage, processing and handling of raw materials and basmati rice may cause damage to the company`s inventory leading to adverse effect on the company`s business and results of operations.
-
The company has recently entered into the business of distributing FMCG products which is a relatively new business for the Company. If its FMCG products fails to gain market acceptance, the company`s overall profitability may be adversely affected.
-
The company has experienced negative cash flows in the past. Any negative cash flows in the future would adversely affect its cash flow requirements, which may adversely affect the company`s ability to operate its business and implement the company`s growth plans, thereby affecting its financial condition.
-
The company`s contingent liabilities could materially and adversely affect its business, results of operations, cash flows and financial condition.
-
The company is unable to trace some of its historical records with respect to secretarial forms filed with the Registrar of Companies. Additionally, there are certain discrepancies/errors/non-filing/non-availability which have occurred in some of the company`s corporate records relating to forms filed with the RoC and other provisions of Companies Act, 1956 and Companies Act, 2013. Any penalty or action taken by any regulatory authorities in future, for non-compliance with provisions of corporate or any other law could impact the financial position of the Company to that extent.
-
There are outstanding legal proceedings against the Company, the company`s Promoters, and some of its Directors. Any adverse decision in such proceedings may render us/them liable to liabilities/penalties and may adversely affect the company`s business, results of operations, cash flows and financial condition.
-
Delay/ default in payment of statutory dues may attract penalties and in turn have an adverse impact on the company`s business, results of operations, cash flows and financial condition.
-
The company depends on the strength of its brand and reputation of the Company and Promoters. Further, the company may incur higher advertising and marketing expenses to enhance its brand image and the company`s business may be adversely affected if the company is unable to maintain and grow its brand image.
-
Exchange rate fluctuations may adversely affect its results of operations as the company`s sales outside India and a portion of the company`s expenditures are denominated in foreign currencies.
-
High working capital requirements during peak season results in elevated borrowings, and any acceleration of repayment obligations or a withdrawal or reduction of sanctioned limits by lenders could materially impact its liquidity position, results of operations, and adversely affect the company`s financial condition.
-
The company`s success largely depends upon the knowledge and experience of its Promoters, Directors, Key Managerial Personnel, and Senior Management as well as the company`s ability to attract and retain personnel with technical expertise. The company`s inability to retain our Promoters, Directors, Key Managerial Personnel and Senior Management or the company`s ability to attract and retain other personnel with technical expertise could adversely affect its business, results of operations, cash flows and financial condition.
-
The company`s business is dependent and will continue to depends on its processing facilities, and the company is subject to certain risks in the company`s processing operations. Any slowdown or shutdown in its processing operations that could interfere with the company`s operations could have an adverse effect on its business, results of operations, cash flows and financial condition.
-
Uncertainty of supply contracts for its basmati rice from customers could adversely affect the company`s business and results of operations.
-
The company`s business faces the prospect of increased competition due to increased consolidation in the fragmented basmati rice sector, which may adversely affect its market share and business.
-
The company has currently obtained on lease its Registered and Corporate Office, the company`s packaging facility and some of its storage facilities. If these leases are terminated or not renewed on terms acceptable to the company, it could have a material adverse effect on the company`s business, financial condition and results of operations.
-
Under-utilization of the company`s installed processing capacities and an inability to effectively utilize these capacities could have an adverse effect on its business, future prospects and future financial performance. Further, the company`s inability to accurately forecast demand for its products may have an adverse effect on the company`s business, results of operations, cash flows and financial condition.
-
If the company is unable to adapt to change of customer preference, the company`s growth will be adversely affected.
-
The company may be subject to industrial unrest and increased employee costs, which may adversely affect its business and results of operations.
-
The company is dependent on contract labour and any disruption to the supply of such labour for its processing facilities or the company`s inability to control the composition and cost of its contract labour could adversely affect the company`s operations.
-
The company uses third party transportation and logistics service providers for delivery of the company`s products to its customers and distributors as well as raw materials to the company`s processing facilities. Any delay in delivery of its products or raw materials or increase in the charges of these entities could adversely affect the company`s business, results of operations, cash flows and financial condition. The company also may be exposed to the risk of theft, accidents and/or loss of its products in transit.
-
The company is dependent on third parties for the supply of utilities, such as electricity, water and fuel and any disruption in the supply of such utilities could adversely affect its processing operations.
-
Failures or disruption of the company`s IT systems may adversely affect its business, results of operations, cash flows and financial condition.
-
The company`s employees may engage in misconduct, fraud or other improper activities, including non-compliance with regulatory standards and requirements.
-
If the company is unable to establish and maintain an effective internal controls and compliance system, the company`s business and reputation could be adversely affected.
-
The company has substantial capital expenditure and may requires additional financing to meet future capital expenditure requirements, which could have an adverse effect on the company`s business, results of operations, cash flows and financial condition.
-
The company`s inability to collect receivables in time or at all and default in payment from its distributors, B2B customers, modern trade channels and e-commerce platforms could result in the reduction of the company`s profits and affect its cash flows.
-
The company coulds incur losses under the company`s purchase orders with its customers and distributors or be subjected to disputes or contractual penalties as a result of delays in delivery or failures to meet contract specifications or delivery schedules which may have a material adverse effect on the company`s business, results of operations, cash flows and financial condition.
-
The company may not have sufficient insurance coverage to cover the company`s economic losses as well as certain other risks, not covered in the company`s insurance policies, which could adversely affect business, results of operations, cash flows and financial condition.
-
Negative publicity involving endorsing celebrities may adversely impact its brand image and business operations.
-
Any adverse changes in regulations governing its business, products and the products of the company`s customers, may adversely impact its business, prospects and results of operations.
-
Non-compliance with and changes in, safety, health, environmental laws and other applicable regulations in India, may adversely affect its business, results of operations, cash flows and financial condition.
-
The availability of counterfeit products and any inability to protect its intellectual property or any claims that the company infringes on the intellectual property rights of others could have a material adverse effect on the company. Any deterioration in the reputation and market perception of the company`s brands, or if its sales and marketing efforts are ineffective, it could adversely affect the company`s sales, profitability and the implementation of its growth strategy.
-
The company requires various licenses and approvals for undertaking its businesses and the failures to obtain or retain such licenses or approvals in a timely manner, or at all, may adversely affect the company`s business, results of operations, cash flows and financial condition.
-
The company has in the past entered into related party transactions and may continue to does so in the future, which may potentially involve conflicts of interest with the Shareholders.
-
The company`s Subsidiary, Promoters, certain members of its Promoter Group and certain Directors of the Company are in business similar to the company`s and may enter into ventures that may lead to real or potential conflicts of interest with its business. Further, the company`s Promoters and certain Directors have interests in the Company other than reimbursement of expenses incurred or normal remuneration or benefits. Any real or potential conflicts of interest that may arise in this regard may materially adversely impact its business, financial condition, results of operations and cash flows.
-
Exposure to credit risk may disrupt the buying cycle and adversely impact its operations and cash flows.
-
After the completion of the Issue, the company`s Promoters will continue to collectively hold substantial shareholding in the Company exercising influence over the company.
-
As a publicly listed company, the company will be subject to additional compliance requirements and increased scrutiny. All of the company`s directors does not have any prior experience of directorship of listed entities, which may affect the ability to meet these additional compliance requirements.
-
The company is or the company`s customers or counterparties may engage in transactions in or with countries or persons that may have in the past been or may currently be subject to U.S. and other sanctions.
-
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 Shareholders` approval.
-
The company`s funding requirements and the proposed deployment of Net Proceeds have not been appraised by any bank or financial institution or any other independent agency and the company`s management will have broad discretion over the use of the Net Proceeds.
-
The company`s inability to successfully implement some or all the company`s business strategies in a timely manner or at all could have an adverse effect on its business.
-
If the company does not continue to invest in new technologies and equipment, the company`s machines and equipment may become obsolete and the company`s production costs may increase relative to the company`s competitors, which may have an adverse impact on the company`s business, results of operations, cash flows and financial condition.
-
Any downgrade of the company`s credit ratings could adversely affect its business. Additionally, a downgrade in ratings of India and other jurisdictions the company operates in may affect the trading price of the Equity Shares.
-
There can be no assurance that the Company will be in a position to pay dividends in the future. The company`s ability to pay dividends in the future may be affected by any material adverse effect on its future earnings, financial condition or cash flows.
-
The company`s Subsidiary may not pay cash dividends on shares that the company holds in them. Consequently, the Company may not receive any return on investments in the company`s Subsidiary.
-
Information relating to the installed capacity and storage capacity of the company`s facilities included in this Red Herring Prospectus are based on various assumptions and estimates and future production and capacity may vary.
-
Certain sections of this Red Herring Prospectus contain information from the CARE Report which the company commissioned and purchased and any reliance on such information for making an investment decision in the Issue is subject to inherent risks.
-
The company has in this Red Herring Prospectus included certain Non-GAAP Measures that may vary from any standard methodology that is applicable across the rice industry and may not be comparable with financial information of similar nomenclature computed and presented by other companies.
-
The company has issued Equity Shares at a price that may be lower than the Issue Price in the last 12 months.
-
The company has made bonus issuances of securities in the past, and the company cannot`s guarantee that the company will be able to make such issuances in the future.
-
The company has in the past issued Equity Shares for consideration other than cash, and the company cannot`s guarantee the consideration received by the company was commensurate with the value of the Equity Shares issued
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