-
If the company is unable to successfully implement its proposed expansion plans, the company results of operations and financial condition could be adversely affected.
-
We derive the majority of our revenue from distribution and trading of sugar, and therefore vulnerable
to a range of risks associated with the sugar industry.
-
Its bottling and repackaging units are situated in Navi Mumbai and the company operations may be affected by various factors associated with the region where its operate.
-
Our revenue from operations has significantly increased from Rs. 10,327.13 Lakhs in FY 2022-23 to
Rs. 23,302.48 Lakhs in FY 2023-24 resulting in growth of over 100% (YOY). Similarly, our revenue
from operations has further increased from Rs. 23,302.48 Lakhs Lakhs in FY 2023-24 to Rs. 30,118.67
Lakhs in FY 2024-25 leading to growth of 29.25% (YOY). If we are unable to sustain or manage our
growth rate our business operations and results of operations may be adversely affected, and this rate
of growth may not be achievable in the future.
-
Any shutdown of operations of its units may have an adverse effect on the company`s business and results of operations.
-
Our Profit After Tax has significantly increased in recent financial years. If we are unable to sustain
or improve our profitability, our business, financial condition and results of operations may be
adversely affected.
-
Certain agricultural produce and commodities are subject to seasonal factors. Its inability to accurately forecast demand for the agro commodities that the company trade, may have an adverse effect on its business, results of operations, cash flows and financial condition.
-
We are dependent upon a limited number of suppliers for our agro-commodities. Any failure of our
suppliers to deliver these agro-commodities in the necessary quantities or to adhere to delivery
schedules, credit terms or specified quality standards and technical specifications may adversely affect
our business and our ability to deliver orders on time at the desired level of quality.
-
Since company is engaged in business of trading of agricultural commodities, especially sugar, the company is dependent on continuous availability, quality of agro commodities and fluctuations in agro commodities pricing including the taxes and levies on the agro commodities, especially sugar, could have adverse impact on the Company`s business, financial condition and profitability.
-
Non-payment and procedural non-compliance in relation to stamp duty on certain instruments
executed by the Company may subject us to penalties or other regulatory actions.
-
One of its agricultural commodity that the company trades in is sugar which is subject to seasonal variations that could result in fluctuations in its results of operations.
-
We are dependent on third party manufacturers for manufacturing the beverages, and any disruption
in these arrangements could materially and adversely affect our business operations, results of
operations, and financial condition.
-
Any reduction in the demand for its products could could adversely affect the company`s business, results of operations, financial condition and cash flows. Its may also face a surplus production of a particular product due to various reasons including inaccurate forecasting of customer requirements, which could adversely affect its business, results of operations, financial condition and cash flows.
-
We derive 89.58%, 88.92% and 99.67% of our revenue from our top 10 key customers Financial Years
ended on March 31, 2025, 2024 and 2023 respectively.
-
Entering the fizzy / carbonated drinks business without prior experience can be challenging.
-
Failure to timely obtain registration under the Employees` Provident Funds and Miscellaneous
Provisions Act, 1952 ("EPF Act") and non-compliance with the Payment of Bonus Act, 1965 ("Bonus
Act") may expose us to penalties and regulatory actions.
-
An inability to maintain its competitive position in India and in the company other markets may adversely affect its business, prospects, and future financial performance in carbonated drinks business.
-
Instances of delays in payment of employee-related statutory dues in the past may expose us to
regulatory action, including imposition of penalties.
-
A significant majority of its production and sales of the company carbonated beverages will take place during the summer months, and any adverse weather conditions during such peak sales seasons may materially and adversely affect its sales, results of operations and financial condition.
-
We have had negative cash flows in the past. Sustained negative cash flow could adversely impact our
business, financial condition, and results of operations.
-
Any contamination or deterioration of its beverages could result in legal liability, damage its reputation and adversely affect the company`s business prospects and financial performance.
-
Our Company requires significant amounts of working capital for a continued growth. Our inability
to meet our working capital requirements may have an adverse effect on our results of operations.
-
Scarcity of water or non-availability of quality water could negatively impact its costs.
-
We have not entered into formal agreements with our super stockists and distributors, which may
affect our ability to enforce terms and ensure continued business relationships.
-
Obesity or nutritional concerns may reduce demand for some of its products.
-
Our proposed acquisition of leasehold plots together with warehouses constructed thereon, which is
one of the Objects of the Offer, is subject to fulfilment of certain conditions, and failure to consummate
the acquisition may adversely affect our ability to utilise the Offer Proceeds as intended.
-
The Objects of the Offer for which funds are being raised have not been appraised by any bank or financial institution. The deployment of funds is entirely at the discretion of its management and as per the details mentioned in the section titled "Objects of the Offer". Any revision in the estimates may require it to reschedule the company expenditure and may have a bearing on its expected revenues and earnings.
-
An inability to expand or effectively manage our growing super stockist and distributor network, or
any disruptions in our distribution chain may have an adverse effect on our business prospects and
financial performance.
-
The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the issue. Further the company has not identified any alternate source of financing the `objects of the Issue`. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations, and financial performance.
-
We do not own any premises, including our registered office and warehouses and rely exclusively on
leave and license agreements for these locations. In the event we lose such rights or are required to
negotiate it, our cash flows, business, financial conditions and results of operations could be adversely
affected.
-
The company does not own its Registered Office and the production facilities from which its operate.
-
Since Company is engaged in business of trading of agro commodities, our Company is dependent on
continuous availability, quality of agro commodities and fluctuations in agro commodities pricing
including the taxes and levies on the agro commodities, could have adverse impact on our Company`s
business, financial condition and profitability.
-
Its customers expect the company to maintain high quality standards and any failure by it to comply with such quality standards may have an adverse effect on demand from end customers and on its reputation, business, results of operations and financial condition.
-
Our Company has made incorrect disclosures in past statutory filings, including showing members of
the Promoter Group as Promoters, which may expose us to regulatory scrutiny.
-
Substantial portion of its revenues come from the agriculture commodities.
-
Certain entities have not been disclosed in the Income Tax Returns of our Promoter and members of
our Promoter Group, which may lead to potential scrutiny and could adversely affect investor
perception.
-
The company has substantial working capital requirements. Its inability to obtain and / or maintain sufficient cash flow and other sources of funding in a timely manner to meet its requirements of working capital could adversely affect its operations.
-
There are discrepancies in the records relating to our Promoter and Directors across different
documents, which may result in regulatory challenges.
-
The company has referred to the data derived from internal Company reports and industry and government publications, publicly available information, and sources.
-
Mr. Kuntal Jitendra Dave has been a director in certain companies that have been struck off by the
Registrar of Companies, and we have not disclosed all such entities due to lack of documentary
records. Any adverse findings in this regard may affect the accuracy of our disclosures and expose us
to regulatory or reputational risks.
-
The Company has not entered into any long-term agreements with its customers for purchasing the company products. Its subject to uncertainties in demand and there is no assurance that its customers will continue to purchase the company products. This could impact the business and financial performance of the Company.
-
Acceptance of our recently launched products among consumers may not be as high as we anticipate
which may limit our ability to strengthen our brands and have an adverse effect on our business,
financial condition and results of operations.
-
The Company has not entered into long-term agreements for the supply of raw materials with its suppliers. The company is subject to uncertainties in the supply of raw materials and there is no assurance that its suppliers will continue to sell raw materials to it as per its requirements. This could impact the business and financial performance of the Company.
-
Non-availability of death certificate of a member of the Promoter Group may affect regulatory
compliance and create potential legal uncertainties.
-
The company is dependent on third party transportation service providers for delivery of agricultural produce or commodities to it from its suppliers and delivery of the company products to its customers. The company has not entered into any formal contracts with its transport providers and any failure on part of such service providers to meet their obligations could adversely affect its business, financial condition and results of operation.
-
Our products are semi-perishable in nature and the shelf life of our products ranges from 4-24 months.
Inaccurate demand forecasting for our semi-perishable product can result in excess inventory and
waste which, in turn, could have an adverse effect on our business, financial condition, results of
operations and cash flows.
-
Some of its Group Companies and Promoter Group Entities, their subsidiaries and step down subsidiaries are engaged in a similar line of business to that of the Company. There are no non-compete agreements between the Company and Promoter Group Entities and/ Promoter Group Members. Further, the company cannot assure that its Promoter and Promoter Group members will not favor the interests of such entities over its interest or that the said entities will not expand which may increase the company competition and may adversely affect business operations and financial condition of the Company.
-
Our Company and our Group Company, Sakuma Exports Limited, share the same main objects,
which may lead to potential conflicts of interest and could adversely impact our business operations.
-
Its inability to protect or use intellectual property rights may adversely affect its business.
-
Our operating results could be significantly impacted if we are unable to accurately forecast consumer
demand for our products or effectively manage our inventory.
-
The company has certain contingent liabilities that have not been provided for in its Restated Financial Statements, which if realised, could adversely affect the company financial condition.
-
Our Company benefits from certain export benefit schemes which are subject to the policies and
decisions of the Government. Any reduction in or termination of incentives/ subsidies/ schemes we
enjoy or change in other favourable government policies resulting in reduction or termination of
incentives/ subsidies/ schemes may affect our business, results of operations, cash flows and financial
condition.
-
The company has experienced negative cash flows in the past and may continue to do so in the future and the same may adversely affect its cash flow requirements, which in turn may adversely affect its ability to operate the company`s business and implement its growth plans, thereby affecting its financial condition.
-
We may be unable to sufficiently obtain, maintain, protect, or enforce our intellectual property and
other proprietary rights.
-
There are outstanding legal proceedings involving the Company which may adversely affect its business, financial condition and results of operations.
-
Certain of our corporate records and those of our Corporate Promoter are not traceable. We cannot
assure you that legal proceedings or regulatory actions will not be initiated against us in the future, or that we will not be subject to any penalty imposed by the competent regulatory authority in relation
to such discrepancies.
-
Its success largely depends upon the services of the company senior management and Key Managerial Personnel (KMP) and its ability to attract and retain them. Demand for senior management personnel in the industry is intense and its inability to attract and retain the company KMP may affect the operations of the Company.
-
Any claim of intellectual property infringement from third parties, regardless of merit or resolution
of such claims, could force us to incur significant costs in responding to, defending and resolving such claims, and may divert the efforts and attention of our management and technical personnel away
from our business. Our inability to obtain or maintain our trademarks in our business, could adversely
affect our reputation, goodwill, business prospectus, and results of operations.
-
The company failures to accurately forecast and manage inventory could result in an unexpected shortfall and/ or surplus of products, which could harm its business.
-
We rely on third-party transportation providers for and distribution of our products. Any failure by
any of our transportation providers to deliver our products on time, or in good condition, or at all,
may adversely affect our business, financial condition and results of operations.
-
Its inability to respond adequately to increased competition may adversely affect its business, financial condition and results of operations.
-
Our Company has delayed filing certain statutory forms with the Registrar of Companies (RoC) in
the past, and any future delays or regulatory actions for such non-compliances could adversely affect
our business operations and financial position.
-
The company is operating in a labour-intensive industry, hence its may face labour disruptions and other planned and unplanned outages that could interfere or temporarily disrupt its operations.
-
-
In the event the company fails to obtain, maintain or renew its statutory and regulatory licenses, permits and approvals required to operate its business, the company`s business and results of operations may be adversely affected.
-
The Company, its Promoter Saurabh Malhotra and Group Company, Sakuma Exports Limited are
party to certain litigations. These legal proceedings are pending at different levels of adjudication
before various forums and regulatory authorities, which, if determined adversely, may impact our
reputation and business operations.
-
Its business and profitability will suffer if the company fails to anticipate rapid changes in customer preferences and the industry on which its focus.
-
We could be adversely affected by a change in consumer preferences, perception and spending habits.
Further, if our product development efforts to cater to changing consumer preferences are not
successful, our business may be restricted.
-
The Company has in the past entered into related party transactions and may continue to do so in the future. There can be no assurance that such transactions, individually or in the aggregate, will not have an adverse effect on its financial condition and results of operations.
-
Any contamination or deterioration of our products could result in legal liability, damage our
reputation and adversely affect our business prospects and financial performance.
-
Its Promoters and Promoter Group will continue to retain significant control in the Company after the Offer, which will allow them to influence the outcome of matters submitted to shareholders for approval. Such a concentration of ownership may also have the effect of delaying, preventing or deterring a change in control.
-
We have certain contingent liabilities and commitments which if materialized, could adversely affect
our financial condition.
-
Its ability to pay dividends in the future will depends upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures and are also prohibited by the terms of its financing arrangements.
-
Our Group Company, Kuma Infra and Realty Private Limited has incurred losses in the past, which
could not be perceived positively by external parties.
-
Its insurance cover may not adequately protect the company against all material hazards and accidents.
-
We operate in a competitive market and any increase in competition may adversely affect our business
and financial condition.
-
Any variation in the utilisation of its Net Proceeds would be subject to certain compliance requirements, including prior shareholders` approval.
-
Our e-commerce business faces distinct risks, and our failure to successfully manage those risks could
have a negative impact on our profitability.
-
In case of our inability to obtain, renew or maintain the statutory and regulatory licenses, permits and
approvals required to operate our business, it may have a material adverse effect on our business.
-
We will continue to be controlled by our Promoter and Promoter Group after the completion of the
Offer, which will allow them to influence the outcome of matters submitted for approval of our
shareholders.
-
We are dependent on our Promoters, Key Managerial Personnel and Senior Management. The loss of
or our inability to attract or retain such persons could adversely affect our business, results of
operations, financial condition and cash flows.
-
We have 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 equity shareholders.
-
If we are unable to manage our growth effectively and further expand into new markets, and secure
additional capital resources, our business, financial performance, and results of operations could be
materially and adversely affected.
-
Our ability to pay dividends in the future will depend on our future cash flows, working capital
requirements, capital expenditures, and financial condition.
-
Our insurance coverage may not be adequate to protect us against all potential losses to which we may
be subject, and this may have a material effect on our business and financial condition.
-
We have not independently verified certain data in this Draft Red Herring Prospectus.
-
Inability to protect, strengthen and enhance our existing reputation could adversely affect our business
prospects and financial performance.
-
The company may be subject to unionization, strikes, work stoppages or increased labour costs, which could
adversely affect its business and results of operations.
-
There are certain restrictive covenants in the agreement that the Company has entered into with
ICICI Bank.
-
The Company has not made provisions for any potential decline in the value of investments.
-
The schedule of the company`s estimated deployment of Net Proceeds is subject to inherent uncertainties.
-
The derives the majority of its revenue from distribution and trading of sugar, and therefore vulnerable to a range of risks associated with the sugar industry.
-
The company`s revenue from operations has significantly increased from Rs. 10,327.13 Lakhs in FY 2022-23 to Rs. 23,302.48 Lakhs in FY 2023-24 resulting in growth of over 100% (YOY). Similarly, the company`s revenue from operations has further increased from Rs. 23,302.48 Lakhs in FY 2023-24 to Rs. 30,118.67 Lakhs in FY 2024-25 leading to growth of 29.25% (YOY). If the company is unable to sustain or manage its growth rate the company`s business operations and results of operations may be adversely affected, and this rate of growth may not be achievable in the future.
-
The company`s Profit After Tax has significantly increased in recent financial years. If the company is unable to sustain or improve its profitability, the company`s business, financial condition and results of operations may be adversely affected.
-
Any inability to successfully operate and scale the Company`s distributor-led sales model could adversely affect its business and financial performance.
-
Any delay in payment or procedural non-compliance in relation to stamp duty on certain instruments executed by the Company may subject us to penalties or other regulatory actions.
-
The company is dependents upon a limited number of suppliers for its agro-commodities. Any failures of its suppliers to deliver these agro-commodities in the necessary quantities or to adhere to delivery schedules, credit terms or specified quality standards and technical specifications may adversely affect the company`s business and our ability to deliver orders on time at the desired level of quality.
-
The Company, its Promoter Saurabh Malhotra and Group Company, Sakuma Exports Limited are party to certain litigations. These legal proceedings are pending at different levels of adjudication before various forums and regulatory authorities, which, if determined adversely, may impact its reputation and business operations.
-
The company operates in a competitive market and any increase in competition may adversely affect its business and financial condition.
-
The company may be unable to sufficiently obtain, maintain, protect, or enforce its intellectual property and other proprietary rights.
-
The company is dependents on third party manufacturers for manufacturing the beverages, and any disruption in these arrangements could materially and adversely affect its business operations, results of operations, and financial condition.
-
The company derives 90.62%, 89.58%, 88.92% and 99.67% of its revenue from the company`s top 10 key customers for the period ended September 30, 2025 and Financial Years ended March 31, 2025, 2024 and 2023 respectively.
-
Failures to timely obtain registration under the Employees` Provident Funds and Miscellaneous Provisions Act, 1952 ("EPF Act") and non-compliance with the Payment of Bonus Act, 1965 ("Bonus Act") may expose the company to penalties and regulatory actions.
-
Instances of delays in payment of employee-related statutory dues in the past may expose the company to regulatory action, including imposition of penalties.
-
The company has had negative cash flows in the past. Sustained negative cash flow could adversely impact its business, financial condition, and results of operations.
-
The Company requires significant amounts of working capital for a continued growth.The company`s inability to meet our working capital requirements may have an adverse effect on its results of operations.
-
The company has not entered into formal agreements with the company`s super stockists and distributors, which may affect its ability to enforce terms and ensure continued business relationships.
-
The company`s proposed acquisition of leasehold plots together with warehouses constructed thereon, which is one of the Objects of the Offer, is subject to fulfilment of certain conditions, and failures to consummate the acquisition may adversely affect its ability to utilise the Offer Proceeds as intended.
-
An inability to expand or effectively manage its growing super stockist and distributor network, or any disruptions in the company`s distribution chain may have an adverse effect on its business prospects and financial performance.
-
The company does not own any premises, including its registered office and warehouses and rely exclusively on leave and license agreements for these locations. In the event we lose such rights or are required to negotiate it, the company`s cash flows, business, financial conditions and results of operations could be adversely affected.
-
Since Company is engaged in business of trading of agro commodities, the Company is dependent on continuous availability, quality of agro commodities and fluctuations in agro commodities pricing including the taxes and levies on the agro commodities, could have adverse impact on the Company`s business, financial condition and profitability.
-
Certain entities have not been disclosed in the Income Tax Returns of its Promoter and members of the company`s Promoter Group, which may lead to potential scrutiny and could adversely affect investor perception.
-
The Company has made incorrect disclosures in past statutory filings, including showing members of the Promoter Group as Promoters, which may expose the company to regulatory scrutiny.
-
There are discrepancies in the records relating to its Promoter and Directors across different documents, which may result in regulatory challenges.
-
Mr. Kuntal Jitendra Dave has been a director in certain companies that have been struck off by the Registrar of Companies, and the company has not disclosed all such entities due to lack of documentary records. Any adverse findings in this regard may affect the accuracy of its disclosures and expose the company to regulatory or reputational risks.
-
Acceptance of its recently launched products among consumers may not be as high as we anticipate which may limit the company`s ability to strengthen its brands and have an adverse effect on the company`s business, financial condition and results of operations.
-
Non-availability of death certificate of a member of the Promoter Group may affect regulatory compliance and create potential legal uncertainties.
-
The company`s products are semi-perishable in nature and the shelf life of its products ranges from 4-24 months. Inaccurate demand forecasting for the company`s semi-perishable product can result in excess inventory and waste which, in turn, could have an adverse effect on its business, financial condition, results of operations and cash flows.
-
The company`s operating results could be significantly impacted if the company is unable to accurately forecast consumer demand for its products or effectively manage the company`s inventory.
-
The Company benefits from certain export benefit schemes which are subject to the policies and decisions of the Government. Any reduction in or termination of incentives/ subsidies/ schemes the company enjoy or change in other favourable government policies resulting in reduction or termination of incentives/ subsidies/ schemes may affect its business, results of operations, cash flows and financial condition.
-
Certain of its corporate records and those of the company`s Corporate Promoter are not traceable. The company cannot assure you that legal proceedings or regulatory actions will not be initiated against the company in the future, or that the company will not be subject to any penalty imposed by the competent regulatory authority in relation to such discrepancies.
-
Any claim of intellectual property infringement from third parties, regardless of merit or resolution of such claims, could force the company to incur significant costs in responding to, defending and resolving such claims, and may divert the efforts and attention of its management and technical personnel away from its business.The company`s inability to obtain or maintain its trademarks in the company`s business, could adversely affect its reputation, goodwill, business prospectus, and results of operations.
-
The company relies on third-party transportation providers for and distribution of its products. Any failures by any of its transportation providers to deliver the company`s products on time, or in good condition, or at all, may adversely affect its business, financial condition and results of operations.
-
The Company has delayed filing certain statutory forms with the Registrar of Companies (RoC) in the past, and any future delays or regulatory actions for such non-compliances could adversely affect its business operations and financial position.
-
The company could be adversely affected by a change in consumer preferences, perception and spending habits. Further, if the company`s product development efforts to cater to changing consumer preferences are not successful, the company`s business may be restricted.
-
Any contamination or deterioration of its products could result in legal liability, damage the company`s reputation and adversely affect its business prospects and financial performance.
-
The company has certain contingent liabilities and commitments which if materialized, could adversely affect its financial condition.
-
The company`s Group Company, Kuma Infra and Realty Private Limited has incurred losses in the past, which could not be perceived positively by external parties.
-
The company`s e-commerce business faces distinct risks, and its failures to successfully manage those risks could have a negative impact on its profitability.
-
In case of its inability to obtain, renew or maintain the statutory and regulatory licenses, permits and approvals required to operate the company`s business, it may have a material adverse effect on its business.
-
The company will continue to be controlled by its Promoter and Promoter Group after the completion of the Offer, which will allow them to influence the outcome of matters submitted for approval of the company`s shareholders.
-
The company is dependents on its Promoters, Key Managerial Personnel and Senior Management. The loss of or the company`s inability to attract or retain such persons could adversely affect its business, results of operations, financial condition and cash flows.
-
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 equity shareholders.
-
If the company is unable to manage its growth effectively and further expand into new markets, and secure additional capital resources, the company`s business, financial performance, and results of operations could be materially and adversely affected.
-
The company`s ability to pay dividends in the future will depend on its future cash flows, working capital requirements, capital expenditures, and financial condition.
-
The company`s insurance coverage may not be adequate to protect the company against all potential losses to which the company may be subject, and this may have a material effect on its business and financial condition.
-
The company has not independently verified certain data in this Red Herring Prospectus.
-
Inability to protect, strengthen and enhance its existing reputation could adversely affect the company`s business prospects and financial performance.
-
The company may be subject to unionization, strikes, work stoppages or increased labour costs, which could adversely affect its business and results of operations.
-
There are certain restrictive covenants in the agreement that the Company has entered into with ICICI Bank.
-
The Company has not made provisions for any potential decline in the value of investments.
-
The schedule of its estimated deployment of Net Proceeds is subject to inherent uncertainties.
-
The company`s Promoter Ms. Vanitha Malhotra, does not have prior experience in the Company`s line of business, which may affect her ability to contribute to its business strategy and operations.
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