Amir Chand Jagadish Kumar Exports Limited IPO

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.