Balaji Phosphates Ltd IPO

The company business is dependent on the performance of the agricultural sector in which its fertilizers are used. Any developments affecting the performance of the agricultural sector are likely to affect its business, results of operations and financial condition.

Reliance on imported raw materials poses risks that could adversely affect its production capabilities and overall profitability.

The company business is subject to climatic conditions and is cyclical in nature. Seasonal variations and unfavourable local and global weather patterns may have an adverse effect on its business, results of operations and financial condition.

The fertilizer industry in India is a regulated industry. Any change in Government policies towards the agriculture sector or a reduction in subsidies and incentives provided to farmers could adversely affect its business and results of operations.

The business is highly seasonal and such seasonality may affect its operating results and cash flow of the Company.

If the company is unable to obtain or maintain regulatory approvals for its products, the company may be unable to sell such products, which could adversely affect its business and results of operations.

Its Promoters have provided personal guarantees and securities to secure certain of the company loan facilities, which if revoked or invoked may requires alternative guarantees, repayment of amounts due or termination of the facilities.

A shortage or non-availability of electricity, water, fuel or an increase in fuel prices may adversely affect its production operations and have an adverse effect on the company business, results of operations and financial conditions.

The company has certain contingent liabilities that have not been provided for in the Company's financials, which if realised, could affect its financial condition.

The Company has experienced negative cash flows. Any negative cash flow in future could affect its results of operations.