City Crops Agro Ltd IPO

The company had defaulted in repayment of loan in the past.

One of its Promoters, Mr. Kaupilkumar Hasmukhbhai Shah had defaulted in payment of Credit Card dues in the past.

The Company has incurred losses in the past and may incur losses in the future.

The company do not maintain long-term contracts with its third-party suppliers, and the company business may be adversely affected by a shortfall in supply, or increase in price of materials.

The company is substantially reliant on its Promoters, Managing Director & KMPs for mentoring and growth of the company Businesses. Its inability to continue to receive such support from any of such persons in power and supervision could materially affect the company's operations. Further, The company ability to attract, train and retain executives and other qualified employees is critical to its business, results of operations and future growth.

The Company has not entered into any long-term contracts with its distributors/customers and the company typically operate on the basis of orders received on hand. Inability to maintain regular order flow would adversely impact its revenues and profitability.

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

The company do not own any cold storage facilities to store our products (i.e., seeds, Rice, Wheat, Onions, Potato, Tomato, Isabgol, cereals, oil seeds, vegetables and Pulses), instead the company relies on the storage facilities available with the farmers with whom its have farming contracts. Damage to seeds and agricultural produce due to the unavailability of adequate cold storage facilities at the right time may adversely affect the company business, financial condition and results of operations.

Major portion of the company revenue is derived from a limited number of customers. Any failure to retain one or more of its customers or any disruption of sale of the company product will have an adverse effect on its financial performance and results of operations.

The company is heavily dependent on certain suppliers and customers for procurement and sale of its traded goods. Any disruption in supply or offtake from such entities may affect the company business operations.