Harshdeep Hortico Ltd IPO

The company is generate its major portion of sales from its operations in certain geographical regions and any adverse developments affecting its operations in these regions could have an adverse impact on its revenue and results of operations.

The company is primarily dependent upon few key suppliers within limited geographical location for procurement of raw materials. Any disruption in the supply of the raw materials or fluctuations in their prices could have a material adverse effect on its business operations and financial conditions.

The company has very short span of operating history as company.

The company does not own the registered office, manufacturing unit and stores from which its carry out its business activities. In case of nonrenewal of rent agreements or dispute in relation to use of the said premise, its business and results of operations can be adversely affected.

The company has not registered the trademarks which its using for the company's business in the name of the company. Its may be unable to protect its intellectual property or knowhow from third party infringement which could harm its brand and services.

The company operates in a price sensitive industry wherein the purchasing decisions of consumers are highly influenced by the product price. Its inability to continue to offer the company products at competitive prices may adversely affect its business, results of operations and financial condition.

Inventories and trade receivables form a major part of its current assets. Failure to manage its inventory and trade receivables could have an adverse impact on its net sales, profitability, cash flow and liquidity.

The company requires certain approvals, licenses, registrations and permits to operate its business, and failure to obtain or renew them in a timely manner or maintain the statutory and regulatory permits and approvals required to operate its business may adversely affect its operations and financial conditions.

Its insurance coverage may not be adequate to protect it against certain operating hazards and this may have a material adverse effect on its business.

The company has to update the name of the company in some of the statutory approvals and certificates due to the takeover of Proprietorship Firm into the Company.