Leo Dryfruits & Spices Trading Ltd IPO

The company is a new player in the spice, dry fruits, frozen/semi fried and other grocery business and there is no assurance that its will be able to maintain or increase the company revenue from operations in the long term.

The Company, Promoters and Directors are involved in certain legal proceedings and potential litigations. Any adverse decision in such proceedings may render it/them liable to liabilities/penalties/prosecutions and may adversely affect its business and results of operations.

The company derives a significant portion of its revenue from trading activities, for which the company has to relies on third parties for sourcing of products.

Substantial portion of its revenues has been dependent upon few customers, with which the company does not have any firm commitments. The loss of any one or more of its major customers would have a material adverse effect on its business, cash flows, results of operations and financial condition.

The company has experienced negative cash flows from operations in the recent past, and its may have negative cash flows in the future.

Its future success depends on the company ability to promote its brand and protect its reputation. The company failures to establish and promote its brand and any damage to its reputation will hinder the company growth.

The company operates in highly competitive markets, and the scale and resources of some of its competitors may allow them to compete more effectively than the company can, which could result in a loss of its market share and a decrease in its net revenues and profitability.

Its business is dependent on the company manufacturing/ processing unit and its subject to certain risks in the company manufacturing process. Obsolescence, destruction, theft, breakdowns of its major plants or machineries or failures to repair or maintain the same may affect its business, cash flows, financial condition and results of operations.

The company does not manufacture some of its products such as ghee, flavored dry fruits and frozen/semi fried products in its own capacity but procure the same from third party suppliers.

The success of processing spices is dependent on the timely supply of raw materials to its processing unit, which are subject to various uncertainties and risks. Also, its material and traded products prices are subject to fluctuations.