Mother Nutri Foods Ltd IPO

The Company is dependent on external suppliers for its major raw material, Peanuts. Any fluctuations in the price of our major raw materials could have an adverse effect on our business, results of operations and financial condition.

The company is yet to place orders for plant and machinery. Any delay in placing the orders, or procurement of such plant and machinery or in the event the vendors are not able to provide the plant and machinery in a timely manner, or at all, the same may result in time and cost over-runs.

There can be no assurance that the Objects of the Issue will be achieved within the time frame anticipated or at all, or that the deployment of the Net Proceeds in the manner intended by us will result in any increase in the value of your investment. Further, the plan for deployment of the Net Proceeds has not been appraised by any bank or financial institution.

Its net cash flows from operating activities have been negative in some years in the past. Any negative cash flow in the future may affect its liquidity and financial condition.

Its inability to anticipate, respond to and meet the tastes, preferences or consistent quality requirements of the company customers or its inability to accurately predict and successfully adapt to changes in market demand or consumer preference could reduce demand for its products and impact the company sales.

Any disruption in production at, or shutdown of, its sole manufacturing facility could adversely affect the company business, results of operations and financial condition.

Any actual or alleged contamination or deterioration of its products could result in legal liability or damage the company reputation. Further, food safety and food-borne illness incidents or other safety concerns may materially and adversely affect its business by exposing it to lawsuits, product recalls or regulatory enforcement actions, increasing its operating costs and reducing demand for the company product offerings.

There have been several instances of delay/ default in payment of statutory dues and filing of statutory returns by the Company in the past.

If the company is unable to identify consumer demand accurately and maintain an optimal level of inventory, its business, results of operations, cash flows and financial condition may be adversely affected.

Its proposed plant is located on premises which are not owned by it and has been obtained on lease basis from the promoter of the company. Disruption of its rights as lessee or termination of the agreements with the company lessor (promoter) may adversely impact its operations and, consequently, the company business, financial condition and results of operations.