M.V.K. Agro Food Product Ltd IPO

The company cannot assure you that the manufacturing unit proposed to be set up by it will become operational as scheduled, or at all, or operate as efficiently as planned. If the company is unable to commission its new manufacturing unit in a timely manner or without cost overruns, it may adversely affect its business, results of operations and financial condition.

As on date the company has not obtained any of the approvals, clearances and permissions as may be required from the relevant authorities for the proposed manufacturing unit. In the event the company is unable to obtain such approvals and permits, its business, results of operations, cash flows and financial condition could be adversely affected.

The Company has limited experience of manufacturing Ethanol and Bio-CNG and Fertilizer. Hence, the company have limited exposure in manufacturing products outside of its existing product portfolio, which may make it difficult to evaluate its past performance and prospects with respect to the same.

The company cannot assure that its shall be able to utilize its proposed manufacturing unit to its full capacity or up to an optimum capacity, and non-utilisation of the same may lead to loss of profits or can result in losses, and may adversely affect its business, results of operations and financial condition.

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 it 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.

The Company is yet to place orders for 100% of the plant and machinery. Any delay in placing orders or procurement of such plant and machinery, may further delay the schedule of implementation and increase the cost of commissioning the manufacturing unit.

The company depends on its domestic brokers and export-oriented commodity traders for a significant portion of its revenue, and any decrease in revenues or sales from any one of its key intermediaries may adversely affect its business and results of operations.

Its business is subject to seasonal variations that could result in fluctuations in our results of operations.

Sugarcane is the principal raw material used for the production of sugar. Its business depends on the availability of sugarcane and any shortage of sugarcane may adversely affect its business and results of operations.

The improper handling, processing or storage of raw materials or products, or spoilage of and damage to such raw materials and products, or any real or perceived contamination in its products, could subject it to regulatory and legal action, damage its reputation and have an adverse effect on the company business, results of operations and financial condition.