Sanstar Ltd IPO

Any fluctuations in the prices of its raw material may adversely affect the pricing of the company products and may have an impact on its business, results of operation, financial condition and cash flows.

The company has not entered into any long term contracts with suppliers for its raw materials and an increase in the cost of, or a shortfall in the availability of such raw materials or its inability to leverage existing or new relationships with its suppliers could have an adverse effect on the company's business and results of operations.

During the peak arrival season of maize harvesting, the Company procures and stores significant quantities of maize which is the primary raw material required for the manufacturing of the Company's products and for the purpose of doing the same significant amount of working capital is required. Its inability to meet the said working capital requirement during the peak harvesting season of maize may have an adverse effect on its results of operations and overall business.

There are pending litigations involving the Company. Any unfavourable order or decision in such proceedings may render affect its results of operations.

The Company sells its products for specific use by certain industries. Any reduction in the demand or requirement of its products in such industries may result in loss of business and may affect its financial performance and condition.

Its proposed plans with respect to funding the capital expenditure requirement for expansion of the Dhule Facility are subject to the risk of unanticipated delays in obtaining approvals, implementation and cost overruns which may adversely affect its business and results of operations.

Any slowdown or shutdown of its manufacturing operations at the company Manufacturing Facilities could have an adverse effect on its business, financial condition and results of operations.

The Company in the usual course of business does not have any long term contracts with its customers and the company relies on purchase orders for delivery of its products and the company customers may cancel or modify their orders, change quantities, delay or change their sourcing strategy. Loss of one or more of its top customers or a reduction in their demand for the company products or reduction in revenue derived from them may adversely affect its business, results of operations and financial condition.

The Company exports its products to various geographies across the globe. Its products may be subject to import duties or restrictions of the relevant geographies. Additionally, any adverse fluctuation in foreign exchange rate, unavailability of any fiscal benefits or its inability to comply with related requirements may have an adverse effect on its business and results of operations.

The company has not yet placed purchase orders or entered into any memorandum of understanding for the majority portion of requirement of the plant and machinery in relation to the proposed expansion of its Dhule Facility. In the event of any delay in placing the balance purchase orders, or in the event the sellers are not able to provide the equipment/machineries or execute the civil building and construction work in a timely manner, or at all, the same may result in time and cost over-runs.