Stanbik Agro Ltd IPO

The company does not maintain long-term contracts with its third-party suppliers, and the company's business may be adversely affected by a shortfall in supply, or increase in price of materials.

The Company is substantially reliant on its Promoters, Managing Director & KMPs for mentoring and growth of our Businesses. The company's inability to continue to receive such support from any of such persons in power and supervision could materially affect the Company's operations. Further, the company's ability to attract, train and retain executives and other qualified employees is critical to its business, results of operations and future growth.

The agro business is highly seasonal and such seasonality may affect its operating results and cash flow of the Company.

The company is heavily dependent on certain suppliers and customers for procurement and sale of its traded goods. Any disruption in supply or offtake from such entities may affect the company's business operations.

The Company has not entered into any long-term contracts with the company's customers and the company typically operate on the basis of orders received on hand. Inability to maintain regular order flow would adversely impact its revenues and profitability.

The properties used by the Company for the purpose of its operations are not owned by the company. Any termination of the relevant lease agreement or rent agreement in connection with such properties or the company's failures to renew the same could adversely affect its operations.

The Company had negative cash flow in recent fiscals, details of which are given below. Sustained negative cash flow could adversely impact its business, financial condition and results of operations.

The Company faces competition from established players. The company's failures to effectively compete may reduce its profitability and results of operations.

The company may be subject to product liability claims from its customers. Any claims arising from such liabilities may harm the company's reputation, require the company to incur substantial costs and/or have an adverse impact on its business, financial conditions and results of operations.

The improper handling, processing or storage of the company's products or materials (both present or future), or spoilage of and damage to such products or materials, or any real or perceived contamination in the company's products or materials, could subject the company to regulatory action, damage its reputation and have an adverse effect on the company's business, results of operations and financial condition.