Vandan Foods Ltd IPO

A certain amount of its revenue is generated from certain key customers, and the loss of one or more such customers, the deterioration of their financial condition or prospects, or a reduction in their demand for its products could adversely affect the company business, results of operations, financial condition and cash flows.

The company relies significantly on some suppliers for the supply of its raw materials. If these suppliers are unable or unwilling to supply raw materials on time or otherwise fail to meet our requirements, its business will be harmed. An inability to procure the desired quality, quantity of its raw materials in a timely manner and at reasonable costs, or at all, may have a material adverse effect on the company business, results of operations and financial condition.

Its revenues are highly dependent on the company operations in the geographical region of state of Gujarat. Any adverse development affecting its operations in this region could have an adverse impact on the company business, financial condition and result of operations.

The Company, its Directors and its Promoters are party to certain litigation and claims. These legal proceedings are pending at different levels of adjudication before various forums and regulatory authorities. Any adverse decision may make us liable to liabilities/penalties and may adversely affect our reputation, business and financial status.

The Company has reported certain negative cash flows from its operating activity, investing activity and financing activity, details of which are given below. Sustained negative cash flow could impact our growth and business.

Its Business is subject to seasonal volatility, which may contribute to fluctuations in the company result of operations and financial condition.

Its Registered Office from where the company operates is not owned by it but taken on leave and License basis. The company inability to renew the leave and license agreement or any adverse impact on the title or ownership rights of its owner/landlord in relation to these premises may impede the company operations.

Its cost of production is exposed to fluctuations in the prices of the company raw material such as Castor Seeds.

Certain of its promoter and director have past instances of credit card and other due settlements.

Relevant copies of educational qualification of two of its directors and one promoter is not traceable.