Vishwas Agri Seeds Ltd IPO

Its operations are subject to high working capital requirements. The company's inability to maintain an optimal level of working capital required for its business may impact its operations adversely.

The Company has provided corporate guarantees to HDFC Bank for the loans availed by its Group Company, Vraj Hybrid Seeds Limited. In the event any of its Group Company default on any of the loans availed, the Company will be liable for the repayment obligations.

Its Group Company and Promoter Group entity is engaged in the similar line of business as of the Company. There are no non - compete agreements between the Company and such entities. Its cannot assure that its Promoter will not favour the interests of such entities over its interest or that the said entity will not expand which may increase its competition and may adversely affect business operations and financial condition of the Company.

The company is highly dependent on the sale of Groundnut seeds & Cumin seeds its business is exposed to risks related to product concentration, which could materially and adversely affect its business, financial condition, results of operations, and prospects.

There are no outstanding legal proceedings on the date of this draft prospectus involving the Company, however there may be possible litigation which may adversely affect it business, financial condition and results of operations.

Its business is seasonal in nature and therefore the company results of operations for any quarter in a given year may not, therefore, be comparable with other quarters in that year.

Its inability to predict accurately the demand for the company products and to manage its production and inventory levels could materially and adversely affect its business, financial condition, results of operations and prospects.

Substantial portion of its revenues has been dependent upon few customers and dealers. The loss of any one or more of its major customers or dealers would have a material adverse effect on its business, cash flows, results of operations and financial condition.

Term Loans availed by the Company have been secured on personal guarantees of its Directors and create charge over its immovable and movable properties in respect of finance availed by it.

The company may incur penalties or liabilities for non-compliance or delay in compliance with certain provisions of GST Act, Income tax Act, Companies Act and other applicable laws in the last Three years and in stub period.