For further discussion of factors that could cause the Company’s actual results to differ, see the Section titled “Risk Factors”, “The Company’s Business”, “Management’s Discussion and Analysis” beginning on page No. 46 to 51 of this Information Memorandum respectively. By their nature, certain market risk disclosures are only estimates and could be materially different from what actually occurs in the future. As a result, actual future gains or losses could materially differ from those that have been estimated.

The Company does not have any obligation to, and does not intend to, update or otherwise revise any statements reflecting circumstances arising after the date hereof or to reflect the occurrence of underlying events, even if the underlying assumptions do not materialize. In accordance with SEBI requirements, the Company will ensure that investors are informed of material developments until such time as the grant of listing and trading permission by the Stock Exchanges.

II. RISK FACTORS AND MANAGEMENT PERCEPTIONS THEREOF
An investment in equity shares involves a high degree of risk.

Investors should carefully consider all of the information in the Information Memorandum, including the risks and uncertainties described below, before making an investment in the Equity Shares. Occurrence of any of the following risks as well as the other risks and uncertainties discussed in the Information Memorandum could have a material adverse effect on the Company’s business, financial condition and results of operations and could cause the trading price of the Company’s Equity Shares to decline, which could result in loss to the investor.

The investor(s) should consider the following risk factors carefully in evaluating the Company and its business before making any investment decision.

Unless stated otherwise, industry data used in the Information Memorandum has been obtained from the published data and industry publications. Industry publications generally state that the information contained in those publications has been obtained from sources believed to be reliable but that their accuracy and completeness are not guaranteed and their reliability cannot be assured.

Although the Company believes that industry data used in the Information Memorandum is reliable, it has not been independently verified.

The information included in the Information Memorandum about various other companies is based on their respective audited annual reports for the latest financial years and information made available by the respective companies.

Forward-looking statements:
Statements in the Information Memorandum which contain words or phrases such as “will”, “aim”, “will likely result”, “believe”, “expect”, “will continue”, “anticipate”, “estimate”, “intend”, “plan”, “contemplate”, “seek to”, “future”, “objective”, “goal”, “project”, “should”, “will pursue” “will help”, “will develop”, “will be sustained” and similar expressions or variations of such expressions, are “forward looking statements”. Similarly, statements that describe the Company’s objectives, plans or goals also are forward-looking statements, actual results may differ materially from those suggested by the forward looking statements due to risks or uncertainties associated with the Company’s expectations with respect to, but not limited to:

Internal Risks:

  • The Company’s ability to generate revenues and pay dividends is dependent on a number of factors and may vary significantly from quarter to quarter.
  • The Company’s growth depends on acquiring new customers apart from increasing business from existing customers.
  • The Company operates in a highly competitive environment and this competitive pressure on the business is likely to continue. This competition may adversely affect the Company’s business and operations materially in the future.
  • The Company’s success depends largely upon its senior management and key personnel and the Company’s ability to attract and retain them.
  • The Company’s cost of acquiring products for its trading business and for maintenance of its cold storage plants and warehouses may increase and this could adversely affect its results of operation, if the customers of the Company do not compensate the Company for such increases.
  • The Company is subject to regulation by central, state and local governments / bodies, which may impose costs and restrictions. The Government may consider new legislative requirements, which potentially can affect the Company’s businesses. The results of these legislative, judicial and administrative actions may materially affect the business operations.
  • The Company may face increased competition because of technological advances and new regulatory requirements, which could adversely affect the results of operations in future.
  • The Company may be involved in various litigation matters, including those arising in the ordinary course of business. While the Company does not believe that any of these litigation matters alone or in the aggregate will have a material adverse effect on the financial position, an adverse outcome in one or more of these matters could be material to the results of operations for any one period.
  • The Company may be exposed to interest rate fluctuations.

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