Leo Dryfruits & Spices Trading Ltd

Expand our market presence to other states of India and overseas and increase our distribution reach.

Scale up branding, promotional and digital activities.

Improving Efficiency.

Quality Assurance.

Continue to strengthen our existing product portfolio and diversify into products with attractive growth and profitability prospects.

Leveraging our market skills and relationships.

The company is a new player in the spice, dry fruits, frozen/semi fried and other grocery business and there is no assurance that its will be able to maintain or increase the company revenue from operations in the long term.

The Company, Promoters and Directors are involved in certain legal proceedings and potential litigations. Any adverse decision in such proceedings may render it/them liable to liabilities/penalties/prosecutions and may adversely affect its business and results of operations.

The company derives a significant portion of its revenue from trading activities, for which the company has to relies on third parties for sourcing of products.

Substantial portion of its revenues has been dependent upon few customers, with which the company does not have any firm commitments. The loss of any one or more of its major customers would have a material adverse effect on its business, cash flows, results of operations and financial condition.

The company has experienced negative cash flows from operations in the recent past, and its may have negative cash flows in the future.

Its future success depends on the company ability to promote its brand and protect its reputation. The company failures to establish and promote its brand and any damage to its reputation will hinder the company growth.

The company operates in highly competitive markets, and the scale and resources of some of its competitors may allow them to compete more effectively than the company can, which could result in a loss of its market share and a decrease in its net revenues and profitability.

Its business is dependent on the company manufacturing/ processing unit and its subject to certain risks in the company manufacturing process. Obsolescence, destruction, theft, breakdowns of its major plants or machineries or failures to repair or maintain the same may affect its business, cash flows, financial condition and results of operations.

The company does not manufacture some of its products such as ghee, flavored dry fruits and frozen/semi fried products in its own capacity but procure the same from third party suppliers.

The success of processing spices is dependent on the timely supply of raw materials to its processing unit, which are subject to various uncertainties and risks. Also, its material and traded products prices are subject to fluctuations.

The improper handling, processing or storage of its raw materials and traded products, or spoilage of and damage to such raw materials and traded products, or any real or perceived contamination in its products, could subject it to regulatory action, damage the company reputation and have an adverse effect on its business, results of operations and financial condition.

The Restated Financial Statements have been provided by Peer Reviewed Chartered Accountants who is not Statutory Auditor of the Company.

Under-utilization of its manufacturing capacities could have an adverse effect on the company business, future prospects and future financial performance.

The company is exposed to counterparty credit risk and any delay in receiving payments or non-receipt of payments may adversely impact its results of operations.

The company derives a significant portion of its revenue from Maharashtra and failures to expand its operations into new geographic regions and markets may restrict the company growth and adversely affect its business.

If the company fails to successfully expand its product portfolio or fails to develop and commercialize new products that are well received by consumers in a timely manner, its operating results may be materially and adversely affected.

The markets in which the company compete are characterized by consumers and their rapidly changing tastes and preferences and therefore as a result the Company may be affected by any disruptions in the industry.

Certain aspects of its business, including procurement of raw materials and traded products are seasonal in nature.

As its continue to grow, the company may not be able to effectively manage its growth and the increased complexity of the company business, which could negatively impact its brand and financial performance.

Pricing pressure from its competitors may affect the company ability to maintain or increase its product prices and, in turn, its revenue from product sales, gross margin and profitability may decline, which may materially and adversely affect its business, cash flows, financial condition and results of operations.

The company sale office is not owned by it and the company has only lease rights over such premises. In the event its lose such rights or are required to negotiate it, the company cash flows, business, financial conditions and results of operations could be adversely affected.

If the company is unable to service its debt obligations in a timely manner or to comply with various financial and other covenants and other terms and conditions of its financing agreements, it may adversely affect the company business, prospects, results of operations and financial condition.

Its may not be able to adequately protect or continue to use the company intellectual property.

The Company operates under "Vandu" Trademark, which is not owned by the Company. Revocation of the trademark license agreement may lead it to end up losing the authorization for usage, in such which event its business shall be adversely affected.

The company is subject to strict quality requirements and any failures by it to comply with quality standards may lead to cancellation of existing and future orders.

The company`s business is operating under various laws which require it to obtain approvals from the concerned statutory/regulatory authorities in the ordinary course of business and its inability to obtain, maintain or renew requisite statutory and regulatory permits and approvals for its business operations could materially and adversely affect its business, prospects, results of operations and financial condition.

Stringent food safety, consumer goods, health and safety laws and regulations may result in increased liabilities and increased capital expenditures.

Its operating results could be materially harmed if the company is unable to accurately forecast consumer demand for its products or manage the company inventory.

If the company fails to acquire new consumers or fails to do so in a cost-effective manner, its may not be able to increase revenue or maintain profitability.

The company insurance coverage may not be adequate to protect it against certain operating hazards and this may have a material adverse effect on its business.

The company business is dependent on the adequate and uninterrupted supply of electrical power at a reasonable cost. The Company does not have suitable power back-up to meet power failures exigencies. Failures on account of unavailability of electrical power may restrict it in utilizing its full capacity and, hence, may impact the company business and results of operation.

The company is reliant on its relationships with its selling and distribution network includes wholesalers, distributors and super stockiest network. Disruptions to such relationships, changes in their business practices, their failure to meet payment schedules could adversely affect its business, cash flows and results of operations.

The orders placed by customers may be delayed, modified or cancelled, which may have an adverse effect on its business, financial condition and results of operations.

The company is dependent on third-party transportation providers for the supply of raw materials and delivery of its finished products and traded products.

The company has in the past entered into related party transactions and may continue to do so in the future.

Some of its promoter group entities are engaged in similar line of business. Any conflict of interest in future may occur between its promoter group entities and us may adversely affect the company business, prospects, results of operations and financial condition.

The company has significant working capital requirements. If its experience insufficient cash flows from the company operations or are unable to borrow to meet its working capital requirements, it may materially and adversely affect the company business, cash flows and results of operations.

Inventories and trade receivables form a major part of its current assets. Failures to manage the company inventory and trade receivables could have an adverse effect on its sales, profitability, cash flow and liquidity.

Its manufacturing/processing activities requires deployment of labour and depends on availability of labour. In case of unavailability of such labour, its business operations could be affected.

There are certain discrepancies noticed in some of its financial reporting and/or records relating to filing of returns with the taxation authority.

Changes in technology may render its current technologies obsolete or require the company to make substantial investments.

Its lenders have charge over the company immovable and movable properties in respect of finance availed by it.

The Company has taken unsecured loans that may be recalled by the lenders at any time.

Excessive dependence on Bank of Baroda in respect of Loan facilities obtained by the Company.

Its Promoters and Directors have provided personal guarantees for financing facilities availed by the Company and may in the future provide additional guarantees and any failures or default by the Company to repay such facilities in accordance with the terms and conditions of the financing agreements could trigger repayment obligations on them, which may impact their ability to effectively service their obligations as its Promoters and Directors and thereby, adversely impact its business and operations.

Any increase in interest rates would have an adverse effect on its results of operations and will expose the Company to interest rate risks.

The company is dependent on its promoters, the company senior management and other key personnel, and the loss of, or its inability to attract or retain, such persons could affect its business, results of operations, financial condition and cash flows.

The company could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect its financial condition, results of operations and reputation.

Fraud, theft, employee negligence or similar incidents may adversely affect its results of operations and financial condition.

Information relating to its installed capacities and the historical capacity utilization of the company manufacturing facility included in this Red Herring Prospectus is based on various assumptions and estimates and future production and capacity utilization may vary.

Its ability to pay any dividends will depends upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.

Its promoter and the promoter group will jointly continue to retain majority shareholding in the Company after the Issue, which will allow them to determine the outcome of the matters requiring the approval of shareholders.

The company has issued Equity Shares during the last one year at a price may be below the Issue price.

Any variation in the utilization of the Net Proceeds as disclosed in this Red Herring Prospectus shall be subject to certain compliance requirements, including prior approval of the shareholders of the Company.

The Objects of the Issue for which funds are being raised, are based on its management estimates and the same have not been appraised by any bank or financial institution or any independent agency. The deployment of funds in the project is entirely at its discretion, based on the parameters as mentioned in the chapter titles "Objects of the Issue".

The company has not identified any alternate source of funding and hence any failures or delay on its part to mobilize the required resources or any shortfall in the Issue proceeds may delay the implementation schedule.

Any future issuance of its Equity Shares may dilute prospective investors` shareholding, and sales of its Equity Shares by the company major shareholders may adversely affect the trading price of its Equity Shares.

The Issue Price of the Equity Shares may not be indicative of the market price of the Equity Shares after the Issue.

Investors other than retail (including non- institutional investors, QIBs and Corporate Bodies) are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Amount) at any stage after submitting an application.

Investors other than retail (including non- institutional investors, QIBs and Corporate Bodies) are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Amount) at any stage after submitting an application.

Industry information included in this Red Herring Prospectus has been derived from industry reports. There can be no assurance that such third-party statistical, financial and other industry information is either complete or accurate.