Sawaliya Foods Products Limited - IPO

1. The company depends on one of its key customers for a significant portion of its revenue, and any decrease in revenues or sales from such customer may adversely affect the company business and results of operations. Further, the company does not have firm commitment agreements with some of its customers. If the company customers choose not to source their requirements from it, there may be a material adverse effect on the company business, financial condition, cash flows and results of operations.

2. The company derives a significant portion of its revenue from certain of the company products. If sales volume or price of such products declines in the future, or if the company is unable to sell such products for any reason, its business, financial 32 condition, cash flows and results of operations could be adversely affected. The company commercial success is largely dependent upon its ability to strategically diversify the company product portfolio. Presently, its deal in a limited number of products and therefore, the company ability to diversify and successfully market its products might be limited, which may have an adverse impact on the company revenue and profitability.

3. The company derives a significant portion of its revenues from repeat orders which its identify as orders placed by key customers that have placed orders with the Company previously. Any loss of, or a significant reduction in the repeat orders received by it could adversely affect its business, results of operations, financial condition and cash flows.

4. Its business is subject to seasonal variations that could result in fluctuations in the company results of operations. Further, fresh vegetables being the principal raw material used for manufacturing of its products, the company business depends on the availability of such vegetables and any shortage of vegetables may adversely affect its business and results of operations.

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

6. The Company is reliant on the demand from the FMCG industry for a significant portion of its revenue. Any downturn in the FMCG industry or an inability to increase or effectively manage the company sales could have an adverse impact on the Company's business and results of operations.

7. The commercial success of our products depends to a large extent on the success of the products of our end use customers. If the demand for the end use products in which our products are used as a raw materials declines, it could have a material adverse effect on our business, financial condition and results of operations.

8. Its manufacturing unit and the company operations are geographically concentrated in Madhya Pradesh. Consequently, the company is exposed to risks from economic, regulatory and other developments in such region which could have an adverse effect on its business, results of operations and financial condition. Further, the company continued operations are critical to its business and any shutdown of the company manufacturing unit may adversely affect its business, results of operations and financial condition.

9. The company generate its major portion of sales from the company operations in certain geographical regions. Any adverse developments affecting its operations in these regions could have an adverse impact on the company revenue and results of operations.

10. Its may face several risks associated with the proposed expansion of the company manufacturing unit, which could hamper its growth, prospects, cash flows and business and financial condition.