Trualt Bioenergy IPO Details

1. Our business is currently primarily dependent on the sale of ethanol. Any reduction in the sale of ethanol, or our ability to produce and sell ethanol, or in the price at which we are able to sell ethanol, may have an adverse effect on our business, results of operations, cash flows and financial condition.

2. Our business is substantially dependent on the policies of the Government of India ("GoI"). Any change in GoI policies in this regard could have an impact on our revenue, results of operations and financial condition.

3. Our Company has a limited operating history, as our Company commenced ethanol production pursuant to business transfer agreements in September 2022. We may be subject to liabilities and other risks arising out of the business transfer agreements, and we may not be able to derive the anticipated benefits from these acquisitions.

4. Our erstwhile group companies have made certain allotments of Equity Shares where the allotment was made to more than 49 persons, which have been compounded pursuant to compounding application filed by our Group Company before the National Company Law Tribunal, Bengaluru bench. Our Group Company had also filed a settlement application with the Securities and Exchange Board of India, and a settlement order has been passed with regard to any proceedings that may be initiated in respect of this matter.

5. We derive a significant portion of our revenue from a few customers, in particular oil marketing companies ("OMCs"). The loss of one or more such customers, or a reduction in their demand for our products may adversely affect our business, results of operations, financial condition and cash flows.

6. Under-utilization of our existing production capacities and an inability to effectively utilize our expanded production capacities could have an adverse effect on our business, future prospects and future financial performance.

7. We have entered into supply contracts with one member of our Promoter Group, and MRN Bhima Sugar and Power Private Limited and MRN Canepower and Biorefineries Private Limited for supply of a significant portion of our raw material requirements. Any termination of such contracts, failure to renew such contracts on favourable terms or at all, or non-performance of obligations under such contracts, may impact our business, financial condition, cash flows and results of operations.

8. Our ethanol production depends on the availability of raw material such as sugar syrup/juice and molasses, and any alternatives we may require in future, such as grains and biomass. Any shortage of sugarcane, the underlying raw material, which is subject to seasonal vagaries, adverse weather conditions, crop disease and pest attacks, may impact the availability and quality of our key raw materials, which may have an adverse impact on our business, financial condition and results of operations.

9. Our inability to accurately forecast demand for our products, manage our working capital balances, or our inability to collect receivables in a timely manner may have an adverse effect on our business, results of operations, cash flows and financial condition.

10. We are subject to strict quality requirements, and sale of our products is dependent on our quality controls and standards. Any failure to comply with quality standards may adversely affect our business prospects and financial performance.