1. The company has certain outstanding litigation against it, an adverse outcome of which may adversely affect its business, reputation and results of operations.
2. Its reliance on certain industries for a significant portion of its sales could have an adverse effect on the company's business.
3. Its business is dependent and will continue to depends on the company manufacturing facilities, and the company is subject to certain risks in its manufacturing process. Any slowdown or shutdown in its manufacturing operations or strikes, work stoppages or increased wage demands by its employees that could interfere with the company operations could have an adverse effect on its business, financial condition and results of operations.
4. The top ten customers of its product and top ten suppliers for raw material contribute a substantial part of its total revenue and source of Raw Material. The company does not have long term agreement with the customer or supplier. The loss of any Customer or a decrease in the volume of order by any customer or any disruption in supply of raw material by any supplier may adversely affect its revenues and profitability.
5. The company has not yet placed orders in relation to the funding Capital Expenditure towards construction of factory building which is proposed to be financed from the Issue proceeds of the IPO. In the event of any delay in placing the orders, or in the event the vendors are not able to provide the equipment in a timely manner, or at all, may result in time and cost over-runs and its business, prospects and results of operations may be adversely affected. Its proposed capacity expansion plans via one of its proposed manufacturing facilities are subject to the risk of unanticipated delays in implementation due to factors including delays in construction, obtaining regulatory approvals in timely manner and cost overruns.
6. Within the parameters as mentioned in the chapter titled "Objects of this Issue" beginning on page 85 of this Red Herring Prospectus, the Company's management will have flexibility in applying the proceeds of the Issue. The fund requirement and deployment mentioned in the Objects of this Issue have not been appraised by any bank or financial institution.
7. There are certain discrepancies and non-compliances noticed in some of its financial reporting and/or records relating to filing of returns and deposit of statutory dues with the taxation and other statutory authorities.
8. The Company has not entered into any written agreements or contracts with the company customers for sale of its products.
9. There are certain discrepancies and non- compliances noticed in some of its statutory compliances reporting and/or records relating to filing of returns with the concerned Registrar of Companies.
10. The Company had negative cash flows in the past years, details of which are given below. Sustained negative cash flow could impact its growth and business.