1. The company exports its products to various countries and the export operations of the Company contribute more than 80% of Revenue from Operations. On account of the aforesaid, its may be subject to significant import duties or restrictions of the relevant jurisdictions. Further, adverse fluctuation in foreign exchange rate, unavailability of any fiscal benefits or our inability to comply with related requirements may have an adverse effect on our business and results of operations.
2. The company in the usual course of business do not enter into long-term contracts with suppliers for its raw materials and an increase in the cost of, or a shortfall in the availability or quality of such raw materials, in a timely manner or at all, could have an adverse effect on its business and results of operations.
3. The company business is dependent and will continue to depend on its single manufacturing facility, and its subject to certain risks in that behalf. Any slowdown or shutdown in the company manufacturing operations could have an adverse effect on its business, financial condition and results of operations.
4. The Company requires significant amounts of working capital and significant portion of the company working capital is consumed in trade receivables and inventories. Its inability to meet the company working capital requirements including failure to realise receivables and inventories may have an adverse effect on its results of operations and overall business.
5. The company in the usual course of business do not have long term contracts with most of its customers and rely on purchase orders for delivery of its product and they may cancel or modify their orders, change production quantities, delay production or change their sourcing strategy. Loss of one or more of its customers or a reduction in their demand for the company products could adversely affect its business, results of operations and financial condition.
6. If the company fail to effectively implement its production schedules, the company business and results of operations may be materially and adversely affected.
7. The geographical concentration of its exports to certain countries and the inability to operate and grow its business in such countries may have a material adverse effect on its business, financial condition, results of operations, cash flows and future business prospects.
8. The markets in which its customers operate are characterized by sectors specific to the industries which its cater to and their changing preferences and other related factors including lower manufacturing costs and therefore as a result we may be affected by any disruptions in the industry. Its profitability, business and commercial success is significantly dependent on its ability to successfully anticipate the industry and customer requirements and utilize its resources to enhance and develop the company products that efficiently satisfy and meet its client's specific requirements in a timely manner. Any failure on its part to do so, may have an impact on the reputation of its products, which could have an adverse effect on its revenue, reputation, financial conditions, results of operations and cash flows.
9. If the products its manufacture are found to be deficient, its may lose the company customers and may be subject to product liability claims or claims alleging deficiency which may also cause damage to its reputation and/or adversely affect its results of operations and financial condition.
10. The company depend on third parties for the supply of raw material and delivery of products. A disruption in the supply of raw materials or failure of its suppliers to meet their obligations could impact its production and increase the company costs.