1. Its business is capital intensive in nature. If the company is unable to raise additional funds whenever required, or on terms acceptable to it, the company may be required to scale down or abandon its expansion & growth plans and/or reduce capital expenditures and the size of its operations, any of which could materially and adversely affect its business, financial position and results of operations.
2. The company derives a significant portion of its revenues and a portion of the company expenditures from various countries outside India. Any adverse developments in these markets along with fluctuations in Exchange rates, may negatively impanct its results of operations.
3. Increase in the prices of raw materials and labour could have an adverse effect on its business, results of operations and financial condition.
4. The company is primarily dependent upon few key suppliers within limited geographical location for procurement of raw materials. Any disruption in the supply of raw materials from such selective suppliers and geographical location could have a material adverse effect on its business operations and financial conditions.
5. The company plan relating to establishment of its new manufacturing unit in Mehsana district of Gujarat, is subject to the risk of unanticipated delays in implementation and the company may requires to temporarily shut down its production operations while shifting to the new manufacturing unit which could have an impact on the production operations of the Company.
6. The Company, Directors, Promoters and Group Companies are parties to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.
7. If there are delays in setting up the Proposed manufacturing unit or if the costs of setting up and the possible time or cost overruns related to the Proposed manufacturing unit or the purchase of plant and machinery for the Proposed manufacturing unit are higher than expected, it could have a material adverse effect on its financial condition, results of operations and growth
prospects.
8. The Company is yet to place orders for the machinery for the expansion of the proposed manufacturing unit. Any delay in placing orders or procurement of such machinery may delay the schedule of implementation and possibly increase the cost of commencing operations.
9. Under-utilization of its manufacturing capacities and an inability to effectively utilize the company existing manufacturing capacities could have an adverse effect on its business, future prospects and future financial performance.
10. The Company is in the process of making application for change in name in some of the permits, licenses and approvals, which are under Company's former name. Failures to update the same in a timely manner may adversely affect its operations and financial conditions.