1. Availability of raw materials and fluctuation in the prices of raw materials like base oil and additives, may adversely affect its business, financial condition and results of operation.
2. The company also sells its products through network of distributors, dealers and depots, and any inability to expand or effectively manage its growing distribution and sales network may have an adverse effect on the company business, results of operations and financial condition.
3. The company's business is dependent on its manufacturing facilities and the company is subject to certain risks in its manufacturing process. Obsolescence, destruction, theft, breakdowns of its machineries or failures to repair or maintain the same may affect the company business, cash flows, financial condition and results of operations.
4. The Company is involved in certain legal proceedings and potential litigations. Any adverse decision in such proceedings may render it liable to liabilities/penalties/prosecutions and may adversely affect its business and results of operations.
5. The demand of its specialty oils and lubricants products in foreign countries is subject to international market conditions and regulatory risks that could adversely affect its business and results of operations.
6. The company is subject to risks associated in relation to its agreement with XADO group.
7. The company relies on third parties for transportation of raw materials to its manufacturing facilities and for transportation of the company finished products to its dealers, distributors, depots and customers and any disruption in its transportation arrangements or increases in transportation costs may adversely affect the company business, results of operations and financial condition.
8. Any delay or default in payment from its distributors and customers could result in the reduction of the company profits and affect its cash flows.
9. There are certain discrepancies/errors noticed in some of its corporate records relating to forms filed with the Registrar of Companies and other provisions of Companies Act, 1956/2013. Any penalty or action taken by any regulatory authorities in future, for non-compliance with provisions of corporate and other law could impact the reputation and financial position of the Company to that extent.
10. The company success depends on its ability to develop and commercialize new or customized products in a timely manner. If such new or customized products are not developed successfully its business, growth and financial condition may be adversely affected.