1. The Company, Promoters, Promoters Group and Group Companies are party to certain litigation and claims. These legal proceedings are pending at different levels of adjudication before various courts and regulatory authorities. Any adverse decision may make it liable to liabilities/ penalties and may adversely affect its reputation, business and financial status. A classification of these legal and other proceedings is given below:
2. The Comapny's Registered Office from where its operate is not owned by it.
3. The Company's dependent on few numbers of customers for sales. Loss of any of this large customer may affect its revenues and profitability.
4. Its highly depend on it major raw materials and a few key suppliers who help it procure the same. the Company has not entered into long-term agreements with its suppliers for supply of raw materials. In the event its unable to procure adequate amounts of raw materials, at competitive prices it business, results of operations and
financial condition may be adversely affected.
5. The company's revenues are highly dependent on it operations in geographical region of state of Gujarat. Any adverse development affecting it operations in this region could have an adverse impact on the company is business, financial condition and results of operations.
6. The company's conduct it business activities on a purchase order basis and therefore, have not entered into long-term agreements with it customers.
7. The company has availed credit facility from banks, and it is subject to certain restrictive covenants. Any Delay in issuing No Objection Certificate for the proposed issue may delay it proposed Initial public offering.
8. Any failure in it quality control processes may adversely affect it business, results of operations and financial condition. It may face product liability claims and legal proceedings if the quality of it products does not meet the company is customers' expectations.
9. The comapny's business activities are exposed to fluctuations in the prices of raw materials.
10. The company has only one Manufacturing Facility, continued operations of the company's manufacturing facility is critical to it
business and any disruption in the operation of the company's manufacturing facility may have a material adverse effect on it business, results of operations and financial condition.