1. There are outstanding legal proceedings involving the Company, its Directors and the company Promoters. Any adverse decisions could impact its networth, profitability, cashflows and divert management time and attention and have an adverse effect on its business, prospects, results of operations and financial condition.
2. Termination or non-renewal of the distributorship agreement with Lead Tech or any material modification to the existing terms under such agreement adverse to its interest will materially and adversely affect the company's ability to continue its business and operations and its future financial performance.
3. Termination or non-renewal of the manufacturing and supply agreement with Fluidtech Corp ("Fluidtech") or any material modification to the existing terms under such agreement adverse to its interest will materially and adversely affect the company's ability to continue its business and operations and its future financial performance.
4. Its Statutory Auditor have included certain qualifications in their Audit Report for financial statements pertaining to F.Y. 2020-21, 2021-22 and 2022-23 and tax audit reports for the same financial years.
5. The Jet Inks Acquisition is not yet completed, and there are inherent uncertainties associated with uncompleted acquisitions, including that there may be certain risks associated with the Jet Inks that the Company is not aware of.
6. The company does not own the existing manufacturing facility, repair & testing centre and regional offices from which the company carry out its business activities. In case of non-renewal of rent agreements or dispute in relation to use of the said premise, its business and results of operations can be adversely affected.
7. There are certain discrepancies/errors noticed in some of its corporate records relating to forms filed with the Registrar of Companies and certain non-compliances of provisions of Companies Act, 2013. Any penalty or action taken by any regulatory authorizes in future, for on-compliance with provisions of corporate or any other law could impact the financial position of the Company to that extent.
8. Substantial portion of its revenues has been dependent upon few customers, with which the company does not have any firm commitments. The loss of any one or more of its major customer would have a material adverse effect on its business, cash flows, results of operations and financial condition.
9. The Company is dependent on limited number of external suppliers for its product requirements. Any delay or failure on the part of such suppliers to deliver products at acceptable prices, may adversely affect its business, profitability and
reputation.
10. The company may fail to realise targeted synergies or other anticipated benefits from the acquisition of Jet Inks.