1. The company's Manufacturing Units is located at Ahmedabad in Gujarat and any adverse developments affecting this region could have an adverse effect on its business, results of operations and financial condition.
2. Continued operations at its Manufacturing Unit is critical to the company's business and any disruption in its Manufacturing Unit would have a material adverse effect on its business, results of operations and financial condition. Further, its Manufacturing Unit are not operating at optimum capacity utilization and there can be no assurance that the company will be successful in achieving such utilization levels.
3. The company is heavily reliant on a few customers and its derives a significant part of the company revenue from select customers. The loss of any significant customer may have a material adverse effect on its business and results of operations.
4. The Company operates in the capital goods industry which is sensitive to general economic downturn. The Company operates in the capital goods industry which is sensitive to general economic downturn.
5. The company has not yet placed orders in relation to the capital expenditure to be incurred for the proposed purchase of equipment / machineries. In the event of any delay in placing the orders, or in the event the vendors are not able to provide the equipment/machineries in a timely manner, or at all, the same may result in time and cost over-runs.
6. Its business is working capital intensive. If the company experience insufficient cash flows to meet required payments on its working capital requirements, there may be an adverse effect on the results of its operations.
7. The company is required to obtain, renew or maintain certain material statutory and regulatory permits and approvals required to operate its business, and if the company fails to do so in a timely manner or at all, its may be unable to operate the company's business and its results of operations may be adversely affected.
8. Any defect in its products may result in the company's orders being cancelled and the company could become liable to customers, suffer adverse publicity and incur substantial costs which in turn could affect it adversely.
9. The success of its business depends substantially on a number of key management personnel,
management team, and on its operational workforce. The company's inability to retain them or to recruit highly skilled technical personnel that are necessary for its business could adversely affect the company's businesses.
10. Activities involving its manufacturing process can be dangerous and can cause injury to people or
property in certain circumstances. A significant disruption at any of the company's Manufacturing Unit may adversely affect its production schedules, costs, sales and ability to meet customer demand.