1. One of its lenders has claimed that the company has committed defaults in the repayment of certain amounts under a facility availed by the Company and has initiated several litigation proceedings, including a corporate insolvency resolution process, against the Company. In the event the company is unable to comply with the conditions of its loan facility, or if any adverse findings are made in any proceedings against it or the company is declared insolvent, its business, cash flows and financial condition could be affected adversely.
2. The company depend on a limited number of customers for significant portions of its revenues. The loss of one or more of its significant customers or significant reduction in production and sales of, or demand for its production from its significant customers may adversely affect its business, financial condition, result of operations and cash flows.
3. The company do not have firm commitment long-term agreements with its customers. If the company customers choose not to source their requirements from it or manufacture such products in-house, its business, cash flows and results of operations may be adversely affected.
4. The company heavily depend on its customers in the automotive sector and are significantly dependent on the performance of the automotive sector in India and overseas. A loss of, or a significant decrease in business from these customers or a change in the preference of alloys used in the automotive industry or any adverse changes in the conditions affecting this sector can adversely impact its business, results of operations, cash flows and financial condition.
5. Volatility in the supply and pricing of its raw materials may have an adverse effect on its business, cash flows, financial condition and results of operations. Its raw material suppliers could fail to meet their obligations, which may have a material adverse effect on its business, cash flows, results of operations and financial condition.
6. Its manufacturing process is dependent on a technology driven production system. Any inability to successfully develop or procure specialized technology will adversely affect its business, financial condition, result of operations and cash flows.
7. Its inability to accurately forecast demand for the company products, and accordingly manage its inventory or plan capacity increases, may have an adverse effect on its business, cash flows, financial condition and results of operations.
8. The company relies on third-party transportation providers for procurement of raw materials and for supply of its products and failure by any of its transportation providers could result in loss in sales.
9. Its continued operations are critical to its business and any disruption to power or fuel sources or any shutdown of its manufacturing facilities may have an adverse effect on its business, results of operations, financial condition and cash flows.
10. The COVID-19 pandemic and resulting deterioration of general economic conditions has impacted its
business and results of operations in the past and the extent to which it may impact its future business and results of operations will depend on future developments, which are difficult to predict.