1. Any delay, interruption or reduction in the supply of its raw materials or the transportation of the company raw materials or products may adversely impact the pricing and supply of its products and have an adverse effect on its business.
2. Any manufacturing or quality control issues may damage its reputation, subject it to regulatory action, and expose the company to litigation or other liabilities, which could adversely affect its business, financial condition and results of operations.
3. A slowdown or shutdown in its manufacturing or research and development operations, all located in Gujarat, India, could adversely affect the company business, financial condition and results of operations.
4. The company depends on a limited number of key customers for a substantial portion of its revenues. Any significant reduction in demand for the company products from such customers may adversely affect its business and results of operations.
5. If the company is unable to obtain trademarks and patents for its products or protect such proprietary information, or inadvertently infringe on the patents of others, its business may be adversely affected.
6. The company is subject to extensive government regulations, and if its fail to obtain, maintain or renew the company statutory and regulatory licenses, permits and approvals required for its business operations, the company business, financial condition, results of operations and cash flows may be adversely affected.
7. The company inability to accurately forecast demand for its products, manage it inventory and utilize the company manufacturing capacity optimally may have an adverse effect on its business, financial condition, results of operations and cash flows.
8. Pricing pressure from customers may affect the company ability to maintain or increase its product prices and, in turn, the company revenue from product sales, gross margin and profitability, which may adversely affect its business, financial condition and results of operations.
9. The company had significant working capital requirements. If its experience insufficient cash flows to fund the company working capital requirements, there may be an adverse effect on its business, cash flows and results of operations.
10. The company is currently entitled to certain incentive schemes. Any decrease in or discontinuation in such schemes may affect the company results of operations.