1. The Company had avail dealer finance facility from SG Finserve Limited of Rs 300 lacs and the charge has been created on the current assets of the Company without getting the NOC from the State Bank of India who had sanctioned working capital limit against the current assets of the Company.
2. The Company has not applied for the registration under PF and ESIC Act, though the same is applicable since FY 2021-22. Further the Company is irregular in depositing the Provident Fund and ESIC collected from the salary of employees and contribution by company with the respected Authorities as well as filing the return as per Acts.
3. The company does not own registered office and its factory premises situated at Odhav, Ahmedabad.
4. Its two other factory premises are on rental basis.
5. The Company has applied for the Factory licenses for its Waghodia factory in the month of October, 2023.
6. Its subsidiary Company has filed various RoC forms and returns irregularly.
7. The company is having limited number of suppliers, for the stub period i.e. April, 2023 to February, 2024, 98.81% and in the FY 2020-21, 2021-22 and 2022-23, 48.58%, 77.13% and 89.19% respectively purchases were confined to only Top 10 suppliers.
8. The company is having limited number of Customers, for the stub period i.e. April, 2023 to February, 2024, 75.79% and in the FY 2020-21, 2021-22 and 2022-23, 41.21%, 47.91% and 81.92% respectively sales were confined to only Top 10 buyers.
9. There is one outstanding litigation against the Company which if determined against it, could adversely impact financial conditions.
10. There have been instances of delay in filing of Goods and Service Tax (GST) returns and return of Tax Deducted at Source (TDS) dues.