1. Continued operations at the company Manufacturing Units are critical to its business and any disruption in the company Manufacturing Units would have a material adverse effect on its business, results of operations and financial condition. Further, its Manufacturing Units are not operating at optimum capacity utilization and there can be no assurance that the company will be successful in achieving such utilization levels.
2. Activities involving the company manufacturing process can be dangerous and can cause injury to people or property in certain circumstances. A significant disruption at any of its Manufacturing Units may adversely affect the companyh production schedules, costs, sales and ability to meet customer demand.
3. Developments in the competitive environment in the steel industry, such as expansion in production capacity of the company competitors, consolidation among its competitors, could have a material adverse effect on its competitive position and hence the company business, financial condition, results of operations or prospects.
4. The company depends on outside parties for adequate and timely supply of raw materials at commercially acceptable prices. Any disruptions, delay or increase in prices of such material may have a material adverse effect on its business.
5. The company is heavily reliant on a few customers and its derives a significant part of the company revenue from selected customers. The loss of any significant customer may have a material adverse effect on the company business and results of operations.
6. Its commercial success depends to a large extent on the success of its customers' products with end consumers. If the demand for the products in which the company products are used declines, this could have a material adverse effect on its business, financial condition and results of operations.
7. Its Corporate office is situated on leased premises. Its failure to renew the leases, obtain new leases or pay higher rental fees under these leases could negatively impact the company operations.
8. If the company does not continue to invest in new technologies and equipment, its technologies and equipment may become obsolete and the cost of processing may increase relative to the company competitors, which may have an adverse impact on its business, results of operations and financial condition.
9. The company is subject to various laws and regulations. If its fail to obtain, maintain or renew the licenses, permits and approvals required to operate the company business, or fail to comply with applicable laws, its business, results of operations and financial condition may be adversely affected.
10. Any defect in the company products may result in its 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.