1. The company's business is dependent and will continue to depends on its manufacturing facilities, and the company is subject to certain risks in its manufacturing process. Any slowdown or shutdown in its manufacturing operations or strikes, work stoppages or increased wage demands by its employees that could interfere with the company operations could have an adverse effect on its business, financial condition and results of operations.
2. The company derives a significant part of its revenue from major customers and the company does not have long term contracts with these customers. If one or more of such customers choose not to source their requirements from it, its business, financial position and results of operations may be adversely affected.
3. Its reliance on certain industries for a significant portion of its sales could have an adverse effect on the company's business.
4. The company derives a majority portion of its revenues from exports and are subject to risk of international trade.
5. Exchange rate fluctuations may adversely affect its results of operations as its sales from exports and a portion of its expenditures are denominated in foreign currencies.
6. The company is subject to strict quality requirements, regular inspections and audits, and the success and wide acceptability of its products is largely dependent upon its quality controls and standards. Any failure to comply with quality standards may adversely affect its business prospects and financial performance, including cancellation of existing and future orders.
7. Inventories and trade receivables form a major part of its current assets. Failure to manage the company inventory and trade receivables could have an adverse effect on its sales, profitability, cash flow and liquidity.
8. The company is subject to increasingly stringent environmental, health and safety laws, regulations and standards. Noncompliance with and adverse changes in health, safety, labour, and environmental laws and other similar regulations to its manufacturing operations may adversely affect its business, results of operations and financial condition.
9. Any adverse changes in regulations governing its business, products and the products of the company customers, may adversely impact its business, prospects and results of operations.
10. There are certain discrepancies/errors noticed in some of its corporate records relating to forms filed with the Registrar of Companies and other provisions of Companies Act, 1956/2013. Some of its corporate records are not traceable. Any penalty or action taken by any regulatory authorities in future, for non-compliance with provisions of corporate and other law could impact the reputation and financial position of the Company to that extent.