1. The company has incurred net losses during Fiscal 2022 and Fiscal 2021 and its inability to achieve profitability in future may have an adverse effect on its operations. Further the company had negative networth for the past three fiscal years.
2. Any increase in the cost of its raw material or a shortfall in the supply of the company raw materials, may adversely affect the pricing and supply of its products and have an adverse effect on the company's business, results of operations and financial condition.
3. Real or perceived product contamination could result in reduced sales, product liability and damage to its reputation, and subject it to regulatory action.
4. The company has experienced negative cash flows in the period ended December 23, 2023, and in Fiscal 2023, Fiscal 2022 and Fiscal 2021.
5. The Company is dependent on few suppliers for purchase of product. Loss of any of these large
suppliers may affect its business operations.
6. The company does not receive firm and long-term volume purchase commitments from its customers. If the company customers choose not to renew their supply contracts with it or continue to place orders with the company, its business and results of operations will be adversely affected.
7. Its business is dependent and will continue to depends on the company processing facility, and the company is subject to certain risks in its processing operations such as the breakdown or failures of equipment, industrial accidents, injury to employees, severe weather conditions and natural disasters.
8. The company derives a significant portion of its revenue from certain customers, and the loss of one or more such customers, the deterioration of their financial condition or prospects, or a reduction in their demand for its products could adversely affect the company's business, results of operations, financial condition and cash flows.
9. The Company has in the past not complied with the certain provisions of the Companies Act, 2013.
10. Its proposed expansion plan relating to the company processing facility are subject to the risk of unanticipated delays in implementation, cost overruns. If the company is unable to implement the expansion plans at the planned cost, it could materially and adversely impact its business, results of operations and financial condition.