1. The company depends on a limited number of customers for its revenue from operations, the loss of any of these customers individually or severally could have a material adverse effect on its business, operations and could have impacted its financial strength.
2. The company does not have agreements/commitment on part of its customers to purchase or place orders with the company, also the company does not have any price agreement with its customers. If the company customers select some other vendors /competitors for their requirement, it may have adverse effect on its business.
3. The company depends on a few suppliers for the supply of steel, its primary raw material. Further, the company does not have definitive supply agreements with its suppliers for the supply of steel. If the company suppliers fails to fulfil its requirement, it may have adverse effect on its business.
4. The company has taken loans and any inability to comply with repayment and other covenants can adversely affect its business, reputation and financial condition.
5. Its business is dependent on the performance of certain other industries which the company is serving particularly automobile, tractors, railways, farm equipment etc. Any adverse changes in the conditions affecting these industries can adversely impact its business and financial condition.
6. Its production process requires uninterrupted power and fuel supply and any disruption/shortage of power or fuel sources could affect its product quality or increase the company production costs and adversely affect its business, and operations.
7. The company has substantial working capital requirements and may requires additional capital and financing in the future and its operations could be curtailed if the company is unable to obtain the required additional capital and financing when needed.
8. The company has been recently formed by conversion of the erstwhile Partnership firm into the company, thus the company has limited operating history as a Company which may make it difficult for investors to evaluate its historical performance or future prospects.
9. Inventories and trade receivables form a major part of its current assets. Failures to manage the company inventory and trade receivables could have an adverse effect on its sales, profitability, cash flow and liquidity.
10. Failures to obtain or maintain pre-qualifications from customers or loss of its pre-qualified status from our existing customers could adversely impact the company's business.