1. The company has certain outstanding litigation against it, an adverse outcome of which may adversely affect its business, reputation and results of operations.
2. The costs of the raw materials that the company uses in its manufacturing process are subject to volatility due to factors beyond its control. Increases or fluctuations in raw material prices may have a material adverse effect on its business, financial condition, results of operations and cash flows.
3. Its business is dependent and will continue to depends on the company manufacturing facility, and its subject to certain risks in its manufacturing process. Any slowdown or shutdown in the company 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.
4. The company is dependent on the performance of the pet straps market. Any adverse changes in the conditions affecting the pet straps market can adversely impact its business, financial condition, results of operations, cash flows and prospects.
5. The company is subject to strict quality requirements and any product defect issues or failure by it or its raw material suppliers to comply with quality standards may lead to the cancellation of existing and future orders, recalls and exposure to potential product liability claims.
6. The company derives significant portion of its revenue from one of its products; i.e. Pet Straps. The company profitability, business and commercial success is significantly dependent on its ability to successfully anticipate the industry and customer requirements and utilize its resources to enhance and develop its products that efficiently satisfy and meet the company client's specific requirements in a timely manner. Any failure on our part to do so, may have an impact on the reputation of its products, which could have an adverse effect on the company revenue, reputation, financial conditions, results of operations and cash flows.
7. Any shortages, delay or disruption in the supply of the raw materials its use in the company's manufacturing process due to factors beyond its control may have a material adverse effect on the company's business, financial condition, results of operations and cash flows.
8. The industry in which its operate is labour intensive and the company manufacturing operations may be materially adversely affected by strikes, work stoppages or increased wage demands by its employees or those of its suppliers.
9. Its Business is dependent on the company Continuing relationships with its customers, with whom the company has not entered into long term arrangements and failure to procure such orders on a continuous basis could adversely impact its revenues and profitability.
10. The Restated Financial Statements have been provided by Peer Reviewed Chartered Accountants who is not Statutory Auditor of the Company.