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. Its reliance on certain industries for a significant portion of the company sales could have an adverse effect on its business.
3. The property used by the Company for the purpose of its operations and storage is not owned by it. Any termination of the relevant lease agreement or rent agreement in connection with such property or its failure to renew the same could adversely affect the company's operations.
4. 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 the company's manufacturing operations or strikes, work stoppages or increased wage demands by its employees that could interfere with the company's operations could have an adverse effect on its business, financial condition and results of operations.
5. The company derives a significant part of its revenue from major customers. If one or more of such customers choose not to source their requirements from it or to terminate their contracts with the company, its business, financial condition and results of operations may be adversely affected.
6. Its top five suppliers contribute majority of the company purchases. Any loss of business with one or more of them may adversely affect its business operations top five suppliers contribute and profitability.
7. Its manufacturing process involves the use of hazardous and flammable industrial chemicals which entails significant risks and could also result in enhanced compliance obligations.
8. The Company requires significant amounts of working capital for a continued growth. Its inability to meet the company working capital requirements may have an adverse effect on its results of operations.
9. The Company is yet to place orders for 100% of the plant & machineries for its proposed object, as specified in the Objects of the Issue. Any delay in placing orders, procurement of plant & machineries may delay its implementation schedule and may also lead to increase in price of these plant & machineries, further affecting its revenue and profitability.
10. The capacity of its current plant units is not fully utilized. Consecutively, if there is also any underutilization of its capacities in upcoming years, it could affect the company's ability to fully absorb fixed costs and thus may adversely impact its financial performance.