1. The company has extended Corporate Guarantee on behalf of one of its Group Companies.
2. The Company is dependent on few numbers of customers for sales. Loss of any of this large customer may affect its revenues and profitability.
3. The company has certain contingent liabilities, which, if they materialize, may affect its results of operations, financial condition, and cash flows.
4. The company have certain outstanding litigation against the Company, an adverse outcome of which may adversely affect its business, reputation and results of operations.
5. Its business is operating under various laws which require it to obtain approvals from the concerned
statutory/regulatory authorities in the ordinary course of business and its inability to obtain, maintain or renew requisite statutory and regulatory permits and approvals for its business operations could materially and adversely affect its business, prospects, results of operations and financial condition.
6. The company derives 78.66%, 67.96% and 62.29% of its revenue from operation from one customer during the fiscal ending on March 31, 2024, 2023 and 2022. If such customer choose not to source their requirement from it, the company's business, financial condition and result of operation may be adversely affected.
7. The company does not have long-term agreements with suppliers for its raw materials and an increase in the cost of, or a shortfall in the availability or quality of such raw materials could have an adverse effect on its business and results of operations.
8. The company does not own its Registered Office and Production Unit. A failure to renew the company existing lease arrangements at commercially favourable terms or at all may have a material adverse effect on its business, financial condition, and results of operations.
9. Its Restated Financial Statements are prepared and signed by the Peer Review Auditor who is not Statutory Auditors of the Company as required under the provisions of ICDR.
10. Out of total cost of Plant & Machinery worth
Rs. 2817.40 lakhs, the company has not yet placed order for any of such Plant & Machinery.