1. The Company is reliant on the demand from the nutraceutical industry for a significant portion of its revenue. Any downturn in the nutraceutical industry or an inability to increase or effectively manage its sales could have an adverse impact on the Company's business and results of operations.
2. Its existing manufacturing facility are concentrated in a single region i.e., Palghar, Thane, Maharashtra and the inability to operate and grow its business in this particular region may have an adverse effect on its business, financial condition, results of operations, cash flows and future business prospects.
3. The Company is dependent on few numbers of customers for sales. Loss of any of this large customer may affect its revenues and profitability.
4. The company has historically derived, and may continue to derive, a signification of its supply from top 10 Suppliers. Also, the Company has not entered into long-term agreements with these suppliers. In the event the company is unable to procure adequate amounts of raw materials, at competitive prices its business, results of operations and financial condition may be adversely affected.
5. Too much Geographical concentration of its Business on specific location can impact the company Business.
6. Its reliance on certain industries for a significant portion of its sales could have an adverse effect on its business.
7. The company has not taken any steps to order the machinery/equipment required for the proposed expansion. In the event of any delay in placing the orders, or in the event the vendors are not able to provide the equipment / machineries in a timely manner, or at all, the same may result in time and cost over-runs.
8. Its business activities are exposed to fluctuations in the prices of raw materials.
9. Its may face several risks associated with the construction of the building of the Proposed Expansion, which could hamper its growth, prospects, cash flows and business and financial condition.
10. Its Registered Office, Factory Units and Godown is located on premises which are not owned by it and has been obtained on license basis from the promoters of the company. Disruption of its rights as licensee/ lessee or termination of the agreements with its licensors/ lessors (promoters) may adversely impact its operations and, consequently, its business, financial condition and results of operations.