1. Our business and the demand for our products is heavily reliant on the demand for certain end-use industries, and any decline in the demand for the end-products in such industries could have an adverse impact on our business, results of operations, cash flows and financial condition.
2. We are significantly dependant on our suppliers for supply of raw materials (Top 10 suppliers contribute 73.85% for the six-month period ended September 30, 2024, 61.58% for the Financial Year 2024, 75.51% for the Financial Year 2023 and 66.30% for the Financial Year 2022 of total raw materials purchased of respective year/period). Any failure to maintain our relationship with these suppliers or any adverse changes affecting their financial condition will have an adverse effect on our business, results of operations, financial condition and cash flows.
3. Our business is dependent on our manufacturing facilities, and we are subject to certain related risks. Unplanned slowdowns, unscheduled shutdowns or prolonged disruptions in our manufacturing operations or under-utilization of our manufacturing capacities could have an adverse effect on our business, results of operations, cash flows and financial condition.
4. We export our products to various countries including Asia-Pacific, Middle East, and Africa. Any adverse events affecting these countries could have an adverse effect on our business, results of operations, financial condition and cash flows.
5. Our inability to accurately forecast demand for our products and manage our inventory or working capital balances may have an adverse effect on our business, results of operations, cash flows and financial condition.
6. Our intellectual property rights may not be adequately protected against third party infringement.
7. We operate in a competitive business environment. Competition from existing players and new entrants and consequent pricing pressures could have a material adverse effect on our business growth and prospects, financial condition and results of operations.
8. We are subject to quality requirements and strict technical specifications by our customers. Our failure to comply with the quality standards and technical specifications prescribed by such customers may lead to loss of business from such
customers and could negatively impact our reputation, which would have an adverse impact on our business prospects and results of operations.
9. Non-compliance with increasingly stringent safety, health, environmental and labour laws and other applicable regulations, may adversely affect our business, results of operations, cash flows and financial condition. Further, we may not be able to renew or maintain our statutory and regulatory permits and approvals required to operate our business.
10. If we are unable to obtain or maintain regulatory approvals for our manufacturing facilities and products, we may be unable to operate our manufacturing facilities or sell our products, which could adversely affect our business, cash flows and results of operations.