1. The Company, and group companies are party to certain litigation and claims. These legal
proceedings are pending at different levels of adjudication before various courts and regulatory
authorities. Any adverse decision may make it liable to liabilities/penalties and may adversely affect its reputation, business and financial status.
2. The company is highly dependent on certain key customers for a substantial portion of its revenues. Loss of relationship with any of these customers may have a material adverse effect on the company profitability and results of operations.
3. The markets in which its customers compete are characterized by consumers and their rapidly
changing preferences and other related factors including lower manufacturing costs and therefore
as a result the Company may be affected by any disruptions in the industry.
4. The company do not own the registered office, manufacturing units from which its carry out the company business activities. Disruption of the rights as licensee/ lessee or termination of the agreements with its licensors/ lessors would adversely impact the manufacturing operations and, consequently, its business.
5. The company success is dependent on the management, skilled manpower. Its inability to attract and retain key personnel or the loss of services of the company Promoter Director may have an adverse effect on its business prospects.
6. Shortages in, or rises in the prices of, raw materials or components for products the company manufacture, which account for majority of the costs, may adversely affect its business.
7. The company may be subject to financial and reputational risks due to product quality and liability issues which may have an adverse effect on the company business, financial condition and results of its operations.
8. The company manufacturing facilities are critical to its business. Any disruption in the continuous operations of the manufacturing facilities would have a material adverse effect on its business, results of operations and financial condition.
9. The company is yet to obtain consents/ no objection certificate from lenders of the Company for the Issue.
10. In the twelve months prior to the date of filing the Draft Prospectus, the Company had issued Equity Shares at a price, which may be lower than the Issue Price.