1. Significant increases or fluctuations in prices of, or shortages of, or delay or disruption in supply of primary materials could affect its estimated costs, expenditures and timelines which may have a material adverse effect on its business, financial condition, results of operations and cash flows.
2. The company is heavily dependent on the performance of the FMCG, Food & Beverage and Consumer Industry. Any slowdown in these end-use industries or any other adverse changes in the conditions affecting the plastic processing and converting and packaging machines market can adversely impact its business, financial condition, results of operations, cash flows and prospects.
3. The company relies on the continued operations of its manufacturing facilities and any slowdown, shutdown or disruption in its manufacturing facilities may be caused by natural and other disasters causing unforeseen damages which may lead to disruptions in its business and operations, which in turn could have an adverse effect on its business, results of operations, financial condition and cash flows.
4. The company faces significant competitive pressures in its industry. The company inability to compete effectively would be detrimental to its business and prospects for future growth.
5. The company derives a significant portion of its revenue from operations from its top ten customers of the company revenue from operations. Loss of any of these customers or a reduction in purchases by any of them could adversely affect its business, results of operations and financial condition.
6. The company is exposed to foreign currency fluctuation risks, particularly in relation to import of raw materials and export of products, which may adversely affect its results of operations, financial condition and cash flows.
7. If the company fails to protect, or incur significant costs in defending, its intellectual property and other proprietary rights, its business, results of operation and financial condition could be materially harmed.
8. Its business is manpower intensive. The company's business may be adversely affected by work stoppages, increased wage demands by its employees, or increase in minimum wages across various states, inability to attract or train skilled personnel and if the company is unable to engage new employees at commercially attractive terms.
9. The company failures to keep its technical knowledge confidential could erode the company competitive advantage.
10. The company appoint contract labour for carrying out certain of its ancillary operations and its may be held responsible for paying the wages of such workers, if the independent contractors through whom such workers are hired default on their obligations, and such obligations could have an adverse effect on its results of operations, cash flows and financial condition.