1. There are outstanding legal proceedings involving the Company, Promoters and Directors. Any adverse decision in such proceeding may have a material adverse effect on its business, results of operations and financial condition.
2. The Company has been formed specifically for the purpose of acquisition of the business of M/s Owais Ali Overseas (Proprietorship firm of its Promoter) thus the company has limited operating history as a Company which may make it difficult for investors to evaluate its historical performance or prospects.
3. Its Registered Office is not owned by it. The same is occupied by the company on a lease basis. Disruption of its rights as lessee or termination of the agreements with its lessor would adversely impact its operations and, consequently, its business.
4. Substantial portion of its revenues has been dependent upon few customers, with which the company does not have any firm commitments. Loss of its key customers or significant reduction in demand from, its significant customers may materially and adversely affect its business and financial performance.
5. Its business involves usage of manpower and any unavailability of the company employees or shortage of contract labour or any strikes, work stoppages, increased wage demands by workmen or changes in regulations governing contractual labour may have an adverse impact on its cash flows and results of operations.
6. Any failure to maintain quality control systems for its goods could have a material adverse effect on the company's business, reputation, results of operations and financial condition.
7. The Company have undertaken business activities not contained into the Main Object clause of the MOA. Although due rectification of the MOA non-compliance has been made, we are not sure if the Company may be subjected to penalties for any of its past actions in this respect.
8. The company generally do business with its customers on purchase order basis and do not enter into long term contracts with most of them.
9. The company does not generally enter into agreements with its raw material suppliers or traded goods suppliers. Any disruption in supplies from them may adversely affect its production process.
10. Its continued operations are critical to the company's business and any shutdown of its manufacturing unit may adversely affect the company's business, results of operations and financial condition.