1. The company operations are dependent on its R&D capabilities and an inability to continue to design complex chemistries may adversely affect the company business.
2. The company's business is dependent and will continue to dependa on its manufacturing facilities, and the company is subject to certain risks in the manufacturing process. Any slowdown or shutdown in the manufacturing operations or strikes, work stoppages or increased wage demands by the company employees that could interfere with its operations could have an adverse effect on the business, financial condition and results of operations.
3. The company is subject to certain risks consequent to its operations involving the manufacture, usage and storage of various hazardous substances.
4. The company derives a significant part of its revenue from major customers and the company do not have long term contracts with all of these customers. If one or more of such customers choose not to source their requirements from it or to terminate its long-term contracts, the company business, financial position and results of operations may be adversely affected.
5. The company reliance on certain industries for a significant portion of its sales could have an adverse effect on the business.
6. The company does not hold patents for any of its processes and the trademark application for the company logo is opposed. There might be insufficient protection for its intellectual property rights, potentially leading to significant negative impact on the business and results of operations.
7. The company derives a majority portion of its revenues from exports and are subject to risk of international trade.
8. Exchange rate fluctuations may adversely affect the company results of operations as its sales from exports and a portion of the company expenditures are denominated in foreign currencies.
9. The names of the company Promoter and Whole Time Director, Kishorkumar Panchabhai Patolia and its Non-Executive Director, Dr. Soumitra Sachipati Banerjee were appearing in the list of disqualified directors in the past.
10. The company is subject to strict quality requirements, regular inspections and audits, and the success and wide acceptability of its products is largely dependent upon the quality controls and standards. Any failure to comply with quality standards may adversely affect the company business prospects and financial performance, including cancellation of existing and future orders.