1. The company is in the process of expanding its operations and establishing a network of distributors & customers in regions where the company does not have a significant presence or prior experience. Any failure to expand into these new regions could adversely affect its sales, financial condition, result of operations and cash flows.
2. The company is dependent on a few customers for a major part of the revenues. Further its do not enter into long-term arrangements with the customers and any failure to continue the company existing arrangements could adversely affect its business and results of operations.
3. If there are delays in setting up the Proposed Facilities or if the costs of setting up and the possible time or cost overruns related to the Proposed Facilities or the purchase of plant and machinery for the Proposed Facilities are higher than expected, it could have a material adverse effect on its financial condition, results of operations and growth prospects.
4. The Company is dependent on the demand from the industries where its products find application
such as PVC pipes and tubes, PVC profiles, PVC fittings and electrical wires and cables. Any
downturn in such industries could have an adverse impact on the Company's business and results
of operations.
5. Under-utilization of the manufacturing capacities and an inability to effectively utilize the company expanded manufacturing capacities could have an adverse effect on its business, future prospects and future financial performance.
6. The company does not have long-term agreements with the suppliers for raw materials and an inability to procure the desired quality, quantity of the company raw materials in a timely manner and at reasonable costs, or at all, may have a negative impact on its business, results of operations, financial condition and cash flows.
7. The company intend to utilise a portion of the Net Proceeds for funding its capital expenditure requirements. The company is yet to place orders for such capital expenditure machinery.
8. Its inability to meet the preferences or consistent quality requirements of the customers or its inability to accurately predict and successfully adapt to changes in market demand could reduce demand for the company products and harm the company sales.
9. A significant portion of the company domestic sales are derived from the western zone and any adverse developments in this market could adversely affect its business.
10. The company operates out of a single Manufacturing Facility which is located at Palghar, Maharashtra and therefore, any localized social unrest, natural disaster or breakdown of services or any other natural disaster in and around Palghar, Maharashtra or any disruption in production at, or shutdown of, the company manufacturing unit could have material adverse effect on its business and financial condition.