1. A substantial portion of its revenues has been dependent upon a few customers, with which the company does not have any firm commitments. The loss of any one or more of its major customers would have a material adverse effect on its business, cash flows, results of operations, and financial condition.
2. The Company, some of its Promoters and its Group Company is involved in certain legal proceedings. Any adverse decision in such proceedings may render it / them liable to liabilities / penalties and may adversely affect its business and results of operations.
3. The company has in the past entered into transactions with related parties and may continue to do so in the future. These or any future related party transactions may potentially involve conflicts of interest and there can be no assurance that its could not have achieved better terms, had such arrangements been entered into with unrelated parties.
4. There has been certain non-compliance with the provisions of Companies Act, 2013 with respect to corporate actions taken by the Company. Consequently, its may be subject to regulatory actions and penalties for such non-compliance and its business and financial condition may be adversely affected.
5. Its future funds requirements, in the form of issue of capital or securities and/or loans taken by it, may be prejudicial to the interest of the Shareholders depending upon the terms on which they are eventually raised.
6. The Company has unsecured loans which are repayable on demand.
7. The company is required to maintain certain licenses, approvals, registrations, consents and permits in the ordinary course of business. Failure to obtain the requisite approvals result in noncompliance and therefore, affect its business operations, financial condition, result of operations and prospects.
8. There has been certain non-compliance with labour laws by the Company. Consequently, its may be subject to regulatory actions and penalties for such non-compliance and its business and financial condition may be adversely affected.
9. The company may not be successful in implementing its business strategies.
10. The company Promoters and Directors are also interested as a shareholder or director or partner in Group Companies, that are engaged in the business similar to the Company. In addition, its Group Company, Interstellar Testing Centre Private Limited is engaged in the business similar to the Company. This may lead to conflict of interest of its Group Company with the Company.