1. The company does not have long-term agreements with its suppliers and the company may not be able to procure sufficient quantity or quality of raw materials from its suppliers in a timely manner and at an acceptable price and this may adversely affect the business, results of operations and financial conditions.
2. The company has in the past entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interest with the equity shareholders.
3. Its Manufacturing Facilities which the company has agreed to take on lease are situated on agricultural land and if the same does not get converted into non-agricultural land, the company may be required to vacate the premises and relocate its manufacturing Units to some other location or may be required to pay penalties which may have an adverse impact on its reputation, financial condition and operations.
4. 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 acquisition of equipment 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.
5. Under-utilization of its 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. Major portion of its revenues are derived from exports to the United States of America,
Canada and other overseas regions any adverse developments in these market or restrained
economic or political relations of India with the United States of America or International
community could adversely affect its business.
7. The Company has extended corporate guarantee to secure the debt facilities availed by sone of
its Promoter Group entities. In the event any such corporate.
8. The company operates out of two Manufacturing Facilities which are located at Ahmedabad, Gujarat, any localized social unrest, natural disaster or breakdown of services or any other natural disaster in and around Ahmedabad, Gujarat or any disruption in production at, or shutdown of, its manufacturing facilities could have material adverse effect on its business and financial condition.
9. Its Directors, Promoters and members of the Promoter Group members may enter into
ventures that may lead to real or potential conflicts of interest with its business.
10. The company is dependent on a few customers for a major part of its revenues. Further the company does not enter into long-term arrangements with its customers and any failure to continue the company existing arrangements could adversely affect its business and results of operations.