1. We cater to diverse set of customers, however, our top 10 customers contribute a majority of our sales, and the loss of such customers or a substantial reduction in purchases by such customers will have a material adverse impact on our business, results of operations and financial condition.
2. Purchase of maize from our top 10 vendors constitute more than 83% of our total purchase of maize, in each of the financial periods disclosed, and we typically do not enter into long-term contracts or arrangements with such vendors. Any loss of such vendors/suppliers or any increase in the price could have adverse impact on our business and our revenue.
3. The primary raw material required for the manufacturing our products i.e., maize, is seasonal in nature. While our Manufacturing Facility is located in the maize-growing belt, any delays, interruptions or reduction in the supply of raw material to manufacture our products and any abrupt fluctuations in the prices of our raw material may adversely affect the pricing of our products and may have an impact on our business, results of operation, financial condition and cash flows.
4. We have incurred indebtedness which exposes us to various risks which may have an adverse effect on our business, results of operations and financial conditions. Conditions and restrictions imposed on us by the agreements governing our indebtedness could adversely affect our ability to operate our business.
5. There is a concentration of sales in certain geographies and the inability to maintain and grow our business in such geographies may have an adverse effect on our business, financial condition, result of operation, cash flows and future business prospects.
6. Our success depends on our strong relationship with our customers and majority of our customers are repeat customers. However, we do not enter into long-term contracts with our customers and loss of one or more of our customers or reduction in their demand for our products could adversely affect our business, results of operation and financial conditions.
7. Our success depends on our strong relationship with our distributors and dealers. We do not, generally, enter into long-term contracts and arrangements with our distributors and dealers. Loss of one or more of our distributors and dealers could adversely affect our business, results of operation and financial conditions.
8. Any failure on our part to effectively manage our inventory may result in an adverse effect on our business, revenue from manufacturing operations and financial condition.
9. The manufacturing of `maize based speciality products' requires controlled conditions such as certain levels of temperature, a certain standard of hygiene and calibration.
10. A significant portion of our revenue from operation is generated from sale of native maize starch. A general decline or disruption in the demand or pricing of native maize starch may adversely affect our business operations, results of operations and financial condition.