1. The company business is dependent and will continue to depends on its manufacturing facilities, and the company is subject to certain risks in its manufacturing process. Any slowdown or shutdown in the company manufacturing operations could have an adverse effect on its business, financial condition and results of operations.
2. The company propose to utilise a substantial portion of the Net Proceeds of the Offer towards its Expansion Project and the company efforts to expand its production capabilities are subject to delays, cost overruns, and other risks and uncertainties.
3. If the company fail to effectively implement its production schedules, the company business and results of operations may be materially and adversely affected.
4. Most of the company customers do not commit to long term contracts, and may cancel their orders, change production quantities, delay production or change their sourcing strategy.
5. If the products the company manufacture experience quality defects or if the manufacturing services its provide are found to be deficient, its may lose the company customers and may be subject to product liability claims or claims alleging deficiency in service, which may also cause damage to its reputation and/or adversely affect its results of operations and financial condition.
6. If the company cannot execute its strategies to expand existing customer accounts and geographical footprint effectively, its business and prospects may be materially and adversely affected.
7. Failure to manage component and material purchasing and shortages in the supply of its major production inputs could adversely affect the company ability to deliver contracted volumes of manufactured products, increase its inventory carrying costs, increase the company risk of exposure to inventory obsolescence and may have a material adverse effect on its results of operations and financial condition.
8. Failure to maintain optimal inventory levels could increase its inventory holding costs and adversely affect the company operations and financial condition.
9. The continuing impact of the COVID-19 pandemic on its business and operations is uncertain and it may be significant and continue to have an adverse effect on its business, operations and the company future financial performance.
10. The company is dependent on its Promoter, management team, a number of Key Managerial Personnel and persons with technical expertise and the loss of or the company inability to attract or retain such persons could adversely affect its business, results of operations and financial condition.