1. The company derive a significant portion of its revenue from operations from domestic sales which exposes it to risks specific to Indian geographies and market.
2. The Company derive revenue from diversified customers. its inability to acquire new customers or loss of all or a substantial portion to any of the company major customers, for any reason and/or continued reduction of the business from them, could have a material adverse impact on its business, results of operations, cash flows and financial condition.
3. The Company is dependent on limited number of suppliers for supply of raw materials and the company has not made any long-term supply arrangement or agreement with its suppliers. In an eventuality where the company suppliers are unable to deliver it the required materials, at a competitive price, in a time-bound manner it may have a material adverse effect on the company business operations and profitability. The majority of its raw materials are sourced from few key suppliers. Discontinuation of the operations of such suppliers may adversely affect the company ability to source raw materials at a competitive price.
4. Any increase in the cost of the company raw material or a shortfall in the supply of its raw materials, may adversely affect the pricing and supply of the company products and have an adverse effect on its business, results of operations and financial condition.
5. Inadequate storage conditions of raw materials may compromise product integrity and affect business operations and financial conditions.
6. Our inability to procure and/or maintain adequate insurance cover in connection with our business may adversely affect our results of operations, cash flows and financial condition.
7. Our factories are subject to operating risks. Any shutdown of our existing factories or other production problems caused by unforeseen events may reduce sales and adversely affect our business, cash flows, results of operations and financial condition.
8. Our Company reported negative cash flow from its operating activity in financial year 2023. Sustained negative cash flow could adversely impact our business, financial condition and results of operations.
9. There have been some instances of delay and discrepancies with respect to filing of certain forms with the Registrar of Companies in the past, which may be subject to regulatory actions and penalties.
10. Shortage or unavailability of electricity and fuel could affect our manufacturing operations and may have an adverse effect on our business, results of operations and financial condition.