1. We derive a significant portion of our revenue from operations from domestic sales which exposes us to risks specific to Indian geographies and market.
2. Our Company derive revenue from diversified customers. Our inability to acquire new customers or loss of all or a substantial portion to any of our major customers, for any reason and/or continued reduction of the business from them, could have a material adverse impact on our business, results of operations, cash flows and financial condition.
3. Our Company is dependent on limited number of suppliers for supply of raw materials and we have not made any long-term supply arrangement or agreement with our suppliers. In an eventuality where our suppliers are unable to deliver us the required materials, at a competitive price, in a time-bound manner it may have a material adverse effect on our business operations and profitability. The majority of our raw materials are sourced from few key suppliers. Discontinuation of the operations of such suppliers may adversely affect our ability to source raw materials at a competitive price.
4. Any increase in the cost of our raw material or a shortfall in the supply of our raw materials, may adversely affect the pricing and supply of our products and have an adverse effect on our 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.