1. The Company, Promoter and Director are currently involved in certain litigation which is currently
pending at various stages. Currently the Company is also involved in certain tax-related proceedings; any adverse decision in such proceedings may render it liable to liabilities and penalties and may adversely affect its business and results of operations.
2. The company has certain contingent liabilities that have not been provided for in the Company's financials which, if materialized, could adversely affect its financial condition.
3. The Company's failure to maintain the quality standards of the products or keep pace with the technological developments could adversely impact its business, results of operations and financial condition.
4. The company is exposed to foreign currency exchange rate fluctuations, which may harm its results of operations, impact the company cash flows and cause its financial results to fluctuate.
5. There is an increased awareness towards controlling pollution and many economies including India have joined in the efforts to ban plastic product. In case any plastic packaging products manufactured by its banned in India or in any of the markets where the company export its products, it could have a material and adverse effect on its business and results of operations.
6. Its industry is labour intensive, and the company's business operations may be materially adversely affected by strikes, work stoppages or increased wage demands by its employees.
7. A significant portion of its revenues are dependent on its exports to the company international customers. Its generate
the company major portion of sales from its operations in certain countries especially Australia, New Zealand, the USA, Canada, Chile, Sweden, France, the UK, Germany, Spain, Malaysia, and Singapore. Any failure to fulfil the requirements of its international customers may adversely affect the company's revenues, result of operations and cash flows.
8. The Company has negative cash flows from its investing activities as well as financing activities in the past years, details of which are given below. Sustained negative cash flow could impact on its growth and business.
9. The Company has manufacturing facilities situated at Pithampur, Madhya Pradesh. Any delay in production at, or shutdown of, or any interruption for a significant period of time, in these facilities may in turn adversely affect its business, financial condition and results of operations.
10. The shortage or non-availability of power facilities may adversely affect its manufacturing processes and have an adverse impact on the company results of operations and financial condition.