1. There are certain criminal litigations against its Promoter and Directors. In case these cases are decided against its Promoter and the other accused, it will cause loss of reputation of the company and that may affect its business, operations and financial conditions.
2. Its business operations relies significantly on the continuous and timely supply of products from Silkflex Polymers Sdn. Bhd ('Silkflex Malaysia') from whom the company purchase 74.86%, 96.04%, 97.81% and 96.48% of the total purchases for the period ended December 31, 2023 and for the financial years ended March 31, 2023, 2022 and 2021, respectively. Any discontinuation of same will adversely impact its overall performance and profitability.
3. Termination or non-renewal of the Silkflex Agreements by Silkflex Polymers Sdn. Bhd. or any material modification to the existing terms under such agreements adverse to its interest will materially and adversely affect the company's ability to continue its business and operations and its future financial performance.
4. The company has certain outstanding litigation against it, an adverse outcome of which may adversely affect its business, reputation and results of operations.
5. The company depends on the success of its relationships with its customers. The company's top ten customers contribute majority of its revenues from operations. If one or more of such customers choose not to source their requirements from it, its business, financial condition and results of operations may be adversely affected.
6. The company could become liable to customers, suffer adverse publicity and incur substantial costs as a result of defects in silkflex products, which in turn could adversely affect its business operations and its sales could be diminished if the company is associated with negative publicity.
7. The Company has made an application for conversion of agricultural land located in Village: Gothada, Taluka: Savli, District: Vadodra of Revenue Survey/ Block No.: 590 paiki2/paiki1 New Tenure, Gujarat, India (2999.99 Sq. mt.) and the same is under process. Any delay in getting approval from relevant government authorities will impact its business plans.
8. The company has certain outstanding litigation against its Promoter, an adverse outcome of which may adversely affect the company's business, reputation and results of operations.
9. Inventories and trade receivables form a major part of its current assets. Failure to manage the company inventory and trade receivables could have an adverse effect on its sales, profitability, cash flow and liquidity.
10. The Company has entered into related party transactions in the past and may continue to enter into related party transactions in the future, which may potentially involve conflicts of interest with the equity shareholders.