1. The company does not own certain premises, including the registered office, used by the Company. Disruption of its rights as licensee/ lessee or termination of the agreements with the company licensors/ lessors would adversely impact its operations and, consequently, the company business.
2. There are certain outstanding litigations against the Company and by the Company, which if determined against it, could adversely impact its financial conditions.
3. There are outstanding litigations against the Group Company and by the Group Company which if
determined against it, could adversely impact its financial conditions.
4. The Company has reported certain negative cash flows from its operating, investing, and financing
activities. Any operating losses or negative cashflows in the future could adversely affect the company results of operations and financial condition.
5. There have been instances of delays in payment of statutory dues, i.e. EPFO and ESIC, the Company.
6. There have been certain instances of regulatory non-compliances or delays or errors in the past. The company may be subject to regulatory actions and penalties for any such non-compliance or delays or errors and its business, financial condition and reputation may be adversely affected.
7. The company is subject to various laws and regulations, including environmental and health and safety laws and regulations. If its fail to obtain, maintain or renew the licenses, permits and approvals required to operate the company business, or fail to comply with applicable laws, its business, results of operations and financial condition may be adversely affected.
8. Most of the company businesses are operated in and from the state of Tamil Nadu. Due to this geographic concentration of its business operations, the company results of operations and growth might be restricted to the economic and demographic conditions of Tamil Nadu.
9. The auditors' report on the company financial statements contains certain qualifications and matters of emphasis included in the annexure to the auditors' reports issued under Companies.
10. The Company has loans which are repayable on demand.