1. The company has certain outstanding litigation against it, an adverse outcome of which may adversely affect the company's business, reputation and results of operations.
2. The manufacturing activities in the Company has been started post the purchase of assets and liabilities from the M/s Yash Lenses (Proprietorship firm of one of its Promoter Mr. Tarun Manahrlal Doshi) thus the company has limited operating history as a Company which may make it difficult for investors to evaluate its historical performance or future prospects.
3. The Company has signed distributor agreement with HOYA Lens India Private Limited for exclusive right to sell, market and distribute the "Pentax" brand of ophthalmic lenses. Its inability to renew or maintain said agreement may have an adverse effect on its business operations.
4. Its business is dependent and will continue to depend on the company's manufacturing facility, and the company is subject to certain risks in its manufacturing process. Any slowdown or shutdown in its manufacturing operations or strikes, work stoppages or increased wage demands by its employees that could interfere with the company operations could have an adverse effect on its business, financial condition and results of operations.
5. Its existing manufacturing facility are concentrated in a single region i.e., Mumbai, Maharashtra and the inability to operate and grow its business in this particular region may have an adverse effect on the company's business, financial condition, results of operations, cash flows and future business prospects.
6. The company has not placed orders for the purchase of plant and machinery for which part of the funds are being raised through the Issue. In the event of any delay in placing the orders, or in the event the vendors are not able to provide the plant and machineries in a timely manner, or at all, the same may result in time and cost over-runs.
7. Within the parameters as mentioned in the chapter titled "Objects of this Issue" beginning on page 79 of this Draft Red Herring Prospectus, the Company's management will have flexibility in applying the proceeds of the Issue. The fund requirement and deployment mentioned in the Objects of this Issue have not been appraised by any bank or financial institution.
8. The company does not have long-term agreements with suppliers for its raw materials and an increase in the cost of, or a shortfall in the availability or quality of such raw materials could have an adverse effect on its business, financial condition and results of operations.
9. The Restated Financial Statements have been provided by Peer Reviewed Chartered Accountants who is not Statutory Auditor of the Company.
10. Inventories and trade receivables form a major part of its current assets. Failure to manage the company's inventory and trade receivables could have an adverse effect on its sales, profitability, cash flow and liquidity.