1. There are outstanding legal proceedings involving the Company, Promoters and Directors. Any adverse decision in such proceeding may have a material adverse effect on its business, results of operations and financial condition.
2. Any manufacturing or quality control problems may disrupt its business operations, damage the company reputation for high quality production and expose it to potential litigation or other liabilities, which would negatively impact its business, prospects, cash flows, results of operations and financial condition.
3. The company highly depends on its major raw materials and a few key suppliers who help it procure the same. the Company has not entered into long-term agreements with its suppliers for supply of raw materials. In the event the company is unable to procure adequate amounts of raw materials, at competitive prices its business, results of operations and financial condition may be adversely affected.
4. The company conducts its business activities on a purchase order basis and therefore, has not entered into long-term agreements with its customers except government contracts.
5. Its business activities are exposed to fluctuations in the prices of raw materials.
6. If the company cannot respond adequately to the increased competition its expect to face, the company will lose market share and its profits will decline, which will adversely affect its business, results of operations and financial condition.
7. The company is required to obtain, renew or maintain certain statutory and regulatory permits and approvals required to operate its business and if the company fail to do so in a timely manner or at all and its business, financial conditions, results of operations, and cash flows may be adversely affected.
8. The Company is reliant on the demand from the pharmaceutical industry for a significant portion of its revenue. Any downturn in the pharmaceutical industry or an inability to increase or effectively manage its sales could have an adverse impact on the Company's business and results of operations.
9. Continued operations of its manufacturing facility are critical to the company business and any disruption in the operation of its manufacturing facility may have a material adverse effect on its business, results of operations and financial condition.
10. Majority of its revenue is dependent on two products i.e., ORS Powder and Liquid Orals, if the company is unable to anticipate or adapt to evolving upgradation of products or inability to ensure product quality or reduction in the demand of such products may adversely impact its revenue from operations and growth prospects.