1. Our business is significantly dependent on demand from our application industries, in particular
pharmaceutical industry. We derived 96.64%, 90.85%, 93.86% and 90.48% of our revenue from
operations during the 6 months ended September 30, 2024, Fiscal 2024, Fiscal 2023 and Fiscal 2022,
respectively, from the pharmaceutical industry. Any downturn in the application industries could have an adverse impact on our Company's business and results of operations.
2. Our business is significantly reliant on certain key customers, and we derived 59.37%, 54.09%, 50.31% and 62.44% of our revenue from operations during the 6 months ended September 30, 2024, Fiscal 2024, Fiscal 2023 and Fiscal 2022, respectively, from our top 10 customers. Further, we do not enter into any long term contracts with our customers. Loss of any of these customers or loss of revenue from sales to any key customers could have a material adverse effect on our business, financial condition, results of operations and cash flows.
3. Our source of revenue is concentrated to certain geographical locations. Further, our revenue from
operations is also concentrated to certain regions in India. Our inability to operate and grow our
business in such locations may have an adverse effect on our business, financial condition, result of operation, cash flow and future business prospects.
4. We are significantly reliant on a few vendors, and we do not enter into long-term contracts or
arrangements with our vendors. Any loss of vendors will have a material adverse impact on our
business and our revenue. Further, if we are unable to procure raw materials of the required quality and quantity, at competitive prices, our business, results of operations and financial condition may be adversely affected.
5. Revenue from manufacturing API intermediates constitutes a significant majority of our revenue from operations and failure to maintain and augment our revenue therefrom could materially adversely affect our business and financial condition.
6. Failure to meet quality standards required by our customers may lead to cancellation of existing and
future orders and expose us inter alia to warranty claims, including monetary liability, which may
have an impact on our reputation, business and our financial condition.
7. We are dependent on third party logistic and support service providers for the delivery of raw materials and finished products and any disruptions in their services including transportation services or a decrease in the quality of their services may adversely affect our business, financial condition and results of operations.
8. Our Company has a high working capital requirement and if our Company is unable to raise sufficient
working capital, the operations of our Company will be adversely affected.
9. Delays in payments from our customers exposes us to credit risk and it may have an adversely impact
our results of operations and cash flows.
10. We have incurred indebtedness which exposes us to various risks which may have an adverse effect
on our business, results of operations and financial conditions. Conditions and restrictions imposed on us by the agreements governing our indebtedness could adversely affect our ability to operate our business.