1. The lithium battery industry is vulnerable to supply chain disruptions caused by its reliance on a few critical raw materials like lithium, nickel, cobalt, graphite, and manganese, which, if disrupted, can lead to shortages and higher costs and adversely impact our profitability.
2. We do not have long term contracts or exclusive arrangements with any of our suppliers, and a significant increase in the cost of, or a shortfall in the availability, or deterioration in the quality, of such input materials could have an adverse effect on our business and results of operations.
3. We are dependent on, and derive a substantial portion of our revenue from, two customers, namely M/s Agarwal Trading Company and M/s. Hind Industries - both categorised as "Promoter Group entities". Reduction in orders from these customers could have a material adverse effect on our business, results of operations and financial condition. The dependency on these two customers may lead to real or potential conflicts of interest for our Company.
4. We have had negative cash flows in the past and may have negative cash flows in the future.
5. We are significantly reliant on the banking industry for sale of our products.
6. Heavy dependence on raw material imports from China poses a substantial risk for us, as disruptions due to political tensions or trade disputes can lead to supply chain interruptions, quality control issues, and heightened competition, which could adversely affect our business, results of operations and financial condition.
7. The loss of any of our key customers or significant reduction in production and sales of, or demand for our products from our significant customers may adversely affect our business, results of operations and financial condition.
8. We have in past entered into related party transactions and we may continue to do so in the future.
9. Our Promoter is interested in our Company in the form of rental income from leasing of 5 factory units at Vasai in addition to provision of interest free unsecured loan.
10. If there is a decline in demand for the products where our batteries are used, it could significantly decrease the demand of our products and thereby affect our business, financial condition, results of operations.