1. The company currently operate a single manufacturing facility located at Roorkee and relies on its two production lines to manufacture all its glass products. A slowdown or disruption in its manufacturing operations could have a material and adverse impact on its business operations and financial performance.
2. The company is in the process of further expanding its operations in southern and western States of India including through setting up a new manufacturing facility in the state of Karnataka. An inability to effectively manage such new manufacturing facility or develop relationships with new business associates for products manufactured at such new facility may adversely impact its business prospects and financial performance.
3. Its proposed capacity expansion plans are subject to the risk of unanticipated delays in implementation and cost overruns.
4. The continuing impact of the COVID-19 pandemic on its business operations and financial performance is uncertain, and may have an adverse impact on its business prospects and financial performance.
5. The Company proposes to utilize a portion of the Net Proceeds to repay/ pre-pay all or certain borrowings availed by the Company and fund working capital requirements. Its may not be able to derive the expected benefits of the deployment of the Net Proceeds, in a timely manner, or at all.
6. The company is required to comply with certain restrictive covenants under its financing agreements. Any non-compliance may lead to, amongst others, accelerated repayment schedule, enforcement of security, and suspension of further drawdowns, which may adversely affect its business operations and financial performance.
7. Under-utilization of its existing and proposed manufacturing facilities and an inability to effectively utilize its expanded manufacturing capacities could have an adverse effect on its business, future prospects, and future financial performance.
8. An inability to protect and further strengthen and enhance its brand and business reputation could adversely affect its business prospects and financial performance.
9. Its business is dependent on the sale of its products to its business associates with whom the company may not have long-term arrangements and any failure to continue its existing arrangements could negatively affect its business and results of operations.
10. The company do not have long-term agreements with its suppliers for raw materials, and an inability to procure the desired quality, quantity of its raw materials in a timely manner and at reasonable costs, or at all, may have a material adverse effect on its business, results of operations, financial condition, and cash flows.