1. The company has certain outstanding litigation against it, an adverse outcome of which may adversely affect its business, reputation and results of operations.
2. The company does not have its own manufacturing facility for pharmaceutical products and the company has to relies on third parties for procuring pharmaceutical products sold by the Company.
3. Its existing manufacturing facility for freeze dried and frozen products is concentrated in a single region i.e., Ankelshwar, Gujarat and the inability to operate and grow its business in this particular region may have an adverse effect on its business, financial condition, results of operations, cash flows and future business prospects.
4. The company operates in a highly regulated and controlled industry environment. The Company operates under several statutory and regulatory permits, licenses and approvals. The company failures to obtain and/or renew any approvals or licenses in future may have an adverse impact on its business operations.
5. The company failures to comply with applicable quality standards may result in product liability claims, which could adversely affect its business, financial condition, cash flows and results of operations.
6. The availability of counterfeit drugs, such as those passed off by others as its products, and the introduction of alternative pharmaceutical products due to changes in technology or consumer needs, could adversely affect its goodwill, results of operations, financial results, and business prospects.
7. Any disruptions to the supply, or increases in the pricing, of the raw materials and finished products that the company outsource, may adversely affect the supply and pricing of its products and, in turn, adversely affect the company business, cash flows, financial condition and results of operations.
8. Its Group Companies has incurred losses in past financial years.
9. The Company had negative cash flows in the past years, details of which are given below. Sustained
negative cash flow could impact its growth and business.
10. The company is dependent upon few suppliers for the material requirements of its Freeze dried and Frozen Products business. Further, the company does not have definitive agreements or fixed terms of trade with most of its suppliers. Failures to successfully leverage the company relationships with existing suppliers or to identify new suppliers could adversely affect its business operations.