1. The company do not have long-term agreements with the company 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 negative impact on the company business, results of operations, financial condition and cash flows.
2. The pricing in the steel industry is subject to market demand, volatility and economic conditions.
Fluctuations in steel prices may have a material adverse impact on its business, results of operations, prospects and financial conditions.
3. The company is dependent on a few customers for a major part of its revenues. Further the company do not enter into long-term arrangements with its customers and any failure to continue the company existing arrangements could adversely affect its business and results of operations.
4. A significant portion of the company domestic sales are derived from the western and north zone and any adverse developments in this market could adversely affect its business.
5. The company business is working capital intensive. If its experience insufficient cash flows from the
operations or are unable to borrow to meet the company working capital requirements, it may materially and adversely affect its business and results of operations.
6. The company business is a high volume-low margin business. Due to this nature of its business, sudden changes with respect to price movements in goods being traded or sudden ad hoc anomalies in
business or operations could substantially affect the company net bottom lines and hence, adversely affect its results of operations and financial conditions.
7. The company has experienced negative cash flows in relation to its operating, investing and financing
activities in the last three financial years. Any negative cash flows in the future would adversely
affect the company results of operations and financial condition.
8. The company operate in a highly competitive and fragmented industry with low barriers to entry and may be unable to compete successfully against existing or new competitors, the organized and unorganized.
9. The company has in the past entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interest with the equity shareholders.
10. Most of the company Directors do not have any prior experience of being a director in any other listed company in India.