1. The Company does not own any manufacturing facility and its therefore depends on third-party manufacturers and therefore, the company is subject to risks associated with the third-party manufacturing processes.
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2. The company is dependent on its Top 5 suppliers for uninterrupted supply of papers. Any disruption in supply of papers from these third-party manufacturers will adversely affect its operations.
3. The company is dependent on few customers. Any loss of business from one or more of them may adversely affect its revenues and profitability.
4. The Company, its Directors and its Promoters are party to certain litigation and claims. These legal proceedings are pending at different levels of adjudication before various forums and regulatory authorities. Any adverse decision may make it liable to liabilities/penalties and may adversely affect its reputation, business and financial status.
5. Trade Receivables form a substantial part of its current assets and net worth. Failures to manage its trade receivables could have an adverse effect on its net sales, profitability, cash flow and liquidity.
6. Its lenders have created charge over the assets of the Company in respect of borrowings that have been availed by it.
7. The Company has reported negative cash flow in the recent past. Any negative cash flows in the future would adversely affect its cash flow requirements, which may adversely affect its ability to operate its business and implement the company's growth plans, thereby affecting its financial condition.
8. Its financing agreements contain certain restrictive covenants which may affect its financial and operational flexibility. In the event of breach of any covenants in its financing agreements, its lenders may take any action in connection with such breaches which may have a material adverse effect on its business, results of operation, financial condition and prospects.
9. The company is dependent on its key managerial personnel, management team and other key employees, the loss of, or its inability to attract or retain, such persons could adversely affect its business, result of operations, financial condition, and cashflows.
10. The company generally does business with its customers on purchase order basis and does not enter into long term contracts with most of them.