1. The company is highly dependent on certain key customers for a substantial portion of its revenues and the company does not have long term contracts with all of these customers. Loss of relationship with any of these customers may have a material adverse effect on its profitability and results of operations.
2. The company depends on a certain supplier for its raw materials required for its operations and the company does not have long-term agreements with suppliers for its raw materials and an increase in the cost of, or a short fall in the availability or quality of such raw materials could have an adverse effect on its business, financial condition and results of operations.
3. The company has certain outstanding litigation against it, an adverse outcome of which may adversely affect the company business, reputation and results of operations.
4. The company does not possess patents for its processes, which may result in inadequate protection of its intellectual property rights. This could potentially have a substantial adverse effect on its business and operational outcomes.
5. Its business is dependent and will continue to depends on the company manufacturing facilities, and its subject to certain risks in the company manufacturing process. Any slowdown or shutdown in its manufacturing operations or strikes, work stoppages or increased wage demands by its workers that could interfere with the company operations could have an adverse effect on its business, financial condition and results of operations.
6. 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.
7. Its operations are dependent on the company R&D capabilities and an inability to continue to design complex chemistries may adversely affect its business.
8. The company generate its major portion of sales from its operations in certain geographical regions especially, Gujarat, Maharashtra, Telangana and Haryana. Any adverse developments affecting the company operations in these regions could have an adverse impact on its revenue and results of operations.
9. The Restated Financial Statements have been provided by Peer Reviewed Chartered Accountants who is not Statutory Auditor of the Company.
10. Its Registered Office is not owned by it taken on rental basis. If the company is unable to renew existing rental agreements or relocate its operations on commercially reasonable terms, there may be a material adverse effect on its business, financial condition, results of operations and cash flows could be adversely affected.