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