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Most of its business operations are in and from the state of Maharashtra. Due to this geographic
concentration of its business operations, the company results of operations and growth might be restricted to the economic and demographic conditions of Maharashtra.
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The company is dependent on a few customers for majority of its revenues and its also do not have any long-term arrangements with the company customers, could adversely affect its business and results of operations.
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The company is dependent on a few suppliers for the third-party products which its provide to its
customers. The failure of the company suppliers to deliver these products in the necessary quantities, on time or to meet specified quality standards or technical specifications, could adversely affect its business and the company ability to deliver orders on time.
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The company is highly dependent on its Promoters, management team and certain key personnel, and the
loss of any key team member may adversely affect its business and results of operations.
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The company face competition in its business from organized and unorganized players, which may adversely affect its business operation and financial condition.
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Its revenue is dependent on domestic market and the company does not have any export revenue. Any adverse changes in the conditions affecting domestic market could adversely affect its business, results of operations and financial condition.
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There have been certain instances of non-compliance in the past, including with respect to certain secretarial / regulatory filings for corporate actions taken by the Company. There are also certain discrepancies in secretarial records filed with the RoC. Its may be subject to regulatory actions and penalties for such non-compliance and its business, financial condition and reputation may be adversely affected.
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Some of its Share Transfer Forms are not traceable.
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Rectification in the address of registered office of the Company.
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The company registered office is not owned but on leasehold basis. Its cannot assure you that upon
termination the lease agreement will be renewed or that its will be able to take on lease other
premises on the same or similar commercial terms.
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Non-compliance in obtaining shareholders resolution to appoint Mr. Sankaranarayanan
Ramasubramanian on him attaining 70 years of age.
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The company operates in a competitive environment and may not be able to effectively compete with similar companies, which could have a material adverse effect on its business, results of operations and financial condition.
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The company have sustained negative cash flows in the past. Any negative cash flows in the future would adversely affect its cash flow requirements, which may adversely affect the company ability to operate its business and implement its growth plans, thereby affecting the company financial condition.
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The company is subject to various laws and regulations, including environmental, health and safety laws and regulations and labour laws in India, which may subject it to increased compliance costs, which may in turn result in an adverse effect on its business, results of operations and financial condition.
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If the company is not able to accurately forecast demand for its products and service offerings, the company`s business, cash flows, financial condition, results of operations and prospects may be adversely affected.
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The company will not receive any proceeds from the Offer for Sale.
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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 courts and regulatory authorities. Any adverse decision may make it liable to liabilities/penalties and may
adversely affect its reputation, business and financial status. A classification of these legal and other proceedings is given below.
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The company have entered, and will continue to enter, into related party transactions which may involve conflicts of interest. Further, its Promoters, Directors and Key Managerial Personnel have interests in it other than reimbursement of expenses incurred and normal remuneration or
benefits.
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The company requires to comply with certain restrictive covenants under its working capital financing agreements. Any non-compliance may lead to, amongst others, suspension of further drawdowns, which may adversely affect its business, results of operations and financial conditions.
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If the company is unable to retain and hire Key Managerial Personnel or to maintain good relations with its workforce, the company`s business and financial condition may be adversely affected.
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If the company fail to maintain an effective system of internal controls, its may not be able to successfully manage, or accurately report, its financial risks.
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The company insurance coverage may not adequately protect us from all material risks and liabilities.
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The Company may not be able to pay dividends in the future. Its ability to pay dividends in the
future will depend on the company earnings, financial condition, working capital requirements, capital expenditures and restrictive covenants of its financing arrangements.
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Its may not be able to adequately protect its intellectual property rights, since the company
does not own any intellectual property rights, which could harm its competitiveness.
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The company requires certain approvals, licenses, registration and permits for its business, and failure to obtain or renew them in a timely manner may adversely affect its operations.
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The company cannot guarantee the accuracy or completeness of facts and other statistics with respect to India, the Indian economy and industry in which the company operates contained in the Draft Prospectus.
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Its Promoters and Promoter Group will retain majority shareholding in the Company following
the Offer, which will allow them to exercise significant influence over it and may cause it to take actions that are not in its or your best interest.