High dependence on the performance of the automotive sector in India, Europe, North America, Latin America, and some parts of Asia.
The company has defaulted in payment of certain loans in the past and had approached CDR Cell for restructuring debt in FY 2013.
Impact of any shortages, slowdown, or shutdown in its manufacturing operations leading to under-utilization at its existing manufacturing facilities.
Continuing impact of the outbreak of the COVID-19.
High dependency on its top 10 customers for revenue.
Demand for its products in foreign countries is subject to international market conditions and regulatory risks.
Any product defect issues or failure by the company to comply with quality standards.
Inability to secure adequate working capital on commercially reasonable terms.
Non-compliance with and changes in, safety, health, and environmental laws and other applicable regulations.
Manufacturing operations are geographically concentrated in Rajkot, Gujarat.
Company’s name and logo are not registered under the Trade Marks Act, 1999.
Inability to obtain, renew or maintain statutory and regulatory permits, licenses, and approvals required to operate its business and manufacturing facilities.
Absence of any long-term supply agreements with customers.
Lack of availability of raw materials or any fluctuation in the prices of raw materials required for its products.
Any failure of, or weakness in its internal control systems.