The company derives a significant part of its revenue from a group of select products. If the company fails to offer any of these products, its business, financial condition and results of operations may be adversely affected.

The company is dependent on limited number of suppliers for supply of its traded products and the company has not made any long term supply arrangement with its suppliers. In an eventuality where the company suppliers are unable to deliver it the required materials in a time-bound manner it have a material adverse effect on its business operations and profitability.

The company does not have long term agreements with its customers and relies on purchase orders for delivery of its products. Loss of one or more of its customers or a reduction in their demand for the company products could adversely affect its business, results of operations and financial condition.

Its operations are heavily dependent on industries where products are supplied, which includes paints and coatings, printing inks, agro-chemical products, specialty polymers, pharmaceuticals products, specialty industrial chemicals, etc.

Its business is working capital intensive involving high level of inventories and trade receivables. The company requires substantial financing for its business operations. The company indebtedness and the conditions and restrictions imposed on by its financing arrangements could adversely affect the company ability to conduct its business.

There are pending litigations against the Company, certain of its Promoters, and its Directors. Any adverse decision in such proceedings may render it/them liable to liabilities/penalties and may adversely affect its business, results of operations and financial condition.

Its inability to accurately forecast demand or price for the company products and to manage its inventory may adversely affect the company business, results of operations and financial condition.

The company has certain contingent liabilities which may adversely affect its financial condition.

The company has experienced negative cash flows from operation activities in the prior periods.

The company has partially hedged or in some cases not hedged its foreign currency exposure, which may cause a negative impact to its business and financial conditions in case of fluctuations of foreign currency.