The tyre manufacturing industry is encountering difficulties because of limited suppliers for key raw materials such as natural rubber and carbon black. Further, the company does not have any long-term contracts with its suppliers and engage them by way of placing purchase orders. Volatility in the prices and availability of raw materials or any failures by its suppliers to make timely delivery of raw materials or breakdown of its relationship with such suppliers could have an adverse effect on its business, financial condition and results of operations.

The company is dependent on its automotive original equipment manufacturer ("OEM") customers for the sale of a significant portion of its agricultural tyres.

Its business is significantly dependent on the company's Manufacturing Facilities in India and abroad. Its entire infrastructure, facility and business operations are currently concentrated in Kalady, Kerala and Ras Al Khaimah, UAE. Any disruption in manufacturing at, or temporary or permanent shutdown of, its Manufacturing Facilities, may materially and adversely affect its business, prospects, financial condition and results of operations.

The company derives a portion of its revenue from the sale of bias tyres, which may result in pricing pressure that could adversely affect its profitability.

If the company is subject to product liability and other civil claims and costs incurred because of product recalls, it could expose it to costs and liabilities and adversely affect its reputation, business, revenues and profitability.

A significant portion of its tyre products are sold to dealers & distributors. The company does not enter into contractual agreements with its distributors and dealers and any failures to maintain the relationship with these dealers & distributors or find competent replacements could affect the sales of its products.

Its may faces an adverse impact on the company international sales and earnings as a result of risks associated with its international sales.

The Company and its Subsidiaries namely Tolin Rubbers Private Limited and Tolins Tyres LLC (One Person), have reported negative cash flow in the past. Any negative cash flows in the future would adversely affect its cash flow requirements, which may adversely affect its ability to operate the company's business and implement its growth plans, thereby affecting its financial condition.

The company is subject to various laws and regulations relating stringent environmental, health and safety laws, regulations and standards in India and abroad. Non-compliance with and adverse changes in health, safety and environmental laws and other similar regulations to its manufacturing operations may adversely affect the company's business, results of operations and financial condition.

The company faces competition from both domestic as well as multinational corporations and its inability to compete effectively could result in the loss of customers and its market share, which could have an adverse effect on the company's business, results of operations, financial condition and future prospects.