A significant portion of the company's revenue is derived from Unsaturated Polyester Resins, and such dependence on a single product category exposes it to concentration risk, whereby any adverse change in demand, pricing or raw material availability could affect operations and financial condition.

The majority of revenue is derived from the manufacturing vertical, and all manufacturing facilities are located in Haryana, exposing the company to operational risks arising from disruption, slowdown or shutdown at any of its Haryana-based plants.

The company's business is manpower intensive, and any significant increase in employee attrition could adversely affect its business, financial condition, results of operations and cash flows.

The company's business is manpower intensive and may be adversely affected by work stoppages, increased wage demands or an inability to engage new employees on commercially attractive terms, which could adversely affect business and cash flows.

There have been instances of non-compliances, discrepancies and delays with respect to certain secretarial and regulatory filings for corporate actions in the past, and such non-compliance may attract penalties that could impact the company's financial position.

The company had negative cash flow from investing and financing activities in the past and may continue to have negative cash flows from these activities in the future.

The company has availed cash credit and working capital facilities, and proposes to utilise a portion of the Net Proceeds towards repayment of certain borrowings; any inability to comply with the terms of these facilities or any future indebtedness may adversely affect business and results.

The company has significant receivables on its books from customers, and such receivables not being realised or turning NPA could have a significant impact on working capital and the overall financial health of the company.

The company's manufacturing process involves hazardous and inflammable industrial chemicals, entailing significant risks and enhanced compliance obligations, and any failure to adhere to environmental regulations on hazardous waste, VOC emissions and pollution control could disrupt operations and result in penalties.

One of the objects of the Issue is to utilise the Net Proceeds towards investment by way of loan to the wholly owned subsidiary for the purchase and installation of plant and machinery at its manufacturing facility, and any delay or inability to complete this capital expenditure within the anticipated timelines may adversely affect financial projections and results of operations.