The company has no long-term agreements for raw material supply; inability to procure quality raw materials at competitive prices could adversely affect its business and financial condition.

A significant portion of revenue comes from a few key customers; the top ten customers contributed about 68.85% of revenue in FY2026, and losing any could materially impact the company's results.

The company is subject to export obligations under duty exemption schemes such as Advance Authorisation and EPCG; non-compliance or adverse foreign trade policy changes could affect its operations.

A slowdown, supply disruption, regulatory change or commodity price volatility in the technical textile yarn industry could materially and adversely affect the company's production costs and margins.

The company's dependence on exports, particularly to China and other foreign countries, exposes it to international market risks, regulatory changes and geopolitical uncertainties.

The company's business is heavily dependent on sales of para-aramid based spun yarn and 100% polypropylene spun yarn; any reduction in demand for these products could adversely affect revenue.

The company operates in a single business segment, spinning of technical textile yarn; adverse developments in this segment could significantly affect its overall business and profitability.

If the company is unable to make adequate investments in manufacturing technologies for its capital-intensive production facilities, its competitiveness and operating results could be impaired.

The company depends on a limited number of customer-approved suppliers for para-aramid fibres and other raw materials; disruption in these supplies could adversely affect production and operations.

There have been certain discrepancies and errors in filings with the Registrar of Companies and other non-compliances, which could attract penalties and adversely affect the company's reputation.