1. The Company and its Directors are parties to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, result of operations and financial conditions.
2. Its business is substantially dependent on certain key customers, from whom the company derives a significant portion of its revenues. The loss of any significant customer may have a material and adverse effect on its business and results of operations.
3. The company is dependent on its Top 10 suppliers for uninterrupted supply of Raw-Materials. Any shortfall in the supply of its raw materials, or an increase in its raw material costs and other input costs, may adversely affect the pricing and supply of its products with subsequently having an adverse effect on the business, results of operations and financial conditions of the company.
4. Revenues are recorded on the basis of the execution of the contracts. Its order book may not necessarily indicate future income, however, the company actively manage projects, addressing potential delays, modifications, cancellations, or payment variations from clients.
5. Its inability to qualify for or win large EPC contracts and compete with other engineering companies could adversely affect its margins and results of operations.
6. The company is required to furnish financial and performance bank guarantees as part of its business. The company is actively working to secure necessary bank guarantees and are confident in its ability to do so successfully. In the rare event of challenges, its proactive approach ensures effective resolution, minimizing the risk of bid security or earnest money deposit forfeiture.
7. The company is exposed to significant construction risks on fixed-price or lump-sum turnkey contracts.
8. Its business requires the company to obtain and renew certain licenses and permits from government, regulatory authorities and the failure to obtain or renew them in a timely manner may adversely affect its business operations.
9. Its industry is labour intensive, and its business operations may be materially adversely affected by strikes, work stoppages or increased wage demands by its employees or those of the company suppliers.
10. The company generally do business with its customers on purchase order basis and does not enter into long-term contracts with most of them.