1. The company derives a substantial portion of its revenue from the distribution of long and flat steel products and loss of sales due to reduction in demand for such products would have a material adverse effect on its business, financial condition, results of operations and cash flows.
2. The company is heavily dependent on certain suppliers for whom the company is either distributors or have entered into formal agreements with, for procurement and sale of its steel and tractor products. Any disruption of supply from such entities may affect the company's business operations.
3. The company sell its products as well as products of third party manufacturers through a network of dealers. Accordingly, the company depends on its dealers for a significant portion of the company revenue, and any decrease in revenues or sales from any one of its key intermediaries may adversely affect the company's business and results of operations.
4. The company derives a significant portion of its revenues from repeat orders which the company identify as orders placed by dealers that have placed orders with the Company previously. Any loss of, or a significant reduction in the repeat orders received by it could adversely affect its business, results of operations, financial condition and cash flows.
5. Its business and profitability is substantially dependent on cost of steel, disruption to the timely and adequate supply of steel, or volatility in the prices of steel may adversely impact its business, results of operations, cash flows and financial condition.
6. The company has a limited operating history in respect of fabrication of pre-engineered buildings and steel girders, which may make it difficult for investors to evaluate its business and prospects.
7. Its business largely depends upon a few customers for some of the company's business segments. The loss of any of these customers could have a material adverse effect on its business, financial condition, results of operations and cash flows.
8. The company highly depends on a few key suppliers who help it procure raw materials in respect of its PVC pipes, pre-engineered buildings and steel girder segments. The Company has not entered into long-term agreements with its suppliers for supply of raw materials. In the event the company is unable to procure adequate amounts of raw materials, at competitive prices its business, results of operations and financial condition may be adversely affected.
9. The Company has been subjected to search and seizure in the past by the Income Tax authorities. Any future occurrence of such events or instances of passing of any adverse orders against the Company, could adversely affect its business, results of operations and financial conditions.
10. The Company requires significant amounts of working capital and significant portion of its working capital is consumed in trade receivables and inventories. Its inability to meet the company working capital requirements including failures to realize receivables and inventories may have an adverse effect on its results of operations and overall business.