1. 100% of its revenues are generated from state of Gujarat. Any adverse development affecting the operations in this region could have an adverse impact on its business, financial condition and results of operations.
2. The Company is dependent on few numbers of customers for sales. Loss of any of this large customer may affect its revenues and profitability.
3. The Company is dependent on few suppliers for purchase of product. Loss of any of these large suppliers may affect its business operations.
4. The company has certain outstanding litigation against it, an adverse outcome of which may adversely affect its business, reputation and results of operations.
5. The company's revenues from its projects are difficult to predict and are subject to seasonal variations.
6. The company may be unable to identify or acquire new projects and its bids for new projects may not always be successful, which may stunt its business growth. Further, any delay in the commencement or cancellation of the projects awarded to it may adversely affect its business, prospects, reputation, profitability, financial condition and results of operation.
7. Any failure to accurately estimate the overall risks, revenues or costs in respect of a project, may adversely affect its profitability and results of operations. The actual cost in executing a contract or in constructing a project may vary substantially from the assumptions underlying its bid. The company may be unable to recover all or some of the additional expenses, which may have a material adverse effect on its results of operations, cash flows and financial condition.
8. Failure to successfully implement its business strategies may materially and adversely affect its business, prospects, financial condition and results of operations.
9. Obsolescence, destruction, theft, breakdowns of its major plants or equipment or failures to repair or maintain the same may adversely affect its business, cash flows, financial condition and results of operations.
10. The company has incurred substantial indebtedness which exposes it to various risks which may have an adverse effect on its business and the results of operations.