1. Majority of its Revenue from Operation (RFO) is generated from state of Gujarat and Rajasthan. Any adversedevelopment affecting its operations in this region could have an adverse impact on the company business, financial condition and results of operations.
2. The company does not own the place where its registered office is situated. In case of non-renewal of rent agreements/cancellation of the NOCs given so far or dispute in relation to use of the said premise, its business and results of operations can be adversely affected.
3. The Company, promoters and directors are involved in certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.
4. The Company has reported certain negative cash flows from its operating activity, financing activity and investing activity, details of which are given below. Sustained negative cash flow could impact its growth and business.
5. The company On-going Projects (Order Book) may not be representative of its future results and the company actual income may be significantly less than the estimates reflected in its Order Book, which could adversely affect the company results of operations.
6. Its business is working capital intensive involving relatively long implementation periods. The company requires substantial financing for its business operations and the failures to obtain additional financing on terms commercially acceptable to it may adversely affect the company ability to grow and its future profitability.
7. The company business requires the services of third party manufacturers and suppliers, which entail certain risks.
8. Increase in costs or a shortfall in availability of the materials the company purchase could have a material adverse effect on the Company's sales, profitability and results of operations.
9. Its projects are typically awarded to the company on satisfaction of prescribed pre-qualification criteria and following a competitive bidding process. Its business and the company financial condition may be adversely affected if new projects are not awarded to it.
10. The company has not obtained the registration of its trademarks used in the company businesses and the company inability to obtain or maintain these registrations may adversely affect its competitive business position.