1. Lack of Challan Record in Connection with Form Filed with the Registrar of Companies.
2. Discrepancies observed in allotment dated March 29, 2016, July 18, 2016, July 30, 2016, August 3, 2016, August 16, 2016, March 26, 2017, January 20, 2019, February 14, 2019, April 27, 2019, and March 27, 2021, August 30, 2021, December 6, 2021, December 27, 2021, February 22, 2022, October 31, 2022, and December 22, 2022.
3. The company business is concentrated in the state of Uttar Pradesh. As of June 30, 2023, revenue from Uttar Pradesh constitute Rs. 2,053.40 Lakhs i.e. 94% of the company is revenue for the said period. Any adverse impact in this region may adversely affect its business, results of operations and financial condition.
4. The company derives a significant portion of it revenues from a limited number of clients. The loss of any significant clients may have an adverse effect on the company's business, financial condition, results of operations, and prospect.
5. The Company is dependent on few suppliers for purchase of product. Loss of any of these large suppliers may affect the company's business operations.
6. The company has incurred borrowings from commercial banks and high Debt Equity Ratio, which could have an adverse effect on its business and an inability to comply with repayment and other covenants in its financing agreements could adversely affect the company's business and financial condition.
7. Its projects are exposed to various implementation and other risks, including risks of time and cost overruns, and uncertainties, which may adversely affect its business, financial condition, results of operations, and prospects.
8. Its business is working capital intensive involving relatively long implementation periods. The company requires substantial financing for its business operations. The company indebtedness and the conditions and restrictions imposed on by its financing arrangements could adversely affect the company's ability to conduct its business.
9. The company has certain contingent liabilities i.e. a pending litigation with Public Works Department Rajasthan.
10. The company derives majority of its revenue from its Turnkey Water Supply Projects and the company financial condition would be materially and adversely affected if the company fail to obtain new contracts, or its current contracts are terminated.