1. Its revenue from operations is highly dependent upon a limited number of customers.
2. A significant part of its revenue is generated from government contracts obtained through a competitive bidding process. There can be no assurance that its will qualify for, or that the company will successfully compete and win such tenders, or maintain these customer relationships.
3. A significant portion of its revenues are derived from a few geographical regions and any adverse developments affecting such regions could have an adverse effect on its business, cash flows, results of operation and financial condition.
4. Its business revenue from operations is concentrated in a few segments.
5. Operational risks are inherent in its business as it includes rendering services in diverse environments depending on customer requirements. A failure to manage such risks including any errors, defects or disruption in its service or inability to meet expected or agreed service standards, could have an adverse impact on its business, cash flows, results of operations and financial condition.
6. The company focus sectors (healthcare, education and government spending) may not grow as anticipated.
7. The company has a large workforce deployed across workplaces and customer premises. Consequently, its may be exposed to service-related claims and losses or employee disruptions, as well as employee related regulatory risks, that could have an adverse effect on its reputation, business, cash flows, results of operations and financial condition.
8. Its businesses are manpower intensive and the company's inability to attract and retain skilled manpower could have an adverse impact on its growth, business and financial condition. Further, in the event its not able to manage the company attrition, its may not be able to meet the expectations of its customers, which may have an adverse impact on the company financial condition.
9. Its business could be adversely affected if the company customers fail to renew their contracts with it or its fail to acquire new customers.
10. The company has significant employee benefit expenses, such as workers' compensation, staff welfare expenses and contribution to provident and other funds. In case its face an increase in employee costs that the company is unable to pass on to its customers, its may be prevented from maintaining its competitive advantage and its profitability may be impacted.