1. The company is an infrastructure company operating primarily in the irrigation and water supply projects segment and its business significantly (88.81% for the six months period ended September 30, 2024, 87.72% for the Fiscal 2024, 96.14% for the Fiscal 2023 and 89.53% for the Fiscal 2022) depends on projects awarded by state and central government departments, which may impact its results of operations and financial conditions.
2. The company business significantly depends on its ability to successfully bid for and acquires projects in the irrigation and water supply projects segment. Its inability to successfully bid for and acquire new projects in the irrigation and water supply projects segment could have an adverse effect on the growth of its business.
3. The actual cost incurred by it during the course of executing a particular project may vary significantly from the assumptions underlying its bid. The company may be unable to recover all or part of the incremental expenses incurred, which could adversely affect its financial condition, results of operation and cash flows.
4. Revenue from its top ten customers comprise a significant portion of the company revenue from operations (90.82% for the six months period ended September 30, 2024, 82.76% for the Fiscal 2024, 77.73% for the Fiscal 2023 and 74.82% for the Fiscal 2022). Any failures to maintain its relationship with these customers, any adverse changes affecting their financial condition or the loss of any of the company customers will have an adverse effect on its business, results of operations, financial condition and cash flows.
5. As a part of its business, for projects with certain customers, the company is required to furnish bank guarantees and performance guarantees. Its inability or failures to arrange for such guarantees or the invocation of such guarantees may adversely affect its cash flows and financial condition.
6. Delays in the completion of construction of ongoing projects could lead to termination of its contracts or cost overruns or claims for damages, which could have an adverse effect on its cash flows, business, results of operations and financial condition.
7. The company business is working capital intensive. If its experience insufficient cash flows or are unable to obtain suitable financing to meet working capital requirements, its business, financial condition and results of operations could be adversely affected.
8. The Order Book of the Company may not be indicative 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 its business and results of operations.
9. The execution of its projects is subject to fluctuations due to seasonal, climatic and other factors and any such fluctuations may adversely affect its business, financial condition, results of operations and cash flows.
10. The projects that the company execute are exposed to various risks and other uncertainties, and its risk management and project selection framework may be inadequate, which may adversely affect its business, results of operations and financial condition.