1. Our business and revenues are substantially dependent on orders received from state-owned electricity boards (SEBs) and public sector power utilities. 88.92% and 85.68% of our revenue from operations in the six months ended September 30, 2024 and Fiscal 2024, respectively, is from government entities and in the event any one or more such clients were to cease to issue tenders, our business could be adversely affected.
2. The sale of cables and conductors manufactured by our Company contributes a significant portion to our revenue from operations (more than 47% for the six months ended September 30, 2024 and Fiscals 2024, 2023, and 2022). Any adverse development in our performance in the manufacturing business could have an adverse effect on our business, cash flows, results of operation and financial position.
3. Significant increases or fluctuations in prices of, or delay or disruption in supply of primary raw materials could affect our estimated costs, expenditures and timelines which may have a material adverse effect on our business, financial condition, results of operations and cash flows.
4. Our revenues from our EPC segment are dependent upon our ability to effectively secure contracts
awarded to us through the competitive bidding route. Consequently, our results of operations and cash flows may be adversely affected or fluctuate materially periodically.
5. We have high working capital requirement. If there are delays in the collection of receivables from our customers or we are unable to access suitable financing to meet working capital requirements, it could lead to material adverse effect on our business, prospects, financial condition and results of operations.
6. We have entered into a licensing arrangement for the carbon fiber core ("CFC") technology required for our ACFR conductors, which if terminated or renewed on terms that are not favorable to us, could affect our business and results of operations.
7. We have had negative cash flow from operating activities in the past and may continue to have negative cash flows in the future, which could have an adverse effect on our profitability if we are required to fund this through external borrowings.
8. Our continued operations at our manufacturing facilities are critical to our business and any disruption, breakdown or shutdown of our manufacturing facilities may have a material adverse effect on our business, financial condition, results of operations and cash flows.
9. We rely on a limited number of related parties for the supply our raw material, loss of these related party suppliers may have an adverse effect on our business, results of operations and financial conditions.
10. We regularly work with hazardous materials and activities in our operation which can be dangerous and could cause injuries to people or property.