1. There are outstanding legal proceedings involving the Company, its Subsidiaries, the company Directors and the Promoter.
2. The company business involves government authorities and agencies as they are entrusted with collection, treatment of disposal of Municipal Solid Waste. The company is exposed to risks of similar government related business manifested in the form of delay in approvals, delayed payments, time and cost overruns and consequential disputes and litigations.
3. The company is dependent on municipal authorities for a substantial proportion of its business and revenues. Many Municipalities have been struggling to fund various solid waste management projects from their own revenue receipts and are highly dependent on state/central grants/budget allocation. Any decline in the budgetary
allocation towards MSW projects will have a material adverse impact on its business, financial condition, and results of operations.
4. MSW projects are typically awarded to the company on satisfaction of prescribed pre-qualification criteria and following a competitive bidding process. The company business and its financial condition may be adversely affected if new MSW projects are not awarded to the company.
5. The company Directors, the Company and its subsidiary Company have received notices from various Regulatory Authorities in the matter of investments by West Coast Ventures (India) Private Limited (WCV) the associate company of Maitreya Services Limited and Maitreya Plotters and Structures Private Limited (companies that are
barred by SEBI from raising money from the capital market) into its subsidiaries. The notices are related to collecting information and enquiring into the transactions between the Company and WCV. Although as of date, no action has been initiated by the regulatory authorities in this matter , there is still a risk that at the stage of
framing of charges and at the stage of final orders post investigation and judicial processes that the Company and Directors may be found guilty. In such eventuality, its business may get materially and adversely affected, including pressing of criminal charges, attachment of assets and also shutting down of its business may occur.
6. There is a litigation against its material subsidiary for a financial claim. Currently the matter is in appeal. If the final order is decided against the company, it may lead to a financial loss to it.
7. The Company has been incurring losses for the past years.
8. The company has had negative cash flows in the past and may continue to have negative cash flows in the future.
9. The company has made certain delayed payments of the principal and interest component on its borrowings / loans due to which there is high probability that such instances might re-occur.
10. If the company is unable to protect its trademark/ patent beyond the expiry period, others may be able to use its trademarks, patent and tradenames to compete more effectively.