1. The company is heavily reliant on its top 10 customers, and the loss of such customers or a significant reduction in purchases by such customers will have a material adverse impact on its business.
2. The company depends on few Customer Industries for majority of its revenue from operations. Loss of customers in these Customer Industries may result in an adverse effect on its business, revenue from operations and financial conditions.
3. The company is heavily reliant on a few vendors/ suppliers and the company typically does not enter into long-term contracts or arrangements with its vendors. Any loss of such vendors/suppliers or any increase in the price will have a material adverse impact on its business and the company revenue.
4. Its success depends on the company long-term relationship with its customers. The company does not, generally, enter into long-term contracts with its customers. Loss of one or more of its customers or reduction in their demand for the company solutions offering could adversely affect its business, results of operation and financial conditions.
5. Delays or defaults in customer payments and receivables may have an adversely impact its profits and cash flows.
6. Its future success will depends on the company ability to effectively implement its business and growth strategies. Further, the Company is under the process of adopting a new line of business. its failure in effectively implementing its business and growth strategies or successfully operating in its new line of business may adversely affect the company results of operations.
7. The company has a large work force and its employee benefit expense is one of the larger components of its fixed operating costs. An increase in employee benefit expense could reduce its profitability. Further any IT system failures or lapse on part of its employees may lead to operational interruption, inabilities, or reputational harm.
8. A significant proportion of its orders are from government related entities which award the contract through a process of tender. Tenders, typically, are awarded to the lower bidder once all other eligibility criteria are met. Its performance could be adversely affected if the company is not able to successfully bid for these contracts or required to lower its bid value.
9. Its business is heavily reliant on highly skilled professionals. If the Company is unable to retain its existing highly skilled professionals or attract new highly skilled professionals, its ability to manage and staff new projects or to continue to expand existing projects may have an adverse effect and consequently have an adverse impact on its business, result of operation and financial condition.
10. The company operates in a competitive industry. Any inability to compete effectively may lead to a lower market share or reduced operating margins.