1. The company require certain approvals and licenses in the ordinary course of business and are required to comply with certain rules and regulations to operate its business, and the failure to obtain, retain and renew such approvals and licences in timely manner or comply with such rules and regulations or at all may adversely affect its operations.
2. The Company, its Promoter/Director and its Group Companies are paties to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.
3. The income-tax authorities have conducted searches at the premises of the Company and its Promoter /Director. Any adverse outcome of the searches would have an adverse effect on the operations and reputation of the Company, which in turn could have an adverse impact on its business, financial condition and results of operations.
4. Most agreements that the company has entered into in connection with its business contain a penalty or liquidated damage clause for delay in the completion of a project that takes effect should the completion of a project be delayed.
5. A significant portion of its revenue is generated from business transactions with government entities or agencies. Any change in the governments in the markets in which the company operate, change in policies and/or its inability to recover payments therefrom in a timely manner or at all, would adversely affect its operations and revenues which in turn would adversely affect the company profitability.
6. Bidding for a tender involves various management activities such as detailed project study, cost estimations. Inability to accurately measure the cost may lead to bid amount having margin lower than hurdle rate margin i.e. the expected rate of return.
7. Its Order Book may not be representative of the company future results and its actual income may be significantly less than the estimates reflected in its Order Book, which could adversely affect the company results of operations.
8. Its on-going projects are exposed to various implementation risks & uncertainties and may be delayed, modified or cancelled for reasons beyond the company control which may materially and adversely affect its business, prospects, reputation, profitability, financial condition and results of operation.
9. Substantial portion of its revenues has been dependent upon its few clients. The loss of any one or more of the company major clients would have a material adverse effect on its business operations and profitability.
10. Projects sub-contracted or undertaken through a joint venture may be delayed on account of the performance of the joint venture partner, principal or sub-contractor, resulting in delayed payments.