1. The company's business is majorly concentrated in the state of Tamil Nadu and Karnataka and the company is exposed to risks emanating from economic, regulatory and other changes in the state of Tamil Nadu and Karnataka.
2. The company has certain contingent liabilities, which, if materialized, may affect its financial condition and results of operations.
3. Infrastructure projects are typically awarded to it on satisfaction of prescribed pre-qualification criteria and following a competitive bidding process. Its business and the company's financial condition may be adversely affected if new infrastructure projects are not awarded to it or if contracts awarded to the company is prematurely terminated.
4. There have been certain instances in the past regarding certain discrepancies in fillings made to ROC as per Companies Act, 1956/2013
5. Its business is working capital intensive involving relatively long implementation periods. The company requires substantial financing for its business operations. Its indebtedness and the conditions and restrictions imposed on by its financing arrangements could adversely affect the company's ability to conduct its business.
6. The Company, its Promoters, its Directors and its Joint Ventures are involved in litigation proceedings that may have a material adverse outcome.
7. The company own office equipment, plant and machinery, computer and accessories and vehicles, resulting in fixed costs to the Company. Moreover, the Company is subject to operational risks on account of obsolescence, destruction, breakdown of its equipment and vehicles or failures to repair or maintain such equipment and vehicles. Further, if the company does not continually enhance its business with the most recent equipment and technology, its ability to maintain and expand the company markets may be adversely affected.
8. The company has experienced negative cash flows in the past and may continue to do so in the future and the same may adversely affect its cash flow requirements, which in turn may adversely affect its ability to operate the company's business and implement its growth plans, thereby affecting the company's financial condition.
9. None of the Directors of the Company have experience of being a director of a public listed company.
10. The company is required to furnish financial and performance bank guarantees and letter of credits as part of its business. The company's inability to arrange such guarantees and/or letters of credit may adversely affect its cash flows and financial condition.