1. The Company and its Promoters has made delayed payments with respect to the credit facilities
availed by them in the past.
2. The company materially relies on a single customer for its revenues from operations for the fiscal year 2021, 2022 and 2023. Any loss of business from such customer may adversely affect the company revenues and profitability.
3. The company revenue from operations depends significantly on defence & aerospace contract. Any changes in the defence policy or a decline or reprioritisation of funding in the Indian defence budget, or delays in the budget process could adversely affect its ability to grow or maintain the company sales, earnings, and cash flow.
4. The company is subject to strict quality requirements, customer inspections and audits, and any failure to comply with quality standards may lead to cancellation of existing and future orders and could negatively impact its reputation and the company business and results of operations and future prospects.
5. The loss, shutdown or slowdown of the company Electronic System, Design and manufacturing facility may have a material adverse effect on its business, results of operations and financial condition.
6. The company may not qualify for or win bids to further expand its business in future, which may have an adverse effect on the company business, financial condition, results of operations and prospects.
7. The company is subject to government regulations and if its fail to obtain, maintain or renew the company statutory and regulatory licenses, permits and approvals required for its business, The company results of operations and cash flows may be adversely affected.
8. The company has significant working capital requirements. If its experience insufficient cash flows from the company operations or are unable to borrow to meet its working capital requirements, it may materially and adversely affect the company business, cash flows and results of operations.
9. In past the company has one Associate Company for which no prior approval of Reserve Bank of India ("RBI") for making Overseas Direct Investment ("ODI") was taken.
10. The company has incurred indebtedness and an inability to comply with repayment and other covenants in its financing agreements could adversely affect the company business and financial condition. Its have not been, and may continue to not be, in compliance with certain financial covenants under certain of the company financing agreements.