1. There are certain outstanding litigations involving the Company, which, if determined
adversely, may affect its business operations and reputation.
2. The company projects are exposed to various implementation and other risks, including risks of time and cost overruns, and uncertainties, which may adversely affect its business, financial condition, results of operations, and prospects.
3. The company derive a significant portion of its revenues from a limited number of clients. The loss of any significant clients may have an adverse effect on its business, financial condition, results of operations, and prospect.
4. The company business is working capital intensive involving relatively long implementation periods. The company require substantial financing for its business operations. The company indebtedness and the conditions and restrictions imposed on by its financing arrangements could adversely affect the company ability to conduct its business.
5. The company is required to furnish financial and performance bank guarantees and letter of
credits as part of its business. The company inability to arrange such guarantees and/or letters of credit may adversely affect its cash flows and financial condition.
6. Timely completion of its projects is interdependent on the availability and performance
of sub-contractors.
7. Projects undertaken through a joint venture may be delayed on account of the performance of the joint venture partner or, in some cases, significant losses from the joint venture may have an adverse effect on its business, results of operations and
financial condition.
8. The company revenue is generated from projects undertaken with Government entities or agencies, contracts of which usually contain terms that favour the clients. Such project / contracts are awarded on the basis of certain pre-qualification criterias and competitive selection process and are usually in a standard form, restricting its ability to negotiate the terms and conditions. Any change in the Government policies or focus and/or we are unable to recover payments in a timely manner, would adversely affect the company business and result of operations. Its ability to negotiate the standard form of Government contracts may be limited.
9. As of December 31, 2022, its ongoing projects in Rajasthan state constitute 72.50% of the company pending Order Book. Its business is relatively concentrated in northern part of India and any adverse impact in this region may adversely affect its business, results of operations and financial condition.
10. The company Order Book may not be representative of its future results and the company actual income may be significantly less than the estimates reflected in its Order Book.