1. If we are unable to successfully implement our Expansion Project, including Captive Power Plant, our results of operations and financial condition could be adversely affected.
2. We have not yet placed orders in relation to the capital expenditure to be incurred for the Expansion Project. In the event of any delay in placing the orders, or in the event the vendors are not able to provide the plant and machineries or complete the civil and related works etc. in a timely manner, or at all, the same may result in time and cost over-runs.
3. If we are not able to obtain, renew or maintain our statutory and regulatory licenses, registrations and approvals required to operate our business, it may have a material adverse effect on our business, results of operations and financial condition.
4. Loss of any of our suppliers or a failure by our suppliers to deliver some of our primary raw materials such as iron ore, iron ore pellet, coal may have an adverse impact on our ability to continue our manufacturing process without interruption and our ability to manufacture and deliver the products to our customers without any delay.
5. Inadequate or interrupted supply and price fluctuation of our raw materials could adversely affect our business, results of operations, cash flows, profitability and financial condition.
6. The demand and pricing in the steel industry is volatile and sensitive to the cyclical nature of the industries it serves. A decrease in steel prices may have a material adverse effect on our business, results of operations, prospects and financial condition.
7. The steel industry is characterized by volatility in the prices of raw materials which could adversely affect our profitability.
8. Our existing manufacturing plants are critical to our business operations. The unexpected loss, shutdown or slowdown of operations at any of our manufacturing plants could have a material adverse effect on our business, results of operations and financial condition.
9. We are required to pay penalty to suppliers of coal in the event we lift below specified percentage of the annual contracted capacity.
10. Our existing and proposed manufacturing facilities are concentrated in a single region i.e., Chhattisgarh and the inability to operate and grow our business in this particular region may have an adverse effect on our business, financial condition, results of operations, cash flows and future business prospects.