1. A significant portion of our revenue is generated from manufacturing of transformers at our facilities situated in Gujarat. As of the six-month period ended September 30, 2024 and Fiscal 2024, Fiscal 2023 and Fiscal 2022, we derived 99.00%, 97.00%, 90.00% and 92.00%, respectively, of our revenue from manufacturing facilities situated in Gujarat. Any disruptions in the region could have a material adverse effect on our business, financial condition and results of operations.
2. We derive a significant portion of our revenue from the supply of transformers to utilities including state electricity companies who constituted 65.21%, 65.46%, 80.47% and 83.10% of our revenue from operations during the six-month
period ended September 30, 2024 and during Fiscal 2024, Fiscal 2023 and Fiscal 2022. Additionally, our business is largely dependent upon the demand for power generation, transmission and distribution which is closely linked to Government policies. Any economy downturn or change in government policy may have an adverse impact on our business, financial condition, cash flows and results of operations.
3. A significant portion of our revenue is derived from government-controlled entities, who follow the tendering process for determination of suppliers. We may be adversely affected if we do not succeed in all or a majority of the contracts that we tender for.
4. Our order book may not be representative of our future results and our actual income may be significantly less than the estimates reflected in our order book, which could adversely affect our business, financial condition, results of operations and prospects.
5. We depend on our relationships with our customers. A substantial portion of our revenues is dependent on our top 10 customers. As of six-month period ended September 30, 2024 and Fiscal 2024, Fiscal 2023 and Fiscal 2022, we derived 72.89%, 64.82%, 79.87% and 85.22%, respectively, of our revenue from our top 10 customers. The loss of any of these customers, will materially and adversely affect our revenues and profitability.
6. We majorly depend on our top 10 suppliers. During the six-month period ended September 30, 2024 and in Fiscal 2024. Fiscal 2023 and Fiscal 2022, our top 10 suppliers constituted 61.18%, 62.54%, 71.93% and 73.97% of the total cost of our raw materials purchased. Our lack of long-term supply orders of key raw materials and components from our private suppliers increases the risk of pricing pressure for our demand of continued supply, any variation in the supply and cost of such key raw materials and traded goods could have an adverse effect on our business, financial condition and operations.
7. We derive a significant portion of our revenue from the supply of power transformers which constituted 72.45%, 88.98%, 93.37% and 92.71% of our revenue from operations during the six-month period ended September 30, 2024 and during Fiscals 2024, 2023 and 2022. A reduction in purchases of power transformers could adversely affect our business, results of operations and financial condition.
8. There are outstanding legal proceedings involving our Company, Subsidiaries, Promoters, and Directors which could have an adverse effect on our business, financial condition and results of operations.
9. Any shortages, delays or disruptions in the supply of raw materials we use in our operating process may have a material adverse effect on our business, financial condition, results of operations and cash flows. Further the cost of raw materials that we use in our operating process are subject to volatility. Increases or fluctuations in raw material prices, may have a material adverse effect on our business, financial condition, results of operations and cash flows.
10. Our inability to effectively manage our growth or to successfully implement our business plan and growth and expansion strategy could have an adverse effect on our business, results of operations and financial condition.