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