1. The company derives a significant portion of its revenue from operations from its top 20 customers, with our top five customers contributing 38.47% revenue from operations in Fiscal 2023. Loss of one or more of these customers or a reduction in the amount of business its obtain from them could have an adverse effect on its business, results of operations, financial condition and cash flows. Further, the company does not have long-term agreements with several of its customers.
2. The company is dependent on the performance of industries in which its customers operate, particularly metals and minerals, and fluctuations in the performance of such industries may result in a loss of such customers, a decrease in the volume of work its undertake or the price at which its offer its services.
3. Its success depends on its ability to generate sufficient freight volumes and optimise revenue to
achieve desired profit margins and avoid losses. Any failure on its part to achieve desired operating or net profit margins could have an adverse impact on its business, results of operations, financial condition and cash flows.
4. Its may not be able to pass on any increase in costs levied by its third-party service providers to its customers. Conversely, its may not be able to pass on any decline in prices the company charge its customers to its third-party service providers. The company is also exposed to risks related to an escalation in fuel prices.
5. Its customer contracts can be terminated by its customers without cause on short notice and without compensation. Further, its failure to provide its services in accordance with the company customer contracts could result in it having to pay damages, the cancellation of contracts or encashment of bank guarantees. Moreover, its business consists of spot business with several of its customers.
6. Its inability to manage its diversified operations and expand new businesses may have an adverse
effect on its business, results of operations, financial condition and cash flows. Failure to improve diversification of its revenue streams exposes it to risk of concentration of revenue from FTL transportation and Rail/multimodal transportation verticals.
7. The company depends on its business partners, third-party service providers and vendors/ suppliers in certain aspects of its operations and unsatisfactory services provided by them or failure to maintain relationships with them could disrupt its operations.
8. Any disruptions which affect its ability to utilize its transportation network in an uninterrupted manner could result in delays, additional costs or a loss of reputation or profitability.
9. The company is subject to various risks associated with transportation and its may face claims relating to loss or damage to cargo, personal injury claims or other operating risks that are not adequately insured.
10. Its business is significantly dependent on technology and any disruption or failure of its technology systems may affect its operations.