1. The company is measured against high quality standards and stringent performance requirements by its customers. Any failure by it to comply with these standards or performance requirements may lead to the cancellation of existing and future orders, recalls, liquidated damages, invocation of performance bank guarantees or warranty and indemnity or liability claims, which could adversely affect its reputation, business, results from operations, financial conditions and cash flows.
2. Its business is dependent and will continue to depend on the company manufacturing facilities, and the company is subject to certain risks in its manufacturing process due to the usage of heavy machinery in its manufacturing operations. Any slowdown or shutdown in its manufacturing operations or strikes, work stoppages or increased wage demands by its employees could interfere with our operations, and could have an adverse effect on its business, cash flows, financial condition and results of operations.
3. Majority of the Net Proceeds will be utilized for the repayment or prepayment of indebtedness availed of by the Company.
4. Any downturn in the oil and gas, power (including nuclear), process industries, chemical sectors would create an adverse impact on its revenue from operations, cash flows and financial conditions.
5. The company derives a significant part of its revenue from some customers, and the company does not have long term contracts with a majority of these customers. If one or more of such customers choose not to source their requirements from it or to terminate its contracts or purchase orders, the company's business, cash flows, financial condition and results of operations may be adversely affected.
6. If the company is unable to introduce new products or engineering processes and respond to changing customer preferences in a timely and effective manner or if its product become obsolete due to a breakthrough in the development of technology or alternate products, the demand for its products or engineering services and supplies may decline, which may have an adverse effect on its business, cash flows, results of operations and financial condition.
7. Any underutilization of its manufacturing capacities could have an adverse effect on its business, future prospects and future financial performance.
8. The objects of the Offer for which funds have been raised and proposed deployment of the Net Proceeds of the Offer have not been appraised by a bank or a financial institution. The deployment of funds is entirely at the discretion of its management and as per the details mentioned in the section titled "Objects of the Offer". Any revision in the estimates may require it to reschedule its expenditure and may have a bearing on the company expected revenues and earnings. Further, if there are any delays or cost overruns, its business, financial condition and results of operations may be adversely affected.
9. The company derives majority of its revenue from its engineering services and supplies and its financial condition would be materially and adversely affected if the company fails to obtain new contracts.
10. The company track certain operational metrics with internal systems and tools. Certain of its operational metrics are subject to inherent challenges in measurement which may adversely affect its business and reputation.