1. Its revenue is majorly concentrated from projects undertaken or awarded by government, semi- government and government-controlled entities. Any adverse changes in the government policies may lead to its contracts being foreclosed, terminated, restructured or renegotiated, which may have a material effect on its business and results of operations.
2. Its portfolio of projects is concentrated in certain large-scale projects. Any delay or impediment to such projects may have adverse impact on its financial position.
3. While the company has a diversified geographical presence, its project portfolio has historically been concentrated in Punjab, India and any changes affecting the policies, laws and regulations or the political and economic environment in the region may adversely impact its business, financial condition and results of operations.
4. The company derives a significant portion of its revenues from a limited number of clients. The loss of any significant clients may have an adverse effect on its business, financial condition, results of operations, and prospects.
5. Construction & Infrastructure Projects are typically awarded to it on satisfaction of prescribed qualification criteria and following a competitive bidding process. Its business and the company financial condition may be adversely affected if new Construction & Infrastructure Projects are not awarded to it or if contracts awarded to the company is prematurely terminated.
6. The company may have certain contingent liabilities and its financial condition and profitability may be adversely affected if any of these contingent liabilities materialize.
7. Its business is working capital intensive involving relatively long implementation periods. If the company experience insufficient cash flows to enable it to make required payments on its debt or fund working capital requirements, there may be an adverse effect on its results of operations.
8. Its order Book may not be representative of its future results and the company actual income may be significantly less than the estimates reflected in its order book, which could adversely affect its business, financial condition, results of operations and prospects.
9. The Company and its Promoters Directors are involved in litigation proceedings that may have a material adverse outcome.
10. The company own and rent equipment and mobilize such equipment at the beginning of each project resulting in increased fixed and operating costs to the Company. In the event the company is not able to generate adequate cash flows it may have a material adverse impact on its operation.