1. The comany's business is majorly concentrated in the state of Uttarakhand, Uttar Pradesh and Delhi and the company is exposed to risks emanating from economic, regulatory and other changes in the state of Uttarakhand and Uttar Pradesh.
2. Infrastructure projects are typically awarded to it on satisfaction of prescribed pre-qualification criteria and following a competitive bidding process. Its business and the company financial condition may be adversely affected if new infrastructure projects are not awarded to it or if contracts awarded to the company is prematurely terminated.
3. There have been certain instances in the past regarding certain discrepancies in fillings made to ROC as per Companies Act, 1956/2013
4. The company is dependent on its sub-contractors to perform various portions of the contracts awarded to it. Such dependency exposes the company to certain risks such as availability and performance of its sub-contractors.
5. 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.
6. The company is partially reliant on government contracts for its business, and any shifts in government policies, especially regarding the environment and water treatment, could pose significant risks to its business, finances, and operations. Moreover, delays in securing government approvals could exacerbate these challenges.
7. The company requires certain approvals and licenses in the ordinary course of business and the failures to successfully obtain/renew such registrations would adversely affect its operations, results of operations and financial condition.
8. Bidding for a tender necessitates a comprehensive approach, including thorough project analysis and precise cost estimations. Inaccuracies in cost projections can significantly diminish anticipated returns and profitability assessments. Therefore, meticulous project study is imperative for understanding the project's scope and requirements, facilitating the preparation of a competitive yet profitable bid.
9. Its business is working capital intensive involving relatively long implementation periods. The company requires substantial financing for its business operations. The company indebtedness and the conditions and restrictions imposed on by its financing arrangements could adversely affect the company ability to conduct its business.
10. The company has experienced negative cash flows in the past and may continue to do so in the future and the same may adversely affect its cash flow requirements, which in turn may adversely affect the company ability to operate its business and implement its growth plans, thereby affecting its financial condition.