1. Its long-term growth and competitiveness are highly dependent on the company ability to control costs and pass on any increase in operating expenses to customers, while continuing to offer competitive pricing.
2. The Company requires certain statutory and regulatory approvals for conducting its business and the company failures to obtain, retain or renew them in a timely manner, or at all, may adversely affect its operations.
3. The company derives a significant portion of its revenues from a limited number of customers. The loss of any significant clients may have an adverse effect on its business, financial condition, results of operations, and prospects.
4. The company is heavily depended on a limited number of third-party suppliers for their services to it in handling the company business operation. The loss of any significant such third-party suppliers may have an adverse effect on its business, financial condition, results of operations and prospects.
5. The company has experienced negative cash flows in previous years. Any operating losses or negative cash flows in the future could adversely affect its results of operations and financial conditions.
6. The nature of its business exposes it to liability claims and contract disputes and the company indemnities may not adequately protect it. Any liability in excess of the company reserves or indemnities could result in additional costs, which would reduce its profits.
7. There have been instances of delayed filings in the past with certain Regulatory Authorities. If the Regulatory Authorities impose monitory penalties on it or take certain punitive actions against the company in relation to the same, its business, financial condition and results of operations could be adversely affected.
8. Most of its overseas revenue from operations are in and from a single country - Brazil. Due to this geographic concentration of its overseas business operations, the company results of operations and growth might be restricted to the economic and demographic conditions of Brazil.
9. The company does not have long-term work orders from its customers. The company business could be adversely affected if its could fails to retain the company customers or get continued business from them or its fail to acquires new customers.
10. Breakdown, Mishaps or accidents during cargo shipment or transportation could result in a loss or slowdown in operations and could also cause damage to life and property.