The company has experienced a decline in revenue in Fiscal Year 2022 and may consider to experience such decline in the future.

The Company has higher levels of NPAs as compared to some of its peer companies and hence the company's business may be adversely affected if the company is unable to provide for such higher levels of NPAs.

The Company did not comply with certain RBI norms/guidelines in the past. Non-compliance with the RBI's norms/guidelines and violations of regulations prescribed by the RBI, could expose it to certain penalties and restrictions.

The Company has changed its shareholding by more than 26% during FY 2021-22 and FY2022-23 and has changed its management during the FY 2021-22 without taking the prior approval from RBI. The company cannot assure you that such or other instances of violations may not occur in future and the Company, Promoters and Directors may not be subjected to the disciplinary penal action or fine and penalties by the Reserve Bank of India, and if such actions are initiated or penalty and fine imposed, the same may adversely affect the results of its operations, revenues and profitability and adversely impact the company reputation in the market.

The company has in the past, made certain issuances and allotments of its equity shares which may not be in compliance with the applicable provisions and rules of the Companies Act, 1956. the company cannot guarantee that its will not be subject to any other complaints and penalties in the future regarding the said violations.

Its business and operational presence is concentrated in the State of Rajasthan and the company result of operations may be adversely affected by difficulties in expanding its business or pursuing new business opportunities in new regions and markets.

A survey was carried out on November 23, 2022 by the Income-tax authorities at premises of the Company at 4-5 Subcity Centre, Savina, Krishi Mandi, Udaipur, and Search was carried out at its Promoters namely Nirmal Kumar Jain and Dipesh Jain and its Promoter Group member namely Jenisha Jain under Section 132 of the I.T. Act at 18, Tagore Nagar, Sector-4, Udaipur.

Some of its secretarial records are not traceable.

Its credit ratings are presently low and any future downward revision in the company credit ratings could adversely affect its ability to service the company debts as well as raise funds in the future hence affecting its results of operations and financial conditions.

The Company is party to a legal proceeding being Civil Suit No. 516 of 2021 filed by Messrs Timeglass Construction and Sandeep Barjatya, (purportedly Partner of M/s Timeglass Construction) inter-alia alleging that a mortgage against a loan has been illegally obtained by the Company. Any adverse outcome of such proceeding may adversely affect its reputation, business, operations, financial condition and results of operations.