AVP Infracon Ltd IPO

Its entire revenue stream is derived from activities within the state of Tamil Nadu. Any unfavorable developments that may impact its operations in this region could have negative consequences on its business, financial health, and operational results.

The company lack ownership of the registered office used by the company. Any interference with its entitlements as the licensee/lessee or the cancellation of contracts with its licensors/ lessors could have a negative effect on its activities and, as a result, the company overall business.

Its business demands substantial working capital, and any delays in securing the necessary funds could negatively affect its financial performance.

The Company has reported negative cash flows from its operating, investing, and financing activities. Any operating losses or negative cash flows in the future could adversely affect its results of its operations and financial condition.

The company's main source of revenue comes from projects in India that are initiated or approved by government authorities and other organizations funded by the Government of India (GoI) or state governments. The majority of its income comes from agreements with a small number of government entities. If there are unfavorable changes in the policies of the central or state government, it could result in the closure, termination, restructuring, or renegotiation of its contracts, potentially impacting its business and financial performance significantly.

Its business, growth prospects and financial performance largely depends on the company's ability to obtain new contracts, and there is no assurance that its will be able to procure new contracts.

Infrastructure projects are generally assigned to our organization upon fulfillment of specified pre-qualification prerequisites and subsequent engagement in a competitive tendering procedure. Any failure to secure new infrastructure projects or premature termination of contracts awarded to it could potentially have adverse repercussions on both its business operations and financial standing.

Its projects face various implementation and other uncertainties, such as the risks of exceeding planned time and cost, which could have negative effects on its business, financial health, operational results, and overall prospects.

The company utilizes several credit facilities provided by the bank, and in accordance with the sanctioned terms, certain restrictive covenants are imposed on the company. If the company is unable to obtain approval, it might restrict its scope of activities and obstruct its growth plans.

The company's lenders have charge over its movable properties in respect of finance availed by the company.