EMS Ltd IPO

The Company, its Promoters/Director and its Group Companies are parties to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.

The company has been black-listed in past.

Most agreements that the company has entered into in connection with its business contain a penalty or liquidated damage clause for delay in the completion of a project that takes effect should the completion of a project be delayed.

The company bid for WWTPs and WSSPs mostly funded by the World Bank through Central and State Governments and derive its revenues from the contracts awarded to it. Any reduction in budgetary allocation to this sector may affect the number of projects that the government authorities/bodies may plan to develop in a particular period. Its business is directly and significantly dependent on projects awarded by them.

The company deploy traditional technologies in the designing and installation of WWTPs or WSSPs. Any incapability to adopt a new technology or change in the requirement of a particular technology by the government authorities may affect its position to bid for WWTPs or WSSPs.

The company projects are awarded through the competitive bidding process by government authorities/bodies. Its may not be able to qualify for, compete and win future projects, which could adversely affect its business and results of operations.

The industry in which its operate is capital intensive in nature, and involve relatively long gestation periods. The company require substantial financing for its business operations and the failure to obtain additional financing on terms commercially acceptable to it may adversely affect its ability to grow and the company future profitability.

The company Order Book may not be representative of its future results and its actual income may be significantly less than the estimates reflected in its Order Book, which could adversely affect the company results of operations.

A significant portion of its revenue is generated from business transactions with government entities or agencies. Any change in the governments in the markets in which its operate, change in policies and/or the company inability to recover payments therefrom in a timely manner or at all, would adversely affect its operations and revenues which in turn would adversely affect its profitability.

Failure to increase the size of its projects and pre-qualification may affect the company growth prospects.