Faalcon Concepts Ltd IPO

There are outstanding litigation proceedings involving the Company, its Promoters, an adverse outcome in which, may have an adverse impact on its reputation, business, financial condition, results of operations and cash flows.

The company sources a large part of its new orders from its relationships with customers, both present and past. Any failure to maintain its long-standing relationships with the company existing customers or forge similar relationships with new ones would have a material adverse effect on its business operations and profitability.

Its Registered Office and Branch Office of the Company are not owned by it.

The company revenues have been significantly dependent on few customers and its inability to maintain such business may have an adverse effect on its results of operations.

The company is primarily dependent upon few key suppliers for procurement of materials. Any disruption in the supply of these materials or fluctuations in their prices could have a material adverse effect on its business operations and financial conditions.

The company generates its major portion of sales from the company operations in certain geographical regions especially Delhi, Haryana and Uttar Pradesh. Any adverse developments affecting its operations in these regions could have an adverse impact on its revenue and results of operations.

Its customers have a right to cancel the contract by giving a minimal notice on the occurrence of certain events. Any such cancellation may adversely affect its business, financial condition and results of operations.

Its business requires the services of third parties, including suppliers and subcontractors, which entail certain risks.

Its projects are typically awarded to it on following a competitive bidding process / quotation based process. Its business and the company financial condition may be adversely affected if new projects are not awarded to it.

Its revenues are derived primarily from contracts awarded to the company on a project-by-project basis, and a significant number of projects in the construction industry are undertaken on a non-recurring basis.