The Company's Directors, Promoters and 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.

Dependence on Leased Premises for Business Operations.

The company may faces several risks associated with the object of the issue of setting up of proposed Assembling Unit, which could hamper its growth prospects, cash flows and business and financial condition.

The company cannot assure you that the proposed assembling unit will become operational as scheduled, or at all, or operate as efficiently as planned. If the company is unable to commission its new facility in a timely manner or without cost overruns, it may adversely affect the company's business, results of operations and financial condition.

The cost estimates for the proposed assembling unit at Site No. 11 & 12, Akshya Nagar, Yelenahalli, Begur, Bengaluru - 560068, Karnataka have been derived from management estimates and quotations received from third parties and may not be accurate.

The Company is yet to place orders for civil work and plant & machineries for the proposed assembling unit. Any delay in placing orders or completion of civil works or procurement of such machinery may delay the schedule of implementation and possibly increase the cost of commencing operations.

EPCC projects are typically awarded to the company on satisfaction of prescribed pre-qualification criteria and following a competitive bidding process. The company's business and its financial condition may be adversely affected if new infrastructure projects are not awarded to the company or if contracts awarded to the company are prematurely terminated.

Dependence on Middle Eastern Markets for Export Revenue.

The company's business is substantially dependent on certain key customers, from whom the company derives a significant portion of its revenues. The loss of any significant customer may have a material and adverse effect on its business and results of operations.

The Company had negative cash flow in recent fiscals, details of which are given below. Sustained negative cash flow could adversely impact its business, financial condition and results of operations.