Oswal Energies Limited IPO

The company derives a significant portion of the company's revenue from operations from its top 10 clients. The loss of, or a significant reduction in, business from any of the company's major clients could adversely affect its business, financial condition, results of operations and future prospects.

Any downturn in the oil and gas industry would create an adverse impact on the company's results of operations, financial condition and business prospects.

The company's business and profitability is substantially dependent on the availability and cost of its raw materials. Any disruption to the timely and adequate supply of raw materials, or volatility in the prices of raw materials may adversely impact the company's business, results of operations and financial condition.

The company is measured against high quality standards and stringent performance requirements by the company's customers. Any failures by the company to comply with these standards or performance requirements may lead to the cancellation of existing and future orders, recalls, liquidated damages, invocation of performance bank guarantees or warranty and indemnity or liability claims, which could adversely affect its reputation, business, results from operations, financial conditions and cash flows.

The construction of EPC projects, including the required infrastructure, is subject to a number of contingencies. If these new projects are affected by such contingencies, the company's business, results of operations, financial condition and cash flows may be adversely affected.

The company enters into strategic alliances and partnerships with leading technology companies. Any nonperformance, underperformance by its partners or premature termination of such relationship may adversely affect the company's business, reputation, financial condition and results of operations.

Orders in the company's order book may be delayed, truncated, modified, or cancelled, and notice of awards may be withdrawn or may not translate into confirmed orders, which may have an adverse effect on the company's business, results of operations and financial conditions.

Under the company's Project Division, the company is dependents on its design and engineering teams to accurately carryout the pre-approval engineering studies for potential projects. Any deviation during the execution of the project as compared to our pre-approval estimates could have a material adverse effect on the company's cash flows, results of operations and financial condition.

The contracts entered into by the company is usually standard in nature and may contain terms that favour the company's clients, which may enable them to terminate the company's contracts prematurely under various circumstances beyond its control and as such, the company has limited ability to negotiate terms of such contracts and may have to accept unusual or onerous provisions.

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