The company has a history of net losses in past and any losses or its inability to achieve profitability may have an adverse effect on its operations.

The biomass fuel industry is a relatively new concept and is yet to have a defined market as compared to conventional fuels, on account of which the company has to face resistance from the potential customers to switch to biomass fuel.

The Company is engaged in the business of supplying of biomass fuels and has commenced manufacturing of pallets during last one year. The manufacturing activity may take stabilizing period and also the company does not have long term supply agreements with suppliers which may have an adverse effect on the business operations and profits of the company.

Significant portion of its revenue is generated from few of the company's key clients. The loss of any such key clients, significant reduction in the demand for its products from such clients or deterioration in their financial condition may adversely affect its business, financial condition, result of operations and cash flows.

The company generates almost entire of its sales from its operations in certain geographical regions especially Northern India and any adverse developments affecting its operations in these regions could have an adverse impact on its revenue and results of operations.

Its business is subject to seasonal variations that could result in fluctuations in its results of operations.

The company has a limited operating and financial history, which makes it difficult to evaluate its business and future operating results on the basis of its past performance.

The company in past failed to apply for certain regulatory licenses, registrations and approvals in respect of its business operations. Failures to obtain or maintain licenses, registrations, permits and approvals may severely affect its business and results of operations.

The company has not placed orders for the purchase of plant and machinery for which part of the funds are being raised through the Issue.

The company does not own the Registered office, other Offices and manufacturing facility from which the company carry out its business activities. Any termination or dispute in relation to these rental agreements may have an adverse effect on its business operations and results thereof.