Supreme Facility Management Ltd IPO

The company's business could be adversely affected if its customers fails to renew their contracts with the company or its fail to acquire new customers.

Operational risks are inherent in its business as it includes rendering services in contrasting environments. A failures to manage such risks including any errors, defects or disruption in its service or inability to meet expected or agreed service standards, could have an adverse impact on its business, cash flows, results of operations and financial condition.

Its business revenue from operations is concentrated in a few business segments.

A significant portion of its revenues are derived from a few geographical regions and any adverse developments affecting such regions could have an adverse effect on its business, cash flows, results of operation and financial condition.

The company has a large workforce deployed across workplaces and customer premises. Consequently, its may be exposed to service-related claims and losses or employee disruptions, as well as employee related regulatory risks, that could have an adverse effect on its reputation, business, cash flows, results of operations and financial condition.

The company's businesses are manpower intensive and its inability to attract and retain skilled manpower could have an adverse impact on its growth, business, and Financing condition. Further, in the event the company is not able to manage its attrition, its may not be able to meet the expectations of the company customers, which may have an adverse impact on its Financing condition.

Its profitability and growth will be significantly dependant on the company ability to maintain a lower debt equity ratio.

Substantial portion of its revenues has been dependent upon its few clients. The loss of any one or more of the company major clients would have a material adverse effect on its business operations and profitability.

Its may be unable to perform background verification procedures on the company personnel as well as on its billable employees prior to placing them with the company customers.

Its may be unable to fully realize the anticipated benefits of the company past acquisitions and any future acquisitions or within its expected timeframe. If the company is unable to identify expansion opportunities or experience delays or other problems in implementing its expansion efforts, the company's growth, business, cash flows, results of operations and financial condition may be adversely affected.