Enviro Infra Engineers Limited - IPO

1. The company bid for Water and Wastewater Treatment Plants (WWTPs) & Water Supply Scheme Projects (WSSPs) funded by the Central and State Governments and derives the company revenues from the contracts awarded to it. Any reduction in budgetary allocation to this sector may affect the number of projects that the government authorities /bodies may plan to develop in a particular period. Its business is directly and significantly dependent on projects awarded by them.

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

3. The company relies on its in-house designing, engineering and construction teams for project execution. Loss of employee(s) may have an adverse effect on the execution of its projects.

4. Its business is working capital intensive. If the company experience insufficient cash flows to meet required payments on its working capital requirements, there may be an adverse effect on the results of its operations.

5. Its Order Book may not be representative of the company future results and its actual income may be significantly less than the estimates reflected in its Order Book, which could adversely affect its results of operations.

6. Failures to capitalize on government policy initiatives in the water and wastewater treatment market.

7. The company relies on various third parties in the civil construction activities for installing its Water and Wastewater Treatment Plants (WWTPs) & Water Supply Scheme Projects (WSSPs) and factors affecting the performance of their obligations could adversely affect its projects.

8. The company relies on joint venture partners for selective government projects bids and execution of awarded projects. The failures of a joint venture partner to perform its obligations could impose additional financial and performance obligations resulting in reduced profits or, in some cases, significant losses from the joint venture and may have an adverse effect on its business, results of operations and financial condition.

9. The company has diversified its offerings with "Waste to Energy" additions like Solar Power Plants and Compressed Bio Gas (CBG) forming a part of projects. Its may fails in implementing these initiatives successfully which may affect its future growth and prospects.

10. Increase in the prices of construction materials and labour & works contract charges could have an adverse effect on its business, results of operations and financial condition.