Mahendra Realtors & Infrastructure Limited - IPO

1. Its Top 10 customers contribute more than 50% of the revenue in the all three financial years. The loss of any one or more of the company major customers would have a material adverse effect on its business, cash flows, results of operations and financial condition. Further, the company generally do business with its customers on a Work order basis and does not enter into long-term contracts with them. Its inability to maintain relationships with its customers could have an adverse effect on the company business, prospects, results of operations and financial condition.

2. Its revenues largely depend on acceptance of the bids submitted to the Government and Government Departments. The company performance could be affected in case majority of the bids are not accepted / awarded to it or the company quote a lower bid value.

3. Its construction, interior / structural repairs & restoration/ retrofitting projects may be delayed, modified or cancelled for reasons beyond the company control which may materially and adversely affect its business, financial condition and results of operation.

4. The geographical concentration of its customer base may restrict the company operations and adversely affect its business, results of operations, and financial conditions in the future.

5. Increase in competition in the Indian real estate sector may adversely affect profitability.

6. Its top ten suppliers contribute significant part of the company purchases. Any loss of business with one or more of them may adversely affect its business operations and profitability.

7. The Company, Promoters, and Directors are not involved in certain legal and regulatory proceedings except as disclosed below. Any future litigation may have a material adverse effect on its business.

8. Its business is manpower intensive and the company is dependent on the supply and availability of a sufficient pool of contract labourers from sub-contractors at our project locations. Unavailability or shortage of such a pool of contract labour or any strikes, work stoppages, increased wage demands by workmen or changes in regulations governing contractual labour may have an adverse impact on its cash flows and results of operations.

9. The profits from our projects are difficult to predict and are not comparable at all.

10. Projects undertaken through a joint venture may be delayed on account of the performance of the joint venture partner or, in some cases, significant losses from the joint venture may have an adverse effect on its business, results of operations and financial condition.