S G Encon Limited

The Company derived 98.62%, 99.05% and 98.60% of its revenue from operations from its telecommunication services business during Fiscals 2026, 2025 and 2024, respectively. Any slowdown in the telecommunication sector or reduction in demand for telecommunication services, including O&M services, could materially and adversely affect the Company's business, financial condition, results of operations and cash flows.(Business Related Risks)

The Company's operations are geographically concentrated in North India, particularly across certain states which contributed to 100% of its revenue from operations in the last three years. Any adverse developments in these regions could materially affect the Company's business and growth prospects.(Business Related Risks)

The Company is dependent on its top ten suppliers and service providers for procurement of materials and services required for its business, with the top ten accounting for 28.66%, 29.10% and 27.86% of total purchase/service expenses in Fiscals 2026, 2025 and 2024, respectively. Any disruption in their supply or services could adversely affect the Company's operations.(Business Related Risks)

The Company is dependent on its top ten customers in respect of its business. The top 10 customers contributed to 99.63%, 99.92%, 99.96% of the revenue from operations during Fiscals 2026, 2025 and 2024, respectively. Any loss of any major customer may adversely impact revenue of the business.(Business Related Risks)

The Company's O&M engagements are subject to the terms of the relevant work orders and contracts and may be subject to renewal, extension, modification or termination in accordance with their terms. Any failure to renew or extend existing O&M engagements, reduction in the scope or value of work awarded to the Company, or loss of a customer could adversely affect the business and revenue.(Business Related Risks)

The Company's geographic concentration exposes it to region-specific risks, including changes in government policies, regulatory requirements, procurement priorities, tendering processes and delays in decision-making, which could affect ongoing projects or the awarding of new contracts.(Business Related Risks)

The Company's operations are also subject to risks arising from regional economic conditions, changes in infrastructure spending, delays in project execution, availability of manpower and other resources, and other factors that may affect the demand for the Company's services or its ability to execute projects in a timely manner.(Business Related Risks)

A majority of the Company's procurement is undertaken on a purchase order or project-specific basis, and it has not entered into long-term agreements with all its suppliers and service providers. Although there has been no instance in the last three Fiscals where any supplier did not perform their obligations in a timely manner which had an adverse impact on the financials or business operations, the Company cannot assure that no instance will arise in the future where delay in supply of raw materials or non-performance of obligations would not have an adverse impact on the results of operations, cash flows, financial condition or business.(Business Related Risks)