Australian Premium Solar (India) Limited and its promoters are involved in a few legal proceedings and claims. Adverse outcomes in these cases could lead to liabilities, penalties, and a negative impact on the company's reputation and financial status.
A significant portion of the company's sales relies on a few key customers. Losing any major customer could adversely affect revenues and profitability. In the financial year ending March 31, 2023, the top ten customers contributed 44.65% of total sales, indicating high dependence on a limited client base.
The company's operations and revenue are heavily concentrated in the state of Gujarat. Any negative economic or policy changes in this region could severely impact the company's financial health and operations.
The company's EPC services for residential rooftops and agricultural solar pumps rely on state and central government subsidies. Reduction or discontinuation of these subsidies could lead to higher project costs for consumers and a consequent reduction in potential customers.
The company has previously faced compliance issues with the Companies Act, 2013, and other regulations. Non-compliance and incorrect statutory filings could lead to penalties and impact the company's operations and financial position.
The company relies entirely on third-party transportation for the delivery of raw materials and products. The absence of formal contracts with these providers poses a risk to the company's business operations and financial health.
The company has availed unsecured loans amounting to Rs. 0.38 crores and those are repayable on demand. This could impact cash flows and financial conditions if lenders suddenly recall these loans.
The company's reliance on credit facilities from banks, subject to restrictive covenants, could affect its operational flexibility. Delays in obtaining necessary permissions could impact the company's financial and operational plans.
Australian Premium Solar requires numerous approvals, licenses, and permits for its operations. Failure to obtain, renew, or comply with these requirements could delay operations and adversely affect the business.