Source: SEBI
From the prospectus, ordered by severity. Wording is close to the filing — not softened.
Dependency on Telecommunication Services
S G Encon Limited is significantly dependent on its telecommunication services, which accounted for 98.62%, 99.05%, and 98.60% of revenue from operations in Fiscals 2026, 2025, and 2024, respectively.
Operational · high
Geographic Concentration Risk
The company faces risks from geographic concentration in North India, where it derived 100% of its revenue from operations over the last three years.
Geographic · high
Customer Concentration Risk
The top ten customers contributed 99.63%, 99.92%, and 99.96% of revenue from operations during the same periods, indicating a high customer concentration risk.
Customer · high
Negative Cash Flow from Operating Activities
The company has experienced negative cash flow from operating activities in the past and may continue to do so, which could adversely affect its financial condition.
Financial · high
Contingent Liabilities
The company has contingent liabilities amounting to ₹9.69 million related to indirect tax matters.
Financial · medium
Issues with Accounting Software
The statutory auditors have noted issues with the accounting software used by the company, which lacks an audit trail feature.
Operational · medium
Workplace Accidents
The company is also exposed to risks from workplace accidents and has an unfunded gratuity liability of ₹39.92 million as of March 31, 2026.
Operational · medium
What the business leans on, as the filing describes it.