Alpex Solar

Risks

• The company involves in the case of Deputy Commissioner of Income Tax v. Alpex Export Private Limited & Ors Criminal Revision Petition 132/2023 before the Hon`ble Delhi High Court.

• The company may not be successful in bidding for and winning bids for solar water pumps EPC projects to grow its business.

• Its Restated Financial Statements are Prepared and Signed by the Peer Review Chartered Accountants who is not Statutory Auditors of the Company.

• Its business operations may face less sales in unfavourable solar weather conditions could have a material adverse effect on its business, financial condition and results of operations.

• The company has not taken any steps to order the machinery/equipment required for the proposed aluminium Plant. In the event of any delay in placing the orders, or in the event the vendors are not able to provide the equipment/ machineries in a timely manner, or at all, the same may result in time and cost over-runs.

• Its may continue to derives a material portion of the company revenue from its top five customers and its financial dependence on its top Five customers particularly "Luminous Power Technologies Private Limited" poses a potential risk. A reduction in business from "Luminous" or any other major clients could have negative implications for both its revenue and profitability.

• Majority of its state wise revenues from operations for the last 3 years is dependent majorly on Uttar Pradesh. Any adverse developments affecting its operations in these states could have an adverse impact on its revenue and results of operations.

• The company involves in the consumer court cases where customer not satisfied with the warranty.

• Its face competition in its business from domestic competitors. Such competition would have an adverse impact on its business and financial performance.

• Non-availability of secretarial records of the company filed with ROC since incorporation and non-updating of recent records at MCA.

• There are certain discrepancies and non- compliances noticed in some of its corporate records relating to forms filed with the Registrar of Companies, taxation authorities and other public authorities.

• The Company`s modules are approved by many private and public sector developers failure to maintain the quality standards of the products could adversely impact its business, results of operations and financial condition.

• The company does not own the premises in which its registered office, manufacturing unit and Branch Office is located and the same are on lease arrangement. Any termination of such lease/license and/or non-renewal thereof and attachment by Property Owner could adversely affect its operations.

• The company has experienced negative cash flows in the past. Any such negative cash flows in the future could adversely affect its business, results of operations and prospects.

• The Company is involved in certain legal proceeding(s) potential litigations. Any adverse decision in such proceeding(s) may render it/them liable to liabilities/penalties and may adversely affect its business and results of operations.

• There may be potential conflicts of interest if its Promoter or Directors get involved in any business activities that compete with or are in the same line of activity as its business operations.

• Its Promoter/ Directors have mortgaged their properties and provided personal guarantees to secure certain of its loan facilities, which if revoked or invoked may require alternative guarantees, repayment of amounts due or termination of the facilities.

• Its Contingent Labilities could materially and adversely affect its business, results of operations and financial condition.

• The Company has availed unsecured loan which are repayable on demand. Any demand from the lenders for repayment of such unsecured loan may affect its financial condition.

• The company has applied for registration of logo alpex and does not own the trademark legally as on date. Its may be unable to adequately protect its intellectual property. Furthermore, its may be subject to claims alleging breach of third-party intellectual property rights.

• Several of its key raw materials and components are sourced from a limited group of global third-party suppliers giving rise to supplier concentration risks. Any restrictions in supply or defects in quality could cause delays in project construction or implementation and impair its ability to provide our services to customers at a price that is profitable to it, which could have a material adverse effect on its business, financial condition and results of operations.

• The company requires certain approvals, licenses, registrations and permits for its business and the failure to obtain or renew them in a timely manner may adversely affect its operations.

• Restrictions on or import duties relating to materials and equipment imported for its manufacturing operations as well as restrictions on or import duties levied on its products in its export markets may adversely affect its business prospects and financial performance.

• The company is engaged in assembling of solar water pumping system and customers receives subsidy from State/Central Government. Any reduction or discontinuation of such subsidy will results in reduction in number of potential consumers.

• Government may commence assembling the solar water pumps/products and may start providing products at cheaper rates.

• The company do business with its customers on purchase order basis and do not have long-term contracts with most of them.

• The company has issued Equity Shares during the last one year at a price that may be below the Issue Price.

• The Company has in the past entered into related party transactions and may continue to do so in the future. There can be no assurance that such transactions, individually or in the aggregate, will not have an adverse effect on the Company`s financial condition and results of operations.

• Changes in technology may render its current technologies obsolete or require it to make substantial investments.

• The average cost of acquisition of Equity Shares by its Promoters could be lower than the issue price.

• The Objects of the Issue for which funds are being raised, are based on its management estimates and any bank or financial institution or any independent agency has not appraised the same. The deployment of funds in the project is entirely at its discretion, based on the parameters as mentioned in the chapter titles "Objects of the Issue".

• Its Promoters and members of the Promoter Group will continue jointly to retain majority control over the Company even after the Issue which will allow them to determine the outcome of matters submitted to shareholders for approval.

• Its success depends on stable and reliable logistics and transportation. Disruption of logistics and transportation services could impair the ability of its suppliers to deliver raw materials or its ability to deliver products to its customers and/ or increase our transportation costs, which may adversely affect its operations.

• Its success will depends on its ability to attract and retain its key managerial personnel, its design and engineering team and other key personnel. Failure to do so may have a material adverse effect on its business, financial condition and results of operations.

• Change in technology, evolving customer requirements and emerging industry trends may affect its business, may render its current technologies obsolete and may require it to make substantial capital investments.

• Its insurance coverage may not be adequate to protect it against certain operating hazards and this may have a material adverse effect on its business.

• Its operations may cause injury to people or property and therefore could subject it to significant disruptions in its business, legal and regulatory actions, costs and liabilities which could materially and adversely affect its business, financial condition and results of operations.

• The outbreak of COVID-19 or outbreak of any other severe communicable disease could have a potential impact on its business, financial condition and results of operations.

• The company has not made any dividend payments in the past and its ability to pay dividends in the future will depends upon future earnings, financial condition, cash flows, working capital requirements, capital expenditures and restrictive covenants in its financing arrangements.

• The Issue price of its Equity Shares may not be indicative of the market price of its Equity Shares after the Issue and the market price of its Equity Shares may decline below the issue price and you may not be able to sell your Equity Shares at or above the Issue Price.

• Lockdown and suspension of commercial operations will affect the growth of its business and cash flows.

• There is no monitoring agency appointed by the Company to monitor the utilization of the Issue proceeds.

• You may be subject to Indian taxes arising out of capital gains on sale of Equity Shares.

• The price of its Equity Shares may be volatile, or an active trading market for its Equity Shares may not develop.

• The company is subject to foreign currency exchange rate fluctuations which could have a material and adverse effect on its results of operations and financial conditions.

• The company cannot assure you that its equity shares will be listed on the SME platform of NSE in a timely manner or at all, which may restrict your ability to dispose of the equity shares.

• Sale of Equity Shares by its Promoters or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.

• After this Issue, the price of the Equity Shares may be highly volatile, or an active trading market for the Equity Shares may not develop.

• The Issue price of its Equity Shares may not be indicative of the market price of its Equity Shares after the Issue and the market price of its Equity Shares may decline below the issue price and you may not be able to sell your Equity Shares at or above the Issue Price.