Australian Prem

Risks

• The Company, Promoters, Promoters Group and Group Companies are party to certain litigation and claims. These legal proceedings are pending at different levels of adjudication before various courts and regulatory authorities. Any adverse decision may make it liable to liabilities/ penalties and may adversely affect its reputation, business and financial status. A classification of these legal and other proceedings is given below:

• The Comapny`s Registered Office from where its operate is not owned by it.

• The Company`s dependent on few numbers of customers for sales. Loss of any of this large customer may affect its revenues and profitability.

• Its highly depend on it major raw materials and a few key suppliers who help it procure the same. the Company has not entered into long-term agreements with its suppliers for supply of raw materials. In the event its unable to procure adequate amounts of raw materials, at competitive prices it business, results of operations and financial condition may be adversely affected.

• The company`s revenues are highly dependent on it operations in geographical region of state of Gujarat. Any adverse development affecting it operations in this region could have an adverse impact on the company is business, financial condition and results of operations.

• The company`s conduct it business activities on a purchase order basis and therefore, have not entered into long-term agreements with it customers.

• The company has availed credit facility from banks, and it is subject to certain restrictive covenants. Any Delay in issuing No Objection Certificate for the proposed issue may delay it proposed Initial public offering.

• Any failure in it quality control processes may adversely affect it business, results of operations and financial condition. It may face product liability claims and legal proceedings if the quality of it products does not meet the company is customers` expectations.

• The comapny`s business activities are exposed to fluctuations in the prices of raw materials.

• The company has only one Manufacturing Facility, continued operations of the company`s manufacturing facility is critical to it business and any disruption in the operation of the company`s manufacturing facility may have a material adverse effect on it business, results of operations and financial condition.

• The company`s engaged in providing EPC service of solar rooftops and solar pumps and receives subsidy from state/central government for residential rooftop and agricultural segment. Any reduction or discontinuation of such subsidy will result in reduction in number of potential consumers.

• The Company`s failure to perform in accordance with the standards prescribed in work order of it client could result in loss of business or payment of liquidated damages.

• The Company has in the past not complied with the certain provisions of the Companies Act, 2013. Further, there have also been instances where it Company has inadvertently filed incorrect information with the RoC in its statutory filings.

• There are certain discrepancies and non-compliances noticed in some of The company`s financial reporting and/or records relating to filing of returns and deposit of statutory dues with the taxation and other statutory authorities.

• The company`s require a number of approvals, licences, registrations and permits in the ordinary course of it business and any failure or delay in obtaining the same in a timely manner may adversely affect its operations.

• The comapny`s issued Equity Shares to promoter/promoter group and public during the last 12 months preceding the date of this Prospectus at a price lower than the Issue Price as detailed in the following table:

• Any delays and/or defaults in customer payments could result in increase of working capital investment and/or reduction of the Company`s profits, thereby affecting it operation and financial condition.

• The Company`s requires significant amount of working capital for a continued growth. It inability to meet its working capital requirements may have an adverse effect on it results of operations.

• The company has 100% dependent on third party transportation providers for delivery of raw materials to it from the company is suppliers and delivery of the comapny is products to it customers. The company is not entered into any formal contracts with it transport providers and any failure on part of such service providers to meet their obligations could adversely affect the company is business, financial condition and results of operation.

• Any adverse change in regulations governing the company is products and the products of it customers, may adversely impact it business prospects and results of operations.

• The Company has availed Rs. 37.61 lakhs as unsecured loan as on March 31, 2023, which are repayable on demand. Any demand from the lenders for repayment of such unsecured loan may affect it cash flow and financial condition.

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

• Failure to effectively manage labour or failure to ensure availability of sufficient labour could affect the business operations of the Company.

• Strikes, work stoppages or increased wage demands by the company employees or any other kind of disputes with the comapny is employees/workmen in future could adversely affect it business and results of operations.

• In addition to normal remuneration, other benefits and reimbursement of expenses to the company Promoters and Directors; they are interested to the extent of their shareholding and dividend entitlement thereon in it Company and for the transactions entered into between it Company and themselves as well as between the Company and it Group Companies/Entities. the Company`s in future may enter in related party transactions subject to necessary compliances.

• The average cost of acquisition of Equity shares by it Promoters is lower than the Issue price.

• The comapny`s success depends heavily upon its Promoters, Directors and Key Managerial Personnel for their continuing services, strategic guidance and financial support. It success depends heavily upon the continuing services of Promoters, Directors and Key Managerial Personnel who are the natural person in control of Its Company.

• The company has subject to risks associated with expansion into new markets.

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

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

• Industry information included in this Draft Red Herring Prospectus has been derived from industry reports. There can be no assurance that such third-party statistical, financial and other industry information is either complete or accurate.

• Within the parameters as mentioned in the chapter titled "Objects of this Issue" of this Draft Red Herring Prospectus, The Company`s management will have flexibility in applying the proceeds of this Issue. The fund requirement and deployment mentioned in the Objects of this Issue have not been appraised by any bank or financial institution.

• The comapny has not identified any alternate source of raising the funds required for the object of the Issue and the deployment of funds is entirely at the company`s discretion and as per the details mentioned in the section titled "Objects of the Issue".

• Any future issuance of Equity Shares may dilute your shareholdings, and sale of the Equity Shares by it major shareholders may adversely affect the trading price of its Equity Shares.

• The company`s ability to pay dividends in the future will depend upon it future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in it financing arrangements.

• The company`s inability to effectively implement it business and growth strategy may have an adverse effect on the comapny is operation and growth.

• The requirements of being a public listed company may strain it resources and impose additional requirements.