Bondada Engineer

Experienced management team.

Existing relationship with customers.

On time completion of the projects.

Quality assurance.

Strong management information systems.

Scalable business model.

The company is dependent on and derive a substantial portion of its revenue from a limited number of customers and over-dependence on one or some of the customers may expose it to liquidity risks, which may adversely affect its business, results of operations and financial condition.

The company require sizeable amounts of working capital for the continued operation and growth. Its inability to meet its working capital requirements could have a material adverse effect on the business, results of operations and financial condition.

The company has, and continue to, bid for various tenders with Government customers. There can be no assurance that even if its are the lowest bidder (L-1), the projects will be awarded to it or that the projects for which the company has obtained purchase orders or advance work orders will be converted into confirmed orders or that its will actually realize revenues from any such projects.

The company may be unable to accurately estimate costs under fixed-price EPC contracts, fail to maintain the quality and performance guarantees under its EPC contracts and the company may experience delays in executing its EPC contracts in timely manner, which may increase the construction costs and working capital requirements, and may have a material adverse effect on the financial condition, cash flow and results of operations.

The company is dependent on award of EPC and O&M contracts, which are subject to cancellation and changes in scope of services and, therefore, Its Order Book is not necessarily indicative of the company future revenues or profit. It may result in disputes or contractual penalties due to cost over-runs, delay in delivery, failures to meet contract specifications or delivery schedules, which may adversely affect its business, results of operations and financial condition.

The company operate in a competitive environment and may not be able to effectively compete with similar companies, which could have a material adverse effect on its business, results of operations and financial condition.

The company agreements with telecom tower operators for O&M contracts have clauses/covenants that could adversely affect its business and financial condition. The company may be liable for penalties and other liabilities under our O&M services contracts in case of any deficiencies in the services provided by it, which may adversely affect of the business prospects, results of operations, financial condition and cash flows.

Some of the company loan agreements contain restrictive covenants which may adversely affect its business, results of operations and financial condition.

If the company is unable to collect its dues and receivables from the customers in accordance with the terms and conditions of the contracts and the delivery and payment schedules, the company business, results of operations or financial condition could be materially and adversely affected.

The company business is dependent on its manufacturing facilities, and the loss or shutdown of operations at any of the manufacturing facilities may have a material adverse effect on the business, results of operations and financial condition.

The company funding requirements and the proposed deployment of Net Proceeds are not appraised by any independent agency and deployment of funds raised through this Issue shall not be subject to monitoring by any monitoring agency.

The company is subject to various laws and regulations, including environmental, health and safety laws and regulations and labour laws in India, which may subject it to increased compliance costs, which may in turn result in an adverse effect on its business, results of operations and financial condition.

The company cannot assure you that its will achieve or maintain similar growth rate, which the company has achieved in past.

Information included in this Draft Prospectus relating to the installed capacity, actual production and capacity utilisation at the company manufacturing facilities are based on various assumptions and estimates, and future production and capacity may vary.

The company may not be able to adequately protect its intellectual property rights, including the use of "Bondada Group" name and associated logo, which could harm its competitiveness.

The company success largely depends on its ability to attract and retain the key managerial personnels. Failure to do so may have a material adverse effect on the business, financial condition and results of operations.

The Company, its Subsidiaries, Directors and Promoters 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 the company reputation, business and financial status. A classification of these legal and other proceedings is given below.

The company registered office, corporate office and certain manufacturing facilities are located on leased premises. Its cannot assure you that the lease agreement will be renewed upon termination or that the company will be able to lease other premises on the same or similar commercial terms.

The company insurance policies may not be adequate to cover all losses incurred in its business. An inability to maintain adequate insurance cover to protect it from material adverse incidents in connection with the company business may adversely affect its operations and profitability.

There have been certain instances of non- compliances in the past, including with respect to certain secretarial / regulatory filings for corporate actions taken by the Company. There are also certain discrepancies in secretarial records filed with the RoC. Its may be subject to regulatory actions and penalties for any such non-compliance and the company business, financial condition and reputation may be adversely affected.

The company ability to pay dividends in the future will depend on a number of factors, including its profit after tax for the respective fiscal year, our capital requirements, The company financial condition, Its cash flows and applicable taxes, including payment of dividend distribution tax.

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

The company has certain contingent liabilities which may adversely affect its financial condition.

The average cost of acquisition of Equity Shares by the Promoters could be lower than the Issue Price.

The company has experienced negative cash flows in the prior periods.

The company business is manpower intensive and its are dependent on the supply and availability of a sufficient pool of contract labourers at the project locations. Unavailability or shortage of such a pool of contract labour or any strikes, work stoppages, increased wage demands by workmen or changes in regulations governing contractual labour may have an adverse impact on the cash flows and results of operations.

Its may be unable to detect, deter and prevent all instances of fraud or other misconduct committed by the company employees which may have a material adverse effect on its business, results of operations and financial condition.

Certain sections of this Draft Prospectus disclose information from the industry report which has been commissioned and paid for by it exclusively in connection with the Issue and any reliance on such information for making an investment decision in the Issue is subject to inherent risk.

The company has in the past entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interest with the equity shareholders.

Any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders` approval.

Failures in internal control systems could cause operational errors which may have an adverse impact on the company profitability.