CLN Energy

State of Art manufacturing facilities.

Well educated and experienced team of Professionals.

Long-term relation with our customers.

In-house Research and Development team.

Providing critical business solution and manufacturing customised products.

Consistent track record of financial performance.

The Company, Group Companies, Promoters and Directors are parties to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.

The company derives a significant portion of its revenue from the sale of batteries, cells and motor and controller and any reduction in demand or in the manufacturing of such products could have an adverse effect on its business, results of operations and financial condition.

The company has not entered into any agreement with the suppliers of machinery and equipment as specified in the objects of the Issue. Further the amount allocated for purchases of machinery and equipment are based on the quotation received from suppliers.

The company has reported negative net cash flows in the past and may do so in the future.

The company is dependent on a few suppliers for supply of raw materials and any major disruption to the timely and adequate supplies of its raw materials could adversely affect the company business, results of operations and financial condition.

The company business of manufacturing and supply of lithium-ion batteries, motors and powertrain components, and services required by electric vehicle industry, commercial and industrial application, solar industry, telecom industry etc is significantly dependent on the technology, process and product development of its products.

The Company has in the past experienced a major fire at its Manufacturing Facility cum Registered Office which resulted in major losses for the Company. Hence its past performance may not be comparable with the company future performance.

The company is significantly dependent on few customers for its revenue in a particular financial year. The loss of any one or more of such customers may have a material effect on its business operations and profitability.

Trade Receivables, Inventories and other current assets form a substantial part of its Total Assets. Failures to manage the company trade receivables and inventories could have an adverse effect on its net sales, profitability, cash flow and liquidity.

In addition to normal remuneration its Key Management Personnel (including the company promoters) are interested in the Company to the extent of their shareholding and dividend entitlement in the Company. Further the company has entered in related party transaction with them.

The company has applied for few trademarks which are pending registration. A delay in, or failures to obtain, registration may result in its inability to adequately defend intellectual property rights.

Majority of revenue contribution comes from the Delhi, Maharashtra, Uttar Pradesh and Haryana which contributed 79.57%, 77.49%, 75.69% and 79.93% of its revenue from products in for the period ended September 30, 2024 and Fiscal 2024, 2023 and 2022, respectively.

Its manufacturing facilities and Registered Office are not owned by it and the company has only leasehold rights. In the event its lose or are unable to renew such leasehold rights, the company business, results of operations, financial condition and cash flows may be adversely affected.

The company requires certain approvals and licenses in the ordinary course of business and are required to comply with certain rules and regulations to operate its business, and the failures to obtain, retain and renew such approvals and licenses or comply with such rules and regulations, and the failure to obtain or retain them in a timely manner or at all may adversely affect its operations.

Its Key Managerial Personnel play key role in the company functioning and its heavily relies on their knowledge and experience in operating its business and therefore, it is critical for the company business that they remain associated with it.

Its warranty provisions may be insufficient to cover future warranty claims, which could adversely affect its financial condition and results of operations.

The company failures to keep its technical knowledge confidential could erode the company competitive advantage. Its possess certain technical knowledge about the company products.

The Company is dependent on the continuing operation of its manufacturing facilities.

Association of its promoter and director with a previously Struck-off Company may adversely impact the Company in the event of future litigation or penalties.

The company has offered Equity Shares during the last one year at a price below the Offer Price.

The market for energy sector products such as lithium-ion batteries and motors and powertrain components are growing and getting competitive.

Its Promoters will continue to hold a significant equity stake in the Company after the Offer and their interests may differ from those of the other shareholders.

The Company has availed unsecured loans which are repayable on demand.

Industrial accidents at its manufacturing facility may adversely affect the company operation.

Failures in supply of electricity or power can lead to significant disruption in manufacturing process and can affect its operations.

The company faces foreign exchange risks in both import and export but primarily in its import and procurement operations that could adversely affect its results of operations.

Under-utilization of its manufacturing capacities and an inability to effectively utilize the company expanded manufacturing capacities could have an adverse effect on its business, future prospects and future financial performance.

The deployment of the Net Proceeds from the Fresh Issue are based on management estimates and have not been independently appraised by any bank or financial institution and is not subject to any monitoring by any independent agency and the Company`s management will have flexibility in utilizing the Net Proceeds from the Fresh Issue.

Its insurance coverage may not be sufficient or may not adequately protect it against any or all hazards, which may adversely affect the company business, results of operations and financial condition.

The Company, Promoters and Directors are parties to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.

Any disruption to the steady and regular supply of workforce for its operations, including due to strikes, work stoppages or increased wage demands by its workforce or any other kind of disputes with the company workforce or its inability to control the composition and cost of the company workforce could adversely affect its business, cash flows and results of operations.

The company faces potential risks due to the emergence of new technologies, such as hydrogen- based batteries, which could replace lithium-ion batteries.

Its cost of production is exposed to fluctuations in the prices of raw materials required for the manufacture as well as its availability.

The company is dependent on third party transportation providers for the delivery of its products to the company customers.

If the company is unable to manage its growth effectively or raise additional capital, its business, future financial performance and results of operations could be materially and adversely affected.

The Company may not be able to bring growth or successfully implement its business plan which could have an effect on the company business, results of operations and financial condition.

Employee misconduct, errors or fraud could expose it to business risks or losses that could adversely affect its business prospects, results of operations and financial condition.

Its may also be unable to obtain future financing to fund the company operations, expected capital expenditure and working capital requirements on favorable terms, or at all.

Any delay or defaults in receipt of payments or dues from its customers could result in a reduction of the company profits.

Any future issuance of Equity Shares may dilute your shareholding and sale of Equity Shares by the Promoter may adversely affect the trading price of the Equity Shares.

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.

There is no guarantee that the Equity Shares issued pursuant to the Issue will be listed on the SME Platform of BSE in a timely manner, or at all.

Pursuant to listing of the Equity Shares, its may be subject to pre-emptive surveillance measures like Additional Surveillance Measure ("ASM") and Graded Surveillance Measures ("GSM") by the Stock Exchange in order to enhance market integrity and safeguard the interest of investors.

Non-compliance with and changes in, safety, health and environmental laws and other applicable regulations, might adversely affect the Company`s results of operations and its financial condition.

Pursuant to listing of the Equity Shares, we may be subject to pre-emptive surveillance measures like Additional Surveillance Measure ("ASM") and Graded Surveillance Measures ("GSM") by the Stock Exchanges in order to enhance market integrity and safeguard the interest of investors.

Non-compliance with and changes in, safety, health and environmental laws and other applicable regulations, might adversely affect Our Company`s results of operations and its financial condition.