Cryogenic OGS

Risks

• Any increase in the cost of its raw material or a shortfall in the supply of the company raw materials, may adversely affect the pricing and supply of its products and have an adverse effect on the company business, results of operations and financial condition.

• Its top five customers contribute majority of our revenues from operations. Any loss of business from one or more of them may adversely affect the company revenues and profitability.

• The company is significantly dependent on the sale of Air eliminators and oil and gas metering skids. An inability to anticipate or adapt to evolving up gradation of the required products or inability to ensure product quality or reduction in the demand of these products may adversely impact its revenue from operations and growth prospects

• Majority of its Revenue from Operation (RFO) is generated from state of Gujarat and Maharashtra. Any adverse development affecting the company operations in this region could have an adverse impact on its business, financial condition and results of operations.

• The company is subject to strict quality requirements, customer inspections and audits, and any failures to comply with quality standards may lead to cancellation of existing and future orders and could negatively impact its reputation and the company business and results of operations and future prospects.

• The sector in which the company operates is capital intensive in nature and the business model the company is switching to would make it more capital intensive. The company requires substantial financing for its business operations and the failures to obtain additional financing on terms commercially acceptable to us may adversely affect its ability to grow and the company future profitability.

• Its business requires the services of third party manufacturers and suppliers, which entail certain risks.

• The company has had certain inaccuracy in relation to regulatory filings and the company has made non-compliances of certain provision under applicable law.

• The Company had negative cash flows in the past years, details of which are given below. Sustained negative cash flow could impact its growth and business.

• Its may be subject to risks associated with product warranty.

• Its inability to accurately forecast demand for the company products, and accordingly manage its inventory, may have an adverse effect on the company business, cash flows, financial condition and results of operations.

• Its Products are manufactured according to requirement of the customers in respect of size, use and design, and the company inability to meet the requirement or preference may affect its business.

• The company failures to adapt to technological developments or industry trends could affect the performance and features of its products, and reduce our attractiveness to the company customers.

• Its projects are typically awarded to it on satisfaction of prescribed pre-qualification criteria and following a competitive bidding process. Its business and the company financial condition may be adversely affected if new projects are not awarded to it.

• The nature of its business exposes the company to liability claims and contract disputes and our indemnities may not adequately protect it. Any liability in excess of the company reserves or indemnities could result in additional costs, which would reduce its profits.

• Delays or defaults in client payments could affect its operations. The company may be subject to working capital risks due to delays or defaults in payment by clients, which may restrict its ability to procure raw materials and make payments when due.

• An inability to effectively manage project execution may lead to project delays which may affect its business and results of operations.

• Its customers have a right to cancel the contract by giving a minimal notice on the occurrence of certain events. Any such cancellation may adversely affect its business, financial condition and results of operations.

• The Company, promoters and directors are involved in 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 faces significant competition in its industry, which may reduce the company market share and adversely affect its business, financial condition, results of operations and prospects.

• The company is dependent on a number of key personnel, including its senior management, and the loss of, or the company inability to attract or retain such persons could adversely affect its business, results of operations and financial condition.

• Its pricing structures may not accurately anticipate the cost and complexity of performing the company work and if its unable to manage costs successfully, then certain of the company contracts could be or become unprofitable.

• The company requires certain approvals or licenses in the ordinary course of business and the failures to renew, obtain or retain them in a timely manner, or at all, may adversely affect its operations.

• The company faces foreign exchange risk, which may negatively affect its business, financial condition and results of operations.

• The company has not obtained the registration of its trademarks used in the company businesses and its inability to obtain or maintain these registrations may adversely affect the company competitive business position.

• There are certain discrepancies and non-compliances noticed in filing of returns and deposit of statutory dues with the taxation and other statutory authorities in the past. Any delay in payment of statutory dues by the Company in future, may result in the imposition of penalties, which could adversely impact its financials.

• The Company is dependent on third party transportation for the delivery of raw materials and any disruption in their operations or a decrease in the quality of their services could affect the Company`s reputation and results of operations.

• Its manufacturing activities are dependent upon availability of skilled and unskilled labour.

• The company is appoint contract labor for carrying out certain of its operations and its may be held responsible for paying the wages of such workers, if the independent contractors through whom such workers are hired default on their obligations, and such obligations could have an adverse effect on its results of operations and financial condition.

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

• Its inability to effectively manage the company growth could have an adverse effect on its business, results of operations and financial condition.

• In addition to normal remuneration, other benefits and reimbursement of expenses to its Promoter, Directors, Key Managerial Personnel and Senior Managerial Personnel; they are interested to the extent of their shareholding, if any and dividend entitlement thereon in the Company and for the transactions entered into between the Company and themselves as well as between the Company and its Group Companies/Entities. The Company in future may enter in related party transactions subject to necessary compliances.

• The company will continue to be controlled by its Promoters after the completion of the Issue.

• Its ability to pay dividends in the future will depends on its earnings, financial condition, working capital requirements, capital expenditures and restrictive covenants of the company financing arrangements.

• The company could be adversely affected due to misconduct or errors of its employees that are difficult to detect and any such incidents could adversely affect its financial condition, results of operations and reputation.

• Fraud, theft, employee negligence or similar incidents may adversely affect the results of operations and financial condition.

• Within the parameters as mentioned in the chapter titled `Objects of this Issue beginning on page 71 of this 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.

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

• Any future issuance of Equity Shares, or convertible securities or other equity linked securities by us and any sale of Equity Shares by its significant shareholders may dilute your shareholding and adversely affect the trading price of the Equity Shares.

• The company has not identified any alternate source of funding and hence any failures or delay on its part to mobilize the required resources or any shortfall in the Issue proceeds may delay the implementation schedule.

• Its may need additional capital and the company may not be able to obtain it, which could adversely affect its liquidity and financial position.

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

• Any Penalty or demand raised by statutory authorities in future will affect its financial position of the Company.

• If the company is unable to establish and maintain an effective system of internal controls and compliances, its business and reputation could be adversely affected.

• The company has not independently verified certain data in this Red Herring Prospectus.