Eleganz Interior

Proven track record of diversified service offerings encompassing a wide range of industries.

Long term relationship with customers.

Experienced and qualified designing, engineering and execution team.

Professional and experienced management team.

Diverse domain expertise with effective project integration capabilities.

Strong footprint at key economic hubs in India.

Strong and diversified Order Book.

The number of orders the company has received in the past, its current Order Book and the company growth rate may not be indicative of the number of orders the company will receive in the future. Any delays in execution of its orders expose the company to time and cost overruns and variability in revenue, materiality and adversely impacting its revenue from operations, cash flows, financial condition and cash flows.

The Company`s derive a significant portion of its revenues from repeat clients. Any loss of, or a significant reduction in the number of repeat clients could adversely affect the company business, results of operations, financial conditions and cash flows.

The Company`s derives a significant portion of its revenues from a limited number of clients. The loss of any significant clients may have an adverse effect on its business, financial condition, results of operations, and prospects.

The Company is significantly dependent on both skilled and unskilled labour for the execution of its projects and for its Manufacturing Facility. Any disruption to the supply of such labour, or its inability to control the composition and cost of its contract labor could adversely affect the company business, results of operations, financial condition and cash flows.

The Company depends on skilled talent across various functions to successfully execute projects and meet client standards. Any inability to retain or attract such qualified personnel could negatively affect its business operations.

The Company outsource certain operations of its business, such as transport, logistics and certain manufacturing activities, to third parties. Any failures by such third parties to deliver their services could have an adverse impact on its business, results of operations, financial condition and cash flows.

The Company`s business and profitability are dependent upon the availability and the cost of its fit-out materials used in the projects and raw materials consumed in manufacturing process. Any disruption to the timely and adequate supply of such materials, or volatility in the prices of such materials may adversely impact on its business, results of operations, financial condition and cash flows.

Some of its historical corporate records are not traceable.

The company depends on third party suppliers for a steady supply of both, finished products for installation at project site and raw materials for manufacturing furniture items. The company does not have continuing or exclusive arrangements with any of its suppliers. Loss of suppliers or any failure by the company suppliers to make timely delivery of raw materials may have an adverse effect on its business, results of operations, financial condition and cash flows.

While the company has a diversified geographical presence, its projects have historically been concentrated in the state of Maharashtra and any changes affecting the policies, laws and regulations or the political and economic environment in the region may adversely impact its business, financial condition and results of operations.

Any downgrade in its credit ratings could increase the company borrowings costs, affect its ability to obtain financing, and adversely affect the company business, results of operations, financial condition and cash flows.

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

The company clients does not commit to long-term or continuing contracts and may cancel or modify their orders or postpone or default on their payments. Any cancellation, modification, payment postponement or payment default in regard to its order book could materially harm our cash flow position, revenues and earnings.

If the furniture products manufactured and delivered by it, experience quality defects or if the services the company provide as part of its contracts with its clients are found to be deficient, the company may lose its clients and may be subjected to product liability claims or claims alleging deficiency in service, which may also cause damage to its reputation and/or adversely affect the company business, results of operations, financial condition and cash flows.

There have been some instances of delay and discrepancies with respect to filing of certain forms with the Registrar of Companies in the past, which may be subject to regulatory actions and penalties.

Its business is working capital intensive. If the company experience insufficient cash flows or are unable to access suitable financing to meet working capital requirements and loan repayment obligations, its business, financial condition and results of operations could be adversely affected.

The company has negative cash flows from operating activities in the past and may experience earnings declines or operating losses or negative cash flows from operating activities in the future.

The company derives a significant portion of its revenue through tenders and e-auctions. Failures to secure contracts through tenders and e-auctions could adversely affect its business, profitability, and financial condition. Further, the company is required to meet specific technical and financial eligibility criteria to participate in project bidding processes. Failures to satisfy these criteria may result in disqualification from e-auction or tendering opportunities, potentially limiting its ability to secure new contracts and adversely affecting the company business growth and revenue streams.

The company need to furnish advance bank guarantees, retention bank guarantees and performance bank guarantees to its clients. Any contractual default on the company part may result in invocation of the Bank Guarantees, claims and payment of liquidated damages, which could adversely affect its business, results of operations, financial condition and cash flows.

The inability of its design team to develop cost-effective solutions for the company projects could negatively impact its profit margins. Additionally, failure to create designs that align with current trends and market relevance may adversely affect its business, operational results, financial condition, and cash flows.

In addition to executing projects on a contracting basis, the company also undertake sub-contracting projects, which may involve additional conditions and requirements. Failures to comply with these conditions could result in early termination or penalties imposed by the contractor, potentially adversely affecting its cash flows, business operations, and financial performance.

The company has, in the past, entered into related party transactions and its may continue to do so in the future.

There are outstanding legal proceedings involving the Company, Promoter and Directors. Any adverse outcome in such legal proceedings may adversely affect its business, reputation, results of operations, financial condition and cash flows.

The property used by the Company for the purpose of its Manufacturing Facility and warehouses are not owned by it. Any termination of the relevant lease or leave and license agreement in connection with such property or the company failures to renew the same could adversely affect its operations.

The company might have to undertake smaller, relatively low-profit projects in order to establish and maintain business relationships with both new and existing clients. Such low-profit projects may result in inefficient allocation of resources or cause a strain on its working capital requirements and other resources.

Its inability to collect receivables and defaults in payment from the company clients could result in the reduction of its profits and affect the company cash flows.

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

Failures or any disruption of the company information technology systems, may adversely affect its business, results of operations, financial condition and cash flows.

Regulatory, legislative or self-regulatory developments regarding privacy and data security matters could adversely affect its ability to conduct the company business and impact its financial condition.

The company contracts typically include provisions allowing its clients to withhold certain portions of the total payment following project completions. Any failures to recover such retained payments could adversely impact its cashflows and availability of working capital.

Quoting for a contract involves various management activities such as detailed project study and cost estimations. Inability to accurately estimate the cost may lead to a reduction in the expected rate of return and profitability estimates.

Its may not be able to optimally utilize the company installed manufacturing capacity.

The company has incurred indebtedness, and its inability to obtain further financing or meet the company obligations, including financial and other covenants under its dent financing arrangements could adversely affect the company business, results of operations, financial condition and cash flows.

Its insurance policies may not be adequate to cover all losses incurred in the company 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 business, results of operations, financial condition and cash flows.

Information relating to installed capacities, historical production and capacity utilization of its Manufacturing Facility included in this Red Herring Prospectus is based on various assumptions and estimates by the chartered engineer verifying such information and future production and capacity utilization may vary.

Historically, a substantial portion of its revenue has come from General Contracting services with smaller contributions from the Design and Build (D&B) services. As the company seek to broaden its focus in the D&B services, any failures to execute these projects with the same efficiency and quality as its traditional offerings, or an inability to attract sufficient demand, could adversely affect its project delivery, client satisfaction, and ultimately the company financial performance.

The life cycle of majority of its projects typically ranges from 2 to 6 months, making it challenging to make accurate long-term projections.

A significant portion of its contracts are structured as fixed-rate contracts. If the company is unable to effectively manage its cost in fixed- rate contracts, they may result in significant financial losses and adversely affect its overall business stability and growth prospects.

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

The company is dependent on its Promoter, Directors, Key managerial Personnel and members of Senior Management, including other employees with technical expertise. Any loss or its inability to attract or retain such person could adversely affect its business, results of operations, financial condition and cash flows.

The company funding requirements and the deployment of Net Proceeds are based on management estimates and have not been independently appraised. Any variation in the utilisation of Net Proceeds of the Issue as disclosed in this Red Herring Prospectus shall be subject to compliance requirements, including prior shareholders` approval.

If the company fails to obtain, maintain or renew the licenses, permits and approvals required to operate its business, or fails to comply with applicable laws, the company business, results of operations, financial condition and cash flows may be adversely affected.

There are certain instances of delays in payment of statutory dues. Any delay in payment of statutory dues or non-payment of statutory dues in dispute may attract financial penalties from the respective government authorities, which may have an adverse impact on its financial condition and cash flows.

Its may not be able to adequately protect the company intellectual property rights, and its business, financial condition and results of operations may be adversely affected.

The company has presented certain supplemental information of its performance and liquidity which is not prepared under or required under Indian GAAP.

Any reputational damage to its brand could have an adverse effect on the company business, results of operation, financial condition and cash flows.

The average cost of acquisition of Equity Shares by its Promoter could be lower than the floor price.

Certain sections of this Red Herring 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 risks.

The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the issue. Further the company has not identified any alternate source of financing the "Objects of the Issue". Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.

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

The Company has during the preceding one year from the date of this Red Herring Prospectus have allotted Equity Shares at a price which may be lower than the Issue Price.

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

Some of its Directors does not have experience of being a director of a public listed company.