Faalcon Concepts

Risks

• There are outstanding litigation proceedings involving the Company, its Promoters, an adverse outcome in which, may have an adverse impact on its reputation, business, financial condition, results of operations and cash flows.

• The company sources a large part of its new orders from its relationships with customers, both present and past. Any failure to maintain its long-standing relationships with the company existing customers or forge similar relationships with new ones would have a material adverse effect on its business operations and profitability.

• Its Registered Office and Branch Office of the Company are not owned by it.

• The company revenues have been significantly dependent on few customers and its inability to maintain such business may have an adverse effect on its results of operations.

• The company is primarily dependent upon few key suppliers for procurement of materials. Any disruption in the supply of these materials or fluctuations in their prices could have a material adverse effect on its business operations and financial conditions.

• The company generates its major portion of sales from the company operations in certain geographical regions especially Delhi, Haryana and Uttar Pradesh. Any adverse developments affecting its operations in these regions could have an adverse impact on its revenue 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.

• Its business requires the services of third parties, including suppliers and subcontractors, which entail certain risks.

• Its projects are typically awarded to it on following a competitive bidding process / quotation based process. Its business and the company financial condition may be adversely affected if new projects are not awarded to it.

• Its revenues are derived primarily from contracts awarded to the company on a project-by-project basis, and a significant number of projects in the construction industry are undertaken on a non-recurring basis.

• Increase in costs or a shortfall in availability of the materials the company purchase could have a material adverse effect on the Company`s sales, profitability and results of operations.

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

• Its results of operations and cash flows could be adversely affected, if the company is unable to collect its dues and receivables from, or invoice its unbilled services to, the company clients.

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

• Failure to anticipate and develop new products & services and enhance existing execution capabilities in order to keep pace with rapid changes in technology and industry may suffer its business.

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

• The Company is yet to place orders for 100% of the Equipments for its proposed object, as specified in the Objects of the Issue. Any delay in placing orders, procurement of Equipments may delay its implementation schedule and may also lead to increase in price of these Equipments, further affecting its revenue and profitability.

• Any slowdown in the real estate sector in India could significantly decrease the demand for its products.

• Any delay in completion of civil structure by the principal contractor or third parties involved or the customer could result in delay of its project execution and consequently affect the company`s business operations.

• The company has entered into and may continue to enter into related party transactions and there can be no assurance that such transactions have been on favourable terms.

• Its Promoters, Directors and Key Management Personnel have interest in the Company, other than reimbursement of expenses incurred or remuneration.

• Its industry may be materially adversely affected by strikes, work stoppages or increased wage demands by its employees or those of the company suppliers.

• If the company is unable to source business opportunities effectively, its may not achieve the company financial objectives.

• Improper handling, processing or storage of its materials and damage to such materials and products, could damage its reputation and have an adverse effect on its business, results of operations and financial condition.

• The company is susceptible to risks relating to fluctuations in currency exchange rates.

• Its operations are subject to accidents and other risks and could expose it to material liabilities, loss in revenues and increased expenses. Further glass being a fragile commodity is also susceptible to breakages.

• The company requires a number of approvals, licenses, registration and permits for its business and failure to obtain or renew them in a timely manner may adversely affect its operations.

• If the company fails to maintain and enhance its brand and reputation, the company clients` recognition of, and trust in it, and its business may be materially and adversely affected.

• Changes in technology may render its current technologies obsolete or require the company to make substantial investments.

• The industry segments in which its operate being fragmented, the company face competition from other players, which may affect its business operations and financial conditions.

• The Company is dependent on third party transportation providers for the delivery of its input materials and products 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.

• The company has taken guarantees from Promoters in relation to debt facilities provided to it.

• The Company has no formal supply agreement or contract with its vendors/suppliers for the uninterrupted supply of major materials. Its business may be adversely affected if there is any disruption in the material supply.

• There are certain discrepancies/errors noticed in some of its corporate records relating to forms filed with the Registrar of Companies and other provisions of Companies Act, 2013. Any penalty or action taken by any regulatory authorizes in future for non-compliance with provisions of corporate and other law could impact the financial position of the Company to that extent.

• Its lenders have charge over the company movable properties in respect of finance availed by it.

• The Company has unsecured loans which are repayable on demand. Any demand loan from lenders for repayment of such unsecured loans, may adversely affect its cash flows.

• The Company requires significant amounts of working capital for a continued growth. Its inability to meet its working capital requirements may have an adverse effect on its results of operations.

• The company could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect its financial condition, results of operations and reputation.

• Changes in customer preferences could affect its business, financial condition, results of operations and prospects.

• Negative publicity could adversely affect its revenue model and profitability of the Company.

• Its future success depends significantly on the continued service of its promoters, management team and other key personnel.

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

• The average cost of acquisition of Equity Shares by its Promoter may be less than the Issue Price.

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

• Its insurance coverage may not adequately protect the company against certain operating risks and this may have an adverse effect on the results of its business.

• The company has not made any dividend payments in the past and 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.

• Its inability to manage growth could disrupt the company`s business and reduce profitability. Its Business strategy is to continuously grow by expanding the size and geographical scope of its businesses.

• Its promoter and promoter group will continue to retain significant control over the Company after the IPO.

• Certain key performance indicators for certain listed industry peers included in this Draft Prospectus have been sourced from public sources and there is no assurance that such financial and other industry information is complete.

• There is no monitoring agency appointed by the Company and the deployment of funds are at the discretion of its Management and the company Board of Directors, though it shall be monitored by the Audit Committee.

• Delay in raising funds from the IPO could adversely impact the implementation schedule.

• The Objects of the Issue for which funds are being raised, are based on its management estimates and any bank or financial institution or any independent agency has not appraised the same. The deployment of funds in the project is entirely at its discretion, based on the parameters as mentioned in the chapter titles "Objects of the Issue".

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

• Any future issue of Equity Shares may dilute your shareholding and sales of its Equity Shares by its Promoters or other major shareholders may adversely affect the trading price of the Equity Shares.

• You may be subject to Indian taxes arising out of capital gains on the sale of its Equity Shares.

• Its inability to manage growth could disrupt its business and reduce profitability. The company Business strategy is to continuously grow by expanding the size and geographical scope of its businesses.