Fabtech Techn.

Capitalize on growth opportunities of cleanroom in diverse industry requirement.

Continue pursuing inorganic growth through acquisition and other modes.

Achieve operational and financial efficiency.

Deepen our customers engagement and increase incremental revenue opportunities from our customers.

Focusing on growth of HVAC system business.

Leveraging of our marketing skills and relationships.

Advanced manufacturing infrastructure and deep industry knowledge in cleanroom panels and HVAC systems.

Long term relationship with customers.

Support from larger group company.

Professional and experienced management team.

Diverse domain expertise with effective project integration capabilities.

Growing market opportunities and penetration in new industry segments.

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

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

Majority of its customers operate in the pharmaceuticals, healthcare and biotech sectors. Factors that adversely affect these sectors or capital expenditure by companies within these sectors may adversely affect its business, results of operations and financial condition.

The company requires certain approvals and licenses in the ordinary course of business. Any failures to successfully obtain/renew/update such registrations may adversely affect its operations, results of operations and financial condition.

The company propose to utilize a part of the Net Proceeds to undertake proposed acquisition of the equity shares of Kelvin Air Conditioning and Ventilation Systems Private Limited.

Its may in the future continue to make strategic acquisitions to grow the company business and further diversify product and service offerings. Its acquisitions are subject to various risks, including risks relating to the integration of these acquired businesses with its existing operations. An inability to identify, complete and successfully integrate such acquisitions could adversely affect its business prospects, results of operations and financial condition.

The company is dependent on limited number of suppliers for supply of key raw materials and the company has not made any long term supply arrangement with its suppliers. In an eventuality where its suppliers are unable to deliver it the required materials in a time-bound manner it may have a material adverse effect on the company`s buusiness operations and profitability.

The Company`s logo is not registered as on date of Red Herring Prospectus. Its may be unable to adequately protect the company intellectual property. Furthermore, its may be subject to claims alleging breach of third-party intellectual property rights.

The Net Proceeds from the Issue are proposed to be deployed by the Company to fund the consideration for the proposed acquisition. If the proposed acquisition is not completed, the proceeds of the Issue will be retained by the Company and used for other objects.

Its 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 has taken guarantees from Promoters in relation to debt facilities provided to it, which if revoked may requires alternative guarantees, repayment of amounts due or termination of the facilities.

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

The company derives a significant portion of its revenues from a limited number of customers. Less projects or expansion by them may affect or business The loss of any significant customers may have an adverse effect on its business, financial condition, results of operations, and prospects.

The company could become liable to customers and incur substantial costs as a result of defects in its products, which in turn could adversely affect the value of its brand, and the company sales could be diminished if its associated with negative publicity.

Its continued operations are critical to the company business and any shutdown of its manufacturing unit may adversely affect the company`s business, results of operations and financial condition.

The Company`s failures to maintain the quality standards of the products or keep pace with the technological developments could adversely impact its business, results of operations and financial condition.

Its may not be able to successfully manage the growth of the company operations and execute its growth strategies which may have an adverse effect on its business, financial condition, results of operations and future prospects.

There are pending litigations against the Company, certain of its Promoters and the company Directors. Any adverse decision in such proceedings may render it/them liable to liabilities/penalties and may adversely affect its business, results of operations and financial condition.

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

The company appoint contract labour for carrying out certain of its operations and the company 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, cash flows and financial condition.

Its industry is labour intensive, and the company business operations may be materially adversely affected by strikes, work stoppages or increased wage demands by its employees.

The shortage or non-availability of power facilities may adversely affect its manufacturing processes and have an adverse impact on the company results of operations and financial condition.

The company is dependent on third party transportation providers for the supply and distribution of its products. Any failures or delay in such transportation and logistics arrangements could materially affect its business, the company operations and financial condition.

Its insurance coverage may not be adequate to protect the company against certain operating and financial loss and this may have a material adverse effect on its business and cash flow.

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

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 registered office is being utilised by it on the basis of an Affidavit received from one of the company Promoters, Manisha Hemant Anavkar, also a partner of Fabtech Turnkey Projects LLP. The company is subject to terms and conditions imposed on it by the original owner. In any event the company is unable to renew such occupancy rights, its business, financial condition and results of operations may be adversely affected.

In addition to normal remuneration or benefits and reimbursement of expenses, some of its Promoters and Directors are interested in the Company to the extent of their shareholding and dividend entitlement in the Company.

Most of the Directors of the Company don`t have experience of being a director of a public listed company.

The company does not own certain premises used by the Company. Disruption of its rights as licensee/ lessee or termination of the agreements with the company licensors/ lessors would adversely impact its operations and, consequently, the company`s business.

The Company requires significant amount of working capital for a continuing growth. Its inability to meet the company working capital requirements may adversely affect its results of operations.

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

Improper storage, processing and handling of materials and products may cause damage to its inventory leading to an adverse effect on the company business, results of operations and cash flows.

The company is dependent upon the experience and skill of its Promoters, management team and key managerial personnel and senior management personnel. Loss of its Promoters or the company inability to attract or retain such qualified personnel, this could adversely affect its business, results of operations and financial condition.

The company has not entered into any formal arrangement for technical support service for maintenance and smooth functioning of its equipments and machineries, which may affect the company performance.

The company has in past entered into related party transactions and its may continue to do so in the future (As can moved up).

Its may be exposed to liabilities arising from defects during installation, which may adversely affect its business, financial condition, results of operations and prospects.

Pricing pressure from customers may affect its gross margin, profitability and ability to increase the company prices, which in turn may materially adversely affect its business, results of operations and financial condition.

The company is dependent on credit facilities from banks, to fund its business operations. Any event where the company is unable to obtain, renew or enhance credit limits from the banks, or repay such facilities obtained, would affect its financial position and credit standing.

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 risk.

Wage pressures and increases in operating costs in India may prevent it from sustaining competitive advantage and may reduce its profit margins.

Its operations are subject to environmental, health and safety laws and regulations.

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

Its Promoters and members of the Promoter Group will continue jointly to retain majority control over the Company after the Issue, which will allow them to determine the outcome of matters submitted to shareholders for approval.

Its ability to pay dividends in the future will depends upon the company future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in its financing arrangements.

The average cost of acquisition of Equity Shares by its Promoters is lower than the floor price.

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

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

Its may not be successful in implementing the company`s business strategies and such failures may materially and adversely affect its business, prospects, financial condition and results of operations.

The company operates in a competitive business environment, both globally and domestically. Competition from existing players and new entrants and consequent pricing pressures may adversely affect its business, financial condition and results of operations.