GLEN Industries

Risks

• The Company is dependent on external suppliers for most of its machinery / component requirements and raw materials.

• Its business of the Company is impacted by fluctuations in raw material prices, domestic and global.

• The company relies on third-party transportation providers for all of its input materials and product distribution. Failures by any of its transportation providers to deliver the company input materials and products on time or at all, could result in loss in sales.

• If there are delays or cost overruns in utilisation of Net Proceeds, its business, financial condition and results of operations will be materially and adversely affected.

• The company business is dependent and will continue to depends on its manufacturing facilities, and the company is subject to certain risks in its manufacturing process. Any slowdown or shutdown in the company manufacturing operations or strikes, work stoppages or increased wage demands by its employees that could interfere with the company operations could have an adverse effect on its business, financial condition and results of operations.

• The company derives a significant portion of its revenues from exports and are subject to risk of international trade.

• The company is subject to strict quality requirements, regular inspections and audits, and the success and wide acceptability of its products is largely dependent upon the company quality controls and standards. Any failures to comply with quality standards may adversely affect its business prospects and financial performance, including cancellation of existing and future orders.

• The company individual Promoters plays key role in its functioning and the company heavily relies on their knowledge and experience in operating its business and therefore, it is critical for the company business that its Promoter and Executive Directors remain associated with it. The company success also depends upon the services of its key managerial personnel and the company ability to attract and retain key managerial personnel and its inability to attract them may affect the company operations.

• The company is subject to increasingly stringent environmental, health and safety laws, regulations and standards. Non-compliance with and adverse changes in health, safety, labour, and environmental laws and other similar regulations to its manufacturing operations may adversely affect the company business, results of operations and financial condition.

• The restated financial statements have been provided by peer reviewed chartered accountants who is not statutory auditor of the Company.

• Its Subsidiary company is engaged in similar line of business as of its. There is no non-compete agreements between the company and such other entity. The company cannot assure that its Promoters will not be favor the interests of such Companies over its interest or that the said entities will not expand which may increase the company competition, which may adversely affect business operations and financial condition of the company.

• The company faces competition from both domestic as well as multinational corporations and its inability to compete effectively may have a material adverse impact on the company business, financial condition and results of operations.

• The Company is party to certain legal proceeding. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.

• There have been certain instances of delays in filing statutory forms which have been subsequently filed by payment of an additional fee as specified by RoC. The company cannot assure you that no regulatory action will be initiated against it and that no penalties will be imposed on it on account of these lapses.

• The company has had negative cash flows from Operating activities in the past and a consequent net decrease in cash and cash equivalents in some of the recent years.

• Its Promoters and Directors may have interests other than reimbursement of expenses incurred and receipt of remuneration or benefits from the Company. Certain of its Promoters and Director may have interest in entities, which are in businesses similar to its and this may result in conflict of interest with the company.

• Its may be unable to sufficiently obtain, maintain, protect, or enforce its intellectual property and other proprietary rights.

• The company does not have firm commitment agreements with its customers. If the company is customers choose not to source their requirements from it, the company business and results of operations may be adversely affected.

• Relevant copies of experience proof of one of its Director/ Promoter are not traceable.

• 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 our business, any failures to obtain, retain and renew such approvals and licences or comply with such rules and regulations may adversely affect its operations.

• If the company is unable to manage its growth effectively and further expand into new markets the company business, future financial performance and results of operations could be materially and adversely affected.

• The cost of implementing new technologies for its operations could be significant and could adversely affect the company business, financial condition and results of operations.

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

• Activities involving the company manufacturing process can cause injury to people or property in certain circumstances. A significant disruption at any of its manufacturing facilities may adversely affect the company production schedules, costs, sales and ability to meet customer demand.

• The company has in the past entered into related party transactions and may continue to do so in the future. There can be no assurance that such transactions, individually or in the aggregate, will not have an adverse effect on the Company`s financial condition and results of operations.

• Under-utilization of its manufacturing capacities may have an adverse effect on the company business, future prospects and future financial performance. Moreover, information relating to capacity utilization of its production facility included in this Draft Red Herring Prospectus is based on certain assumptions and has been subjected to rounding off, and future production and capacity utilization may vary.

• 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.

• Its Promoter members has provided personal guarantees for loans availed by the Company. Its business, financial condition, results of operations and cash flows may be adversely affected by the invocation of all or any personal guarantees provided by the company Promoter members.

• Its ability to pay any dividends will depends upon future earnings, financial condition, cash flows and working capital requirements.

• The deployment of funds raised through this Offer shall not be subject to any Monitoring Agency and shall be purely dependent on the discretion of the management of the Company.

• Its Promoters and promoter group have significant controlling interest over the Company and have the ability to direct the company business and affairs; their interests may conflict with your interests as a shareholder. Further they have interests in the Company other than reimbursement of expenses incurred or normal remuneration or benefits.

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

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

• Further, pursuant to Section 27 of the Companies Act 2013, any variation in the objects would require a special resolution of the Shareholders and its Promoters or controlling Shareholders will be required to provide an exit opportunity to the Shareholders of the Company who do not agree to such proposal to vary the objects, in such manner as may be prescribed in future by the SEBI.

• The company has issued Equity Shares during the last one year at a price that may be below the Issue Price.

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

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

• Rights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.

• Any future issuance of Equity Shares may dilute your shareholdings, and sale of the Equity Shares by its major shareholders may adversely affect the trading price of the company Equity Shares.

• Its inability to effectively implement the company business and growth strategy may have an adverse effect on its operation and growth.

• In the event there is any delay in the completion of the Offer, or delay in schedule of implementation, there would be a corresponding delay in the completion of the objects of this offer which would in turn affect its revenues and results of operations.

• There are restrictions on daily movements in the price of the Equity Shares, which may adversely affect a shareholder`s ability to sell, or the price at which it can sell, Equity Shares at a particular point in time.

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

• The Company operation and growth is dependent upon successfully implementation its business strategies.

• The company cannot assure you that its Equity Shares will be listed on the SME Platform of BSE Limited in a timely manner or at all, which may restrict your ability to dispose of the equity shares.

• Any future issuance of Equity Shares or convertible securities, including options under any stock option plan or other equity linked securities may dilute your shareholding, and significant sales of Equity Shares by its major shareholders, may adversely affect the trading price of its Equity Shares.

• After this Issue, the price of the Equity Shares may be highly volatile, or an active trading market for the Equity Shares may not develop.

• 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 its Equity Shares may decline below the issue price and you may not be able to Sell your Equity Shares at or above the Issue Price.

• QIBs and Non-Institutional Investors are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid and Retail Individual Investors are not permitted to withdraw their Bids after Bid/Offer Closing Date.

• In past, there has been instances of delayed filing of Statutory Returns.

• Rights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.

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

• Its propose to utilize the Net Proceeds for purposes identified in the section titled "Objects of the Issue" in this Draft Red Herring Prospectus. Any variation in the utilization of the Net Proceeds as disclosed in this Draft Red Herring Prospectus shall be subject to certain compliance requirements, including prior Shareholders" approval.

• In past, there has been instances of delayed filing of Statutory Returns.

• If the company is unable to manage its growth effectively and further expand into new markets its business, future financial performance and results of operations could be materially and adversely affected.

• The cost of implementing new technologies for its operations could be significant and could adversely affect the company business, financial condition and results of operations.

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

• Activities involving its manufacturing process can cause injury to people or property in certain circumstances. A significant disruption at any of the company manufacturing facilities may adversely affect its production schedules, costs, sales and ability to meet customer demand.

• The company has in the past entered into related party transactions and may continue to do so in the future. There can be no assurance that such transactions, individually or in the aggregate, will not have an adverse effect on the Company`s financial condition and results of operations.

• Under-utilization of its manufacturing capacities may have an adverse effect on the company business, future prospects and future financial performance. Moreover, information relating to capacity utilization of its production facility included in this Red Herring Prospectus is based on certain assumptions and has been subjected to rounding off, and future production and capacity utilization may vary.

• 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.

• Its Promoter members has provided personal guarantees for loans availed by the Company. Its business, financial condition, results of operations and cash flows may be adversely affected by the invocation of all or any personal guarantees provided by its Promoter members.

• Its ability to pay any dividends will dependsupon future earnings, financial condition, cash flows and working capital requirements.

• Its Promoters and promoter group have significant controlling interest over the Company and have the ability to direct its business and affairs; their interests may conflict with your interests as a shareholder. Further they have interests in the Company other than reimbursement of expenses incurred or normal remuneration or benefits.

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

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

• Further, pursuant to Section 27 of the Companies Act 2013, any variation in the objects would requires a special resolution of the Shareholders and its Promoters or controlling Shareholders will be required to provide an exit opportunity to the Shareholders of the Company who does not agree to such proposal to vary the objects, in such manner as may be prescribed in future by the SEBI.

• The company has issued Equity Shares during the last one year at a price that may be below the Issue Price.

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

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

• Rights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.

• Any future issuance of Equity Shares may dilute your shareholdings, and sale of the Equity Shares by its major shareholders may adversely affect the trading price of the company Equity Shares.

• Its inability to effectively implement our business and growth strategy may have an adverse effect on the company operation and growth.

• In the event there is any delay in the completion of the Issue, or delay in schedule of implementation, there would be a corresponding delay in the completion of the objects of this offer which would in turn affect our revenues and results of operations.

• There are restrictions on daily movements in the price of the Equity Shares, which may adversely affect a shareholder`s ability to sell, or the price at which it can sell, Equity Shares at a particular point in time.

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

• The Company operation and growth is dependent upon successfully implementation the company business strategies.

• The company cannot assure you that its Equity Shares will be listed on the SME Platform of BSE Limited in a timely manner or at all, which may restrict your ability to dispose of the equity shares.

• Any future issuance of Equity Shares or convertible securities, including options under any stock option plan or other equity linked securities may dilute your shareholding, and significant sales of Equity Shares by its major shareholders, may adversely affect the trading price of the company Equity Shares.

• After this Issue, the price of the Equity Shares may be highly volatile, or an active trading market for the Equity Shares may not develop.

• 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 its Equity Shares may decline below the issue price and you may not be able to Sell your Equity Shares at or above the Issue Price.

• QIBs and Non-Institutional Investors are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid and Individual Investors are not permitted to withdraw their Bids after Bid/Offer Closing Date.

• Rights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.

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

• The company propose to utilize the Net Proceeds for purposes identified in the section titled "Objects of the Issue" in this Red Herring Prospectus. Any variation in the utilization of the Net Proceeds as disclosed in this Red Herring Prospectus shall be subject to certain compliance requirements, including prior Shareholders" approval.

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