Kalana

Innovation focused business model.

Consistent track record of profitable growth due to a scalable business model.

Established and proven track record.

Leveraging the experience of its Promoters.

Experienced management team and motivated employees.

Cordial relations with its customers.

The Company, Promoter and Group Companies are party to certain litigation and claims. These legal proceedings are pending at different levels of adjudication before various regulatory authorities. Any adverse decision may make it liable to liabilities or may adversely affect its reputation/ business/financial status. A classification of these legal and other proceedings is given below.

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 its business, and the failure to obtain, retain and renew such approvals and licenses or comply with such rules and regulations, and the failure to obtain or retain them in a timely manner or at all may adversely affect its operations.

Its business is subject to a variety of safety, health and environmental laws, labour, and workplace related laws and regulations. Any failures on its part to comply with these applicable laws and regulations could have an adverse effect on its operations and financial condition.

The Company has opted for HTP-IV tariff for its power needs as are supplied to it by Uttar Gujarat Vij Company Limited, any changes and/or discontinuation of the tariff plans floated by Gujarat Electricity Regulatory Commissions or any non-adherence with the conditions provided under the electricity tariffs may negatively impact the results of operations and profitability of the Company.

The Company is yet to place order for installation of the Solar Power Plant and for machinery for setting up of its rolling mill, as mentioned in the company Objects of the Issue. Any delay in placing orders/ procurement of machinery, may delay its implementation schedule and may also lead to increase in price of these machineries.

Its business operations are concentrated in Gujarat region, any adverse developments affecting its operations in this region could have a significant impact on the company revenue and results of operations.

The Company has note entered into definitive agreement with the third party vendor, whose has been engaged by the Company for installation of the Solar Power Plant on turnkey basis, further, any material adverse effect on the said vendor may impact its business and results of operations.

Its Promoters and the company Key Managerial Personnels does not have experience in operations and maintenance of Solar Power Plant.

Its top five clients account for more than 74% of its revenue. Further the company does not have any long term.

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

Its top five suppliers account for more than 40% of the raw material procured by the company.

The company generally do business with its customers on purchase order basis and does not enter into long term contracts with them. Its inability to maintain relationships with the company customers could have an adverse effect on its business, prospects, results of operations and financial condition.

The company has not entered into any long term or definitive agreements with its raw material suppliers. The company inability to obtain raw material in a timely manner, in sufficient quantities and / or at competitive prices could adversely affect its operations, financial condition and / or profitability.

The company propose to utilise a substantial portion of the Net Proceeds of the Issue towards Installation of Solar Power Plant and for setting up of Rolling Mill and the company has not entered into any definitive arrangements to utilise certain portions of the Net Proceeds of the Issue. Our funding requirements and deployment of the Net Proceeds of the Issue are based on management estimates, a cost estimate from Shaikh Mo. Uvesh Mohhamad Salim, Civil Engineer, quotations received from various vendors and have not been appraised by any bank or financial institution or other agency. The deployment of the Net Proceeds will not be monitored by a monitoring agency. Our proposed expansion plans are subject to the risk of unanticipated delays in implementation and cost overruns.

Its business is working capital intensive. If the company experience insufficient cash flows from its operations or are unable to borrow to meet its working capital requirements, it may materially and adversely affect its business and results of operations.

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

M/s MIT Iron and Steel Private Limited, its Promoter Group Company has objects similar to that of the Company`s business and is engaged in the same and/ or similar line of business / industry in which the Company operates.

The premises where its Registered Office, and its Corporate Office is located, and the site where the installation of the Solar Power Plant would be carried out, are not owned by it are not owned by the company.

The company is dependent on third party transportation providers for procuring the raw material and for delivery of its finished products. Accordingly, continuing increases in transportation costs or unavailability of transportation services for them, as well the extent and reliability of Indian infrastructure may have an adverse effect on its business, financial condition, results of operations and prospects.

Its cost of production is exposed to fluctuations in the prices of raw materials required for the manufacture of its products as well as their availability.

Its Promoters and some of the company Directors have interests in the Company other than the reimbursement of expenses and normal remuneration or benefits. Any such interests may result in a conflict of interest, which may have an adverse effect on its business.

The company has recently applied for registration of its name "KALANA" and the company does not own the trademark "KALANA" as on date. Further, the company has not yet applied for registration of its name and logo and the company does not legally own as on date. Its may be unable to adequately protect its intellectual property. Furthermore, its may be subject to claims alleging breach of third party intellectual property rights.

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

Its success depends largely upon the knowledge and experience of its Promoters, other Key Managerial Personnel and Senior Management. Any loss of its key managerial personnel or the company ability to attract and retain them could adversely affect its business, operations and financial condition.

The Company has experienced delays in filing its Employee Provident Fund (EPF) applications on multiple occasions.

There have been instances of delays in filing of GST returns in the past.

Its business operations are subject to various operating risks at its sites, accidental risk, the occurrence of which can affect its results of operations and consequently, financial condition of the Company.

Loans/facilities availed by the Company has been secured by way of mortgage on the land where the current manufacturing unit of the Company is located and on personal property of relative of one of its Promoters. The company`s business, financial condition, results of operations, cash flows and prospects may be adversely affected in case of invocation of such charge.

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

The funds proposed to be utilised for general corporate purposes constitute 1.87% of the Net Issue Proceeds.

The company faces competition in its business from organized and unorganized players, which may adversely affect its business operation and financial condition.

Its future funds requirements, in the form of issue of capital or securities and/or loans taken by it, may be prejudicial to the interest of the shareholders depending upon the terms on which they are eventually raised.

The company has not commissioned an industry report for the disclosures made in the section titled "Industry Overview" and made disclosures based on the data available on the internet and such data has not been independently verified by the company.

The company could be exposed to risks arising from misconduct, fraud and trading errors by its employees and Business Associates.

The Company may not have adequate insurance coverage and its not protected against all material hazards, which may adversely affect its business, results of operations and financial condition.

Delays or defaults in customer payments could result in a reduction of its profits and cash flows.

Any disproportionate increase in labour costs including increase in wage/salary demand, labour unrest or labour claims arising from accidents may adversely affect its business operations and financial conditions.

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

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

The Issue Price of its Equity Shares may not be indicative of the market price of the company Equity Shares after the Issue.

The price of its Equity Shares may be volatile, or an active trading market for the company Equity Shares may not develop.

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.

You will not be able to sell immediately on Stock Exchange any of the Equity Shares you purchase in the Issue until the Issue receives appropriate trading permissions.

Sale of Equity Shares by its Promoter or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.

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

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

The Company has not paid any dividends till now and there can be no assurance that the company will pay dividends in future. Its ability to pay dividends in the future will depends upon a variety of factors such as future earnings, financial condition, cash flows, working capital requirements, and restrictive covenants in its financing arrangements.