Kataria

Approved supplier in major projects.

Integrated manufacturing facility with stringent quality control mechanism.

Offering comprehensive solutions for LRPC Installation with extensive product range.

Long Standing Customer Base in domestic market as well as International Market.

Experienced Promoter and strong management team.

Expanding Product Range and Up-selling & Cross-selling.

One of the focal points of concern pertains to capital expenditure earmarked for the acquisition of machinery and equipment. Currently, orders for the intended purchase of these assets have not been initiated. Any potential delays in placing orders or unforeseen challenges in the vendors` ability to supply the equipment and machinery promptly, or at all, could lead to both time and cost overruns.

Any shortages, delay or disruption in the supply of the raw materials the company use in its manufacturing process may have a material adverse effect on its business, financial condition, results of operations and cash flows.

The company may have certain contingent liabilities and its financial condition and profitability may be adversely affected if any of these contingent liabilities materialize.

The Company, its Promoters, its Directors and its Group Companies are involved in litigation proceedings that may have a material adverse outcome.

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

Its Promoters have issued personal guarantees and/or mortgaged their property in relation to debt facilities availed by it, which if revoked, may require alternative guarantees, repayment of amounts due or termination of the facilities.

The company has been recently converted into public limited company and any non-compliance with the provisions of Companies Act, 2013 may attract penalties against the Company which could impact its financial and operational performance and reputation.

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

The company is required to obtain, renew or maintain statutory and regulatory permits, licenses and approvals to operate its business and the company manufacturing facility, and any delay or inability in obtaining, renewing or maintaining such permits, licenses and approvals could result in an adverse effect on its results of operations.

Its Manufacturing Units are subject to inspection under the Madhya Pradesh Pollution Control Board.

The company is dependent on third party transportation service providers for delivery of raw material to it from the company suppliers and delivery of its products to its customers.

Its international sales and operations are subject to many uncertainties and the company is exposed to foreign currency exchange rate fluctuations.

The brand name "Kataria" has been applied for registration under the name of the Company but yet not registered. Any failure to protect its intellectual property could have a material adverse effect on its business.

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

The costs of the raw materials that the company is use in its manufacturing process are subject to volatility due to factors beyond the company control. Increases or fluctuations in raw material prices may have a material adverse effect on its business, financial condition, results of operations and cash flows.

Any disruption, breakdown or shutdown of its manufacturing facilities or the company original equipment manufacturer suppliers may have a material adverse effect on its business, financial condition, results of operations and cash flows.

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

Any negligence on the part of its workers associated with manufacturing process and other related services may lead to severe or fatal accident.

The occurrence of natural or man-made disasters could adversely affect its results of operations and financial condition.

Any failures of its information technology systems could adversely affect the company business and its operations.

Any failures in its quality control and procurement process and manufactured products may adversely affect its business, results of operations and financial condition.

Heavy reliance on the top 10 suppliers introduces a potential risk for significant purchases.

The Company has not entered into any written agreements or contracts with its customers for sale of the company products.

The company is dependent upon the experience and skill of its promoter, management team and key managerial personnel and senior management personnel. Loss of its Promoter 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 may not be able to successfully manage the growth of its operations and execute its growth strategies which may have an adverse effect on its business, financial condition, results of operations and future prospects.

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

The company is a labour-intensive industry and are subject to stringent labor laws & regulations and any strike, work stoppage or increased wage demand by its employees or any other kind of disputes with the company employees could adversely affect its business, financial condition, results of operations and cash flows.

Continuous availability of power and fuel is the essence for the smooth functioning of its manufacturing and business activities.

There are certain discrepancies noticed in some of the provisions of Companies Act, 1956 and 2013. Any penalty or action taken by any regulatory authorities in future, for non-compliance with provisions of corporate and other law could impact the reputation and financial position of the Company to that extent.

The company regularly work with hazardous materials and activities in its operation which can be dangerous and could cause injuries to people or property.

Its business is working capital intensive involving relatively long implementation periods. The company requires substantial financing for its business operations. The company indebtedness and the conditions and restrictions imposed on by its financing arrangements could adversely affect the company`s ability to conduct its business.

The average cost of acquisition of Equity Shares held by its Promoters is lower than the Issue Price.

Its Promoter holds interest in one of the Promoter Group entities which is authorised to undertake business activities which are similar to the business conducted by the Company.

There have been instances of delay in filing of Goods and Service Tax (GST) returns and in payment of Tax Deduct at Source (TDS).

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

The company has availed various credit facilities from the HDFC Bank and ICCIC bank Limited, as per sanction terms and conditions, there are certain restrictive covenants imposed on the issuer company.

The company has unsecured loans from promoters, directors and their relatives, which are repayable on demand. Any demand from lenders for repayment of such unsecured loans, may adversely affect its liquidity and business operations.

The company has entered into certain transactions with related parties. These transactions or any future transactions with its related parties could potentially involve conflicts of interest.

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 its Audit Committee.

The company has not identified any alternate source of financing the `objects of the Issue`. If the company fail to mobilize resources as per its plans, the company growth plans may be affected.

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

Its Promoter 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.

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

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

Its funding requirements and proposed deployment of the Net Proceeds are based on management estimates and have not been independently appraised and may be subject to change based on various factors, some of which are beyond its control.

Any future issuance of Equity Shares may dilute the shareholding of the Investor or any sale of Equity Shares by its Promoter or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.

The issue price of the Equity Shares may not be indicative of market price of its equity shares after the issue and the market price of the company Equity shares may decline below the issue price.

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

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

Its future funds requirements, in the form of fresh 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.

There is no guarantee that the Equity Shares issued pursuant to the Issue will be listed on the NSE Emerge in a timely manner or at all.

The Equity Shares have never been publicly traded, and, after the Issue, the Equity Shares may experience price and volume fluctuations, and an active trading market for the Equity Shares may not develop. Further, the price of the Equity Shares may be volatile, and you may be unable to resell the Equity Shares at or above the Issue Price, or at all.

There are restrictions on daily weekly monthly movement in the price of the equity shares, which may adversely affect the shareholder`s ability to sell for the price at which it can sell, equity shares at a particular point in time.

Any future issuance of Equity Shares may dilute the shareholding of the Investor or any sale of Equity Shares by its Promoter or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.

Its Consolidated Restated Financial Statements are prepared and signed by the Peer Review Auditor who is not Statutory Auditors of the Company as required under the provisions of ICDR.