Kay Cee

Setting up a manufacturing unit to diversify its business operations and become a fully integrated unit.

Maintain focus on EPC projects for construction and commissioning of EHV Transmission System.

Expansion of its geographical footprint and diversify its customer base.

The Company intends to enter into collaboration arrangements with other engineering and manufacturing companies to bid and execute large value projects and manufacturing.

Leverage core competencies with enhanced in-house integration and achieve optimal utilization of resources.

Enhance operational controls to ensure timely completion of Service.

Its revenues largely depends on acceptance of the bids submitted to the Government and other agencies. Its performance could be affected in case majority of the bids are not accepted / awarded.

The company is engaged in Engineering, Procurement, and Construction (EPC) activity which is working capital intensive.

Its top five customers contribute majority of the company revenues from operations. Any loss of business from one or more of them may adversely affect its revenues and profitability.

Its failure to perform in accordance with the standards prescribed in work order of its client could result in loss of business or payment of liquidated damages and any delay in the schedule of its under-construction projects may be subject to cost overruns and can impact its reputation and future projects.

Its 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`s business that its Promoter and Executive Directors remain associated with it. Its success also depends upon the services of the company key managerial personnel and its ability to attract and retain key managerial personnel and its inability to attract them may affect the company operations.

Its Registered Office from where its operate is not owned by it.

Its revenues are highly dependent on its operations in geographical region of State of Rajasthan. Any adverse development affecting its operations in this region could have an adverse impact on its business, financial condition and results of operations.

The company has availed credit facility from banks and FI`s, and it is subject to certain restrictive covenants. Any Delay in issuing No Objection Certificate for the proposed issue may delay its proposed Initial public offering.

Any slowdown or work stoppages at its project sites may have effect on the company`s business, financial condition and results of operations.

There are outstanding legal proceedings involving the Company. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.

Its ability to attract, train and retain executives and other qualified employees is critical to the company`s business, results of operations and future growth.

An inability to comply with repayment and other covenants in the financing agreements or otherwise meet its debt servicing obligations could adversely affect its business, financial condition, cash flows and credit rating.

The Company has availed certain unsecured loans.

Its Promoters and certain members of its Promoter Group have extended personal guarantees with respect to various loan facilities availed by the Company. Revocation of any or all of these personal guarantees may adversely affect its business operations and financial condition.

Risks inherent to power sector projects could materially and adversely affect its business, financial condition and results of operations.

The public sector unit in order to rule out errors in the execution of a project, issues standard operating procedure and drawings of the transmission lines which need to be laid and the manner of doing the same, which makes the execution process seamless and failproof.

Prior to handing over a completed project, inspections are undertaken by officials of the public sector units to ascertain errors or deviation from the procedures or drawings while executing the project.

Its operating results could be adversely affected by weakening of economic conditions due to lock-down in all parts of India and other parts of world & other situation due to pandemic Covid-19.

The construction, operation and maintenance of its transmission systems involves significant risks that may cause injury to people or property and that may lead to significant disruption to its business and consequent decreases in the company revenues.

The company has in the past entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interest with the equity shareholders.

The company is subject to performance risk from third-party contractors, and operational risks associated with the engagement of third party contractors and its employees.

The Company has in the past not complied with the certain provisions of the Companies Act, 2013.

The company has not disclosed the reason for not having spent the prescribed amount towards its corporate social responsibility requirements in the report issued by its Board for Fiscal 2021.

Its business is manpower intensive and any unavailability of its employees or shortage of contract labour or any strikes, work stoppages, increased wage demands by workmen or changes in regulations governing contractual labour may have an adverse impact on its cash flows and 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.

Its may be unable to adequately protect its intellectual property and may be subject to risks of infringement Claims.

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

Its Promoters and Executive Directors hold Equity Shares in the Company and are therefore interested in the Company`s performance in addition to their remuneration and reimbursement of expenses.

The Company`s management will have flexibility in utilizing the Net Proceeds from the Issue. The deployment of the Net Proceeds from the Issue is not subject to any monitoring by any independent agency.

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 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.

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

Its insurance coverage may not be adequate to protect it against all potential losses to which the company may be subject and this may have a material effect on its business and financial condition.

Non-compliance with amendment in Safety, Health and Environmental laws and other applicable regulations, may adversely affect the Company`s results of operations and its financial condition.

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.

The company will continue to be controlled by its Promoter and Promoter Group after the completion of the Issue, which will allow them to influence the outcome of matters submitted for approval of its shareholders.

The company is susceptible to risks relating to unionization of its employees employed by it.

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 its 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 Emerge Platform of National Stock Exchange of India Limited in a timely manner, or at all.