KP Green Engg.

Setting up a manufacturing unit to diversify its business operations.

Enhance operational controls to ensure timely completion of Service.

Leveraging its market skills and relationship.

Maintaining edge over competitors.

Optimal Utilization of Resources.

Customer Satisfaction.

The company has certain outstanding litigation against it, an adverse outcome of which may adversely affect its business, reputation and results of operations.

A significant portion of its revenue from for the period ended September 30, 2023 and for the financial year ended on March 31, 2023, 2022 and 2021 is attributable to the Sale of Products for various solutions. Any adverse changes in the Infrastructure Industry could adversely impact its business, results of operations and financial conditions.

Its revenues are highly dependent on the company`s operations in geographical region of state of Gujarat. 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 is dependent on few numbers of customers for sales. Loss of any of this large customer may affect its revenues and profitability.

The Company is dependent on few suppliers for purchase of product. Loss of any of these large suppliers may affect its business operations.

Out of total cost of Plant & Machinery worth Rs. 14,114.47 lakhs, the company has not yet placed order for any of the Plant & Machinery.

Out of total cost of Plant & Machinery worth Rs. 14,114.47 lakhs, the company has to import plant and machinery worth Rs. 5,339.19 lakhs. The company is subject to risk arising from foreign exchange fluctuation.

The company may not be successful in implementing its growth strategies, particularly in setting up of a new manufacturing unit to expand its current production capabilities as well as expanding its current product portfolio including, High Masts, Floor Gratings, Pre-Engineered Buildings and Heavy Fabrications, which could have an adverse effect on its business, financial condition, cash flows and results of operations.

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.

The Company had negative cash flow from operating activity in recent financial year, details of which are given below. Sustained negative cash flow could adversely impact its business, financial condition and results of operations.

The company has only one Manufacturing Facility, continued operations of its manufacturing facility is critical to the company`s business and any disruption in the operation of its manufacturing facility may have a material adverse effect on its business, results of operations and financial condition.

The launch of new products i.e., High Masts, Floor Gratings, Pre-Engineered Buildings and Heavy Fabrications, if prove to be unsuccessful could affect its growth plans which could adversely affect the company`s business, results of operations, financial condition and cash flows.

The company is subject to risks associated with expansion into new markets.

Any failure in its quality control processes may adversely affect the company`s business, results of operations and financial condition. The company may face product liability claims and legal proceedings if the quality of its product does not meet its customers` expectations.

The company has entered into a number of related party transactions and may continue to enter into such transactions under AS 18, in the future, and there can be no assurance that the company could not have achieved more favourable terms had such transactions not been entered into with related parties.

Information relating to the historical capacity of its manufacturing facilities included in this Red Herring Prospectus is based on various assumptions and estimates and future production and capacity may vary.

Under-utilization of its manufacturing capacities and an inability to effectively utilize the company expanded manufacturing capacities could have an adverse effect on its business, future prospects and future financial performance.

The company requires certain approvals and licenses in the ordinary course of business, some of the licenses the company has applied and to be applied, some of the approvals are required to be transferred in the name of GP Green Engineering Limited`, the company is yet to receive approval on application applied update the some of the said registrations and the failure to successfully update such registrations would adversely affect its operations, results of operations and financial condition.

Within the parameters as mentioned in the chapter titled "Objects of this Issue" of this Red Herring Prospectus, the Company`s management will have flexibility in applying the proceeds of this Issue. The fund requirement and deployment mentioned in the Objects of this Issue have not been appraised by any bank or financial institution.

The company`s only subsidiary named "KPzon Energia Private Limited" has incurred losses in Financial Year 2022-23 on audited basis.

The company has not identified any alternate source of raising the funds required for the object of the Issue and the deployment of funds is entirely at its discretion and as per the details mentioned in the section titled "Objects of the Issue".

The company has incurred substantial indebtedness which exposes it to various risks which may have an adverse effect on its business and the results of operations.

In addition to normal remuneration, other benefits and reimbursement of expenses to its Promoters, Directors, Key Managerial Personeel and Senior Managerial Personnel; they are interested to the extent of their shareholding, if any and dividend entitlement thereon in the Company and for the transactions entered into between the Company and themselves as well as between the Company and its Group Companies/Entities. The Company in future may enter in related party transactions subject to necessary compliances.

The company has issued Equity Shares during the preceding one year at a price that is below the Issue Price.

The company has certain contingent liabilities that have not been provided for in the Company`s financials which if materialized, could adversely affect its financial condition.

The average cost of acquisition of Equity shares by its Promoters is lower than the Issue price.

The company may not be sufficiently protected or insured for certain losses that its may incur or claims that the company may face against it.

The company is subject to the restrictive covenants of banks in respect of the Loan/Credit Limit and other banking facilities availed from them.

The company`s success depends heavily upon its Promoters, Directors, Key Managerial Personnel and Senior Management Personnel for their continuing services, strategic guidance and financial support. Its success depends heavily upon the continuing services of Promoters, Directors, Key Managerial Personnel and Senior Management Personnel who are the natural person in control of the Company.

Its Promotesr 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.

The company faces competition from both domestic as well as international markets and its inability to compete effectively may have a material adverse impact on its business and results of operations.

Its only subsidiary named "KPzon Energia Private Limited" has incurred losses in Financial Year 2022-23 on audited basis.

Industry information included in this Red Herring Prospectus has been derived from industry reports. There can be no assurance that such third-party statistical, financial and other industry information is either complete or accurate.

Increases in interest rates may materially impact 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 Promoters, members of Promoter Group and director have mortgaged their properties and provided personal guarantees to certain loan facilities availed by it, which if revoked may requires alternative guarantees, repayment of amounts due or termination of the facilities.

The company`s lenders have charge over its movable and immovable properties in respect of finance availed by the company.

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 its Equity Shares.

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

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