Krishca Strapp.

Risks

• The company has had negative cash & cash equivalent generated during the financial year 2020 in the past based on the Restated Summary Information of the Company and may, in the future, experience similar negative cash flows.

• The company do not own registered office and the corporate office which are currently in use by the Company.

• The Company/Associate Company has not complied with certain statutory provisions under various laws. Such noncompliance /lapses may attract certain penalties.

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

• The company do not own registered trademark. Its in ability or failure to protect the company trademark may adversely affect its business on account of possible misuse by any third party.

• Failure to maintain confidential information of its customers could adversely affect the company reputation, business, financial condition and results of operations.

• The steel industry is highly cyclical and volatility in steel prices may have an adverse effect on the Company`s results of operations and financial condition.

• The novel corona virus (Covid-19) pandemic outbreak and steps taken to control the same have significantly impacted its business, results of operations, financial condition and cash flows and further impact will depend on future developments, which are highly uncertain.

• The company profitability will suffer if its not able to maintain the company pricing, control costs or continue to grow its business through higher client engagements.

• The Objects of the Issue for which funds are being raised, are based on its management estimates and any bank or financial institution or any independent agency has not appraised the same. The deployment of funds in the project is entirely at our discretion, based on the parameters as mentioned in the chapter titles "Objects of the Issue".

• The company has issued Equity Shares during the preceding twelve months at a price which may be below the Offer Price.

• 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.

• The company may not be able to manage the current growth of its business and operations in future.

• The company has not entered into any agreement with the suppliers or with any Consultant for its proposed expansion as specified in the objects of the Issue. Any delay in entering into such agreements may delay the implementation schedule, which may also lead to increase in prices of these equipment in future affecting our costs, revenue and profitability.

• Substantial portion of its revenues has been dependent upon few clients. Similarly, its dependence on few suppliers for procurement is substantially high. The loss of any one or more of the company major clients would have a material adverse effect on its business operations and profitability.

• If the company is unable to successfully implement its proposed expansion plans its results of operations and financial condition could be adversely affected.

• Any delays and/or defaults in customer payments could result in increase of working capital investment and/or reduction of the Company`s profits, thereby affecting its operation and financial condition.

• If the company fail to respond to changing customer needs, adopt and develop new technologies, its business, financial condition, and results of operations could be adversely affected.

• The company Promoter and Key Managerial Personnel play key role in its functioning and the company heavily rely on their knowledge and experience in operating its business and therefore, it is critical for the company business that its Promoter and Senior Management remain associated with it.

• The company Promoters and members of the Promoter Group will continue jointly to retain majority control over the Company even after the Issue which will allow them to determine the outcome of matters submitted to shareholders for approval.

• The company depend on skilled personnel and if its unable to recruit and retain skilled personnel, the company ability to operate or grow its business could be affected.

• 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`s manufacturing activities are labour intensive and depend on availability of skilled and unskilled labourers in large numbers. In case of unavailability of such labourers and / or inability to retain such personnel, its business operations could be affected.

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

• The Company has availed unsecured loan from its Directors which is repayable on demand. Any demand from the lender for repayment of such unsecured loan may affect its cash flow and financial condition.

• 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 the Audit Committee.

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

• The company may not be successful in implementing its business strategies.

• The company future fund requirements, in the form of further 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.

• Any increase in interest rates would have an adverse effect on its results of operations and will expose the Company to interest rate risks.

• In addition to its existing indebtedness for the company existing operations, its may incur further indebtedness during the course of business. The company cannot assure that its would be able to service its existing and/ or additional indebtedness.

• The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Issue. Further, the company has not identified any alternate source of financing the `objects of the Issue`. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.

• Its ability to pay dividends in the future may be affected by any material adverse effect on its future earnings, financial condition or cash flows.

• Increased losses due to fraud, employee negligence, theft or similar incidents may have an adverse impact on it.

• Third party industry and statistical data in this Red Herring Prospectus may be incomplete, incorrect or unreliable.