Manglam Infra

Risks

• The company is highly dependent on Government Bodies for its Infrastructure Consultation Projects. Any failure to secure new tenders from this government bodies could adversely affect its business and revenue from operations.

• Its revenue and earnings are dependent on the award of new contracts which the company does not directly control.

• The company may not be able to realize the amounts reflected in its order book, timely completion and performance standards of a project which may materially and adversely affect its financial condition and results of operation.

• The company maintain its workforce in alignment with current workloads and future projects. In the event that the company does not secure future contract awards or experience delays in receiving them, it could result in incurring additional employee costs.

• The contracts in its order book may be adjusted, cancelled or suspended by the company clients and, therefore, its order book is not necessarily indicative of the company`s future revenues or earnings.

• The company has entered into joint venture arrangements or agreements or Memorandum of Understanding or Power of attorney with third parties to complete infrastructure consultancy services.

• A significant portion of its revenues are derived from a few geographical regions and any adverse developments affecting such regions could have an adverse effect on its business, cash flows, results of operation and financial condition.

• Its Restated Financial Statements are Prepared and Signed by the Peer Review Auditors who is not Statutory Auditors of the Company as required under the provisions of ICDR:

• The company requires high working capital for its smooth day to day operations of business and any discontinuance or its inability to acquire adequate working capital timely and on favorable terms may have an adverse effect on its operations, profitability and growth prospects.

• Its ability to attract, train and retain executives and other qualified employees is critical to its business, results of operations and future growth.

• The Company has provided corporate guarantee of one of the property of the company to one of its promoter group entity.

• Projects where the company provide its services are exposed to various implementations and other risks and uncertainties which may adversely affect its business, profits, results of operations and financial condition.

• The company execute certain of its projects through unincorporated joint ventures.

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

• The company has entered into and may continue to enter into related party transactions and there can be no assurance that such transactions have been on favourable terms.

• 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.

• Its Promoter and Whole time Director were Promoter and Director in Millenium Bottlers and Distillers Private Limited, which has been struck-off by the Registrar of Companies.

• There have been some instances of delayed /non filing in the past with the Registrar of Companies which may attract penalties.

• its Promoters and Promoter Group will be able to exercise significant influence and control over its operations after the issue and may have interests that are different from those of its other shareholders.

• If the company is unable to source business opportunities effectively, its may not achieve the company financial objectives.

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

• The company relies on the softwares and technologies which the company is using, for its operations and its reliability and functionality is critical to the company`s business success.

• The company is involved in certain legal proceedings, which, if determined adversely, may affect its business and financial condition.

• Its funds requirements are based on internal management estimates, wherever possible, and have not been appraised by any bank or financial institution. Any increase in the actual deployment of funds may cause an additional burden on its finance plans. The company has not entered into definitive agreements to utilize its Issue proceeds.

• The coronavirus pandemic ("Covid-19") has had an adverse effect on its business and operations, and the extent to which it may continue to do so in the future cannot be predicted.

• The Company has unsecured loans with a total outstanding amount of Rs. 174.94 lakhs as of March 31, 2024, that may be recalled by the lenders at any time.

• Its success depends heavily upon the company management team, Key managerial personnel and skilled manpower. Its inability to attract and retain key personnel or loss of services of the company key personnel may have an adverse effect on its business prospects.

• If the company fails to obtain, maintain or renew the statutory and regulatory licenses, permits and approvals required for its business and operations, the company`s business, results of operations, financial condition and cash flows may be adversely affected.

• The company presently does not own the trademark or logo under which its currently operate and if third parties infringe the trademark, logo and intellectual property that the company use, its business and reputation would be adversely affected.

• The company has issued Equity Shares during the last one year at a price that may be below the Issue Price.

• The company does not own the premises in which its Corporate Office is located and the same is on lease arrangement. Any termination of such lease/license and/or non-renewal thereof could adversely affect its operations.

• There are certain discrepancies and non- compliances noticed in some of its financial reporting and/or records relating to filing of returns and deposit of statutory dues with the taxation and other statutory authorities.

• The Company`s management will have flexibility in utilizing the net proceeds from the issue and the deployment of the net proceeds from the issue is not subject to any monitoring by any independent agency.

• Its Promoters and Directors have interests in entities, which are in businesses similar or same to its and this may result in potential conflict of interest with the company.

• The company has certain amount of outstanding indebtedness, which requires significant cash flows to service and are subject to certain conditions and restrictions in terms of its financing arrangements, which restricts the company ability to conduct its business and operations in the manner the company desire.

• Its insurance coverage may not adequately protect the company against potential risk, and this may have a material adverse effect on its business.

• The company has not independently verified certain data in this Red herring Prospectus.

• The requirements of being a listed company may strain its resources.

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

• 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.

• QIB and Non-Institutional Investors are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid.

• Investors will not be able to sell immediately on an Indian stock exchange any of the Equity Shares they purchase in the Issue.

• 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.