-
The company`s reliance on power sector, for a significant portion of its sales, combined with the challenges of managing a diversified portfolio across multiple industries, could adversely impact the company`s revenue, operational efficiency, and overall business performance.
-
The company`s reliance on government contracts exposes it to substantial risks, as any regulatory or policy changes could significantly impact project timelines, funding, and its ability to secure future contracts. These changes could adversely affect the company`s business operations and financial performance.
-
The Company`s current operations extend beyond the safety-focused implication of its name, which may cause confusion or misrepresent the full scope of its diverse activities across sectors such as power transmission, solar energy and infrastructure development
-
Substantial portion of the company`s revenues has been dependent on few of its clients from which the company get the majority of project on sub-contract basis. The loss of any one or more of its major clients would have a material adverse effect on the company`s business operations and profitability.
-
The company`s contracts are primarily with the government entities. As a result, the working capital cycle is extended, with receivables taking more time to be collected from these entities. Intense competition in the EPC sector, driven by aggressive bidding and price sensitivity, can lead to reduced profit margins and the potential loss of critical contracts. Additionally, financial pressures from well-resourced competitors employing predatory pricing strategies may hinder sustainable business growth and profitability.
-
Company has filed the Draft Red Herring Prospectus dated November 08, 2024 with the SME Exchange of NSE Limited. The proposed listing on EMERGE platform of the Exchange pursuant to Initial Public Offer was returned as per the `Exchange`s Guidelines for returning of Draft Offer Documents filed with the Exchange for listing on NSE Emerge Platform.
-
The company`s Top 1, 3, 5 and 10 Suppliers contribute a significant portion of its raw material consumption during the current and previous financial years. Any dispute with one or more of them may adversely affect the company`s business operations.
-
The Company has negative cash flows in the past years from operating and investing activities, details of which are given below. Sustained negative cash flow could impact the company`s the growth and business.
-
The company 100% revenues came from three states for the stub period ended March 31, 2025 and the financial year ended 31st March 2024, 2023. Any loss of business from one or more of these states may adversely affect its revenues and profitability.
-
There are certain discrepancies and non-compliances noticed in some of the company`s statutory compliances reporting and/or records relating to filing of returns with the concerned Registrar of Companies.
-
The Company may incur penalties or liabilities for non-compliance with certain provisions of the GST Act, Income Tax and other applicable laws in previous years.
-
Challenges in project execution, including unforeseen delays, resource shortages, and complex regulatory requirements, can jeopardize timely delivery and client satisfaction. Failures to meet deadlines may result in financial penalties, damaged reputations, and lost future business opportunities.
-
The company operates in a competitive industry and as such the company may not be successful in bidding for and winning bids for various projects to grow its business, which may have a material adverse effect the company`s business, financial condition, results of operations and prospects.
-
Any disruption or shortage in the supply of raw materials or equipment could delay project timelines, increase costs, and negatively affect the company`s ability to meet contractual obligations, ultimately impacting its business performance.
-
For securing certain projects, our company have to provide bank guarantees to the company`s clients. Failing to secure these guarantees or the activation of such guarantees has the potential to negatively impact its cash flows and financial standing.
-
The Company`s main source of revenue comes from projects in India that are initiated or approved by government authorities and other organizations funded by the Government of India (GoI) or state governments or Government entities. A significant majority of its income comes from agreements with a small number of government entities. If there are unfavorable changes in the policies of the central or state government, it could result in the closure, termination, restructuring, or renegotiation of our contracts, potentially impacting the company`s business and financial performance significantly.
-
The company has certain outstanding litigations against it, an adverse outcome of which may adversely affect the company`s business, reputation and results of operations.
-
The Company is dependent on third parties for the supply of raw materials required for its projects and is exposed to risks relating to fluctuations in commodity prices and shortage of raw material. Further, the company does not have any long-term supply agreements with the raw material providers.
-
The Company requires a significant amount of working capital for a continuing growth. The company`s inability to meet its working capital requirements may adversely affect the company`s results of operations.
-
The company does not own the registered office and other office from where we carry out its business activities. Any dispute in relation to use of the premises could have a material adverse effect on the company`s business and results of operations.
-
In the EPC sector, obtaining bank guarantees (BG) or corporate guarantees is a standard requirement for participating in government tenders and ensuring the performance of ongoing contracts. The result is a substantial amount of capital being locked away for the duration of the contract, which can strain the company`s liquidity and hinder its ability to reinvest in business operations.
-
The company has total indebtedness of ?3,384.48 lakhs as on March 31, 2025. If the company is unable to service the company`s debt obligations in a timely manner or to comply with various financial and other covenants and other terms and conditions of its financing agreements, it may adversely affect the company`s business, credit rating, reputation, prospects, results of operations, cash flows and financial condition.
-
The company has in the past entered into related party transactions and the company may continue to do so in the future.
-
Risks inherent to power sector projects could materially and adversely affect the company`s business, financial condition and results of operations.
-
The construction, operation and maintenance of the company`s 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`s revenues.
-
Due to the long construction periods of its power transmission systems, the operation and maintenance costs of the company`s projects may change significantly after commissioning of the assets. As the terms and conditions, including the fee structure are generally fixed, the company may not be able to offset increases in costs, including operation and maintenance costs.
-
The company`s Promoters and members of Promoter Group have mortgaged their personal properties and provided personal guarantees for its borrowings to secure the company`s loans. The company`s business, financial condition, results of operations, cash flows and prospects may be adversely affected by the revocation of all or any of the personal guarantees provided by its Promoters and members of Promoter Group in connection with the Company`s borrowings.
-
Within the parameters as mentioned in the chapter titled "Objects of this Issue" beginning on page 77 of this Draft Red Herring Prospectus, the Company`s management will have flexibility in applying the proceeds of the 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 Promoters, Directors including Independent Directors does not have any prior experience of directorship in the listed company.
-
The company`s rely on third-party service providers, vendors and various intermediaries, including logistics providers and port authorities, to facilitate key aspects of its operations. Any unsatisfactory services, disruptions, or failure to maintain strong relationships with these partners could adversely affect the company`s operational efficiency and business continuity.
-
The deployment of funds raised through this Issue shall not be subject to any Monitoring Agency and shall be purely dependent on the discretion of the management of the Company.
-
The Company does not have obtained work completion certificates for most of the company`s completed projects secured from clients. Reliance has been placed on the declarations, information, work orders, invoices and TDS returns available with our company for the completed projects included in this Draft Red Herring Prospectus.
-
The company`s on-going and our future projects are exposed to various implementation risks & uncertainties and may be delayed, modified or cancelled for reasons beyond its control which may materially and adversely affect the company`s business, reputation, profitability, financial condition and results of operation.
-
The company`s inability to effectively manage project execution may lead to project delays or their termination which may adversely affect its business and results of operations.
-
The company`s inability to effectively manage its growth or to successfully implement the company`s business plan and growth strategy could have an effect on v business, results of operations and financial condition.
-
The average cost of acquisition of Equity shares by its Promoters is lower than the Issue price. The company`s promoters average cost of acquisition of Equity shares in the Company is lower than the Issue Price of Equity shares as given below.
-
The company`s lenders have charge over its movable properties in respect of finance availed by the company`s.
-
The company`s may be unable to adequately protect its intellectual property and may be subject to risks of infringement Claims.
-
Bigger Tenders above certain prescribed limit, eligibility to participate is contingent on forming Joint Venture (JV) partnerships rather than sole participation. This requirement introduces several complexities that could significantly affect the company`s business operations and contractual relationships.
-
Retention of contract value by the Government till the end of warranty period can significantly impact the company`s cash flow and revenue collection.
-
The company has significant ongoing funding requirements and may not be able to raise additional capital in the future. As a result, the company may not be able to respond to business opportunities, challenges or unforeseen circumstances.
-
Impact on Cash Flow and Project Timelines due to delays in Procurement of Transformers and certain selective critical equipment and due to Advance Payments to acquire such equipment necessary for the project.
-
The company`s success largely depends upon the knowledge and experience of its Promoters, Directors, the company`s Key Managerial Personnel and Senior Management as well as its ability to attract and retain personnel with technical expertise. Any loss of the company`s Promoter, Directors, Key Managerial Personnel, Senior Management or its ability to attract and retain them and other personnel with technical expertise could adversely affect the company`s business, financial condition and results of operations.
-
If the company is not able to attract and retain sufficient qualified and trained personnel at the Company which may adversely affect its business.
-
The Company has not entered into any written agreements or contracts with the company`s suppliers for purchase of its raw material at the company`s sites.
-
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 the company`s financial and operational performance and reputation.
-
The company`s proposed schedule of the implementation of the Objects for which funds are being raised in the public issue is subject to risk of unanticipated delays in implementation.
-
In case of our inability to obtain, renew or maintain the statutory and regulatory licenses, permits and approvals required to operate the company`s business it may have a material adverse effect on its business.
-
The company`s results of operations and cash flows could be adversely affected, if the company is unable to collect its dues and receivables from, or invoice the company`s unbilled services to, or retention money to its clients.
-
The company may be unable to identify or acquire new projects and the company`s bids for new projects may not always be successful, which may stunt its business growth.
-
The company`s insurance policy may not be adequate to cover all the losses which a business could incur. Any inability to maintain adequate cover from material adverse incidents may adversely affect its operation and profitability.
-
The company has to update the name of the company in some of the statutory approvals and certificates due to the Change in the name upon conversion of the Company into Public Limited Company.
-
The company`s business requires us to obtain and renew certain registrations, licenses and permits from government and regulatory authorities and the failures to obtain and renew them in a timely manner may adversely affect the company`s business operations.
-
In addition to normal remuneration, other benefits and reimbursement of expenses to the company`s Promoters and Directors; they are interested to the extent of their shareholding 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 the company`s Group Company / Entities.
-
If the company is unable to manage its growth effectively and further expand into new markets the company`s business, future financial performance and results of operations could be materially and adversely affected.
-
The issue price of the Equity Shares may not be indicative of market price of the company`s equity shares after the issue and the market price of its Equity shares may decline below the issue price.
-
The company`s ability to pay dividends in the future will depend upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures
-
Failures or disruption of the company`s information technology systems may adversely affect its business, financial condition, results of operations, cash flows and prospects.
-
Certain information contained in this Draft Red Herring Prospectus is based on management estimates and the company cannot assure you of the completeness or accuracy of the data.
-
Any variation in the utilisation of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders` approval.
-
Any future issuance of Equity Shares may dilute the shareholding of the Investor or any sale of Equity Shares by the company`s Promoter or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.
-
The company could be exposed to risks arising from misconduct, fraud and trading errors by its employees and Business Associates.
-
QIBs 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.
-
The company could face business risk due to poor workmanship of the product or due to material supplied
-
Any future issuance of Equity Shares may dilute the shareholding of the Investor or any sale of Equity Shares by our Promoter or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.
-
We could be exposed to risks arising from misconduct, fraud and trading errors by our employees and Business Associates.
-
The company`s reliance on power sector, for a significant portion of its sales, combined with the challenges of managing a diversified portfolio across multiple industries, could adversely impact the company`s revenue, operational efficiency, and overall business performance.
-
The company`s reliance on government contracts exposes the company to substantial risks, as any regulatory or policy changes could significantly impact project timelines, funding, and the company`s ability to secure future contracts. These changes could adversely affect its business operations and financial performance.
-
The Company`s current operations extend beyond the safety-focused implication of its name, which may cause confusion or misrepresent the full scope of its diverse activities across sectors such as power transmission, solar energy and infrastructure development
-
Substantial portion of its revenues has been dependent on few of the company`s clients from which the company gets the majority of project on sub-contract basis. The loss of any one or more of the company`s major clients would have a material adverse effect on its business operations and profitability.
-
The company`s contracts are primarily with the government entities. As a result, the working capital cycle is extended, with receivables taking more time to be collected from these entities. Intense competition in the EPC sector, driven by aggressive bidding and price sensitivity, can lead to reduced profit margins and the potential loss of critical contracts. Additionally, financial pressures from well-resourced competitors employing predatory pricing strategies may hinder sustainable business growth and profitability.
-
Company has filed the Draft Red Herring Prospectus dated November 08, 2024 with the SME Exchange of NSE Limited. The proposed listing on EMERGE platform of the Exchange pursuant to Initial Public Offer was returned as per the `Exchange`s Guidelines for returning of Draft Offer Documents filed with the Exchange for listing on NSE Emerge Platform.
-
The company`s Top 1, 3, 5 and 10 Suppliers contribute a significant portion of its raw material consumption during the current and previous financial years. Any dispute with one or more of them may adversely affect the company`s business operations.
-
The Company has negative cash flows in the past years from operating and investing activities, details of which are given below. Sustained negative cash flow could impact its growth and business.
-
The Company requires a significant amount of working capital for a continuing growth. The company`s inability to meet its working capital requirements may adversely affect the company`s results of operations.
-
The company`s 100% revenues came from one state for the stub period January 31, 2026 and for the year ended March 31, 2025 and the financial year ended 31st March 2024, 2023. Any loss of business from one states may adversely affect its revenues and profitability.
-
There are certain discrepancies and non-compliances noticed in some of its statutory compliances reporting and/or records relating to filing of returns with the concerned Registrar of Companies.
-
The Company may incur penalties or liabilities for non-compliance with certain provisions of the GST Act, Income Tax and other applicable laws in previous years.
-
Challenges in project execution, including unforeseen delays, resource shortages, and complex regulatory requirements, can jeopardize timely delivery and client satisfaction. Failures to meet deadlines may result in financial penalties, damaged reputations, and lost future business opportunities.
-
The company operates in a competitive industry and as such the company`s may not be successful in bidding for and winning bids for various projects to grow its business, which may have a material adverse effect the company`s business, financial condition, results of operations and prospects.
-
Any disruption or shortage in the supply of raw materials or equipment could delay project timelines, increase costs, and negatively affect its ability to meet contractual obligations, ultimately impacting the company`s business performance.
-
For securing certain projects, the company has to provide bank guarantees to its clients. Failing to secure these guarantees
-
The Company`s main source of revenue comes from projects in India that are initiated or approved by government authorities and other organizations funded by the Government of India (GoI) or state governments or Government entities. A significant majority of our income comes from agreements with a small number of government entities. If there are unfavorable changes in the policies of the central or state government, it could result in the closure, termination, restructuring, or renegotiation of its contracts, potentially impacting our business and financial performance significantly.
-
The company has certain outstanding litigations against the company, an adverse outcome of which may adversely affect its business, reputation and results of operations.
-
The Company is dependent on third parties for the supply of raw materials required for its projects and is exposed to risks relating to fluctuations in commodity prices and shortage of raw material. Further, the company does not have any long-term supply agreements with the raw material providers.
-
The company does not own the registered office and other office from where the company carries out its business activities. Any dispute in relation to use of the premises could have a material adverse effect on the company`s business and results of operations.
-
In the EPC sector, obtaining bank guarantees (BG) or corporate guarantees is a standard requirement for participating in government tenders and ensuring the performance of ongoing contracts. The result is a substantial amount of capital being locked away for the duration of the contract, which can strain the company`s liquidity and hinder its ability to reinvest in business operations.
-
The company has total indebtedness of Rs. 3,917.87 lakhs as on period ended January 31, 2026 and Rs.3,384.48 lakhs for the per year ended March 31, 2025. If the company is unable to service its debt obligations in a timely manner or to comply with various financial and other covenants and other terms and conditions of our financing agreements, it may adversely affect its business, credit rating, reputation, prospects, results of operations, cash flows and financial condition.
-
The company`s has in the past entered into related party transactions and the company`s may continue to do so in the future.
-
Risks inherent to power sector projects could materially and adversely affect its business, financial condition and results of operations.
-
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 the company`s business and consequent decreases in the company`s revenues.
-
Due to the long construction periods of the company`s power transmission systems, the operation and maintenance costs of its projects may change significantly after commissioning of the assets. As the terms and conditions, including the fee structure are generally fixed, the company`s may not be able to offset increases in costs, including operation and maintenance costs.
-
The company`s Promoters and members of Promoter Group have mortgaged their personal properties and provided personal guarantees for its borrowings to secure its loans. The company`s business, financial condition, results of operations, cash flows and prospects may be adversely affected by the revocation of all or any of the personal guarantees provided by its Promoters and members of Promoter Group in connection with the Company`s borrowings.
-
Within the parameters as mentioned in the chapter titled "Objects of this Issue" beginning on page 96 of this Red Herring Prospectus, the Company`s management will have flexibility in applying the proceeds of the 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 Promoters, Directors including Independent Directors does not have any prior experience of directorship in the listed company.
-
The company relies on third-party service providers, vendors and various intermediaries, including logistics providers and port authorities, to facilitate key aspects of its operations. Any unsatisfactory services, disruptions, or failures to maintain strong relationships with these partners could adversely affect the company`s operational efficiency and business continuity.
-
The deployment of funds raised through this Issue shall be monitored by the Monitoring Agency appointed by the Company and shall not be solely dependent on the discretion of the management of the Company..
-
The Company does not have obtained work completion certificates for most of its completed projects secured from clients. Reliance has been placed on the declarations, information, work orders, invoices and TDS returns available with the company for the completed projects included in this Red Herring Prospectus.
-
The company`s on-going and the company`s future projects are exposed to various implementation risks & uncertainties and may be delayed, modified or cancelled for reasons beyond its control which may materially and adversely affect its business, reputation, profitability, financial condition and results of operation.
-
The company`s inability to effectively manage project execution may lead to project delays or their termination which may adversely affect its business and results of operations.
-
The company`s inability to effectively manage its growth or to successfully implement the company`s business plan and growth strategy could have an effect on its business, results of operations and financial condition.
-
The average cost of acquisition of Equity shares by the company`s Promoters is lower than the Issue price. The company`s promoters average cost of acquisition of Equity shares in the Company is lower than the Issue Price of Equity shares as given below.
-
The company`s lenders have charge over its movable properties in respect of finance availed by the company.
-
The company may be unable to adequately protect its intellectual property and may be subject to risks of infringement Claims.
-
Bigger Tenders above certain prescribed limit, eligibility to participate is contingent on forming Joint Venture (JV) partnerships rather than sole participation. This requirement introduces several complexities that could significantly affect its business operations and contractual relationships.
-
Retention of contract value by the Government till the end of warranty period can significantly impact the company`s cash flow and revenue collection.
-
The company has significant ongoing funding requirements and may not be able to raise additional capital in the future. As a result, the company may not be able to respond to business opportunities, challenges or unforeseen circumstances.
-
Impact on Cash Flow and Project Timelines due to delays in Procurement of Transformers and certain selective critical equipment and due to Advance Payments to acquire such equipment necessary for the project.
-
The company`s success largely depends upon the knowledge and experience of its Promoters, Directors, the company`s Key Managerial Personnel and Senior Management as well as its ability to attract and retain personnel with technical expertise. Any loss of the company`s Promoter, Directors, Key Managerial Personnel, Senior Management or the company`s ability to attract and retain them and other personnel with technical expertise could adversely affect its business, financial condition and results of operations.
-
If the company is not able to attract and retain sufficient qualified and trained personnel at the Company which may adversely affect its business.
-
The Company has not entered into any written agreements or contracts with the company`s suppliers for purchase of its raw material at the company`s sites.
-
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 company`s proposed schedule of the implementation of the Objects for which funds are being raised in the public issue is subject to risk of unanticipated delays in implementation.
-
In case of the company`s inability to obtain, renew or maintain the statutory and regulatory licenses, permits and approvals required to operate its business it may have a material adverse effect on the company`s business.
-
The company`s results of operations and cash flows could be adversely affected, if the company is unable to collect its dues and receivables from, or invoice its unbilled services to, or retention money to the company`s clients.
-
The company may be unable to identify or acquire new projects and the company`s bids for new projects may not always be successful, which may stunt its business growth.
-
The company`s insurance policy may not be adequate to cover all the losses which a business could incur. Any inability to maintain adequate cover from material adverse incidents may adversely affect its operation and profitability.
-
The company has to update the name of the company in some of the statutory approvals and certificates due to the Change in the name upon conversion of the Company into Public Limited Company.
-
Frequent changes in the company`s Statutory Auditors may affect the continuity of its audit process and could be perceived adversely by investors.
-
The Company`s auditor has issued a qualified opinion on the financial statements for the fiscal year ended 2023-24 and 2024-25. The qualification pertains to the Company recognizing revenue and purchases gross of GST and writing off of advances which could result in affecting the profit and taxation position of the Company.
-
Legal proceedings may be pending against the Company and may expose the company to potential liability.
-
The company`s business requires the company to obtain and renew certain registrations, licenses and permits from government and regulatory authorities and the failures to obtain and renew them in a timely manner may adversely affect its business operations.
-
In addition to normal remuneration, other benefits and reimbursement of expenses to the company`s Promoters and Directors; they are interested to the extent of their shareholding 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 the company`s Group Company / Entities.
-
If the company is unable to manage its growth effectively and further expand into new markets the company`s business, future financial performance and results of operations could be materially and adversely affected.
-
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`s Equity shares may decline below the issue price.
-
The company`s ability to pay dividends in the future will depends upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.
-
Failures or disruption of its information technology systems may adversely affect the company`s business, financial condition, results of operations, cash flows and prospects.
-
Certain information contained in this Red Herring Prospectus is based on management estimates and the company cannots assure you of the completeness or accuracy of the data.
-
Any variation in the utilisation of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders` approval.
-
Any future issuance of Equity Shares may dilute the shareholding of the Investor or any sale of Equity Shares by the company`s Promoter or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.
-
The company coulds be exposed to risks arising from misconduct, fraud and trading errors by its employees and Business Associates.
-
QIBs 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.
-
The company could faces business risk due to poor workmanship of the product or due to material supplied
