Sharp Chucks and

Risks

• The Company as well as the Independent Director are party to certain tax proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.

• The company Restated Financial Statements are prepared and signed by the Peer Review Auditor who is not Statutory Auditors of the Company as required under the provisions of SEBI (ICDR) Regulations 2018.

• The company is heavily dependent on the performance of the tractor industry and automobile. Major upsets or slowdown adversely affecting the tractor industry and automobiles and its ancillary industries can impact the business, results of operations, financial condition and cash flows.

• Substantial portion of the company revenues has been dependent upon its top five clients. The loss of any one or more of the major clients would have a material adverse effect on the business operations and profitability.

• The company extend significant credit terms to the customers and are subject to counterparty credit risk. Any deterioration in such customers` financial position and their ability to pay or its inability to extend credit in line with market practice may adversely impact the profitability.

• The company relies on third party suppliers to provide the raw materials and its have limited control over them and may not be able to obtain required quality raw materials on a timely basis or in sufficient quantity which may have a material adverse effect on the company results of operations.

• The company`s business is dependent on the manufacturing facilities which are located in Jalandhar, Punjab, India. Any loss or shutdown of operations at any of the manufacturing facilities may have an adverse effect on its business and results of operations.

• Its products adhere to strict quality control requirements because of which its have gained the trust and confidence of the customers and the inability to maintain such quality standards on consistent basis could adversely impact the company business, results of operations and financial condition.

• The company`s business is subject to various operating risks at the factory, the occurrence of which can affect its results of operations and consequently, financial condition of the Company.

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

• The Company has negative cash flows from its operating, investing and financing activities, details of which are given below. Any such recurrence in future, could impact the company growth and business.

• The company contingent liabilities could materially and adversely affect its business, results of operations and financial condition.

• The company financing agreements impose certain restrictions on its operations, and the failure to comply with operational and financial covenants may adversely affect the company reputation, business and financial condition.

• The company Promoter/Directors has given personal guarantees in relation to certain financing arrangements provided to it by its lenders which may not continue after the completion of the issue.

• A substantial portion of the company assets are hypothecated or mortgaged in favour of lenders as security for some of its fund-based and non- fund-based borrowings.

• The company Promoter and Promoter Group will continue to retain majority shareholding in the Company after the Issue, which will allow them to exercise significant influence over it and potentially create conflicts of interest.

• The company requires certain approvals, licenses, registrations and permits for the business, and the failure to obtain or renew them in a timely manner may adversely affect its operations.

• The company has significant power requirements for continuous running of our factories. Any disruption to the operations on account of interruption in power supply or any irregular or significant hike in power tariffs may have an effect on its business, results of operations and financial condition.

• The company is subject to risks associated with rejection of the products consequential to defects, which could adversely affect its business, results of operations or financial condition.

• The company Registered Office is not owned by it. In the event its lose such rights, The business, financial condition and results of operations and cash flows could be adversely affected.

• Industry information of the Company included in this Draft Prospectus has been derived from different industrial association and other governmental sources and reports. There can be no assurance that such third-party statistical, financial and other industry information is either complete or accurate.

• Pricing pressure from the customers may adversely affect the gross margin, profitability and ability to increase of the prices, which may in turn have a material adverse effect on its results of operations and financial condition.

• The company future funds requirements, in the form of fresh 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.

• Employee misconduct could harm it and is difficult to detect and deter.

• 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.

• Certain of the company corporate records and certain other documentation are not traceable or have discrepancies. Its cannot assure you that any regulatory proceedings or actions will not be initiated against it in the future and the company will not be subject to any penalty imposed by the competent regulatory authority in this regard.

• The company has had certain inaccuracy in relation to regulatory filings to be made with the RoC and the company has made non compliances of certain provision under applicable law.

• The average cost of acquisition of Equity Shares by the Promoters and Selling Shareholder could be lower than the Issue Price.

• The company depends on the senior management and other personnel, and if its unable to recruit and retain qualified and skilled personnel, The business and the ability to operate or grow the company business may be adversely affected.

• Any variation in the utilisation of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders` approval.

• Increases in interest rates may materially impact the company results of operations.

• The company funding requirements and the proposed deployment of Net Proceeds are not appraised by any independent agency are based on management estimates and may be subject to change based on various factors, some of which beyond the control. Any changes in the estimated funding requirements could affect its business and results of operations.

• The company 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 the financing arrangements.

• The company 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 adverse effect on its business and financial condition.

• Certain of the Promoters, Directors and Key Management Personnel may be interested in it other than in terms of remuneration and reimbursement of expenses, and this may result in conflict of interest with it.

• The Company`s logo is not registered under the Trademarks Act, 1999 as on date of Draft Prospectus. Its may be unable to adequately protect of the intellectual property. Furthermore, the compnay may be subject to claims alleging breach of third-party intellectual property rights.

• Any failure to adapt to industry trends and evolving technologies to meet the customers` demands may materially adversely affect its business and results of operations.

• The company is dependent on third parties for the transportation and timely delivery of the products to customers.

• The company operations are subject to environmental, health and safety laws, which could result in material liabilities in the future.

• Information relating to the installed capacity and capacity utilisation included in this Draft Prospectus is based on various assumptions and estimates and capacity utilisation may vary.

• If the company fail to maintain an effective system of internal controls, Its may not be able to successfully manage or accurately report the financial risks.

• The company may be subject to significant risks and hazards when operating and maintaining of the units, for which its insurance coverage might not be adequate.

• An inability to renew quality accreditations in a timely manner or at all, or any deficiencies in the quality of the products may give rise to product liability claims and negatively affect its business prospects and financial performance.

• The company may be subject to unionization, work stoppages or increased labour costs, which could adversely affect its business and results of operations.

• The company may not be able to sustain effective implementation of the business and growth strategies.

• The Company will not receive any proceeds from the Offer for Sale portion, and the Selling Shareholder shall be entitled to the Offer Proceeds to the extent of the Equity Shares offered by him in the Offer for Sale.

• There is no monitoring agency appointed by the Company to monitor the utilization of the Issue proceeds.

• The company face foreign exchange risks that could adversely affect its results of operations and cash flows.