Storage Tech

Risks

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

• The unexpected loss, shutdown or slowdown of operations at its manufacturing plant could have a material adverse effect on its results of operations and financial condition.

• Inaccurate estimation of risks, revenues, or costs for a projects could negatively impact its profitability and operational results. Actual costs during project execution may significantly deviate from bid assumptions, leading to challenges in recovering additional expenses and potentially having a material adverse effect on itsr operational results, cash flows, and financial condition.

• Its operations are significantly influenced by the prices, availability, and quality of the raw materials essential for its production processes.

• Failure to successfully implement its business strategies may materially and adversely affect the company`s business, prospects, financial condition and results of operations.

• Its existing customers does not guarantee realization of future income. Its revenue may be subject to modifications, cancellations, delays, holds, or partial payments by customers, which could have adverse effects on its operational results.

• The company has experienced negative cash flows in the past, and its may have negative cash flows in the future.

• The company operate its business from rented premises.

• The company has incurred losses in the past and may continue to incur significant losses in the future.

• Its competitiveness relies heavily on its capacity to foresee and comprehend changes in consumer preferences and industry trends, ensuring its can meet the demands of its customers. Any shortcomings in identifying and understanding these trends could have a material and adverse impact on its business.

• Its success depends on the company ability to attract and retain its key management personnel. If the company is unable to do so, it would adversely affect its business and results of operations.

• The Company has not received sanction letters for certain unsecured loans, and this lack of clarity on terms and conditions may potentially impact its business operations.

• Its insurance coverage may not be adequate to protect the company against certain operating hazards and this may have a material adverse effect on its business.

• Its may face significant competition in the company`s business. An inability to compete effectively may lead to a lower market share or reduced operating margins.

• Its financial condition could be negatively impacted by delays or defaults in customer payments.

• The stability and reliability of the logistics and transportation infrastructure are crucial for its success. Any disruption in these services could hinder its suppliers` ability to deliver materials or its ability to deliver materials to the company`s customers. Additionally, such disruptions may lead to increased transportation costs, adversely affecting its operations.

• The Company has not identified list of MSME vendors.

• The company has entered into related party transactions in the past and may continue to do so in the future.

• Default in filing statutory forms with Registrar of Companies and other statutory authorities. Any penalty or action taken by any regulatory authorities in future, for non-compliance with provisions of corporate and other law could impact the reputation and financial position of the Company to that extent.

• Its adherence to strict quality requirements is essential as any failure to comply with these standards could result in the cancellation of existing and future orders. Moreover, unsatisfied clientele can significantly impact its business operations and future prospects.

• Its inability to manage inventory and trade receivables in an effective manner could affect its business.

• Orders in its order book may be delayed, modified or cancelled and may be withdrawn or may not translate to confirmed orders, which may have a material adverse effect on its business, results of operations and financial condition.

• Latent defects in its products may increase it`s after-sales cost or its may suffer losses on account of replacements/ product recalls.

• The company may fail to obtain certain regulatory approvals in the ordinary course of its business in a timely manner or at all, or to comply with the terms and conditions of its existing regulatory approvals and licences which may have a material adverse effect on the continuity of its business and may impede its effective operations in the future.

• As the company continue to grow, its may not be able to effectively manage its growth and the increased complexity of the company`s business, which could negatively impact its brand and financial performance.

• Fluctuating prices of raw materials may affect its operations.

• If the company fails to deliver solutions in the required manner or with the expected quality, it could impact its ability to secure future projects in the market and tarnish the company`s reputation.

• Its Subsidiary Company is engaged in similar line of business. Any conflict of interest in future may occur between it and the company`s Subsidiary Company which may adversely affect its business, prospects, results of operations and financial condition.

• The company has significant working capital requirements. If its experience insufficient cash flows from the company`s operations or are unable to borrow to meet its working capital requirements, it may materially and adversely affect its business, cash flows and results of operations.

• 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 its financing agreements, it may adversely affect the company`s business, prospects, results of operations and financial condition.

• its projects requires deployment of labour and depends on availability of labour. In case of unavailability of such labour, its business operations could be affected.

• Changes in technology may render its current technologies obsolete or require the company to make substantial investments.

• Failure to efficiently identify and secure business opportunities may hinder its ability to meet its financial objectives.

• The Company has taken unsecured loans that may be recalled by the lenders at any time.

• Excessive dependence on banks and financial institutions in respect of Loan facilities obtained by the Company.

• The company is dependent on its Promoters, its senior management and other key personnel, and the loss of, or its inability to attract or retain, such persons could affect its business, results of operations, financial condition and cash flows.

• The average cost of acquisition of Equity Shares by its Promoters, could be lower than the issue price.

• The company could be adversely affected due to misconduct or errors of its employees that are difficult to detect and any such incidents could adversely affect its financial condition, results of operations and reputation.

• Failure to efficiently oversee project execution and adhere to milestone schedules may result in project delays, potentially negatively impacting its business and operational outcomes.

• The company may not be able to secure new contracts and/or customers.

• Fraud, theft, employee negligence or similar incidents may adversely affect its results of operations and financial condition.

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

• Its Promoter and the Promoter Group will jointly continue to retain majority shareholding in the Company after the offer, which will allow them to determine the outcome of the matters requiring the approval of shareholders.

• 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 approval of the shareholders of the Company.

• Any future issuance of its Equity Shares may dilute prospective investors` shareholding, and sales of its Equity Shares by the company major shareholders may adversely affect the trading price of its Equity Shares.

• The Issue price of its Equity Shares may not be indicative of the market price of the company Equity Shares after the Issue and the market price of its Equity Shares may decline below the Issue Price and you may not be able to sell your Equity Shares at or above the Offer Price.

• Its Promoters and Directors have provided personal guarantees for financing facilities availed by the Company and may in the future provide additional guarantees and any failure or default by the Company to repay such facilities in accordance with the terms and conditions of the financing agreements could trigger repayment obligations on them, which may impact their ability to effectively service their obligations as its Promoters and Directors and thereby, adversely impact its business and operations.

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

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

• Certain data mentioned in this Red Herring Prospectus has not been independently verified.

• The Company has not received appropriate documentary evidence with regard to the past Experience of some of its Directors.

• The Company has not received permanent account number and driving license for some of its promoter/ promoters group/directors is not available.