Udayshivakumar

Risks

• The company derive majority of its revenue from civil construction and the company financial condition would be materially and adversely affected if the company fail to obtain new contracts or its current contracts are terminated.

• Infrastructure projects are typically awarded to its on satisfaction of prescribed pre- qualification criteria and following a competitive bidding process. Its business and the company financial condition may be adversely affected if new infrastructure projects are not awarded to it or if contracts awarded to the company are prematurely terminated.

• The company Order Book may not be representative of its future results and the company actual income may be significantly less than the estimates reflected in its Order Book, which could adversely affect its business, financial condition, results of operations and prospects.

• Its business currently is primarily dependent on projects in India undertaken or awarded by governmental authorities and other entities funded by the GoI or state governments and the company derive majority of its revenues from contracts with a limited number of government entities. Any adverse changes in the central or state government policies may lead to its contracts being foreclosed, terminated, restructured or renegotiated, which may have a material effect on its business and results of operations.

• The company projects are exposed to various implementation and other risks, including risks of time and cost overruns, and uncertainties, which may adversely affect its business, financial condition, results of operations, and prospects.

• The company Business has beennes relatively concentrated in the state of Karnataka, consequently, the company is exposed to risks emanating from economic, regulatory and other changes in these locations which its may not be able to successfully manage may adversely affect its business, financial condition, results of operations, and prospects.

• The company has availed moratorium benefits and have rescheduled its borrowings in the past.

• The company derive a significant portion of its revenues from a limited number of clients. The loss of any significant clients may have an adverse effect on its business, financial condition, results of operations, and prospects.

• There are outstanding litigations involving the Company, if determined adversely, may adversely affect its business and financial condition.

• The company has require various statutory and regulatory permits and approvals in the ordinary course of its business, and the company failure to obtain, renew or maintain them in a timely manner may adversely affect its operations.

• Its may be exposed to liabilities arising from defects during construction, which may adversely affect its business, financial condition, results of operations and prospects.

• The Company has set up ready-mix concrete manufacturing units in Belgaum, Haveri, Shivamogga, Davangere and Chitradurga between 2018 and 2022 therefore, these manufacturing units have a limited operating history, which might make it difficult for the investors to evaluate our historical performance or future prospects. Further, the company has recently ventured into the business verticals of mining and toll collection and therefore its have limited experience in these business verticals.

• The company is required to furnish bank guarantees as part of its business. The company inability to arrange such guarantees or the invocation of such guarantees may adversely affect its cash flows and financial condition.

• Its business is capital intensive. If the company experience insufficient cash flows to meet required payments on its debt and working capital requirements, there may be an adverse effect on the results of the company operations.

• Any inability to maintain its equipment assets or manage the company employees or inadequate workloads may cause underutilization of its workforce and equipment bank, and such underutilization could reduce its ability to sweat our assets which may have an impact on the company profitability.

• The company operate in a competitive industry and its failure to successfully compete may adversely affect its business, financial condition and results of operations, and prospects.

• The failure of a joint venture partner to perform its obligations could impose additional financial and performance obligations resulting in reduced profits or, in some cases, significant losses from the joint venture and may have an adverse effect on its business, results of operations and financial condition. In addition to the above, the company may undertake joint ventures in the future, which may be difficult to integrate and manage. Further, our joint venture partners may not perform their obligations satisfactorily and their interests may differ from its, which could have a material adverse effect on the company business and results of operations.

• The company is yet to obtain consents/ no objection certificate from State Bank of India for the Issue.

• Its may not be able to collect trade receivables arise due to the change in service tax rate after the implementation of GST, due from its clients, in a timely manner, or at all, which may adversely affect the company business, financial condition, results of operations and prospects.

• Increases in the prices of construction materials, fuel, labour and equipment could have an adverse effect on its business, results of operations and financial condition.

• Its may not be able to successfully manage the growth of the company operations and execute its growth strategies which may have an adverse effect on its business, financial condition, results of operations and future prospects.

• Its ability to negotiate the standard form of Government contracts for itd projects may be limited and certain unusual or onerous provisions may be imposed on it, which may restrict the company flexibility in undertaking its business and thereby affect the efficient execution and profitability of its projects.

• Obsolescence, destruction, theft, breakdowns of the company major plants or equipment or failures to repair or maintain the same may adversely affect its business, cash flows, financial condition and results of operations.

• The company operations could be adversely affected by strikes, work stoppages or increased wage demands by its employees or any other kind of disputes with the company employees and contract labour.

• In the past, there have been instances of non-filings of certain forms which were required to be filed as per the reporting requirements under the Companies Act, 2013 to RoC.

• The company do not own certain premises used by the Company. Disruption of its rights as licensee/ lessee or termination of the agreements with its licensors/ lessors would adversely impact the company manufacturing operations and, consequently, its business.

• Compliance with, and changes in, environmental, health and safety laws and regulations or stringent enforcement of existing environmental, health and safety laws and regulations may result in increased liabilities and increased capital expenditures may adversely affect its cash flows, business results of operations and financial condition.

• The company relies on its information technology systems for its operations and its reliability and functionality is critical to the success of the company business. In the event of any failures in its information technology systems, it may have a material adverse impact on its operations and financial condition.

• The Company has applied for registration of certain trademarks in its name. Until such registrations are granted, its may not be able to prevent unauthorised use of such trademarks by third parties, which may lead to the dilution of the company goodwill.

• The Company depends on the knowledge and experience of its Promoter and other Key Managerial Personnel for its growth. The loss of their services may have a material adverse effect on its business, financial condition and results of operations.

• The company agreements with various banks for financial arrangements contain restrictive covenants for certain activities and if the compan is unable to get their approval, it might restrict its scope of activities and impede the company growth plans.

• Its Promoter and a member of the company Promoter Group have extended personal guarantees with respect to loan facilities availed by the Company. Further, its Promoter has provided his property as collateral security for loan facilities availed by the Company. Revocation of any or all of these personal guarantees or withdrawal of such property may adversely affect its business operations and financial condition.

• The company operations are subject to accidents and other risks and could expose us to material liabilities, loss in revenues and increased expenses.

• The company Promoter and one of the members of its Promoter Group are co-borrowers to certain vehicle loans availed by the Company. In event of default of the debt obligations, its Promoter will have to bear the liability, which may adversely affect the Promoter`s ability to manage the affairs of the Company. Further certain of its vehicle loans are in the name of the erstwhile sole proprietorship and partnership firm and are yet to be transferred to the name of the Company.

• Its Promoter and members of Promoter Group hold Equity Shares and have interests in the company performance in addition to their normal remuneration or benefits and reimbursement of expenses incurred.

• Its inability to procure and/or maintain adequate insurance cover in connection with the company business may adversely affect its operations and profitability.

• Its Promoter and members of the Promoter Group have significant control over the Company and have the ability to direct its business and affairs; their interests may conflict with your interests as a shareholder.

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

• The company Joint Venture has been formed to engage in a similar line of business as the Company and may compete with it.

• Its 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.

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

• 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.

• The Company has not paid any dividends in the past and its may not be able to pay dividends in the future.

• The company has certain contingent liabilities and its financial condition and profitability may be adversely affected if any of these contingent liabilities materialize.

• The Company has availed unsecured loans from its Promoter, which are recallable in nature.

• The deployment of funds is entirely at its discretion and as per the details mentioned in the chapter titled "Objects of the Issue".

• Significant differences exist between Ind AS used to prepare its financial information and other accounting principles, such as U.S. GAAP and IFRS, which may affect investors` assessments of the Company`s financial condition.

• This Draft Red Herring Prospectus contains information from an industry report prepared by CRISIL, commissioned by it for the purpose of the Issue for an agreed fee.

• The company does not have any documentary evidence for the educational qualifications and experience of certain of its Directors and the company Chief Financial Officer.

• Its may not maintain profitability in the future.