Vishnu Prakash R

Geographical diversification.

Continued focus on its Water Supply Projects (WSP) business.

Pursuing other segments.

Focus on high value contracts and investment in latest equipment.

Increase competitiveness through quality execution, cost reduction and continuous training of manpower.

Leverage core competencies with enhanced in-house integration.

Focused player in Water Supply Projects (WSPs).

Visible growth through robust order book across segments.

Established relationships with marquee client base.

Track record of successfully completed projects.

In-house integrated model.

Committed Promoters, Board and management team.

There are certain outstanding litigations involving the Company, which, if determined adversely, may affect its business operations and reputation.

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 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 prospect.

The company business is working capital intensive involving relatively long implementation periods. The company require substantial financing for its business operations. The company indebtedness and the conditions and restrictions imposed on by its financing arrangements could adversely affect the company ability to conduct its business.

The company is required to furnish financial and performance bank guarantees and letter of credits as part of its business. The company inability to arrange such guarantees and/or letters of credit may adversely affect its cash flows and financial condition.

Timely completion of its projects is interdependent on the availability and performance of sub-contractors.

Projects undertaken through a joint venture may be delayed on account of the performance of the joint venture partner or, in some cases, significant losses from the joint venture may have an adverse effect on its business, results of operations and financial condition.

The company revenue is generated from projects undertaken with Government entities or agencies, contracts of which usually contain terms that favour the clients. Such project / contracts are awarded on the basis of certain pre-qualification criterias and competitive selection process and are usually in a standard form, restricting its ability to negotiate the terms and conditions. Any change in the Government policies or focus and/or we are unable to recover payments in a timely manner, would adversely affect the company business and result of operations. Its ability to negotiate the standard form of Government contracts may be limited.

As of December 31, 2022, its ongoing projects in Rajasthan state constitute 72.50% of the company pending Order Book. Its business is relatively concentrated in northern part of India and any adverse impact in this region may adversely affect its business, results of operations and financial condition.

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.

The company ongoing projects are exposed to various implementation risks and uncertainties and may be delayed, modified or cancelled for reasons beyond its control, which may adversely affect the company business, financial condition and results of operation.

The company is require certain approvals and licenses in the ordinary course of business and are required to comply with certain rules and regulations to operate its business, and the failure to obtain, retain and renew such approvals and licenses in timely manner or comply with such rules and regulations may adversely affect its operations.

Bidding for a tender involves various management activities such as detailed project study and cost estimations. Inability to accurately estimate the cost may lead to a reduction in the expected rate of return and profitability estimates.

Certain entities in its group have common pursuits as they are engaged in similar business or industry segments and may compete with it.

The funding requirements and the deployment of Net Proceeds are based on management estimates and have not been independently appraised. Any variation in the utilisation of Net Proceeds of the Fresh Issue as disclosed in this Draft Red Herring Prospectus shall be subject to compliance requirements, including prior shareholders` approval.

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

This Draft Red Herring Prospectus contains information from a CareEdge Report which its have commissioned from CareEdge Research. There can be no assurance that such third-party statistical, financial and other industry information is complete, reliable or accurate.

The company has not yet placed orders in relation to the capital expenditure to be incurred for the proposed purchase of equipment / machineries. In the event of any delay in placing the orders, or in the event the vendors are not able to provide the equipment / machineries in a timely manner, or at all, the same may result in time and cost over-runs.

The company profitability and results of operations may adversely be affected in the event of any disruption in the supply of materials or increase in the price of materials, fuel costs, labour etc.

Trade receivables and Inventories form a substantial part of its current assets and net worth. Failure to manage the same could have an adverse effect on its net sales, profitability, cash flow and liquidity.

The company cannot assure that the construction of its projects will be free from any or all defects, which may adversely affect the company business, financial condition, results of operations and prospects.

The company own a large fleet of equipment and vehicles and have a large number of employees, resulting in fixed costs to the Company. In the event its not able to generate adequate cash flows, it may have a material adverse impact on the company operations.

The company relies on effective and efficient project management. Any adverse change in its project management procedures could affect the company ability to complete projects on timely basis or at all, which may cause it to incur liquidated damages for time overruns pursuant to the company contracts.

The company is dependent upon the experience and skill of its management team and a number of KMPs and senior management personnel. If the company is unable to attract or retain such qualified personnel, this could adversely affect its business, results of operations and financial condition.

The Company has availed Rs. 662.64 million as unsecured loan, which are repayable on demand. Any demand for repayment of such unsecured loans may affect its cash flows and financial condition.

The company operate in an extremely competitive industry and failure to successfully compete could result in loss of one or more of our significant customers and may adversely affect its business.

Operational risks such as obsolescence, destruction, breakdown of our equipment or failures to repair or maintain such equipment.

The company insurance coverage may not be sufficient or may not adequately protect it against all or any hazards, which may adversely affect the company business, results of operations and financial condition.

Some of its agreements may have certain irregularities.

If the company is not successful in managing its growth, its business may be disrupted.

The company Promoters, Promoter Group and third parties have mortgaged their personal properties and provided personal and/or corporate guarantees for its borrowings to secure the company credit facilities. Its business, financial condition, results of operations, cash flows and prospects may be adversely affected by the revocation of all or any of the personal and/or corporate guarantees provided by itsPromoter, Promoter Group and third parties in connection with the Company`s borrowings.

The company operations are subject to environmental, health and safety laws and regulations.

Some of its borrowings carry restrictive covenants or conditions and could affect our ability to manage the company business operations.

The company has availed certain loans from Banks and Financial Institutions, pursuant to the Financing Agreements entered into with them. Pursuant to the terms of such agreements, its require consents from the respective Bankers / Lenders for a number of corporate actions, including for undertaking this Issue, which have not been obtained as on date. Any failure to obtain such consents may result in a default under the terms of the Financing Agreements.

The Company has reported certain negative cash flows from its operating activity, investing activity and financing activity, details of which are given below. Sustained negative cash flow could impact its growth and business.

The average cost of acquisition of Equity Shares by its Promoters and other allottees could be lower than the floor price.

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

The company benefit from its relationship with its Promoters and the company business and growth prospects may decline if its cannot benefit from this relationship.

The company success depends largely on its senior management and skilled professionals and the company ability to attract and retain them.

Employee misconduct, errors or fraud could expose it to business risks or losses that could adversely affect business prospects, results of operations and financial condition.

The company operations may be adversely affected in case of industrial accidents, physical hazards and similar risks at its construction sites, which could expose it to material liabilities, loss in revenues and increased expenses.

The company will be controlled by its Promoters as long as they control a majority of the Equity Shares.

The company is exposed to the risks of malfunctions or disruptions of information technology systems.

Wage pressures and increases in operating costs in India may prevent us from sustaining its competitive advantage and may reduce the company profit margins.

The company may not be able to adequately protect its intellectual property, which could harm the value of its brand and services.

In the event there is any delay in the completion of the Issue, there would be a corresponding delay in the completion of the objects / schedule of implementation of this Issue which would in turn affect its revenues and results of operations.

The requirements of being a listed entity will strain the company resources.

The company ability to pay dividends in the future may depends upon its future revenue, profits, financial condition, cash flows, working capital requirements, capital expenditures and restrictive covenants in its financing arrangements.

If there is any change in tax laws or regulations, or their interpretation, such changes may significantly affect our financial statements for the current and future years, which may have a material adverse effect on its financial position, business and results of operations.

Statistical and industry data contained in this Draft Red Herring Prospectus may be inaccurate or unreliable.

The company Promoters, certain of its Directors hold Equity Shares in the Company and are therefore interested in the Company`s performance other than remuneration and reimbursement of expenses.

The company cannot assure you that its will be able to secure adequate financing in the future on acceptable terms.

Any adverse revision to its credit rating by rating agencies may adversely affect the company ability to raise additional financing and the interest rates and other commercial terms at which such funding is available.