Readymix Cons.

Risks

• The company is primarily dependent upon few key suppliers within limited geographical location for procurement of raw materials. Any delay, interruption or reduction in the supply of raw materials required for its products may adversely affect the company business, results of operations, cash flows and financial condition.

• Its business is dependent on the sale of the company products to certain key customers. The loss of any of these customers or loss of revenue from sales to these customers could have a material adverse effect on its business, financial condition, results of operations and cash flows.

• Its business is substantially dependent on the company design and engineering teams to accurately carryout the estimates and engineering studies for potential orders The inability of its design and engineering team to design the company product in an efficient manner may lead to reduced margins.

• The company is subject to strict quality requirements, customer inspections and audits, and any failures to comply with quality standards may lead to cancellation of existing and future orders and could negatively impact its reputation and the company business and results of operations and future prospects.

• The company is pivoting towards sale of Dry Mix Mortar Plant for achieving high margins, from sales of support equipment of Readymix Concrete Plant, which was its highest selling product till FY 2022-23. Any decline in the sales of Dry Mix Mortar Plant in future could have an adverse effect on its business, results of operations and financial condition.

• Its may be subject to risks associated with product warranty.

• The company generate its major portion of turnover from its operations in certain geographical regions and any adverse developments affecting the company operations in these regions could have an adverse impact on its revenue and results of operations.

• Its historical performance is not indicative of the company future growth or financial results and its may not be able to sustain the company historical growth rates.

• Its reliance on Steel industry for purchase of the company major components could have an adverse effect on its business.

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

• Its business is dependent on the company fabrication unit, and the loss or shutdown of operations of its fabrication unit may have a material adverse effect on the company business, results of operations, cash flows and financial condition.

• Any Penalty or demand raised by statutory authorities in future will affect financial position of the company.

• The company depends on the performance of its contractors for timely completion of the company projects.

• 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 lenders have charge over properties in respect of finance availed by the company.

• If the company is unable to manage its growth effectively and further expand into new markets its business, future financial performance and results of operations could be materially and adversely affected.

• The company requires certain approvals, licenses, registrations and permits to operate its business, and failures to obtain or renew them in a timely manner or maintain the statutory and regulatory permits and approvals required to operate its business may adversely affect the company operations and financial conditions.

• The company does not own the registered office & fabrication unit from which its carry out the company business activities. In case of nonrenewal of rent agreements or dispute in relation to use of the said premise, its business and results of operations can be adversely affected.

• The company has experienced negative operating cash flows in the past. Any operating losses or negative cash flows in the future could adversely affect its results of operations and financial conditions.

• The company experience the effects of seasonality, which may result in its operating results fluctuating significantly and also, reduce the company sales.

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

• Its insurance coverage may not be adequate to protect the company against all potential losses to which its may be subject and this may have a material effect on the company business and financial condition.

• Registration of the trademarks and Patent which the company is using for its business is under process and is yet to be received. The company may be unable to protect its intellectual property or knowhow from third party infringement which could harm its brand and services.

• The activities carried out at its fabricating unit can cause injury to people or property in certain circumstances.

• The company relies on after-sales service network to redress customer grievances. Non-performance or underperformance of its after-sales service network could significantly harm its reputation.

• The company is subject to competition from both organized and unorganized players in the market, which may significantly affect the fixation and realization of the price for its product, which may adversely affect the company business operation and financial condition.

• Adverse publicity regarding its products could negatively impact the company.

• Compliance with, and changes in, safety, health and environmental laws and labour regulations may adversely affect its business, prospects, financial condition and results of operations.

• The Company is party to certain legal proceedings. Any adverse decision in such proceedings may have a adverse effect on its business, results of operations and financial condition.

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

• Its contingent liabilities as stated in the company Restated Financial Statements could affect its financial condition.

• The company is exposed to foreign currency fluctuation risks, particularly in relation to export of products, which may affect its results of operations, financial condition and cash flows.

• The company has incurred indebtedness which exposes it to various risks which may have an effect on the company business and results of operations.

• The company has in the past entered into related party transactions and may continue to do so in the future. There can be no assurance that such transactions, individually or in the aggregate, will not have an adverse effect on the Company`s financial condition and results of operations.

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

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

• Dependence upon transportation services for supply and transportation of its products are subject to various uncertainties and risks, and delays in delivery may result in rejection of products by customer.

• Its may not be successful in implementing the company business strategies.

• The average cost of acquisition of Equity Shares by its Promoters, is lower than the face value of Equity Share.

• The company has issued Equity Shares in the last 12 months at a price which could be lower than the Issue Price.

• Technology failures or Cyber-attacks or other security breaches could have a material adverse effect on its business, results of operation or financial condition.

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

• Excessive dependence on IndusInd Bank and ICICI Bank in respect of Loan facilities obtained by the Company.

• Its industry is labour intensive and the company business operations may be materially adversely affected by strikes, work stoppages or increased wage demands by its employees or those of the company suppliers.

• Loans availed by the Company has been secured on personal guarantees of its directors.

• Its may requires further equity issuance, which will lead to dilution of equity and may affect the market price of its Equity Shares or additional funds through incurring debt to satisfy the company capital needs, which its may not be able to procure and any future equity offerings bythe company.

• The company has not identified any alternate source of funding and hence any failures or delay on its part to mobilize the required resources or any shortfall in the Issue proceeds may delay the implementation schedule.

• The Objects of the Issue for which funds are being raised have not been appraised by any bank or financial institution. Any variation between the estimation and actual expenditure as estimated by the management could result in execution delays or influence its profitability adversely.

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

• The company is subject to restrictive covenants under its credit facilities that limit the company operational flexibility.

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

• 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.

• Its ability to pay dividends in the future will depends upon the company future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in its financing arrangements.

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

• Any future issuance of Equity Shares may dilute your shareholdings, and sale of the Equity Shares by its major shareholders may adversely affect the trading price of the company Equity Shares.

• There is no guarantee that the Equity Shares issued pursuant to the Issue will be listed on the SME Platform of NSE Platform in a timely manner or at all.

• Significant differences exist between Indian GAAP and other accounting principles, such as Ind AS, IFRS and U.S. GAAP, which may be material to investors` assessments of its financial condition, result of operations and cash flows.

• Its may be subject to surveillance measures, such as the Additional Surveillance Measures (ASM) and the Graded Surveillance Measures (GSM) by the Stock Exchanges which may adversely affect trading price of its Equity Shares.

• The Equity Shares have never been publicly traded, and, after the Issue, the Equity Shares may experience price and volume fluctuations, and an active trading market for the Equity Shares may not develop. Further, the price of the Equity Shares may be volatile, and you may be unable to resell the Equity Shares at or above the Issue Price, or at all.

• QIBs and Non-Institutional Bidders 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 and Retail Individual Investors are not permitted to withdraw their Bids after Bid/Issue Closing Date.