Urban Enviro Waste Management Ltd

Risks

• The company business is dependent on municipal authorities for a significant proportion of its business and revenue from operation. The loss of any of its key work order or Projects could have a material adverse effect on its business, results of operations, financial condition and cash flows.

• Solid Waste Management (SWM) projects are typically awarded to its on satisfaction of prescribed prequalification criteria and following a competitive bidding process. Its business and th e company financial condition may be adversely affected if new SWM projects are not awarded to it.

• One of the natures of its business model from municipalities/government /tenders exposes it to liability claims and contract disputes and its indemnities may not adequately protect it. Any liability in excess of its reserves or indemnities could result in additional costs, which would reduce its profits.

• The company depend on a limited number of customers for a significant portion of its revenue. The loss of any of its major customer due to any adverse development or significant reduction in business from its major customer may adversely affect its business, financial condition, results of operations and future prospects.

• The company operate in limited geographies for a significant portion of its revenue. Projects in new geographies may not be as profitable as the current major contracts.

• The company has working capital requirements and may require additional financing to meet those requirements, which could have an adverse effect on its business, results of operations, financial condition and cash flows.

• The companay indebtedness, including various conditions and restrictive covenants imposed on it under the company financing agreements and could adversely affect its ability to grow its business or react to changes in the company business environment.

• The company operations include activities that could be hazardous to the health of its employees and other risks which could expose it to material liabilities and increased expenses and negatively impact employee morale.

• The company employ a significant number of personnel in its business operations which are a substantial part of its total expense and such number may increase substantially in future. The company may be subject to work stoppages and face labour disruptions with its employees or contract workers in the future that would interfere with our operations and adversely impact its business and financial condition.

• The industry segments in which its operate being fragmented, the company face competition from large players, which may affect its business operations and financial conditions.

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

• Deployment of the Net Proceeds of the Fresh Issue are based on management estimates and have not been independently appraised.

• The company own a large fleet of vehicles resulting in fixed costs to the Company. The increase in the age of its vehicles and an increase in the prices of new vehicles as well as the automobile spares may adversely affect its business and results of operations.

• The Company is a 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 has experienced negative cash flows from investing and financing activities in the past.

• The company has certain contingent liabilities that have not been provided for in its financial statements, which if they materialize, may adversely affect its financial condition.

• Certain contracts that its has entered into may have warranties that has and could result in deduction of payments.

• The company actual cost in executing an MSW contract may vary substantially from the assumptions underlying its bid. Its may be unable to recover all or some of the additional expenses, which may have an adverse effect on its business, financial condition, results of operations, and prospects.

• The company operate in a highly competitive business and increased competitive pressure may adversely affect its results of operations.

• The company is exposed to risks related to availability and cost of fuel and electricity for its projects which could adversely affect its business and results of operations. Any anticipated fluctuations in fuel costs may adversely affect its business and profitability.

• If more stringent labour laws or other industry standards in India become applicable to it, its profitability may be adversely affected.

• The company is exposed to significant cost variations on fixed-rate contracts.

• The company is exposed to claims from inadequate performance and defects that may affect its projects and which may have an adverse effect on its business.

• Its may be unable to sustain growth at historical levels. Its inability to manage growth may have an adverse effect on its business and results of operations.

• Inability to obtain, maintain or renew requisite statutory and regulatory permits and approvals for its business operations could materially and adversely affect its business, prospects, results of operations and financial condition.

• The company is dependent on its Promoter and the company management team and key personnel and the loss of any key team member may adversely affect its business performance.

• 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.

• The company loan agreements with various lenders have several restrictive covenants and certain unconditional rights in favour of the lenders, which could influence its ability to expand, in turn affecting its business and results of operations.

• The Company has availed unsecured loans from its Promoter, some of which may be recalled by the company Promoter at any time and the Company may not have adequate funds to make timely payments or at all.

• The company may be unable to comply with changes in environmental, health and safety, labour laws and other applicable regulations.

• The company Promoter will continue to retain significant shareholding in the Company after the Issue, which will allow it to exercise control over it.

• The company Registered Office and Branch Office are located on land parcels that are not owned by it and are held by the company on a leasehold basis. In the event its lose or are unable to renew such leasehold rights, its business, results of operations, financial condition and cash flows may be adversely affected.

• Some of its Directors and the company Promoter hold equity and therefore have interests other than reimbursement of expenses incurred and normal remuneration or benefits in the Company.

• The company has applied for registration of its Logo / Trademark but do not own the same as on the date of this Prospectus.

• The company Directors or Promoter may enter into ventures that may lead to real or potential conflicts of interest with its business.

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

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

• The company will not receive any proceeds from the Offer for Sale. The Selling Shareholder will receive the entire proceeds from the Offer for Sale.

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

• Its may be affected by strikes, work stoppages or increased wage demands by its employees that could interfere with the company operations.

• The company may not be successful in implementing itsr business strategies.

• The company require certain approvals, licenses, registrations and permits to operate its business, and failure 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.