Clean Max Enviro Energy Solutions Ltd IPO

In Fiscals 2024 and 2023, the company incurred restated loss for the year of Rs.376.43 million and Rs.594.73 million respectively and generated profits in Fiscal 2025. Further, some of Subsidiaries have incurred losses in Fiscals 2025, 2024 and 2023. If the company is unable to generate adequate cash profits and make scheduled loan repayments, the company may not be able to maintain its profitability.

The company faces risk and uncertainties when developing renewable energy projects which could cause delays to the completion of its projects, increase the company's projects costs or result in the short closing of its project capacity, thereby adversely affect the company's cash flows, financial condition and prospects.

The company's operational projects located in the States of Karnataka and Gujarat contributed an aggregate of 78.76%, 79.71% and 66.91% of its revenue from Renewable Energy Power Sales in Fiscals 2025, 2024 and 2023, respectively. Any adverse developments including changes in the regulatory framework affecting such states may have a heightened impact on the company's business, cash flows, financial condition and results of operations.

The company's top 10 customers contributed 36.16%, 45.39% and 44.32% of its Revenue from operations in Fiscals 2025, 2024 and 2023, respectively. The proportion of operational capacity attributed to our top 10 customers is expected to increase as we begin commissioning projects under construction with certain of such customers. Any failures to maintain renew or enter into new engagements with the company's top 10 customers could have a material adverse impact on its operations and financial condition.

The company's PPAs or EAPAs may be terminated by counterparties upon the occurrence of certain events. In the event its PPAs or EAPAs are terminated, and the company is unable to secure a replacement PPA or EAPA in a timely manner or on similar terms, the company's business, results of operations, cash flows and prospects may be adversely affected.

There are outstanding litigation proceedings involving the Company, Subsidiaries, Promoters, Directors and the company's Key Managerial Personnel. Any adverse outcome in such proceedings may have an adverse impact on its reputation, business, cash flows, financial condition and results of operations.

Land title in India can be uncertain and the company may not be able to identify or correct defects or irregularities in title to the land which we own, lease or may from time to time acquire in connection with its current or future operations.

The company's ability to deliver projects in a timely manner depends on its ability to secure key equipment from suppliers in a timely manner and the cost of solar modules and wind turbine generators, and any delays in the procurement of such equipment may result in project delays and cost overruns and subject the company to penalties.

The company is developing the company's first CTU project and ISTS project and have not commissioned a CTU project before. Any failures to develop this project successfully could have a material adverse impact on the company's expansion plans, business, results of operations, financial conditions and prospects.

Counterparties to the company's PPAs may not fulfil their obligations, including defaulting on or delaying payments owed, and failures to recover the company's trade receivables may adversely affect its business, results of operations, cash flows and financial condition.