Earthood Services Limited IPO

The company is heavily dependent on its carbon verification and validation business in the voluntary carbon market for a significant portion of the company's revenue. The demand for these services is largely dependent on focus of organizations towards carbon neutrality and achieving low carbon and climate resilient global economy. Any downturn in the carbon offset industry or decline in voluntary approach to meet sustainability goals could have an adverse effect on its business and results of operations.

The company's business faces risks from declining revenues generated from regulatory carbon market due to the transition from Clean Development Mechanism (CDM) to Article 6.4 mechanism under the Paris Agreement and uncertainty around timelines for implementation of the regulatory framework under the Paris Agreement.

Changes in global climate policies or commitments by world economies can reduce demand for our services, disrupt carbon pricing mechanisms and undermine confidence in climate solutions which may adversely affect its financial condition and business prospects.

The company's past growth rates may not be indicative of its future growth. The company's inability to manage the growth of the company's operations could disrupt its business and reduce its profitability.

A significant portion of its business is derived from the overseas market, primarily from projects undertaken in African and Asian countries. Any adverse developments affecting the company's operations in these regions could have an adverse impact on its revenue and results of operations.

The company is subject to regulatory requirements in the performance of services and any failures to comply with such requirements could adversely affect its reputation, business, financial condition, results of operations and cash flows.

The industry where the comopany operates is employee intensive with a high rate of attrition. There is a possibility that the company may not be able to retain skilled professionals or attract new skilled professionals in the future. The loss of skilled professionals may adversely affect its business, results of operations and financial condition.

Concerns over carbon credit integrity and greenwashing create a negative public perception and may adversely affect the Company's growth and revenues from validation and verification services in the voluntary carbon market.

Prices of carbon credits are volatile which can prevent companies from undertaking carbon offset projects and deter market participation. Volatility in carbon credit pricing exposes our business to decreased demand for its services, impacting revenue streams and growth prospects.

There have been some instances of incorrect filings with the Registrar of Companies and other non-compliances under the Companies Act in the past which may attract penalties.