Hi-Green Carbon Ltd IPO

The company Promoters are party to certain litigation and claims. These legal proceedings are pending at different levels of adjudication before various regulatory authorities. Any adverse decision may make it liable to liabilities/ penalties and may adversely affect its reputation, business and financial status.

The company Registered Office from where itsoperate is not owned by it.

The Company is planning to set up new Manufacturing Unit at Dhule District in the state of Maharashtra.

Out of total estimated cost of Machinery of Rs. 3138.03 lakhs, machinery worth Rs. 2000 lakhs are to be purchased from Radhe Renewal Energy Development Private limited (related entity) and also its yet to place order for purchase of Machinery worth Rs. 2738.03 Lakhs which constitutes 84.95% of the total cost of Machinery.

Total estimated cost of Contingencies of Rs.150.00 Lakhs included in the Project cost is to be funded from the proceeds of the issue is on adhoc basis.

The Company is dependent on few numbers of customers for sales. Loss of any of this large customer may affect its revenues and profitability.

The company highly depend on its major raw materials and a few key suppliers who help it procure the same. The Company has not entered into long-term agreements with its suppliers for supply of raw materials. In the event its unable to procure adequate amounts of raw materials, at competitive prices the company business, results of operations and financial condition may be adversely affected.

The price, at which the company is able to obtain the raw material for manufacture of the finished products depend largely on prevailing market prices. Increase in costs of the raw materials could have a material adverse effect on the Company's sales, profitability and results of operations.

The company's conduct the business activities on a purchase order basis and therefore, have not entered into long-term agreements with its customers.

Production Capacity related information of the Company included in this Draft Red Herring Prospectus has been disclosed based on certificate from a Chartered Accountant. There can be no assurance that such information is either complete or accurate.