Kanohar Electricals Limited IPO

The company derives a significant portion of its revenue from the Transformer Manufacturing Business. A reduction in demand for purchase of transformers could adversely affect the company's business, results of operations and financial condition.

A significant portion of its revenue from operations is from the company's Transformer Manufacturing Business which is attributable to high growth sectors including the power transmission, railways and renewable energy sectors. Any economic cyclicality coupled with reduced demand or negative trend in these or other sectors that the company operate in, could have material adverse effect on its business, financial condition and results of operations.

In the company's Transformer Manufacturing Business, the company derives a significant portion of its revenue from the supply of power transformers to transmission utilities including state transmission companies in the power transmission sector. Additionally, the company's Transformer Manufacturing Business is largely dependent upon the demand for power generation, transmission and distribution which is closely linked to Government policies. Any economic downturn or change in government policy may have an adverse impact on its business, financial condition, cash flows and results of operations.

A significant portion of its revenue is dependent on tenders being awarded by the government-controlled entities, which follow tendering process for determination of their suppliers. Government bids are procured through competitive bidding process. Our bids may not always be accepted. The company may not be able to qualify for, compete and win projects, which could adversely affect its business and results of operations. Further, the company may not always be able to possess and maintain our pre-qualification capability for the company's Transformer Manufacturing Business and EPC Business. The company may be adversely affected if the company does not succeed in all or a majority of the contracts that the company tenders. for.

Under-utilization of its manufacturing capacities and an inability to effectively utilize the company's manufacturing capacities could have an adverse effect on its business, future prospects and future financial performance.

A significant portion of the company's revenue is generated from the company's Manufacturing Facilities, notably its Gangol Manufacturing Facility, situated in Meerut, Uttar Pradesh. Any disruptions in the region could have a material adverse effect on its business, financial condition and results of operations.

The company's business is largely concentrated in India and focused in the states of Punjab, Rajasthan, Gujarat, Assam, Himachal Pradesh, Bihar, Maharashtra, Madhya Pradesh, Jharkhand and Karnataka. Any disruptions in the region could have a material adverse effect on its business, financial condition and results of operations.

The company depends on certain customers for a significant portion of its revenue from operations. Any decrease in demand from such customers, the loss of such customers or the company's inability to diversify its customer base could have an adverse effect on the company's business, financial condition and results of operations.

The company's business is dependent on suppliers to procure its raw materials. Further, the company has not entered into long-term agreements with these suppliers, variations in supply and any loss of suppliers or interruptions in the timely delivery of raw materials or volatility in their prices could have an adverse impact on its business, financial condition and results of operations.

the company is subject to time and cost overruns and are exposed to claims, penalties and damages resulting from delays in execution of EPC projects for transmission lines and substations. These contracts have long execution periods as a result of which, project related estimated costs and revenue estimates may vary from the actual costs incurred and actual revenues generated which could have material adverse effect on its business, financial condition and results of operations.