Prozeal Green Energy Limited IPO

Any decrease in demand for solar power projects in India could have a material adverse effect on our business, financial condition, results of operations and cash flows.

If we are unable to continually be awarded contracts for the EPC of renewable energy projects, it would have a material adverse effect on our business, financial condition, results of operations and cash flows.

Our revenue from operations in a period or a fiscal year is concentrated among a small number of projects. The concentration of our revenue from a small number of projects exposes us to greater risks if these projects are delayed or cancelled, if we underestimate the costs of construction or we are found to be liable for any damages arising from our services.

We have a concentration of revenue from EPC services in Gujarat, Maharashtra, Tamil Nadu, Andhra Pradesh, and Karnataka, and any sustained downturn in the economy of any of those states or adverse changes in laws and regulations in any of those states could reduce the demand for our EPC services and thereby adversely affect our business, financial condition, results of operations and cash flows.

We do not manufacture any components and materials and rely on third-party suppliers for components and materials. Our purchases of stock-in-trade is concentrated in a small number of suppliers each period. This exposes us to concentration risk in relation to suppliers in a particular period and if any supplier fails to perform, it could have a material adverse effect on our business, financial condition, results of operations and cash flows.

If our costs exceed our estimated costs under fixed-price EPC contracts, it could have a material adverse effect on our business, financial condition, results of operations and cash flows.

If a subcontractor or supplier fails to perform its obligations to us, we may be liable to a client for those failures and if we are unable to recover the damages payable to our client by us from the defaulting subcontractor or supplier, it could have a material adverse effect on our financial condition, results of operations and cash flows.

If we fail to maintain performance guarantees or if we are found liable for any other damages arising from breaches of our EPC contracts it could have a material adverse effect on our financial condition, results of operations and cash flows.

We are required to provide bank guarantees to secure our financial and performance obligations under our EPC contracts. If we are unable to arrange such bank guarantees it could materially and adversely affect our ability to bid for new EPC projects and thereby have a material adverse effect on our business, financial condition, results of operations and cash flows.

Any modifications to the scope of work or cancellations of contracts in our Order Book, which we define as the amount payable to us under contracts minus the revenue already recognized from those contracts (the "Order Book"), could have a material adverse effect on our business, financial condition, results of operations and cash flows.