Suraj Estate Developers Ltd IPO

Its business is dependent on the performance of, and the conditions affecting, the real estate sub markets in the South-Central Mumbai region. As of October 31, 2023, the company did not have any ongoing projects in any other areas apart from South Central Mumbai. Consequently, the company is exposed to risks from economic, regulatory and other changes as well as natural disasters in the South Central Mumbai region, which in turn may have an adverse effect on its business, results of operations, cash flows and financial condition.

Any uncertainty in its title to the company real estate assets could have a material adverse impact on its current and future revenue.

Its redevelopment projects require compliance of the provisions of Regulation 33(7) of the Development Control and Promotion Regulation, 2034. The compliance inter alia involves tenant settlement, approvals from MHADA & MCGM, construction of the tenant and saleable portion units.

Its Inability to complete the company Ongoing Projects and Upcoming Projects by their respective expected completion dates or at all could have a material adverse effect on its business, results of operations and financial condition.

As of October 31, 2023, the company has total 216 unsold units in its Ongoing Projects. If its not able to sell the company project inventories in a timely manner, then it may adversely affect its business, results of operations and financial condition.

As of October 31, 2023, the company had 16 Upcoming Projects which are in the preliminary stages of planning and require approvals and renewals of certain approvals from Brihan mumbai Municipal Corporation for its projects that are typically valid for one year from the date of approval. Any difficulties in fulfilling certain conditions precedent in respect of those projects, and any delay or failure to obtain required approvals or renewal of approvals may require it to reschedule its Ongoing Projects and Upcoming Projects which may have adverse effect on its operations. Further, the Company has to stop the construction activity in the event of withdrawal of such licenses/approval.

Its business is subject to seasonality and its may experience difficulties in expanding the company's business into additional geographical markets including MMR region which may contribute to fluctuations in its results of operations and financial condition.

The industry in which its operate is competitive and highly fragmented resulting in increased competition that may adversely affect its results.

Any negative cash flows in the future would adversely affect its cash flow requirements, which may adversely affect the company's ability to operate its business and implement its growth plans, thereby affecting its financial condition.

Its Statutory Auditors have included certain matters of emphasis in the company's Financial Statements.