Vishal Nirmiti Limited IPO

The company's business and revenues in the manufacturing segment for PSC sleepers are substantially dependent on railroad infrastructure projects undertaken or awarded by government authorities and other government owned public sector undertakings and are thereby dependent on governmental policies and budgetary allocation, accordingly, 38.76%, 47.30%, 58.09% and 58.54% of the company's revenue from operations during the six months period ended September 30 2025, Fiscal 2025, Fiscal 2024 and Fiscal 2023 was generated from government authorities and entities related to the government in the manufacturing segment for Pre-Stressed Concrete (PSC) sleepers. Any adverse changes in the central or state government policies may lead to change in the volume of the company's business and/or a change in the terms of the company's contracts.

The company depends significantly on a certain number of customers for the company's business and revenue. A substantial decrease in the orders placed on the company by these customers or a decrease in the demand of these products may adversely impact its revenues and profitability.

The company relies on suppliers for the company's raw materials under its manufacturing segment. Though there are availability of substantial suppliers for the raw materials for the company's business, any loss or reduction in the number of suppliers may have an adverse effect on the company's business, results of operations and financial conditions.

A substantial increase in the company's profitability in the recent past has been contributed by the increase in the revenue and the higher margins in the services segment. There can be no assurance that the company will continue to enjoy higher revenue and profitability from such segment on a regular basis in the future. Any reduction of revenue or profit margins from such segment will affect its profitability and may have an adverse effect on the company's financial condition and results of operation.

The company's business is based on periodic purchase orders raised by its customers based on their requirements from time to time. If the company's customers reduce their purchases from the company or choose not to source their requirements from the company, there may be an adverse effect on the company's business, results of operations, financial condition and cash flows.

Most of the company's projects are awarded to us through a competitive bidding process involving governmental authorities. Therefore, the company's business is dependent on securing tenders for projects, which involves cost estimations and other factors for the bidding process. The company cannot assure you that the company would bid where the company has been pre-qualified to submit a bid, or that the company's bids, when submitted or if already submitted, would necessarily result in projects being awarded to the company.

The company's business is dependent on and will continue to depend on the company's Manufacturing Facilities, and the company is subject to certain risks in the company's manufacturing process due to the usage of heavy machinery in the company's manufacturing operations. Any mishap, failures, slowdown or disruption in the company's manufacturing operations could have an adverse effect on the company's business, cash flows, financial condition and results of operations.

The company is subject to strict quality requirements, regular inspections and audits, and the success and wide acceptability of the company's products is largely dependent upon its quality controls and standards. Any inability to maintain quality standards may adversely affect the company's business prospects and financial performance, including cancellation of existing and future orders which may expose the company to warranty claims.

The company is required to furnish bank guarantees as part of its business. The company's inability to arrange for such guarantees within prescribed timelines or the invocation of such guarantees may adversely affect its cash flows and financial condition.

There have been certain instances of non-compliances and delay in filings with respect to certain regulatory filings under the Companies Act, 2013 by the Company in the past. Further, the company may be subject to regulatory actions and penalties for any such past or future non-compliance or delays and the company's business, financial condition and reputation may be adversely affected