H.M. Electro Mech Limited - IPO

1. Comprehensive Solutions.

2. Strategic Partnerships.

3. Prompt Decision-Making.

4. Emergency Response Expertise.

5. Experienced Promoters and management team.

6. Robust Order Book.

7. Stability and Continuity.

1. Majority of our Revenue from Operation (RFO) is generated from state of Gujarat and Rajasthan. Any adversedevelopment affecting our operations in this region could have an adverse impact on our business, financial condition and results of operations.

2. We do not own the place where our registered office is situated. In case of non-renewal of rent agreements/cancellation of the NOCs given so far or dispute in relation to use of the said premise, our business and results of operations can be adversely affected.

3. Our Company, promoters and directors are involved in certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on our business, results of operations and financial condition.

4. Our Company has reported certain negative cash flows from its operating activity, financing activity and investing activity, details of which are given below. Sustained negative cash flow could impact our growth and business.

5. Our On-going Projects (Order Book) may not be representative of our future results and our actual income may be significantly less than the estimates reflected in our Order Book, which could adversely affect our results of operations.

6. Our business is working capital intensive involving relatively long implementation periods. We require substantial financing for our business operations and the failure to obtain additional financing on terms commercially acceptable to us may adversely affect our ability to grow and our future profitability.

7. Our business requires the services of third party manufacturers and suppliers, which entail certain risks.

8. Increase in costs or a shortfall in availability of the materials we purchase could have a material adverse effect on our Company's sales, profitability and results of operations.

9. Our projects are typically awarded to us on satisfaction of prescribed pre-qualification criteria and following a competitive bidding process. Our business and our financial condition may be adversely affected if new projects are not awarded to us.

10. We have not obtained the registration of our trademarks used in our businesses and our inability to obtain or maintain these registrations may adversely affect our competitive business position.