Afcons Infrastructure Ltd IPO

If the company fails to qualify for, or win new contracts from project owners, its business, financial condition, result of operations, prospects and cash flows could be adversely affected.

The company's business significantly depends on projects awarded by government or government-owned customers, which subjects the company to a variety of risks. Such projects contributed to 69.80% of the company's Orders Book as of June 30, 2024.

The company's business is capital intensive. If its experience insufficient cash flows or are unable to access suitable financing to meet working capital requirements and loan repayment obligations,it's business,financial condition and results of operations could be adversely affected.

The company may not be able to collect receivables due from it's customers in a timely manner, or at all, which may adversely affect the company business, financial condition, results of operations and cash flows. As of June30, 2024,it's total trade receivables (including interest on arbitration awards) amounted to ?39,746.10 million.

If any of the company projects are terminated prematurely, it's may not receive payments due to it, which could adversely affect it's business, financial condition and results of operation.

The Equity Shares held by the company Promoters and certain members of the Promoter Group, which were encumbered in favor of certain lenders and Goswami Infratech Private Limited's Debenture Trustee "GIPL's Debenture Trustee"), have been released from pledge for the purpose of facilitating the Offer subject to certain conditions being fulfilled. In the event such conditions for the release of the pledge are not met, the lenders and Goswami Infratech Private Limited's Debenture Trustee may require these encumbrances to be enforced which may dilute the shareholding of it's Promoters and certain members of the Promoter Group, which could adversely affect it's business and reputation.

The Company has received an inspection letter bearing reference no. RD (WR)/Insp/AIL/1603 dated February 23, 2024, under Section 206(5) of the Companies Act from the office of the Regional Director(Western Region), Ministry of Corporate Affairs (the "RD"), wherein the RD ordered an inspection of the books of accounts and other books and papers of the Company. Further, an inspection has been conducted by the Deputy Director & Inspector, Regional Director (Western Region), Ministry of Corporate Affairs("Deputy Director & Inspector" or "DDI") in this regard and has alleged, among other things, noncompliance with Sections 129 and 134 of the Companies Act and certain accounting standards notified under the Companies Act. In the event the RD and the DDI are not satisfied with its responses or it fails to adhere to the letters issued by the RD and the DDI, it's Company, Directors and/or Key Managerial Personnel may be subject to warnings, show-cause notices and/ or penalties in the future, which would,amongst other things, adversely impact it's brand, reputation and financial condition.

There are factual inaccuracies in certain of company corporate records and corporate filings. Further,certain of it's historical corporate and secretarial records are not traceable. The Company cannot assure you that regulatory proceedings or actions will not be initiated against it in the future which may impact it's financial condition and reputation and the company will not be subject to any penalty imposed by the competent regulatory authority in this regard.

The Company is subject to risks arising from interest rate fluctuations, which could reduce the profitability of it's projects and adversel affect it's business, financial condition and results of operations.

The company's insurance coverage may be inadequate, which could have an adverse effect on its financial condition and results of operations.