Integrity Infrabuild Developers Limited - IPO

1. Its Entire business is concentrated in the state of Gujarat. The company is primarily dependent on the projects undertaken or awarded in the state of Gujarat by the Gujarat State Government, the local authorities in the state of Gujarat and other entities funded by the Gujarat State Government. Therefore, the company derives its' entire revenues from contracts with government entities and are exposed to risks emanating from economic regulatory and other changes in the State of Gujarat. Any adverse changes in the central or state government policies may lead to its contracts being foreclosed, terminated, restructured or renegotiated, which may have a material effect on its business and results of operations.

2. Substantial portion of its revenues has been dependent upon the company few clients. The loss of any one or more of its major clients would have a material adverse effect on the company business operations and profitability.

3. Projects included in its on-going and the company future projects are exposed to various implementation risks & uncertainties and may be delayed, modified or cancelled for reasons beyond its control which may materially and adversely affect the company business, prospects, reputation, profitability, financial condition and results of operation.

4. The industry in which the company operates is capital intensive in nature, and involve relatively long gestation periods. The company requires substantial financing for its business operations and the failures to obtain additional financing on terms commercially acceptable to it may adversely affect its ability to grow and the company future profitability.

5. The company has a substantial amount of outstanding indebtedness, which requires significant cash flows to service and limits its ability to operate freely.

6. The Company is dependent on third parties for the supply of raw materials required for its projects and is exposed to risks relating to fluctuations in commodity prices and shortage of raw material. Further, the company does not have any long term supply agreements with the raw material providers.

7. Past instances of delays in making payment of Statutory obligations such as Income Tax, Tax Deposited at Source and Goods and Service Tax.

8. The company is duly registered as a Class-A contractor with the Government of Gujarat; however, in future there might be an instance where this registration can be revoked which could materially impact its business operations.

9. Its may have to partner with other construction companies to qualify and apply for new projects and the failures of a partner to perform its obligations could impose additional financial and performance obligations on the company.

10. The company has not entered into any agreement with the suppliers of machinery and equipment as specified in the objects of the Issue. Further the amount allocated for purchases of machinery and equipment are based on the quotation received from suppliers.