Saj Hotels Limited - IPO

1. The Company has incurred losses in the one out of the three previous financial years.

2. The Company has had negative cash flow in the past and may continue to have negative cash flows in the future.

3. The Company requires significant amount of working capital for a continued growth. Its inability to meet the company working capital requirements may have an adverse effect on its results of operations, financial condition and cash flows.

4. The Company, promoters of the Company, directors of the Company and its group companies are parties to certain litigation and claims. These legal proceedings are pending at different levels of adjudication before the respective courts and regulatory authorities. Any adverse decision may make it or its promoters/directors or group companies liable to liabilities/penalties and may adversely affect its reputation, business, and financial status.

5. A parcel of land on which one of its resort property is constructed (Saj in the Forest, Pench) is taken on leasehold basis under a Joint Venture arrangement. If the company is unable to comply with the terms of such arrangement, its business, results of operations, financial condition and cash flows may be adversely affected.

6. The Company has entered into long-term lease deeds with various third parties to receive lease rentals/ license fee for the resort/ restaurant properties. If these agreements are terminated or not renewed, its business, results of operations, financial condition and cash flows may be adversely affected.

7. Certain premises are not owned by it and are held by the company on a leasehold/ rental basis. In the event the company lose or are unable to renew such leasehold rights, its business, results of operations, financial condition and cash flows may be adversely affected.

8. The company has not yet placed orders in relation to the funding Capital expenditure through civil work required for expanding of two of its properties which is proposed to be financed from the net Issue proceeds of the IPO. In the event of any delay in placing the orders, or in the event the vendors are not able to execute the contract in a timely manner, or at all, may result in time and cost over-runs and its business, prospects and results of operations may be adversely affected. Its proposed expansion plans are subject to the risk of unanticipated delays in implementation due to factors including delays in construction and cost overruns.

9. Its inability to protect or use the company intellectual property rights may adversely affect its business.

10. Its business requires the company to obtain and renew certain registrations, licenses and permits from government and regulatory authorities and the failures to obtain and renew them in a timely manner may adversely affect the operations of its business.