Sri Lotus Developers and Realty Limited - IPO

1. Our business is dependent on the performance of, and the conditions affecting, the real estate micro markets with high geographical concentration in the Western Suburbs of Mumbai. As of June 30, 2025, all ongoing projects and most of our upcoming projects are in the Western Suburbs of Mumbai. Consequently, we are exposed to risks from economic, regulatory and other changes as well as natural disasters in the Western Suburbs of Mumbai, which in turn may affect our ability to ensure sale of projects and pricing of units in such projects.

2. Inability to complete our Ongoing Projects and Upcoming Projects by their respective expected completion dates or at all could have a material adverse effect on our business, results of operations and financial condition.

3. As of June 30, 2025, we have 85 unsold units in our Completed Projects and 167 unsold units in our Ongoing Projects. If we are not able to sell our project inventories in a timely manner, then it may adversely affect our business, results of operations and financial condition.

4. It is difficult to compare our performance between periods, as our revenues from operations and expenses fluctuate significantly from period to period.

5. We are entirely dependent on third party contractors for the construction and development of our Projects and our largest contractor, Shree Gajanand Associates, accounts for 21.71%, 29.89% and 28.10% of our total expenses for the Fiscal 2025, Fiscal 2024 and Fiscal 2023, respectively. Any failure on their part to perform their obligations could adversely affect our business, results of operations and financial condition.

6. Increases in prices or shortage of or delay or disruption in supply of, construction materials and contract labour could adversely affect our estimated construction cost and timelines resulting in cost overruns.

7. We have experienced negative cash flows in the last three fiscal years.

8. Our Company has (i) in the past not complied and/or delayed in complying with reporting requirements under the provisions of the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019 and we may be subject to regulatory action by RBI; (ii) in the past not complied and/ or delayed with provisions with reporting requirements under the provisions of Companies Act, 2013 and its Rules.

9. We are required to obtain statutory and regulatory approvals, licenses or permits at various stages in the development of our projects. We may not be able to fully develop our ongoing and upcoming projects as presently contemplated. If we fail to obtain, maintain or renew our statutory and regulatory approvals or permits, our business, results of operations, financial condition, and cash flows could be adversely affected.

10. We have closed our division of film production and distribution, namely Anand Pandit Motion Pictures ("APMP") which had recorded operating losses for the Financial Year ended March 31, 2023. Any losses in the future may adversely impact our business and the value of the Equity Shares.