CLN Energy Limited

1. State of Art manufacturing facilities.

2. Well educated and experienced team of Professionals.

3. Long-term relation with our customers.

4. In-house Research and Development team.

5. Providing critical business solution and manufacturing customised products.

6. Consistent track record of financial performance.

1. Our Company, Group Companies, Promoters and Directors are parties to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on our business, results of operations and financial condition.

2. We derive a significant portion of our revenue from the sale of batteries, cells and motor and controller and any reduction in demand or in the manufacturing of such products could have an adverse effect on our business, results of operations and financial condition.

3. We have 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.

4. We have reported negative net cash flows in the past and may do so in the future.

5. We are dependent on a few suppliers for supply of raw materials and any major disruption to the timely and adequate supplies of our raw materials could adversely affect our business, results of operations and financial condition.

6. Our business of manufacturing and supply of lithium-ion batteries, motors and powertrain components, and services required by electric vehicle industry, commercial and industrial application, solar industry, telecom industry etc is significantly dependent on the technology, process and product development of our products.

7. Our Company has in the past experienced a major fire at our Manufacturing Facility cum Registered Office which resulted in major losses for our Company. Hence our past performance may not be comparable with our future performance.

8. Our company is significantly dependent on few customers for our revenue in a particular financial year. The loss of any one or more of such customers may have a material effect on our business operations and profitability.

9. Trade Receivables, Inventories and other current assets form a substantial part of our Total Assets. Failure to manage our trade receivables and inventories could have an adverse effect on our net sales, profitability, cash flow and liquidity.

10. In addition to normal remuneration our Key Management Personnel (including our promoters) are interested in our Company to the extent of their shareholding and dividend entitlement in our Company. Further we have entered in related party transaction with them.