Desco Infratech Limited

1. Our expertise in city gas distribution sector and providing operations and maintenance services.

2. Direct Relationship with Suppliers.

3. Experienced promoters and management team.

4. Standard Operating Procedures.

5. Adherence to Safety and Compliance Standards.

1. We have certain outstanding litigation against us, an adverse outcome of which may adversely affect our business, reputation and results of operations.

2. If we fail to qualify for, or win new work orders from our clients, our business, financial condition, results of operations, prospects and cash flows could be adversely affected.

3. We are highly dependent on certain key customers for a substantial portion of our revenues. Loss of relationship with any of these customers may have a material adverse effect on our profitability and results of operations.

4. Our revenues from projects are difficult to predict and are subject to seasonal variations.

5. Our Company had negative cash flows in the past years, details of which are given below. Sustained negative cash flow could impact our growth and business.

6. We generate our major portion of sales from our operations in certain geographical regions especially, Gujarat, Haryana, Uttar Pradesh and Punjab. Any adverse developments affecting our operations in these regions could have an adverse impact on our revenue and results of operations.

7. Our Company has entered into related party transactions in the past and may continue to enter into related party transactions in the future, which may potentially involve conflicts of interest with the equity shareholders.

8. The Company is yet to place orders for 100% of the purchase of machineries, as specified in the Objects of the Issue. Any delay in placing orders, procurement of the same may delay our implementation schedule and may also lead to increase in price of these machineries, further affecting our revenue and profitability.

9. There are certain discrepancies and non-compliances noticed in some of our financial reporting and/or records relating to filing of returns and deposit of statutory dues with the taxation and other statutory authorities.

10. Majority of our Revenue from operation is derived from our city gas distribution network projects and Operations and maintenance services. Any disruption in the continuous operations of our services would have a material adverse effect on our business, results of operations and financial.