SHRADHA

Any further issuance of Equity Shares by our Company or sale of Equity Shares by any significant shareholders may adversely affect the trading price of the Equity Shares.

Any further issuance of Equity Shares by our Company or sale of Equity Shares by any significant shareholders may adversely affect the trading price of the Equity Shares.

dilution_market · material

Negative Cash Flows

Negative cash flows reported from operating, investing, and financing activities in previous years.

Financial · material

Our revenues and profits are difficult to predict and can vary significantly from period to period.

Our revenues and profits are difficult to predict and can vary significantly from period to period.

financial_volatility · material

Our operations have been concentrated in the State of Maharashtra in India. Our growth strategy to expand into new geographic areas poses risks.

We may not be able to successfully manage some or all of such risks, which may have a material adverse effect on our revenues, profits and financial condition.

geographic_concentration · material

There may be potential conflict of interests between our company and other venture or enterprises promoted by our promoters or directors.

There may be potential conflict of interests between our company and other venture or enterprises promoted by our promoters or directors.

governance_conflict · material

The unavailability of raw material, fuel and labour, or an increase in their costs, may adversely affect our results of operations.

The unavailability of raw material, fuel and labour, or an increase in their costs, may adversely affect our results of operations.

input_costs · material

Our Company has allotted Equity Shares during the preceding one year from the date of the Draft Prospectus at a price which is lower than the Offer Price.

Our Company has allotted Equity Shares during the preceding one year from the date of the Draft Prospectus at a price which is lower than the Offer Price.

issue_dilution · material

Our success largely depends on our ability to attract and retain our Key Managerial Personnel. Any loss of our Key Managerial Personnel could adversely affect our business, operations and financial condition

Our Company is mainly promoter driven. If one or more members of our Key Managerial Personnel are unable or unwilling to continue in his/her present position, it may be difficult to find a replacement, and business might thereby be adversely affected.

key_person · material

We may not be successful in identifying suitable land parcels for development, or develop saleable or leasable properties, or anticipate and respond to customer demand in a timely manner.

We may not be successful in identifying suitable land parcels for development, or develop saleable or leasable properties, or anticipate and respond to customer demand in a timely manner.

land_and_execution · material

We conduct due diligence and assessment exercises prior to acquisition of land for undertaking development, but we may not be able to assess or identify certain risks and liabilities.

We conduct due diligence and assessment exercises prior to acquisition of land for undertaking development, but we may not be able to assess or identify certain risks and liabilities.

land_title_due_diligence · material

Our Lease Income is dependent on our ability to enter into new leases, or renew existing leases, on favourable terms and the willingness and ability of our tenants to pay rent at suitable levels from our single income generating units within one property

Our Lease Income is dependent on our ability to enter into new leases, or renew existing leases, on favourable terms and the willingness and ability of our tenants to pay rent at suitable levels from our single income generating units within one property – namely – Shradha House.

lease_concentration · material

The demand for leased premises is dependent on the performance of the property market in the areas in which we operate.

Any slowdown in the demand for such real estate property and the demand for business of our clients could adversely affect our business.

lease_market · material

Our 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.

Our 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.

legal · material

Ongoing Legal Proceedings

Ongoing legal proceedings involving promoters and directors could adversely affect the business and financial condition.

Legal · material

One of our income generating properties is the subject matter of legal proceedings and the outcome thereof may have a material adverse effect on the business, reputation and results of operations of our Company.

Any adverse order in the aforesaid matter that may be passed against M/s Kalpana Enterprises may adversely affect the title of the Company to the Property. This may in turn have material adverse effect on the business, reputation and results of operations of our Company.

legal_property_title · material

There is no existing market for our Equity Shares, and we do not know if one will develop.

Our stock price may be highly volatile after the Offer and, as a result, you could lose a significant portion or all of your investment.

listing_liquidity · material

Lack of improvement in or worsening global and Indian economic conditions have affected and may continue to materially and adversely affect the demand for real estate as well as the availability of financing in India.

Lack of improvement in or worsening global and Indian economic conditions have affected and may continue to materially and adversely affect the demand for real estate as well as the availability of financing in India.

macroeconomic · material

Conditions in the Indian securities market and stock exchanges may affect the price and liquidity of our Equity Shares.

Conditions in the Indian securities market and stock exchanges may affect the price and liquidity of our Equity Shares.

market_liquidity · material

Our operations and our work force are exposed to various hazards and we are exposed to risks arising from construction related activities that could result in material liabilities, increased expenses and diminished revenues.

Any such risk could result in exposing us to material liabilities, increase our expenses, adversely affect our reputation and may result in a decline in our revenues.

operational_safety · material

Most of our projects require the services of third parties, which entails certain risks.

Most of our projects require the services of third parties, which entails certain risks.

outsourcing · material

Our Promoters and Promoter Group may continue to retain majority control in the Company after the Offer.

Our Promoters and Promoter Group may beneficially own approximately 71.96% of our post-Offer equity share capital. The Promoter Group may have interests that are adverse to the interests of our other shareholders and may take positions with which our other shareholders do not agree.

promoter_control · material

We may be unable to protect our rights in respect of some of our core income generating properties

We may be unable to protect our rights in respect of some of our core income generating properties.

property_rights · material

Our business is dependent on the performance of the real estate market in the regions in which we operate, and fluctuations in market conditions may adversely affect our ability to sell or lease our real estate developments at expected prices.

Fluctuations in market conditions may adversely affect our ability to sell or lease our real estate developments at expected prices.

real_estate_market · material

Introduction of Real Estate (Regulation and Development) Act, 2016 (RERA) may impact real estate prices and inability to comply with the provisions of RERA may subject us to penal consequences.

Introduction of Real Estate (Regulation and Development) Act, 2016 (RERA) may impact real estate prices and inability to comply with the provisions of RERA may subject us to penal consequences.

regulatory · material

We require certain approvals and licenses in the ordinary course of business and are required to comply with certain rules and regulations to operate our business.

Any failure by us to apply in time, to renew, maintain or obtain the required permits, licenses or approvals, or the cancellation, suspension or revocation of any of the permits, licenses or approvals may result in the interruption of our operations and may have a material adverse effect on the business.

regulatory · material

Any changes in the regulatory framework could adversely affect our operations and growth prospects.

Any changes in the regulatory framework could adversely affect our operations and growth prospects.

regulatory · material

Our Company has entered into certain related party transactions and may continue to do so in the future

There can be no assurance that such transactions, individually or in the aggregate, will not have an adverse effect on our financial condition and results of operation.

related_party · material

We may incur significant infrastructure and development costs if certain key tenants default, withdraw their commitments or refuse to renew their leases.

These costs, delays and difficulties may adversely affect our business, financial condition and results of operations.

tenant_risk · material

Investors may be subject to Indian taxes arising out of capital gains on the sale of our Equity Shares

Investors may be subject to Indian taxes arising out of capital gains on the sale of our Equity Shares.

tax · minor

We have not made any provisions for decline in value of our Investments.

We have not made any provisions for decline in value of our Investments.

accounting_investments · moderate

We will prepare our financial statements from April 01, 2018 onwards under the Indian Accounting Standards (Ind AS).

As Ind AS is different in many respects from Indian GAAP, our financial statements from April 01, 2018 may not be comparable to our historical financial statements.

accounting_transition · moderate

Operations are concentrated in Maharashtra, primarily Nagpur, while execution depends heavily on third-party architects

Operations are concentrated in Maharashtra, primarily Nagpur, while execution depends heavily on third-party architects and contractors and the Company had only eight on-roll employees.

analysis · moderate · p.20

As of March 31, 2017, one material creditor accounted for ₹747.74 lakhs of the ₹749.27 lakhs disclosed as amounts owed t

As of March 31, 2017, one material creditor accounted for ₹747.74 lakhs of the ₹749.27 lakhs disclosed as amounts owed to the Company's listed creditor categories.

analysis · moderate · p.200

Victoria II had an estimated project cost of ₹7,863.60 lakhs, with ₹6,273.97 lakhs of loans tied up/taken, ₹1,000 lakhs

Victoria II had an estimated project cost of ₹7,863.60 lakhs, with ₹6,273.97 lakhs of loans tied up/taken, ₹1,000 lakhs proposed from the IPO and ₹589.63 lakhs from internal accruals/customer advances. The IPO investment is intended to make Suntech a subsidiary, after which its financial statements would be consolidated.

analysis · moderate · p.64

The issuer states post-Issue NAV at ₹47.16 per share compared with the ₹70 Issue Price.

The issuer states post-Issue NAV at ₹47.16 per share compared with the ₹70 Issue Price.

analysis · moderate · p.71

Shradha House, an income-generating property, is exposed to a pending land-title appeal. The prospectus explicitly says

Shradha House, an income-generating property, is exposed to a pending land-title appeal. The prospectus explicitly says an adverse order may adversely affect the Company's title.

analysis · moderate · p.14

The document discloses meaningful related-party/KMP flows, including FY2016-17 KMP remuneration of ₹232.50 lakhs and dir

The document discloses meaningful related-party/KMP flows, including FY2016-17 KMP remuneration of ₹232.50 lakhs and director/KMP financing transactions.

analysis · moderate · p.175

Profitability weakened sharply despite higher revenue: consolidated EBITDA declined from ₹1,219.22 lakhs in FY2015-16 to

Profitability weakened sharply despite higher revenue: consolidated EBITDA declined from ₹1,219.22 lakhs in FY2015-16 to ₹542.47 lakhs in FY2016-17, while consolidated restated PAT attributable to shareholders declined from ₹870.80 lakhs to ₹467.31 lakhs.

analysis · moderate · p.83

The issuer itself warns that revenue and profits are difficult to predict. Percentage-of-completion accounting makes rev

The issuer itself warns that revenue and profits are difficult to predict. Percentage-of-completion accounting makes revenue dependent on bookings, construction progress, customer payments and estimated project costs, which can create significant period-to-period fluctuations.

analysis · moderate · p.15

A 1:25 bonus issue of 72,21,700 shares at nil issue price was completed on August 24, 2017 shortly before the IPO. The p

A 1:25 bonus issue of 72,21,700 shares at nil issue price was completed on August 24, 2017 shortly before the IPO. The promoter average acquisition cost is stated at ₹0.38 per share versus the ₹70 Issue Price.

analysis · moderate · p.28

The success of our residential developments is dependent on our ability to anticipate and respond to customer requirements.

The success of our residential developments is dependent on our ability to anticipate and respond to customer requirements.

customer_demand · moderate

Certain information contained in this Prospectus is based on management estimates and we cannot assure you of completeness or accuracy of the data.

Certain information contained in this Prospectus is based on management estimates and we cannot assure you of completeness or accuracy of the data.

disclosure_estimates · moderate

Our ability to pay dividends in the future may be affected by any material adverse effect on our future earnings, financial condition or cash flows.

Our ability to pay dividends in the future may be affected by any material adverse effect on our future earnings, financial condition or cash flows.

dividend · moderate

In addition to normal remuneration, other benefits and reimbursement of expenses some of our Directors (including our Promoters) and Key Managerial Personnel may be interested in our Company to the extent of their shareholding and dividend entitlement in

Some of our Directors (including our Promoters) and Key Managerial Personnel are interested to the extent of the Equity Shares held by them, or their relatives or our Group Entities in our Company.

governance · moderate

One of our group company has made losses in the past.

One of our group company has made losses in the past.

group_company · moderate

If we suffer a large uninsured loss or if we suffer an insured loss that significantly exceeds our insurance coverage, our financial condition and results of operations may be adversely affected.

Our insurance policies do not cover all risks and are subject to exclusions and deductibles.

insurance · moderate

Intellectual property rights are important to our business and we may be unable to protect them from being infringed by others.

As on the date of this Draft Prospectus, we have not yet obtained registration for our logo and hence we do not enjoy the statutory protection accorded to a registered trademark.

intellectual_property · moderate

Failure to procure contiguous parcels of land may adversely affect our business, results of operations, financial condition and prospects.

Failure to procure contiguous parcels of land may adversely affect our business, results of operations, financial condition and prospects.

land_acquisition · moderate

You will not be able to sell immediately on an Indian stock exchange any of the Equity Shares you purchase in the Issue until the Issue receives the appropriate trading approvals.

You will not be able to sell immediately on an Indian stock exchange any of the Equity Shares you purchase in the Issue until the Issue receives the appropriate trading approvals.

listing · moderate

Civil disturbances, extremities of weather, regional conflicts and other political instability may have adverse affects on our operations and financial performance.

Civil disturbances, extremities of weather, regional conflicts and other political instability may have adverse affects on our operations and financial performance.

macro_event · moderate

Terrorist attacks, civil unrest and other acts of violence or war involving India and other countries could adversely affect the financial markets and our business.

Terrorist attacks, civil unrest and other acts of violence or war involving India and other countries could adversely affect the financial markets and our business.

macro_event · moderate

Market Dependency

The demand for leased premises is dependent on market conditions, which may adversely affect operations.

Market · moderate

Cyclical Nature of Real Estate Market

The cyclical nature of the real estate market may impact operations and financial performance.

Market · moderate

Related Party Transactions

Related party transactions totaling ₹255.80 lakhs may present conflicts of interest.

Operational · moderate

Our business and activities may be further regulated by the Competition Act, 2002 and any adverse application or interpretation of the Competition Act could materially and adversely affect our business, financial condition and results of operations.

Any adverse application or interpretation of the Competition Act could materially and adversely affect our business, financial condition and results of operations.

regulatory · moderate

The Companies Act, 2013 has effected significant changes to the existing Indian company law framework, which may subject us to higher compliance requirements and increase our compliance costs.

The Companies Act, 2013 has effected significant changes to the existing Indian company law framework, which may subject us to higher compliance requirements and increase our compliance costs.

regulatory · moderate

Regulatory Approvals

Failure to obtain necessary approvals and licenses could impact operations.

Regulatory · moderate

One of our group companies Shradha Industries Limited is on Dissemination Board of BSE and is in the process of complying with the relevant statutory requirements.

An adverse development w.r.t same could have a material impact on our group's goodwill and reputation.

regulatory_group_company · moderate

The GoI has implemented a new national tax regime by imposing GST.

The GoI has implemented a new national tax regime by imposing GST.

tax_regulatory · moderate

Any failure in our IT systems could adversely impact our business.

Any failure in our IT systems could adversely impact our business.

technology · moderate