Electromech Infraprojects Limited

• Funding the working capital requirements of our Company₹100 Cr
• Investment in our Subsidiary, Jika EPC Services Limited to increase our shareholding from 34.78% to 60.00% of paid-up equity share capital of Jika through a combination of subscription to fresh equity shares and secondary acquisition of equity shares₹76.5 Cr
• Investment in our Subsidiary, Sinerco Power Systems Private Limited, for funding its working capital requirements and capital expenditure₹24.2 Cr
• Investment in our GCC based Subsidiary, Electromech Global Holdings Ltd₹30.0 Cr
• General Corporate Purposes

Except as stated in this section, there are no outstanding (a) criminal proceedings, (b) actions taken by any statutory or regulatory authorities, (c) disciplinary action including penalty imposed by SEBI or stock exchanges against our Company, Promoters and Directors in the last five Fiscals including outstanding action; (d) outstanding claims for any direct or indirect tax giving the number of cases and total amount; or (e) details of any other pending litigations (including civil litigation or arbitration proceeding) which are determined to be material as per a policy adopted by our Board (Materiality Policy) involving our Company, Directors, Promoters (Relevant Parties).

• The loss of any of our top clients could have a material adverse effect on our business, financial condition, results of operations and cash flows. Our client base is relatively concentrated.(Customer Concentration)

• Our business operations are dependent upon the data centre segment, and any adverse developments affecting this sector could materially and adversely affect our business, financial condition, results of operations and cash flows.(Industry Concentration)

• Any slowdown in the development of conventional/cloud and AI data centres, delays in customer expansion plans, changes in technology adoption, or reductions in capital expenditure by hyperscale or colocation operators, could affect the awarding of projects.(Industry Concentration)

• We depend on third party suppliers for the supply of raw material required for our business operations. Any disruptions in the supply or availability of the raw material or fluctuations in their prices may have an adverse impact on our business operations, cash flows and financial performance.(Supplier Concentration)

• Our purchase of materials from our top 5 suppliers was ₹7,507.23 lakhs, ₹6,610.56 lakhs and ₹4,845.56 lakhs, representing 22.09%, 19.27% and 21.79%, and from our top 10 suppliers was ₹10,882.66 lakhs, ₹10,805.17 lakhs and ₹7,764.40 lakhs, representing 32.02%, 31.50% and 34.91%, of our cost of raw material for Fiscals 2026, 2025 and 2024, respectively.(Supplier Concentration)

• We do not have long-term contracts with our suppliers and rely on purchase orders that we place on such entities.(Supplier Concentration)

• Our suppliers are predominantly located in India, with a concentration in Maharashtra.(Supplier Concentration)

• We cannot assure you that we will be able to maintain our historic levels of business from our top clients, or that we will be able to reduce client concentration in the future.(Customer Concentration)