Kataline Limited

• Funding working capital requirements of our Company₹70.0 Cr
• Funding capital expenditure for the upgradation of Manufacturing Facility of our Company₹28.0 Cr
• Funding capital expenditure for purchase of project execution equipment by our Company₹9.0 Cr
• General corporate purposes

There are no outstanding criminal proceedings, actions by regulatory and statutory authorities, claims related to direct and indirect tax matters, or other pending litigation involving the Company, Subsidiary, Promoters, and Directors. There are no disciplinary actions or penalties imposed by SEBI or Stock Exchanges against any Promoters in the last five Fiscals. There are no criminal proceedings involving Key Managerial Personnel and Senior Management Personnel. Outstanding civil litigation and arbitration proceedings are considered material if the aggregate monetary claim exceeds the Materiality Threshold (₹101.73 lakh).

• The company's business is heavily dependent on the sale of Hot-applied Thermoplastic marking materials, which accounted for 84.82%, 83.01% and 84.66% of revenue from operations during Fiscals 2026, 2025 and 2024, respectively. A reduction in demand for, or loss of sales of, such products and services, including due to a downturn in their end-use industries, could adversely affect the business, financial condition, results of operations and cash flows.(Business Related Risks)

• The company's business largely depends upon its top 10 customers, which contributed to 50.49%, 45.64% and 43.61% of revenue from operations during Fiscals 2026, 2025 and 2024, respectively. The loss of any of these customers could have a material adverse effect on the business, financial condition, results of operations and cash flows.(Business Related Risks)

• Demand for Hot-applied Thermoplastic marking materials is dependent on the level of road construction, maintenance and road safety marking activities undertaken by governmental authorities, contractors and other customers. Any slowdown in road infrastructure development, reduction in maintenance expenditure or decline in demand from customers engaged in road marking activities may adversely affect the demand for the company's products and services.(Business Related Risks)

• In the event of a shift in industry practices, customer preferences or applicable specifications towards alternative road safety materials or technologies, demand for the company's Hot-applied Thermoplastic marking materials may be adversely affected. Further, competitors may improve their manufacturing processes, develop products with better performance characteristics or offer comparable products at more competitive prices, which may result in increased competitive pressure and a loss of market share or customers.(Business Related Risks)

• The company may not be able to respond to changes in industry practices, customer preferences or competitor actions in a timely or cost-effective manner, which could adversely affect the demand for its products and services, revenues and profitability.(Business Related Risks)

• The company's growth and financial performance are dependent, in part, on its ability to maintain and grow revenue from Hot-applied Thermoplastic marking materials, expand its customer base and further diversify its product and services portfolio.(Business Related Risks)

• The company cannot assure that demand for Hot-applied Thermoplastic marking materials will not decline in the future or that it will be able to maintain or increase its revenue from these products and services.(Business Related Risks)

• The company's top ten customers include EPC contractors engaged in Government-funded road construction and infrastructure projects, for whom the company undertakes project execution services. The company also supplies its road safety marking products, through its dealer and distributor network, to contractors undertaking Government and municipal projects. This reliance on government-funded projects exposes the company to risks associated with public sector projects.(Business Related Risks)