Vardhman Appliances Limited

• Funding capital expenditure requirements for setting up a new project at Baghpat, Uttar Pradesh₹120 Cr
• Prepayment or scheduled re-payment, in full or part, of certain outstanding borrowings availed by our Company₹55.0 Cr
• Investment in our wholly owned Subsidiary, Lazer India Private Limited, for prepayment or scheduled re-payment, in full or part, of certain outstanding borrowings₹15.0 Cr
• General Corporate Purposes

Except as disclosed in this section, as on the date of this Draft Red Herring Prospectus, there are no outstanding (i) criminal proceedings; (ii) actions taken by regulatory or statutory authorities including notices by such authorities; (iii) claims related to direct and indirect tax matters; and (iv) other pending litigation (including civil and/or arbitration proceedings) as determined to be material by our Board pursuant to its resolution dated September 23, 2026. Further, there are no disciplinary actions including penalties imposed by the SEBI or the Stock Exchanges against our Promoters in the last five Fiscals including any outstanding action. Except as disclosed below, there are no outstanding, (i) criminal proceedings; and (ii) actions by regulatory authorities and statutory authorities, involving any Key Managerial Personnel and Senior Management of our Company.

• We derived 65.62%, 66.39% and 73.83% of our Revenue from Operations from our top 10 customers during Fiscals 2026, 2025 and 2024, respectively. Any loss of, or significant reduction in business from, such customers could adversely affect our business, results of operations, cash flows and financial condition.(Customer Concentration)

• Sales to Consumer Appliance Brands accounted for 77.19%, 76.35% and 79.16% of our Revenue from Operations during Fiscals 2026, 2025 and 2024, respectively. Any reduction in purchases by such customers, changes in their product requirements, increased in-house manufacturing or allocation of business to alternative manufacturers could adversely affect our sales volumes, capacity utilisation and results of operations.(Customer Concentration)

• A significant portion of our Revenue from Operations is generated from sales to Consumer Appliance Brands. Accordingly, our performance is dependent on the level of business generated from such customers and their continued outsourcing of manufacturing requirements to us.(Customer Concentration)

• Our product portfolio spans four principal categories, namely, fans, kitchen appliances, home comfort appliances and components. Fans, kitchen appliances and home comfort appliances collectively accounted for 89.47%, 89.64% and 88.90% of our Revenue from Operations during Fiscals 2026, 2025 and 2024, respectively.(Product Concentration)

• Our business is subject to seasonal fluctuations and varying demand patterns across such categories, which may adversely affect our business, results of operations, financial condition and cash flows.(Seasonality)

• We generate Revenue from Operations through multiple sales channels, comprising sales to Consumer Appliance Brands, sales through dealers and distributors and other channels, including e-commerce platforms and institutional customers. Our ability to generate and grow sales through these channels depends on, among other things, our ability to maintain and expand our distribution reach, maintain relationships with channel participants, ensure adequate availability of products and effectively manage our presence across offline and online channels.(Sales Channels)

• Demand across our sales channels may also be affected by changes in consumer demand and preferences, seasonality, competitive intensity, pricing pressures, regulatory developments and prevailing economic conditions. The consumer durables and domestic appliances industry is subject to structural and cyclical factors which may affect volumes, product mix, margins and channel dynamics.(Industry Conditions)

• Any material reduction in sales to Consumer Appliance Brands, disruption in sales through dealers, distributors, e-commerce platforms or institutional customers, or inability to effectively manage or expand our sales channels could adversely affect our business, results of operations, cash flows and financial condition.(Sales Channels)

Each bar is a fixed formula applied to the figures shown above, scored 0–100. This is a reading of what the company disclosed — not a recommendation to apply or avoid, not a price target, and not a prediction of listing performance. Dimensions that could not be extracted are excluded rather than assumed, so coverage varies between documents.