Pranav Constructions Limited

• Funding costs towards obtaining government and statutory approvals and purchase of additional FSI as per applicable laws and cost towards compensation to members towards alternate accommodation, and hardship compensation, in relation to the development of certain of our Under-construction Redevelopment Projects, and certain of our Upcoming Redevelopment Projects₹146 Cr
• Repayment or pre-payment, in full or in part, of certain of our outstanding borrowings availed by our Company₹91.5 Cr
• Funding acquisition of future redevelopment projects and general corporate purposes

Except as disclosed in this section, there are no outstanding (i) criminal proceedings (including matters which are at an FIR stage even if no cognizance has been taken by any court); (ii) actions taken by regulatory and/or statutory authorities; (iii) claims related to direct and indirect tax matters (disclosed in a consolidated manner); and (iv) other pending litigation/arbitration as determined to be material by our Board pursuant to the Materiality Policy as approved by our Board, in each case involving our Company, Subsidiaries, Promoters and Directors (“Relevant Parties”); (v) outstanding criminal proceedings or outstanding actions taken by statutory and/or regulatory authorities involving our Key Managerial Personnel and Senior Management. Further, there are (i) no disciplinary actions including penalties imposed by the SEBI or the Stock Exchanges against our Promoters in the last five Financial Years including any outstanding action; or (ii) no outstanding litigation involving our Group Companies which may have a material impact on our Company. It is clarified that for the purposes of the above, pre-litigation notices from third parties (other than show cause notices issued by statutory/ regulatory/ tax authorities or notices threatening criminal action) received or sent by any of the Relevant Parties, Key Managerial Personnel and Senior Management shall not be evaluated for materiality until such time that the Relevant Parties, as the case may be, are impleaded as a party in proceedings before any judicial/ arbitral forum. Except as stated in this section, there are no outstanding material dues to creditors of our Company.

• Our business, financial condition and results of operations are significantly dependent on the performance of the real estate market in the MCGM Region, which has accounted for 99.70%, 99.69% and 99.50% of our revenue from operations for Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively.(Geographic Concentration)

• Our Redevelopment Projects involve a significant time period and consequently the capital invested is tied up and is relatively illiquid (until sale of units commences), which may limit our ability to respond promptly to changing market conditions.(Liquidity and Capital Intensity)

• The MCGM Region may be exposed to natural disasters such as flooding, and our Redevelopment Projects in the MCGM Region may be subject to such risks.(Natural Disasters)

• An inability to complete our Under-construction Redevelopment Projects and Upcoming Redevelopment Projects by their respective expected completion dates or at all could have a material adverse effect on our business, reputation, results of operations and financial condition.(Project Completion Risk)

• Any delay in completion of the projects or in achieving milestones as mentioned in the agreement may subject us to RERA mandated penalties, interest payments and cancellation liabilities.(Regulatory and Contractual Risk)

• Such delays could also lead to customer dissatisfaction, negative publicity, litigation, loss of buyer confidence, revocation of approvals, and failure to realize expected project economics.(Reputational Risk)

• The real estate market in the MCGM Region may be affected by various factors outside our control, including changes in applicable governmental regulations and related policies, availability of financing for our Redevelopment Projects and applicable interest rates.(Regulatory and Economic Risk)

• The data included in this Red Herring Prospectus has been derived from an industry report prepared by Cushman & Wakefield exclusively commissioned and paid for by us for such purpose.(Data Reliability)