Sarva Foam Industries Limited

• Funding capital expenditure requirement of our Company for setting up of a manufacturing facility of rebonded polyurethane (“PU”) foam products (“Proposed Project”)₹90.0 Cr
• Repayment and/or pre-payment, in part or full, of certain borrowings availed by our Company₹30.0 Cr
• General corporate purposes

Except as disclosed in this section, there are no outstanding (i) criminal proceedings; (ii) actions taken by regulatory or statutory authorities; (iii) any other pending litigation/arbitration proceeding which has been determined to be material pursuant to the Materiality Policy; (iv) claims related to direct and indirect tax matters (disclosed in a consolidated manner, giving details of the number of cases and total amount involved in such cases) each involving our Company, its Subsidiaries, Directors, and Promoter. Further, except as disclosed in this section, there are (a) no disciplinary actions (including penalties imposed) initiated by SEBI or the stock exchanges against our Promoter in the last five Fiscals immediately preceding the date of this Draft Red Herring Prospectus, including any outstanding action; or (b) no criminal proceedings involving our KMPs or SMPs or (c) no actions by regulatory and statutory authorities against such KMPs or SMPs, or (c) no pending litigation involving our Group Companies which may have a material impact on our Company in the opinion of our Board. There are no findings/observations of any of the inspections by SEBI or any other regulator involving our Company which are material, and which need to be disclosed or non-disclosure of which may have bearing on the investment decision, other than the ones which have already disclosed in the Offer Document. Further, any outstanding civil litigations/ arbitration proceedings involving the Relevant Parties wherein the monetary impact is not quantifiable or does not exceed the threshold shall be considered 'material' and shall be disclosed in the Offer Documents, if the outcome of such litigation could have a material adverse effect on the business, performance, prospects, operations, financial position or reputation of the Company. Except as stated in this section, there are no outstanding material dues to creditors of our Company.

• We derive a significant portion of our revenue from our top 10 customers, who contributed 81.00%, 96.34% and 95.06% of our revenue from operations in Fiscals 2026, 2025 and 2024, respectively. The loss of such customers or a significant reduction in demand of our products from these customers could have an adverse effect on our business, results of operations, financial condition and cash flows.(Customer Concentration)

• We rely on limited number of suppliers for our material requirements which constitutes a significant part of our total expenses and the revenue contribution as a percentage of total purchases from our top 10 suppliers were 81.76%, 86.21% and 80.41% in Fiscals 2026, 2025 and 2024, respectively. Any increase in the prices, availability and quality of materials or loss of these suppliers could adversely affect our reputation, business, results from operations, financial conditions and cash flows.(Supplier Concentration)

• We do not enter into long term contracts or other arrangements with the suppliers of our materials and rely on purchase orders which are placed as required. In the absence of long-term contracts establishing formal relationships between us and such parties, we cannot assure you that we will be able to procure materials on favourable terms.(Supplier Concentration)

• If our suppliers, in particular our top 10 suppliers discontinue supply to our Company for reasons including due to commercial disagreements, insolvency of the supplier or supply chain issues, we may be unable to source our materials from alternative suppliers on similar commercial terms or within a reasonable timeframe which could, in turn, adversely affect our manufacturing operations, our product quality and our product delivery timelines.(Supplier Concentration)

• Our raw materials primarily include PU foam trims, PU foam off-cuts and various grades of binders.(Supplier Concentration)

• Our success in adding new customers depends on numerous factors, including our ability to execute our sales and marketing strategy, attract, effectively train, and retain new employees and workforce, develop or expand relationships with customers, expand into new geographies and verticals and effectively manage and forecast our customer demand.(Customer Concentration)

• We also cannot assure you that we will be able to maintain historic levels of business from our key customers, or that will be able to significantly reduce customer concentration in the future, all of which could have an impact on our business prospects and financial performance.(Customer Concentration)

• Our customers may also demand price reductions, discounts and change in payment terms.(Customer Concentration)

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.