Mount Everest Breweries Limited

• Part financing the capital expenditure requirements for setting up a new brewing facility at Industrial Manufacturing & Logistic Cluster (IMLC), Tehsil- Sawayajpur, District-Hardoi, Uttar Pradesh, 241123, India (Proposed Facility) with a brewing capacity of 1.00 million HLPA (Proposed Project)₹230 Cr
• Repayment/pre-payment, in full or part, of certain borrowings availed by our Company₹70.0 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 (including matters which are at the first information reports stage where no/ some cognizance has been taken by any court); (ii) actions taken by regulatory or statutory authorities, including notices by such authorities; (iii) claims related to direct and indirect tax matters (disclosed in a consolidated manner) giving details of the number of cases and total amount, provided that if the amount involved in any such claims exceeds the materiality threshold, such matter(s) shall be disclosed on an individual basis; 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, Promoters and Directors (“Relevant Parties”). Further, except as disclosed 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 pending litigation involving our Group Companies which may have a material impact on our Company. Further, as on the date of this Draft Red Herring Prospectus, there are no findings/observations of any 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.

• Absence of long-term contracts with suppliers for key raw materials like rice and malted barley may impact supply, quality, and cost competitiveness.(Supply Chain)

• Dependence on imports for hops from Germany exposes the company to risks related to international trade, currency fluctuations, and geopolitical events.(Supply Chain)

• Heavy dependence on sales in the state of Madhya Pradesh, which accounted for 71.47%, 84.47%, and 90.64% of revenue from operations in FY 2026, 2025, and 2024 respectively.(Geographic Concentration)

• Seasonal nature of key raw materials (rice, malted barley) and reliance on agricultural inputs makes the business vulnerable to adverse climatic conditions, bad harvests, and unseasonal rainfall.(Operational)

• Competition for key raw materials like rice and malted barley from other industries, such as ethanol plants, may lead to demand-supply issues and price increases.(Operational)

• The business is exposed to climate-related challenges affecting agricultural raw materials and water availability, which can impact production costs and supply stability.(Operational)

• Any significant interruption in the supply of key raw materials or packaging materials due to bad harvest, unfavorable climatic conditions, flood, or shortage may adversely impact operations.(Supply Chain)

• The inability to enforce rights or obtain effective remedies against suppliers in case of quality or quantity issues may force the company to purchase raw materials from alternative sources at a high cost.(Supply Chain)