Kanohar Electricals Limited

• Funding the capital expenditure requirements of our Company towards: (i) purchase of new machinery and equipment for our Gangol Manufacturing Facility for increasing our transformer manufacturing capacity, expanding and automating our backward integration facilities and enhancing operational efficiency; (ii) civil construction and interior development of an office building at our Gangol Manufacturing Facility; and (iii) enhancing our sustainability initiatives by (a) setting up of solar power plants at our Manufacturing Facilities, and (b) purchasing Electric Vehicles for handling and movement at our Gangol Manufacturing Facility.₹64.2 Cr
• Funding the incremental working capital requirements of our Company₹155 Cr
• General corporate purposes

Except as disclosed in this section, there are no outstanding criminal proceedings, outstanding actions by regulatory or statutory authorities, outstanding claims relating to direct and indirect tax matters, or any other pending litigation involving the Company, Directors or Promoters. There are no disciplinary actions by SEBI or stock exchanges against Promoters in the last five Fiscals. There are no outstanding criminal proceedings involving Key Managerial Personnel or Senior Management Personnel. There are no outstanding actions by regulatory or statutory authorities involving Key Managerial Personnel or Senior Management Personnel. There are no pending litigation involving Group Companies that may have a material impact on the Company. There are no findings or observations of inspections by SEBI or any other regulator that are material.

• A significant portion of revenue (83.43% in Fiscal 2026) is derived from the Transformer Manufacturing Business, which is dependent on the power transmission, railways, and renewable energy sectors.(Revenue Concentration)

• The Company is dependent on customers from the power transmission, railways, and renewable energy sectors for a significant portion of its operating revenue from the Transformer Manufacturing Business.(Customer Concentration)

• A reduction in demand for purchase of transformers could adversely affect the business, results of operations, and financial condition.(Market Demand)

• Any economic cyclicality coupled with reduced demand or negative trend in the power transmission, railways, or renewable energy sectors could have a material adverse effect on the business, financial condition, and results of operations.(Market Demand)

• Under-utilization of manufacturing capacities and an inability to effectively utilize manufacturing capacities could have an adverse effect on business, future prospects, and future financial performance.(Operational Efficiency)

• The Rithani Manufacturing Facility had a capacity utilization of only 0.25% in Fiscal 2026 and 0.25% in Fiscal 2025.(Operational Efficiency)

• The Gangol Manufacturing Facility had a capacity utilization of 49.04% in Fiscal 2026, 31.70% in Fiscal 2025, and 17.31% in Fiscal 2024.(Operational Efficiency)

• The Company has not experienced any material sustained decline in the sale of its Transformer Manufacturing Business in the last three Fiscals, but there is no assurance that it will not face a decline in the future.(Market Demand)

• KANOHAR ELECTRICALS LIMITED - PROSPECTUS15 Sept 2026