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 any 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 any 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 any inspections by SEBI or any other regulator involving the Company 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)

• A significant portion of revenue (96.83% in Fiscal 2026) is generated from the High Growth Sectors (power transmission, railways, renewable energy), making the business vulnerable to economic cyclicality and reduced demand in these sectors.(Market Concentration)

• The manufacturing facilities (Rithani and Gangol Units) have experienced low capacity utilization (0.25% in Fiscal 2026 for Rithani and 49.04% in Fiscal 2026 for Gangol), and under-utilization could adversely affect business and financial performance.(Operational Efficiency)

• The revenue from the Shunt Reactors product line was Nil in Fiscal 2026 and Fiscal 2025 due to operational reasons, though orders are included in the Order Book as of March 31, 2026, with revenue expected to be recognized in Fiscal 2027.(Product Performance)

• The revenue from the Renewable Energy sector was Nil in Fiscal 2026 and Fiscal 2025 due to operational reasons, though orders are included in the Order Book as of March 31, 2026, with revenue expected to be recognized in Fiscal 2027.(Market Concentration)

• The introduction of Scott transformers as a new product in Fiscal 2025 carries the risk of failure to successfully manufacture and market these products, which could adversely affect the business.(Product Development)

• The Company is dependent on customers from the High Growth Sectors for a significant portion of operating revenue, and a downturn or negative trend in these sectors could result in loss of business.(Customer Concentration)

• The Company is dependent on the CARE Analytics and Advisory Private Limited report for industry and market data, and the manner of calculation and presentation of financial and operational performance indicators may vary from those used by other companies.(Data Reliability)