Qualiance International Ltd.

• Funding the capital expenditure requirements of our company towards setting up a new manufacturing facility at Tiruppur- Tamil Nadu₹38.0 Cr
• General Corporate Purposes

As on the date of this Red Herring Prospectus, there are no outstanding criminal litigations initiated against the Company, no outstanding criminal litigations initiated by the Company, and no outstanding actions by statutory or regulatory authorities initiated against the Company. The Company, its Directors, and its Promoters are not Willful Defaulters and there have been no violations of securities laws in the past or pending against them.

• The Company derives a significant portion of its revenue from woven garments, which contributed 71.55% of revenue from product sales for the year ended March 31, 2026, amounting to ₹ 5,458.49 lakhs. Any decline in the sales of woven garments, due to factors such as increased competition, pricing pressures, or fluctuations in demand or supply, may adversely affect the business, results of operations, and financial condition.(Revenue Concentration)

• The Company depends on a limited number of customers for its revenue from operations. The share of the top customer for Fiscal year 2026, 2025, and 2024 was approximately 56.93%, 51.51%, and 38.13% respectively. The total sales to the top 10 customers for the year ended March 31, 2026, March 31, 2025, and March 31, 2024 were 99.65%, 99.70%, and 99.21% respectively. The loss of any one of these key customers or a significant reduction in demand from such customers could have a material adverse effect on the business, financial condition, results of operations, and future prospects.(Customer Concentration)

• The Company derives a majority portion of its revenues from exports, which amounted to ₹ 7,538.98 lakhs, ₹ 4,958.27 lakhs, and ₹ 3,239.81 lakhs during Fiscal 2026, Fiscal 2025, and Fiscal 2024 respectively, constituting 98.82%, 93.87%, and 87.77% of total revenues from operations. Switzerland has been the primary export destination, contributing 80.67%, 58.87%, and 56.44% of revenue from operations (excluding other operating revenue) respectively. Any adverse developments in the global economy or the industries in which the customers operate could have an impact on sales from exports.(Export Dependence)

• The Company's operations are subject to risks specific to each country from where its customers operate, including risks associated with competitive tender processes conducted by foreign government bodies and government-owned entities. The ability to secure such contracts depends on continued compliance with applicable tender eligibility criteria, technical qualifications, financial requirements, regulatory approvals, and other procurement conditions prescribed by the relevant authorities. Changes in government policies, procurement regulations, bidding procedures, qualification standards, local content requirements, or preferences for domestic suppliers may limit or restrict the ability to participate in or successfully secure tenders.(Government Contracts)

• The Company's proposed expansion plans regarding the new manufacturing facility are subject to the risk of unanticipated delays in implementation and cost overruns. Problems that could adversely affect expansion plans include labour shortages, increased costs of equipment or manpower, land development related complications, inadequate performance of equipment and machinery, defects in design or construction, unanticipated future regulatory restrictions, delays in receiving governmental approvals, and other external factors not within the control of management.(Expansion Risks)

• The Company's revenues from exports may decline as a result of increased competition, regulatory action, pricing pressures, including as a result of anti-dumping measures, fluctuations in the demand for or supply of products, or failure to effectively react to these situations or successfully introduce new products in these markets.(Market Competition)

• The Company's international operations are subject to risks associated with complying with changes in foreign laws, regulations, and policies, including restrictions on trade, import and export license requirements, tariffs and taxes, intellectual property enforcement issues, and changes in foreign trade and investment policies. In the event of inability to effectively address or comply with changes in foreign laws or meet conditions stipulated in licenses, the Company may be subject to penalties and other regulatory actions, which could adversely affect its reputation, business, prospects, results of operations, and financial condition.(Regulatory Compliance)

• The Company's operations are subject to risks specific to each country from where its customers operate, including social, economic, political, geopolitical conditions, and adverse weather conditions, such as natural disasters, civil disturbance, terrorist attacks, war, or other military action, which may adversely affect the business and operations.(Geopolitical Risk)