Roopa Screen Ltd.

• Funding of capital expenditure towards setup of a new manufacturing facility₹9.9 Cr
• Funding of Working Capital Requirements₹6.0 Cr
• General Corporate Purpose

As on the date of this Red Herring Prospectus, there are no outstanding criminal proceedings initiated against the Company. There are no outstanding actions by statutory or regulatory authorities initiated against the Company. Direct Tax Proceedings: NIL.

• Discontinued manufacturing operations at the Narol unit due to non-availability of statutory approvals, including the factory licence and requisite consents from the Gujarat Pollution Control Board, with effect from December 15, 2025. The plant and machinery at the Narol premises are proposed to be shifted to the proposed manufacturing facility at Gallops Industrial Park II, Sanand, upon completion of construction and receipt of approvals. Until the proposed facility becomes operational, manufacturing operations continue through the existing Sanand facility. Any constraints in production capacity or delays in commencement of the proposed facility may affect the ability to cater to increased customer demand or fulfil orders in a timely manner.(Regulatory / Operational)

• The Company's business is dependent on the performance of the textile industry, which constitutes the major end-use segment for its rotary nickel screens, with almost all revenues derived from customers engaged in the textile sector. Any slowdown or adverse developments in this sector, including volatility in raw material costs, changes in government trade policies, or technological changes that reduce product requirements, may adversely affect the business, financial condition, results of operations and cash flows.(Industry / Market)

• A significant portion of revenue is derived from the sale of the key product variant, Penta Screen, which accounted for 38.54%, 39.28% and 42.24% of revenue from operations in Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. Any decline in demand for this product due to changes in customer preferences, the development of substitute products, technological advancements, regulatory changes, environmental restrictions, or a slowdown in textile printing and allied industries could adversely affect sales volumes.(Product Concentration)

• The Company requires certain approvals, licenses, registrations and permits to operate its business. Some of these approvals are granted for fixed periods and need renewal. There can be no assurance that relevant authorities will issue or renew such permits or approvals in time or at all. Failure to renew, maintain or obtain the required permits or approvals in time may result in the interruption of operations and have a material adverse effect on the business, financial condition and results of operations.(Regulatory)

• The Company's operations are primarily linked to the textile industry, which depends on factors including domestic and international demand for textile products, volatility in raw material costs, changes in government trade and export-import policies, duties or levies, labor availability, environmental and regulatory requirements, and overall macroeconomic conditions. Any slowdown in textile demand, delays in capacity expansion by textile manufacturers, volatility in global trade, or technological changes that reduce the requirement of the Company's products could result in lower order volumes.(Industry / Market)

• The Company derives a significant portion of its revenue from the sale of Penta Screens, a single product variant. Any sustained reduction in demand for this product, potentially caused by volatility in raw material prices, supply chain disruptions, or inability to maintain consistent product quality, could materially and adversely affect the business, financial condition, results of operations and cash flows.(Product Concentration)

• The Company requires certain approvals, licenses, registrations and permits to operate its business. Due to non-possession of certain statutory approvals, including approvals under the Factories Act, 1948 and applicable environmental laws, the Company discontinued manufacturing operations at its Narol, Ahmedabad unit with effect from December 15, 2025. The relevant authorities may initiate inspections, inquiries, notices or proceedings in respect of the period during which manufacturing activities were carried out at such premises. Any action initiated under the factories, environmental or other applicable laws in force during the relevant period may result in penalties, liabilities or other regulatory consequences.(Regulatory)

• The Company's operations are primarily linked to the textile industry, which constitutes the major end-use segment for its rotary nickel screens, with almost all revenues derived from customers engaged in the textile sector. The performance of the textile industry depends on a variety of factors, including domestic and international demand for textile products, volatility in raw material costs, changes in government trade and export-import policies, duties or levies, labor availability, environmental and regulatory requirements, and overall macroeconomic conditions. Any slowdown in textile demand, delays in capacity expansion by textile manufacturers, volatility in global trade, or technological changes that reduce the requirement of the Company's products could result in lower order volumes.(Industry / Market)