-
The company`s business largely depends upon its top 10 clients which contributed to 95.0%, 95.5% and 95.8% of the company`s revenue from operations in Fiscals 2025, 2024 and 2023, respectively. The loss of any of these clients could have an adverse effect on the company`s business, financial condition, results of operations and cash flows.
-
A significant portion of the company`s revenues is derived from Coal India Limited and its subsidiaries. Coal India Limited and its subsidiaries accounted for 67.1%, 80.2%, and 82.7%of its revenue from operations in Fiscals 2025, 2024 and 2023, respectively. Any decline in demand for the company`s services from Coal India Limited and/or its subsidiaries could have an adverse impact on the company`s business, results of operations, financial condition and cash flows.
-
The company depends on a limited number of vendors in the company`s exploration activities to provide services such as core drilling, geophysical logging, borehole testing, and other field-based technical services and for its security services, and any disruptions in their supply of services could adversely affect the company`s business, results of operations, financial condition and cash flows.
-
A significant part of the company`s business transactions are with government entities or agencies. In the Fiscals 2025, 2024 and 2023, we generated 97.8%, 97.8% and 99.3%, respectively, of the company`s total revenue from operations from transactions with government entities or agencies, which may expose the company to various risks, including additional regulatory scrutiny and delayed collection of receivables.
-
A significant portion of the company`s revenues is derived from its geological exploration and resource evaluation services, which accounted for 46.2%, 38.6% and 39.3% of the company`s revenue from operations in Fiscals 2025, 2024 and 2023, respectively. Any decline in demand for its geological exploration and resource evaluation services could have an adverse impact on the company`s business, results of operations, financial condition and cash flows.
-
Estimates relating to ongoing and new projects and plans in relation to existing operations are uncertain, and the projects may incur higher costs and lower economic returns than estimated, which may have an adverse impact on the company`s business, results of operations, financial condition and cash flows.
-
The company is subjects to risks associated with its contracts, including its ability to correctly assess pricing terms other financial obligations, the increased complexity of the company`s contracts and the potential early termination or change of scope of contracts by clients.
-
Changes in technology may render the company`s current technologies obsolete. Any failures on the company`s part to effectively address such situations, innovate and keep up with technological advancements, could adversely affect its business, results of operations, financial condition and cash flows.
-
The company`s business is manpower intensive. The company`s business may be adversely affected by work stoppages, increased wage demands by its employees, or an increase in minimum wages, and if the company is unable to engage new employees at commercially attractive terms.
-
If the company is unable to recruit and retain senior management, qualified and skilled personnel, the company`s business and our ability to operate or grow its business may be adversely affected.
-
The company is subjects to several labour legislations and regulations governing welfare, benefits and training of the company`s employees. Any increase in wage and training costs could adversely affect its business, financial condition and cash flows.
-
The company`s inability to collect receivables in time or at all and default in payment from its clients could result in the reduction of its profits and affect the company`s cash flows.
-
The company`s backlog is subject to unexpected adjustments and cancellations and, therefore, may not be a reliable indicator of the company`s future revenue or earnings.
-
The company is dependents upon its equipment and machinery infrastructure, which is subject to disruption, damage, failures and risks associated with maintenance, upgrade and integration. Any failures to effectively maintain or upgrade the company`s equipment and machinery infrastructure may have an adverse impact on the company`s business, results of operations, financial conditions and cash flows.
-
The company is dependent on government funding for its drilling and exploration activities, and any shifts in policy decisions, changes in fiscal priorities or budget reallocation may have an adverse impact on the company`s business, results of operations, financial conditions and cash flows.
-
The company`s operations involve a high degree of risk, and exploratory drilling activities may not be successful which may have an adverse impact on the company`s business, results of operations, financial conditions and cash flows.
-
The company`s executive employees are seconded from Coal India Limited and the terms of their secondment may be altered at any time, which may have an adverse impact on the company`s business, results of operations, financial conditions and cash flows.
-
The company`s exploration activities are subject to the risk of adverse local law and order situations, which may have an adverse impact on the company`s business, results of operations, financial conditions and cash flows.
-
The company business requires working capital. Any failures in arranging adequate working capital for the company`s operations may adversely affect its business, results of operations, cash flows and financial condition.
-
The company faces a risk of reduced demand of the company`s services due to the emergence of renewable energy as an alternative source of energy. Significant shift towards sustainable energy solutions may have an adverse impact on the company`s business, results of operations, financial conditions and cash flows.
-
The company is subject to trade union activity, and labor disputes could lead to lost production and/or increased costs which may have an adverse impact on the company`s business, results of operations, financial conditions and cash flows.
-
The company`s Statutory Auditors have included certain emphasis of matters in their audit report for the audited financial statements for Fiscal 2025, 2024 and 2023.
-
The company may faces operational and coordination challenges in relation to the company`s regional institutes, which could adversely affect its business, results of operations, financial conditions and cash flows. Further, the Company does not have any documented terms of arrangement for usage of premises where two of the company`s regional offices are situated.
-
The mining and mineral consultancy service industry is competitive and our inability to compete effectively may adversely affect its business, results of operations, financial condition and cash flows
-
Any failures of the company`s information technology systems and tools could adversely affect its business, results of operations, financial conditions and cash flows.
-
The Company, Corporate Promoter and SMPs are involved in certain legal and regulatory proceedings. Any adverse decision in such proceedings may have an adverse effect on the company`s business, results of operations, financial conditions and cash flows.
-
Failures to obtain or renew approvals, licenses, registrations and permits to operate its business in a timely manner, or at all, may adversely affect the company`s business, financial condition, results of operations and cash flows.
-
The company`s operations are sensitive to seasonal changes and seasonal variations such as monsoon or extreme temperatures can disrupt its activities which may have an adverse impact on the company`s business, results of operations, financial conditions and cash flows.
-
The company`s inability to effectively manage its growth or implement the company`s growth strategies may have an adverse effect on the company`s business, results of operations, financial condition and cash flows.
-
The company`s Corporate Promoter will continue to have a significant shareholding in the Company after the Offer and its interests may differ from those of the other shareholders.
-
There have been certain instances of delays in payment of statutory dues by us in the past. Any delay in payment of statutory dues by the company in future, may result in the imposition of penalties and in turn may have an adverse effect on the company`s business, financial condition, results of operation and cash flows.
-
Any negative publicity relating to `Coal India Limited` brand could adversely affect its business prospects and financial performance.
-
Non-compliance with and adverse changes in applicable health, safety, labour and environmental laws may adversely affect its business, cash flows, results of operations and financial condition.
-
The company is wholly-owned by Coal India Limited and controlled by the Government of India, which makes the company susceptible to changes to the policies of Government of India and allows it to exercise significant influence over the company. Further, the Government of India could require the company to take actions aimed at serving the public interest, which may not necessarily be profitable or financially feasible.
-
The company does not have access to records and data pertaining to certain historical legal and secretarial information in relation to certain disclosures. Further, there are certain discrepancies in the records available with the company.
-
The company does not maintain insurance coverage in accordance with applicable industry standards and the company`s insurance coverage may not be adequate or the company`s may incur uninsured losses or losses in excess of its insurance coverage which could have an adverse impact on the company`s business, results of operations, financial condition and cash flows.
-
The company`s logo and name have not been registered as trademarks. Accordingly, the company`s ability to use its name or logo may be impaired. If the company is unable to protect its intellectual property rights, 14928 business, results of operations and financial condition may be adversely affected. As part of the company`s operations, the company mights infringe upon the intellectual property rights of others and any misappropriation of the company`s intellectual property could harm our competitive position.
-
The company has entered into related party transactions in the past and may continue to do so in the future.
-
The company has certain contingent liabilities that have been disclosed in the Restated Financial Information (Rs. 1,974.1 million as of March 31, 2025), which if they materialize, may adversely affect its business, results of operations, financial condition and cash flows.
-
The company will not receive any proceeds from the Offer.
-
The Company may not be able to pay dividends in the future. The company`s ability to pay dividends in the future will depend upon its future earnings, financial condition, profit after tax available for distribution, cash flows, working capital requirements and capital expenditure requirements.
-
The Company is not in compliance with certain provisions of the SEBI Listing Regulations and the Companies Act, as may be applicable in relation to the composition of our Board of Directors, composition and terms of reference of the Audit Committee, Stakeholders` Relationship Committee, Risk Management Committee and the Nomination and Remuneration Committee as the company is controlled by the GoI.
-
Certain sections of this Draft Red Herring Prospectus disclose information from the CRISIL Report which is a paid report and commissioned and paid for exclusively in connection with the Offer and any reliance on such information for making an investment decision in the Offer is subject to inherent risks.
-
Internal or external fraud or misconduct by the commpany`s employees could adversely affect its reputation and the company`s results of operations.
-
Failures in internal control systems could cause operational errors which may have an adverse effect on the company`s reputation, business, results of operations, financial condition and cash flows.
-
The company has included in this Draft Red Herring Prospectus certain non-GAAP financial measures and certain other industry measures related to the company`s operations and financial performance. These non-GAAP measures and industry measures may vary from any standard methodology that is applicable across the industry, and therefore may not be comparable with financial or industry related statistical information of similar nomenclature computed and presented by other companies.
-
Non-availability of credit ratings may restrict its access to capital and thereby adversely affect 14928 business, financial conditions, cash flows and results of operations.
-
The company`s business largely depends upon its top 10 clients which contributed to 93.8%, 95.0%, 95.0%, 95.5%
and 95.8% of the company`s revenue from operations in the nine months ended December 31, 2025 and December
31, 2024 and Fiscals 2025, 2024 and 2023, respectively. The loss of any of these clients could have an
adverse effect on the company`s business, financial condition, results of operations and cash flows.
-
A significant portion of its revenues is derived from Coal India Limited and its subsidiaries. Coal India
Limited and its subsidiaries accounted for 66.0%, 68.3%, 67.1%, 80.2%, and 82.7% of the company`s revenue from
operations in the nine months ended December 31, 2025 and December 31, 2024 and Fiscals 2025, 2024
and 2023, respectively. Any decline in demand for its services from Coal India Limited and/or its
subsidiaries could have an adverse impact on the company`s business, results of operations, financial condition
and cash flows.
-
The company significantly depends on the company`s top 10 vendors in its exploration activities to provide services such as
core drilling, geophysical logging, borehole testing, and other field-based technical services and for the company`s
security services. Expenses incurred towards the company`s top 10 vendors as a percentage of revenue from
operations was 20.2%, 16.8%, 14.4%, 17.9% and 14.5% and the expenses in relation to the company`s top 10
vendors as a percentage of the company`s total expenses was 30.9%, 26.0%, 23.3%, 29.9% and 19.5% in the nine
months ended December 31, 2025 and December 31, 2024 and Fiscals 2025, 2024 and 2023, respectively.
Any disruptions in their supply of services could adversely affect its business, results of operations,
financial condition and cash flows.
-
The company is dependent on government funding for its drilling and exploration activities, and any shifts in
policy decisions, changes in fiscal priorities or budget reallocation may have an adverse impact on the company`s
business, results of operations, financial conditions and cash flows.
-
A significant part of the company`s business transactions are with government entities or agencies. In the nine
months ended December 31, 2025 and December 31, 2024 and Fiscals 2025, 2024 and 2023, the company
generated 96.0%, 97.5%, 97.8%, 97.8% and 99.3%, respectively, of its total revenue from operations
from transactions with government entities or agencies, which may expose the company to various risks, including
additional regulatory scrutiny and delayed collection of receivables.
-
A significant portion of the company`s revenues is derived from its geological exploration and resource evaluation
services, which accounted for 45.8%, 45.0%, 46.2%, 38.6% and 39.3% of the company`s revenue from operations
in in the nine months ended December 31, 2025 and December 31, 2024 and Fiscals 2025, 2024 and
2023, respectively. Any decline in demand for the company`s geological exploration and resource evaluation services could have an adverse impact on the company`s business, results of operations, financial condition and
cash flows.
-
The company has certain contingent liabilities that have been disclosed in the Restated Financial Information (Rs2,108.3 million as of December 31, 2025), which if they materialize, may adversely affect its business,
results of operations, financial condition and cash flows.
-
The Company is not in compliance with certain provisions of the SEBI Listing Regulations and the
Companies Act, as may be applicable in relation to the composition of the company`s Board of Directors,
composition and terms of reference of the Audit Committee, Stakeholders` Relationship Committee,
Risk Management Committee, the Nomination and Remuneration Committee and constitution of a
committee of independent directors, as the company is controlled by the GoI.
-
Non-availability of credit ratings may restrict its access to capital and thereby adversely affect the company`s
business, financial conditions, cash flows and results of operations.
-
The Company and Corporate Promoter are involved in certain legal and regulatory proceedings. Any
adverse decision in such proceedings may have an adverse effect on the company`s business, results of operations,
financial conditions and cash flows.
-
Estimates relating to ongoing and new projects and plans in relation to existing operations are
uncertain, and the projects may incur higher costs and lower economic returns than estimated, which
may have an adverse impact on the company`s business, results of operations, financial condition and cash flows.
-
The company is subject to risks associated with its contracts, including our ability to correctly assess pricing
terms other financial obligations, the increased complexity of the company`s contracts and the potential early
termination or change of scope of contracts by clients.
-
The company`s Statutory Auditors have included certain emphasis of matters in their audit report for the audited
financial statements for Fiscal 2025, 2024 and 2023. Further, the company`s Statutory Auditors have also included
certain remarks in the annexure to their audit reports on the Companies (Auditors Report) Order, 2016/
Companies (Auditor`s Report) Order, 2020 for Fiscals 2025, 2024 and 2023.
-
The company does not have access to records and data pertaining to certain historical legal and secretarial
information in relation to certain disclosures. Further, there are certain discrepancies in the records
available with the company.
-
Changes in technology may render its current technologies obsolete. Any failures on the company`s part to
effectively address such situations, innovate and keep up with technological advancements, could adversely affect its business, results of operations, financial condition and cash flows.
-
The company has entered into related party transactions in the past amounting to 86.1%, 83.0%, 74.2%, 89.0%
and 89.1% of the company`s revenue from operations (net of levies) in nine months ended December 31, 2025, nine
months ended December 31, 2024 and Fiscals 2025, 2024 and 2023, respectively, and may continue to
do so in the future.
-
The company`s business is manpower intensive. The company`s business may be adversely affected by work stoppages,
increased wage demands by the company`s employees, or an increase in minimum wages, and if the company is unable to
engage new employees at commercially attractive terms.
-
If the company is unable to recruit and retain senior management, qualified and skilled personnel, the company`s business
and the company`s ability to operate or grow its business may be adversely affected.
-
The company is subject to several labour legislations and regulations governing welfare, benefits and training
of the company`s employees. Any increase in wage and training costs could adversely affect its business, financial
condition and cash flows.
-
The company`s inability to collect receivables in time or at all and default in payment from its clients could result
in the reduction of the company`s profits and affect its cash flows.
-
The company`s backlog generally consists of projects for which the company has an executed contract or commitment with
a client and reflects its expected revenue from the contract or commitment, which is often subject to
revision over time, and is subject to unexpected adjustments such as scope adjustments and deferrals
and project cancellations and, therefore, may not be a reliable indicator of the company`s future revenue or
earnings.
-
The company is dependent upon its equipment and machinery infrastructure, which is subject to disruption,
damage, failures and risks associated with maintenance, upgrade and integration. Any failures to
effectively maintain or upgrade our equipment and machinery infrastructure may have an adverse
impact on the company`s business, results of operations, financial conditions and cash flows.
-
The company`s operations involve a high degree of risk, and exploratory drilling activities may not be successful
which may have an adverse impact on the company`s business, results of operations, financial conditions and cash
flows.
-
The company`s executive employees are seconded from Coal India Limited and the terms of their secondment may
be altered at any time, which may have an adverse impact on the company`s business, results of operations,
financial conditions and cash flows.
-
The company`s exploration activities are subject to the risk of adverse local law and order situations, which may
have an adverse impact on the company`s business, results of operations, financial conditions and cash flows.
-
The company`s business requires working capital. Any failures in arranging adequate working capital for its
operations may adversely affect the company`s business, results of operations, cash flows and financial condition.
-
The company faces a risk of reduced demand of the company`s services due to the emergence of renewable energy as an
alternative source of energy. Significant shift towards sustainable energy solutions may have an adverse
impact on the company`s business, results of operations, financial conditions and cash flows.
-
The Company accounts are subject to a supplementary audit by the office of the Comptroller and
Auditor General of India, and any qualifications in their report on our financial statements could
adversely affect the trading price its Equity Shares.
-
The company is subject to trade union activity, and labor disputes could lead to lost production and/or increased
costs which may have an adverse impact on the company`s business, results of operations, financial conditions and
cash flows.
-
The company may faces operational and coordination challenges in relation to its regional institutes, which could
adversely affect the company`s business, results of operations, financial conditions and cash flows. Further, the
Company does not have any documented terms of arrangement for usage of premises where two of the company`s
regional offices are situated.
-
Changing laws, rules and regulations and legal uncertainties, including adverse application of tax laws,
may adversely affect its business, prospects and results of operations.
-
The mining and mineral consultancy service industry is competitive and the company`s inability to compete
effectively may adversely affect its business, results of operations, financial condition and cash flows
-
Any failures of the company`s information technology systems and tools could adversely affect its business, results
of operations, financial conditions and cash flows.
-
Failures to obtain or renew approvals, licenses, registrations and permits to operate its business in a
timely manner, or at all, may adversely affect the company`s business, financial condition, results of operations
and cash flows.
-
The company`s operations are sensitive to seasonal changes and seasonal variations such as monsoon or extreme
temperatures can disrupt its activities which may have an adverse impact on the company`s business, results of
operations, financial conditions and cash flows.
-
The company`s inability to effectively manage its growth or implement the company`s growth strategies may have an adverse
effect on the company`s business, results of operations, financial condition and cash flows.
-
The company`s Corporate Promoter will continue to have a significant shareholding in the Company after the
Offer and its interests may differ from those of the other shareholders.
-
The company`s business is subject to certain industry threats, concerns, macroeconomic and microeconomic
events, the occurrence of which may have an adverse impact on the company`s business, results of operations,
financial condition and cash flows.
-
There have been certain instances of delays in payment of statutory dues by the company in the past. Any delay in
payment of statutory dues by the company in future, may result in the imposition of penalties and in turn may have
an adverse effect on the company`s business, financial condition, results of operation and cash flows.
-
Any negative publicity relating to `Coal India Limited` brand could adversely affect its business
prospects and financial performance.
-
Non-compliance with and adverse changes in applicable health, safety, labour and environmental laws
may adversely affect its business, cash flows, results of operations and financial condition.
-
The company is wholly-owned by Coal India Limited and controlled by the Government of India, which makes
the company susceptible to changes to the policies of Government of India and allows it to exercise significant
influence over the company. Further, the Government of India could require the company to take actions aimed at serving
the public interest, which may not necessarily be profitable or financially feasible
-
The company does not maintain insurance coverage in accordance with applicable industry standards and the company`s
insurance coverage may not be adequate or the company may incur uninsured losses or losses in excess of the company`s
insurance coverage which could have an adverse impact on the company`s business, results of operations, financial
condition and cash flows.
-
The company`s logo and name have not been registered as trademarks. Accordingly, the company`s ability to use its name or
logo may be impaired. If the company is unable to protect its intellectual property rights, the company`s business, results of operations and financial condition may be adversely affected. As part of the company`s operations,the company might
infringe upon the intellectual property rights of others and any misappropriation of the company`s intellectual
property could harm its competitive position.
-
the company is subject to extensive mining regulations, and any non-compliance with or change in these laws may
adversely affect its results of operations, finances and business.
-
The company will not receive any proceeds from the Offer.
-
The Company may not be able to pay dividends in the future. The company`s ability to pay dividends in the future
will depends upon its future earnings, financial condition, profit after tax available for distribution,
cash flows, working capital requirements and capital expenditure requirements.
-
Certain sections of this Red Herring Prospectus disclose information from the CRISIL Report which is
a paid report and commissioned and paid for exclusively in connection with the Offer and any reliance
on such information for making an investment decision in the Offer is subject to inherent risks.
-
Internal or external fraud or misconduct by the company`s employees could adversely affect its reputation and
the company`s results of operations.
-
Failures in internal control systems could cause operational errors which may have an adverse effect
on the company`s reputation, business, results of operations, financial condition and cash flows.
-
The company has included certain non-GAAP financial measures and certain other industry measures related
to the company`s operations and financial performance in this Red Herring Prospectus in the section,
"Management`s Discussion and Analysis of Financial Condition and Results of Operations - Non-
GAAP Measures" on page 419. These non-GAAP measures and industry measures may vary from any
standard methodology that is applicable across the industry, and therefore may not be comparable with
financial or industry related statistical information of similar nomenclature computed and presented by
other companies.
-
The company`s operations are predominantly concentrated in India, exposing us to risks arising from a lack of
geographical diversification.
-
The company faces risks related to the execution challenges associated with its strategic initiative to diversify into
the mineral sector.
-
The company`s Corporate Promoter, a listed entity has received various notices from the stock exchanges in the past
in respect of violations of SEBI Listing Regulations.
-
The Company may bear certain expenses in connection with the Offer for Sale on behalf of the Promoter
Selling Shareholder.
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