Risk Disclosure Statement

Last Updated: December 9, 2025

1. General Investment Risks

1.1 Market Risk

Real estate values can fluctuate significantly due to economic conditions, supply and demand, interest rates, and other market factors. The value of your investment may decrease, and you may not receive your expected returns.

1.2 Liquidity Risk

Real estate investments are typically illiquid. Unlike publicly traded securities, you cannot easily sell your investment. Early exit may result in penalties or complete loss of capital. Lock-in periods may apply as specified in individual investment agreements.

1.3 Capital Loss Risk

You may lose all or a substantial portion of your invested capital if:

• Project does not perform as expected
• Market conditions deteriorate significantly
• Construction or development issues arise
• Legal or regulatory challenges impact the project
• Company faces financial difficulties

2. Project-Specific Risks

2.1 Construction and Development Risk

Real estate development projects face numerous challenges:

• Delays: Construction may be delayed due to weather, labor issues, material shortages, or regulatory approvals
• Cost Overruns: Actual costs may exceed budgeted amounts
• Quality Issues: Construction defects may require expensive remediation
• Contractor Default: Contractors or subcontractors may fail to complete work

2.2 Regulatory and Legal Risk

Projects may be affected by:

• Changes in zoning laws or building codes
• Delays in obtaining necessary permits and approvals
• Environmental regulations and compliance requirements
• Land acquisition and title disputes
• Litigation from third parties
• Changes in tax laws affecting real estate

2.3 Location Risk

Property location significantly impacts value. Risks include:

• Declining neighborhood conditions
• Changes in infrastructure or transportation access
• Natural disasters (floods, earthquakes)
• Environmental contamination

3. Financial Risks

3.1 Returns Not Guaranteed

Any projected or indicative returns are estimates only and not guaranteed. Actual returns may be significantly lower than projections or even negative. Factors affecting returns include:

• Slower-than-expected sales or leasing
• Lower-than-projected sale prices or rental rates
• Higher operating costs
• Unexpected expenses

3.2 Financing Risk

If projects rely on debt financing:

• Interest rate increases can reduce profitability
• Loan defaults may result in foreclosure
• Refinancing may not be available on favorable terms
• Leverage amplifies both gains and losses

3.3 Payment Default Risk

There is a risk that Capiman Infra Private Limited may be unable to make scheduled payments to investors due to cash flow issues, project underperformance, or other financial difficulties.

4. Company-Specific Risks

4.1 Business Risk

Capiman Infra Private Limited faces risks common to all businesses, including:

• Management decisions that negatively impact performance
• Loss of key personnel
• Operational inefficiencies
• Competitive pressures
• Reputation damage

4.2 Conflicts of Interest

Potential conflicts of interest may arise, including:

• Company also acting as developer, contractor, or property manager
• Related party transactions
• Allocation of opportunities among different investors

5. Regulatory and Tax Risks

5.1 Regulatory Changes

Changes in laws and regulations may adversely affect investments:

• Real Estate (Regulation and Development) Act (RERA) compliance
• Foreign investment restrictions
• Securities regulations
• Environmental laws

5.2 Tax Risk

Tax treatment of investment returns may change. Tax laws are complex and subject to modification. Consult your tax advisor regarding:

• Income tax implications of returns
• Capital gains tax on exit
• Goods and Services Tax (GST) impacts
• TDS requirements

6. Investor Suitability

Suitable Investors

These investments are suitable only for investors who:

• Can afford to lose their entire investment without impacting their financial security
• Have sufficient net worth and income to bear investment risks
• Have experience investing in illiquid, high-risk investments
• Do not need liquidity for the investment period
• Understand and accept the risks described in this document

7. Your Responsibilities

Before investing, you must:

1. Conduct Due Diligence: Research the company, project, and market conditions
2. Seek Professional Advice: Consult financial, legal, and tax advisors
3. Review All Documents: Carefully read all investment documents, terms, and conditions
4. Understand Risks: Ensure you fully understand and accept all risks
5. Invest Appropriately: Only invest amounts you can afford to lose
6. Diversify: Do not concentrate your entire portfolio in one investment

8. Disclaimer

This Risk Disclosure Statement does not purport to disclose all risks associated with investing in real estate projects. Additional risks may exist that are not described here.

No Advice: This document does not constitute investment advice. We recommend you consult qualified professionals before making any investment decision.

No Guarantee: Nothing in this document should be construed as a guarantee or promise of investment returns or principal protection.

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INVESTMENT IN REAL ESTATE INVOLVES RISK. PLEASE INVEST ONLY IF YOU CAN AFFORD TO LOSE YOUR ENTIRE INVESTMENT.