Addictive Learn

Good track record.

Cordial relations with its students, learners.

Leveraging the experience of its Promoters.

Experienced management team and a motivated and efficient work force.

Cordial relations with its Employees and Professionals.

Quality assurance and control.

Quality Deliverables.

The company is recognised by its brand name.

There is outstanding litigation pending against its Promoters which, if determined adversely, could affect the company business, results of operations and financial condition.

The company reported a restated loss after tax in some of the previous years and may incur additional losses in the future.

Its present promoters of the Company are first generation entrepreneurs.

The Company does not own the premises through which its conduct the company`s business operations.

The Company has negative cash flows from its investing and its financing activities in the current and previous years, details of which are given below. Sustained negative cash flow could impact its growth and business.

Subject matter teachers and content creation experts are the key to its business. Thus, Employees Benefit expenses and professional charges constitute a major portion of its expenses. Such a significant increase in this cost could lead to lower profitability.

Conflict of interest may arise out of common business objects with group companies.

Its Subsidiary company and the company`s group entities have incurred losses in the past and may incur losses in the future.

Its major revenue is sourced from its Legal Courses Vertical Operated under the company`s Brand "LawSikho" its inability or failure to manage and attract more clients could adversely affect its business.

The company has entered into strategic partnership and collaboration with various universities and institutions for providing accreditation and certification.

Its may be required to enter into strategic partnerships and acquisitions in the future, in relation to its growth strategy. If the company is unable to successfully identify and integrate acquisitions, its growth strategy and prospects may be adversely affected.

Its brand name may not be easily acceptable out of India.

One of its Objects to the Issue includes development of new courses. If the company is unable to attract students for new courses, its may not be able to justify the expenditure of the IPO proceeds.

One of its Objects to the Issue includes Identified Acquisition. If the company is unable to fulfil the conditions of agreement, its may not be able to justify the expenditure of the IPO proceeds.

The company is an online educational technology platform. The company does not have any physical presence and maintain its business online on remote basis only.

The company use a Learning Management System (LMS) for providing its courses and programs to students. Its relies on a third-party software for providing the company services.

The company does not have any single software to check the cost and benefit of its human resources & to manage its day-to-day business activities such as accounting, procurement, project management, risk management and compliance, and supply chain operations. Failure to manage its resources could have an adverse effect on its sales, profitability, cash flow and liquidity.

The company has in past entered into related party transactions and its may continue to do so in the future.

The Company requires a significant amount of working capital for a continuing growth. Its inability to meet its working capital requirements may adversely affect the company results of operations.

The company has a policy for refund of fees, if the students are unwilling to continue the classes subject to certain terms and conditions.

The company is dependent on its Individual Promoters and its management team and the loss of, or its inability to hire, retain, train, and motivate qualified personnel could adversely affect its business, results of operations and financial condition.

Its Promoters and promoter group have significant controlling interest over the Company and have the ability to direct its business and affairs; their interests may conflict with your interests as a shareholder. Further they have interests in the Company other than reimbursement of expenses incurred or normal remuneration or benefits.

The company operates in a significantly fragmented and competitive market and any failure on its part to effectively compete may adversely affect the company profitability and market share.

Significant security breaches in its software, data and network infrastructure and fraud could adversely impact its business.

If the company fail to maintain an effective system of internal controls, its may not be able to successfully manage or accurately report its financial risk.

The Company may be subject to acquisition or actions relating to infringement or misappropriating intellectual property rights or confidential know-how of third parties.

Its marketing and advertising activities may not be successful in increasing the popularity of the Company among domestic and international clients. If its marketing or advertising initiatives are not effective, this may affect the popularity of the Company.

Its funding requirements and proposed deployment of the Net Proceeds have not been appraised by a bank or a financial institution and if there are any delays or cost overruns, its may have to incur additional cost to fund the objects of the Issue because of which its business, financial condition and results of operations may be adversely affected.

The Company may not have complied with certain statutory provisions of the Companies Act, 2013. Such non-compliances / lapses may attract penalties and prosecution against the Company and its directors which could impact on the financial position of the Company to that extent.

If the company is not successful in executing its strategy to increase its sales to new customers and generate new engagements, the company results of operations may suffer.

Its profitability will suffer if its not able to maintain its pricing, control costs or continue to expand the company`s business through more students engagements.

Maintaining the Company image and reputation in the industry is critical to its success, and any failure to do so could damage the company reputation and brand.

Business operation and stability depends on many factors, its may not be able to effectively implement the company`s business and growth strategy.

The average cost of acquisition of Equity Shares by its Promoters is lower than the issue price.

The company is required to maintain certain approvals and licenses required in the ordinary course of business and the failure to obtain or renew them in a timely manner or at all may adversely affect its operations.

In addition to normal remuneration, other benefits and reimbursement of expenses some of its directors (including its Promoters) and Key Management Personnel are interested in the Company to the extent of their shareholding and dividend entitlement in the Company.

Any variation in the utilisation of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders` approval.

An inability to maintain adequate insurance cover in connection with its business may adversely affect its operations and profitability.

The Company has issued Equity Shares during the last twelve months at a price which may be lower than the Offer Price.

Significant differences exist between Ind AS and other accounting principles, such as Indian GAAP, IFRS and U.S. GAAP, which may be material to investors` assessments of its financial condition, result of operations and cash flows.

Certain Agreements, deeds or licenses may be in the previous name of the company.

The company has not made any alternate arrangements in order to meet its capital requirements for the Objects of the Issue. Additionally, the company has not identified any alternate source of financing the `objects of the Issue. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.

The Company is subject to foreign exchange control regulations which can pose a risk of currency fluctuations.

Its ability to pay dividends in the future may be affected by any material adverse effect on its future earnings, financial condition or cash flows.

Industry information included in this Draft Red Herring Prospectus has been derived from an industry report from various websites. The reliability on the forecasts of the reports could be incorrect and would significantly impact its operations.

The Company`s future funding requirements, in the form of further issue of capital or other securities and/or loans that might be availed by it, may turn out to be prejudicial to the interest of the shareholders depending upon the terms and conditions on which they are raised.