Afcom

Risks

• A member of its Promoter Group, namely P Karthik Iyer Parasuraman is involved in legal proceedings involving SEBI and /or Stock Exchange and CBI.

• The company`s top five customers contribute majority of its revenues from operations. Any loss of business from one or more of them may adversely affect its revenues and profitability.

• Any delay in delivering the goods could adversely affect its Business and operations.

• The company individual Promoters plays key role in its functioning and the company heavily relies on their knowledge and experience in operating its business and therefore, it is critical for the company`s business that its Promoter and Executive Directors remain associated with it. The company`s success also depends upon the services of its key managerial personnel and the company`s ability to attract and retain key managerial personnel and its inability to attract them may affect the company`s operations.

• The Company has negative cash flow in the past and may continue to do in future, which could have a material adverse effect on its business, prospects, financial condition, cash flows and results of operations.

• Due to confidentiality of Information the company can not disclose the names of the global aircraft lessors with whom agreement will enter in the offer document.

• Its Registered Office from where the company operates is not owned by it.

• There are outstanding legal proceedings involving the Company. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.

• Its ability to attract, train and retain executives and other qualified employees is critical to the company`s business, results of operations and future growth.

• The Company has availed certain unsecured loans.

• Its Promoters have extended personal guarantees with respect to various loan facilities availed by the Company. Revocation of any or all of these personal guarantees may adversely affect its business operations and financial condition.

• The company has in the past entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interest with the equity shareholders.

• There have been instances of delays of certain forms which were required to be filed as per the reporting requirements under the Companies Act, 2013 to ROC.

• The company could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect its financial condition, results of operations and reputation.

• Any delays in EPF Payments and TDS payments may expose it to penalties from regulators.

• Its may be unable to adequately protect the company intellectual property and may be subject to risks of infringement Claims.

• The company requires certain approvals and licenses in the ordinary course of business and the failure to successfully obtain/renew such registrations would adversely affect its operations, results of operations and financial condition.

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

• Its Promoters and Executive Directors hold Equity Shares in the Company and are therefore interested in the Company`s performance in addition to their remuneration and reimbursement of expenses.

• Relevant copies of educational qualifications and Experience of Capt. Deepak Parasuraman Director and Promoter is not traceable.

• Conflicts of interest may arise out of common business undertaken by the Company and its Group Entities.

• The Company`s management will have flexibility in utilizing the Net Proceeds from the Issue. The deployment of the Net Proceeds from the Issue is not subject to any monitoring by any independent agency.

• Further, pursuant to Section 27 of the Companies Act 2013, any variation in the objects would require a special resolution of the Shareholders and its Promoters or controlling Shareholders will be required to provide an exit opportunity to the Shareholders of the Company who does not agree to such proposal to vary the objects, in such manner as may be prescribed in future by the SEBI.

• The deployment of funds raised through this Offer shall not be subject to any Monitoring Agency and shall be purely dependent on the discretion of the management of the Company.

• Its insurance coverage may not be adequate to protect the company against all potential losses to which its may be subject and this may have a material effect on the company`s business and financial condition.

• Non-compliance with amendment in Safety, Health and Aircraft laws and other applicable regulations, may adversely affect the Company`s results of operations and its financial condition.

• The company has not independently verified certain data in this Red Herring Prospectus.

• Rights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.

• The company will continue to be controlled by its Promoter and Promoter Group after the completion of the Issue, which will allow them to influence the outcome of matters submitted for approval of its shareholders.

• The company is susceptible to risks relating to unionization of its employees employed by the company.

• Any future issuance of Equity Shares may dilute your shareholdings, and sale of the Equity Shares by its major shareholders may adversely affect the trading price of the company Equity Shares.

• Its inability to effectively implement the company`s business and growth strategy may have an adverse effect on its operation and growth.

• In the event there is any delay in the completion of the Offer, or delay in schedule of implementation, there would be a corresponding delay in the completion of the objects of this offer which would in turn affect its revenues and results of operations.

• There are restrictions on daily movements in the price of the Equity Shares, which may adversely affect a shareholder`s ability to sell, or the price at which it can sell, Equity Shares at a particular point in time.

• There is no guarantee that the Equity Shares issued pursuant to the Issue will be listed on the SME Platform of BSE Limited in a timely manner, or at all.