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The company do not own the premises in which its registered office and back office is located and the same is on lease arrangement. Any termination of such lease/license and/or non-renewal thereof and attachment by Property Owner could adversely affect the company operations.
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The Company is dependent on few numbers of customers for sales. Loss of any of this large customer may affect its revenues and profitability.
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Majority of the companyh revenue from operations is derived from AHA Market and its financial performance may be adversely affected by an inability to generate income from such activities.
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One of the company business verticals is a high volume-low margin business.
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The company business is highly dependent on technology and any disruption or failure of its technology systems may affect the company operations.
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The Company operates under several statutory and regulatory permits, licenses and approvals. Its failure to obtain and/or renew any approvals or licenses in future may have an adverse impact on the company business operations.
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The company individual Promoters plays key role in its functioning and the company heavily rely on their knowledge and experience in operating its business and therefore, it is critical for the company business that the Promoter and Executive Directors remain associated with it. The company success also depends upon the services of its key managerial personnel and the company ability to attract and retain key managerial personnel and its inability to attract them may affect the company operations.
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The company insurance coverage may not be adequate to protect it against certain operating hazards and this may have a material adverse effect on its business.
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The company failure to perform in accordance with the standards prescribed in work order of its client could result in loss of business or compensation payment.
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The company ability to attract, train and retain executives and other qualified employees is critical to its business, results of operations and future growth.
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The company investments in human capital and technology may not yield the intended results.
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The Company requires significant amount of working capital for a continued growth. Its inability to meet the company working capital requirements may have an adverse effect on its results of operations.
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The Company has negative cash flow from operating activity in recent fiscals, details of which are given below. Sustained negative cash flow could adversely impact its business, financial condition and results of operations.
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Inability to effectively manage the company growth and related issues could materially and adversely affect its business and impact the company future financial performance.
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Client contracts are generally of a short duration and contain termination provisions that could decrease the company revenues and earnings.
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Clients may delay or default in making payments for services which could affect the cash-flows and liquidity of the Company.
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The company may be liable to its clients for damages caused by system failures, disclosure of confidential information or data security breaches, which could harm its reputation and cause it to lose clients.
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There are certain discrepancies and non- compliances noticed in some of the corporate records relating to forms filed with the Registrar of the Companies.
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In addition to normal remuneration, other benefits and reimbursement of expenses to the Promoters and Directors; they are interested to the extent of their shareholding and dividend entitlement thereon in the Company and for the transactions entered into between the Company and themselves as well as between the Company and its Group Companies/Entities. The Company in future may enter in related party transactions subject to necessary compliances.
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The Company, Promoters, Promoters Group and Group Companies are party to certain litigation and claims. These legal proceedings are pending at different levels of adjudication before various courts and regulatory authorities. Any adverse decision may make it liable to liabilities/ penalties and may adversely affect the company reputation, business and financial status.
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The average cost of acquisition of Equity shares by the company Promoters is lower than the Issue price.
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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.
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The company revenues and profitability vary across its business verticals, thereby making the future financial results less predictable.
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The company Promoters and members of the Promoter Group will continue jointly to retain majority control over the Company after the Issue, which will allow them to determine the outcome of matters submitted to shareholders for approval.
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There is no monitoring agency appointed by the Company to monitor the utilization of the Issue proceeds.
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Industry information included in this draft prospectus has been derived from industry reports. There can be no assurance that such third-party statistical, financial and other industry information is either complete or accurate.
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Within the parameters mentioned in the chapter titled "Objects of this Issue" of this draft prospectus, the Company`s management will have flexibility in applying the proceeds of this Issue. The fund requirement and deployment mentioned in the Objects of this Issue have not been appraised by any bank or financial institution.
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The company has not identified any alternate source of raising the funds required for the object of the Issue and the deployment of funds is entirely at its discretion and as per the details mentioned in the section titled "Objects of the Issue".
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Any variation in the utilization of the Net Proceeds as disclosed in this Draft Prospectus shall be subject to certain compliance requirements, including prior Shareholders` approval.
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Any future issuance of Equity Shares may dilute your shareholdings, and sale of the Equity Shares by the company major shareholders may adversely affect the trading price of its Equity Shares.
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The company ability to pay dividends in the future will depend upon its future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in the company financing arrangements.
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The company inability to effectively implement its business and growth strategy may have an adverse effect on the company operation and growth.
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The requirements of being a public listed company may strain its resources and impose additional requirements.