Drone Destinatio

Risks

• The company training business, (training through drones) is highly regulated and subject to change, its has DGCA license subject to certain conditions. If its fail to comply with the applicable regulations, rules prescribed by Government of India as well as condition on which DGCA license has issued, its business, financial condition may have a material adverse effect on its business & operations.

• Presently the drone industry is in a nascent stage. If the industry does not experience significant growth, then the company will not be able to achieve its anticipated level of growth.

• The company is highly dependent on its group company and other drone manufacturing companies for meeting it drone demands. The company may not be able to acquire desired drones if the group company delays in manufacturing and delivery of the drones or unable to manufacture drones whether because of scarcity or unavailability of raw material or otherwise.

• Any unauthorized access or intrusion into its software or systems, as well as any form of cyber-attack, could significantly harm the company business and have a negative impact on its financial condition and operating results.

• The Company has not complied with certain statutory provisions of the Stamp Act, 1899. Such noncompliances / lapses may attract penalties and prosecution against the Company and its directors which could impact the financial position of the Company to that extent.

• The company drones are not operational during the monsoon season, due to the increased risk of damage to its equipment and potential safety hazards. As a result, extended monsoons can directly impact its revenue from operations.

• There are outstanding legal proceedings involving the Company as well as promoter and Directors. Any adverse outcome on such proceedings may affect its business, financial condition and reputation.

• There are outstanding legal proceedings involving the company group companies. Any adverse outcome on such proceedings may affect its business, financial condition and reputation.

• There are outstanding legal proceedings involving one of its Promoter. Any adverse outcome on such proceedings may affect the company business and reputation.

• The Company may incur penalties or liabilities for non-compliances with certain provisions of the GST Act and EPF Act and other applicable laws in the last Years.

• The Company may incur penalties or liabilities for non-compliances with certain provisions of the Companies Act and other applicable laws in the last three (3) Years.

• The company business requires substantial working capital requirement and may require additional financing to meet working capital requirement in the future. If its unable to borrow or raise additional financing, it would adversely impact its business and operations.

• The Company does not own the premises through which its conduct it business operations.

• The company has entered into various agreements/memorandum of understanding with various entities for imparting drone training, its business and financial positions including cash flow would adversely affect its business, in case the company is unable to renew or cancellation of existing agreements/memorandum of understanding.

• To increase its reach across India, the company has entered into agreement with various organisations for imparting training. If its unable to secure further agreements/memorandum of understandings, then the company may not able to achieve its desired growth.

• The company has not received any work orders directly for Survey and Mapping, but through its GIS partners.

• The company revenue share inter alia comes from imparting training and from survey and mapping. If its unable to attract new students for the company Remote Pilot Training Organization or take up new tender/work orders from government, then the financial growth and cash flows will be adversely affected.

• The company has faced losses in one out of three previous financial years.

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

• The company 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 the company business, financial condition and results of operations may be adversely affected.

• The company business has benefitted significantly by schemes launched by GoI to boost the drone industry. Any change/variation in such schemes would have an adverse impact on its operations and financial condition.

• If the drone industry does not experience significant growth, or if its products lack multiple use applications, then the company will not be able to achieve its anticipated level of growth.

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

• Inability to protect its intellectual property or any claim that the company infringe on the intellectual property rights of others could erode its competitive advantage and could have a material adverse effect on it.

• The company is heavily dependent on its promoters, directors and key managerial personnels for its future growth, any loss of or the company inability to attract or retain such persons could adversely affect its business.

• The company promoter and member of promoter group jointly will continue to have majority control over the Company will may allow them to determine the outcome of matters submitted to shareholders for approval.

• The company insurance policy may not be adequate to cover all the losses which a business could incur. Any inability to maintain adequate cover from material adverse incidents may adversely affect its operation and profitability.

• The company has entered into related party transaction in past and may continue to do so in future and which may involve potential conflict of interest.

• The company has not identified any alternate source of funding and hence any failure or delay on its part to mobilize the required resources or any shortfall in the issue proceeds may delay the implementation schedule.

• The company business may be subject to dispute with employees whether relating to employment or any other kind of conflicts may adversely impact on its business.

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

• Fluctuation of Interest rate may adversely affect the Company`s business.

• Any variation in the utilization of net proceeds would be subject to certain compliance requirements, including prior shareholders` approval.

• The company inability to establish internal control systems could cause operational errors which may adversely affect its business.

• The Company may experience challenges with respect to labour relations, its overall operating costs and profitability could be adversely affected and the company reputation could be harmed.

• 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.

• The company 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.

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

• The company 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 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.

• Sale of Equity Shares by our Promoters or other significant shareholder(s) or any future issue of Equity Shares may dilute your shareholding and adversely affect the trading price of the Equity Shares.