Finelistings

Risks

• The Company, Promoters, Directors and Group Companies are parties to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.

• The company depends on a limited number of customers for a significant portion of its revenue from operations. The loss of any of its major customer due to any adverse development or significant reduction in business from the company major customer may adversely affect its business, financial condition, results of operations, cash flow and future prospects.

• Increasing competition in used car business through online and offline players, including authorized dealers, unorganized players may have an adverse impact on its business, result of operations and financial condition.

• Used vehicles in its car showroom may be stolen, damaged or destroyed before these vehicles can be sold. Further, inventory stored at its Godown which is situated underground of its car showroom, parked with it may be stolen or used without its authorization or for illegal activities, exposing it to liabilities and negative publicity and damage the trust and confidence of its customers.

• The company relies on third-party service providers for many aspects of its business, and any failure to maintain these relationships could harm its business.

• The company depends on the reliability of pre-owned car to meet its customer expectation.

• The company does not have long-term agreements with suppliers for supplying pre-owned cars or a shortfall in the availability or quality of such cars could have an adverse effect on its business, financial condition and results of operations.

• Its may be adversely affected by fraudulent behavior of sellers or purchasers of used vehicles listed on the company platforms.

• Documentation and Legal Compliance.

• Its business will suffer if the company fail to anticipate and develop new services and enhance existing services in order to keep pace with rapid changes in technology and the industries on which its focus.

• The company`s business is dependent on developing and maintaining continuing relationships with its clients and customers. The loss of any significant client or customer could have a material adverse effect on its business, financial condition and results of operations.

• Any failure to maintain, protect and enhance the recognition and reputation of its brands could limit the company ability to retain or expand its customer base and may adversely affect its business.

• Intense competition in the market for technology services could affect its pricing, which could reduce its share of business from clients and decrease the company revenues and profitability.

• Its existing car showroom are concentrated in a single region i.e., Delhi, NCR and the inability to operate and grow its business in this particular region may have an adverse effect on its business, financial condition, results of operations, cash flows and future business prospects.

• Its sales and profitability could be harmed if the company is unable to maintain or improve its brand image. Further any negative publicity with respect to its products could adversely affect its brand, business, financial condition and results of operations.

• Its may experience disruptions, failures or breaches of the company technology platforms.

• Its actual or perceived failure to protect personal information and other data could damage its reputation and brands.

• Its Showroom/ Registered Office and Godown are located on leased and licensed premises and consequently, the company is required to comply with certain requirements given under lease and license agreements.

• Changes in technology may render its current technologies obsolete or require the company to make substantial capital investments.

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

• Its success largely depends upon the knowledge and experience of the company Promoters, Directors, its Key Managerial Personnel and Senior Management as well as its ability to attract and retain personnel with technical expertise. Any loss of its Promoter, Directors, Key Managerial Personnel, Senior Management or its ability to attract and retain them and other personnel with technical expertise could adversely affect its business, financial condition and results of operations.

• The company depends on skilled personnel and if its unable to recruit and retain skilled personnel, the company ability to operate or grow its business could be affected.

• Its investments in marketing may fail to drive attention for its websites and apps and may not result in additional transactions completed through its platform.

• Its may not be able to procure financing for vehicle purchases by customers.

• Reliance has been placed on declarations furnished by Arjun Kumar Rajput, its Managing Director, for details of his profile included in this Draft Prospectus. Its Promoter Arjun Kumar Rajput, has been unable to trace copies of certain documents pertaining to his educational qualifications.

• The company is required to obtain, renew or maintain certain statutory and regulatory permits and approvals to operate its business, and if the company fail to do so in a timely manner or at all, then its business, financial conditions, results of operations, and cash flows may be adversely affected. Also, some of its approvals are required to be transferred to Finelistings Technologies Limited from Finelistings Technologies Private Limited, pursuant to name change of the company and any failure or delay in obtaining the same in a timely manner may adversely affect its operations.

• There have been certain instances of regulatory non-compliances or delays or errors in the past. Its may be subject to regulatory actions and penalties for any such past or future non- compliance or delays or errors and its business, financial condition and reputation may be adversely affected.

• Its may be required to raise additional funds through equity or debt in the future to continue to grow its business, which may not be available on favourable terms or at all. Further, the company will not receive any proceeds from the Offer.

• Its may not be able to accurately manage the company inventory, this may adversely affect its goodwill and business, financial condition and results of operations.

• The orders placed by customers may be delayed, modified or cancelled, which may have an adverse effect on its business, financial condition and results of operations.

• The Company had negative cash flows in the past years, details of which are given below. Sustained negative cash flow could impact its growth and business.

• Its may not be able to sustain effective implementation of its business and growth strategies.

• Its may not be fully insured for all losses the company may incur.

• Its business may expose it to potential product liability claims, which could adversely affect its results operation, goodwill and the marketability of the company products.

• Its Directors and Key Managerial Personnel have interests in it other than the reimbursement of expenses incurred and normal remuneration and benefits.

• Failure or disruption of its IT, manufacturing automation systems may adversely affect the company`s business, financial condition and results of operations.

• Its ability to pay dividends will depends upon future earnings, financial condition, cash flows, working capital requirements, capital expenditures and other factors.

• Any inability to address changing industry standards and consumer trends may adversely affect its business, results of operations and financial condition.

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

• Within the parameters as mentioned in the chapter titled "Objects of this Issue" beginning on page 77 of this Draft Prospectus, the Company`s management will have flexibility in applying the proceeds of the Issue. The fund requirement and deployment mentioned in the Objects of this Issue have not been appraised by any bank or financial institution.

• Its 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.

• Its might infringe upon the intellectual property rights of others and any misappropriation of its intellectual property could harm the company competitive position.

• Its may be unable to protect the company intellectual property or knowhow from third party infringement which could harm its brand and services.

• Employee misconduct including misuse of confidential data and failure to maintain confidentiality of information could harm it and is difficult to detect and deter.

• The company reported a restated loss for the previous financial year. And may incur additional losses in the future.

• 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.

• The company has issued Equity Shares in the one year period prior to the date of this Draft Prospectus.

• If the company is unable to establish and maintain an effective internal controls and compliance system, its business and reputation could be adversely affected.

• Its Directors, Key Managerial Personnel and Senior Management may have interests other than reimbursement ofexpenses incurred and normal remuneration or benefits in the Company.