Kore Digital

Risks

• There are certain outstanding legal proceeding involving its Promoter and Promoter Entities which may adversely affect its business, financial condition and results of operations.

• Delays in the acquisition of the rights of way permission from government or local authorities may adversely affect its timely performance of its contracts and lead to disputes and losses.

• The company business and its financial condition would be materially and adversely affected if its fail to obtain new vendor projects or identify new routes to develop.

• The company results of operations are subject to adverse weather conditions. Any adverse condition may affect its ability to achieve or sustain profitability in the future, which adversely affect its business.

• Substantial portion of its revenues has been dependent upon limited number of customers.

• The company business is dependent on the availability and supply and cost of equipment`s. Any significant increase in the prices including the taxes and levies or decrease in the availability of any of the equipment`s may adversely affect its results of operations.

• The company failure to accurately forecast and manage inventory could result in an unexpected shortfall and/or surplus of products, which could harm its business.

• Orders placed by customers may be delayed, modified, cancelled or not fully paid for by its customers, which may have an adverse effect on the company business, financial condition and results of operations.

• The company business is geographically concentrated largely in one region, Maharashtra. Any loss or shutdown of operations at any of its facilities in this area may have an adverse effect on its business and results of operations.

• The company could be adversely affected if its fail to keep pace with technical and technological developments in the industry.

• The company insurance coverage may not be adequate to protect its against certain operating hazards and this may have a material adverse effect on its business.

• Its operations are subject to physical hazards and similar risks that could expose us to material liabilities, loss in revenues and increased expenses.

• Increase in wages payable to the employees and increases in operating costs in India may prevent it from sustaining its competitive advantage and may reduce the company profit margins.

• Its inability to manage losses due to fraud, employee negligence, theft or similar incidents may have an adverse impact on its profitability and the company reputation.

• The Objects of the Issue for which funds are being raised have not been appraised by any bank or financial institution. The deployment of funds is entirely at the discretion of its management and as per the details mentioned in the section titled "Objects of the Issue". Any revision in the estimates may require us to reschedule its expenditure and may have a bearing on the company expected revenues and earnings.

• The company has working capital requirements. If its experience insufficient cash flows to make required payments on its debt or fund working capital requirements, there may be an adverse effect on its results of operations.

• The loss of key suppliers or their failure to deliver equipment and material on a timely basis could negatively impact its business prospects and results of operations.

• The Company had negative cash flow from certain activity in recent fiscals, details of which are given below.

• The Company has allotted Equity Shares during the preceding one year from the date of the Prospectus which are lower than the Issue Price.

• The company have 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.

• The company warehouse is on leased/ rented premises and leave & license agreement have been executed for the same. Any termination or dispute in relation to these lease/ rental agreements may have an adverse effect on its business operations and results thereof.

• The company intend to utilize a portion of its Net Proceeds towards strategic acquisitions and/ or joint ventures.

• The company derive a significant portion of its revenue from the company IP Leasing business. Therefore, factors that adversely affect the demand for such operation or its position and reputation as a provider of such telecom operation services may adversely affect its business and results of operations.

• The company financing agreements contain covenants that limit its flexibility in operating the company business. Its inability to meet its obligations, including financial and other covenants under its debt financing arrangements could adversely affect the company business, results of operations and financial condition.

• The Company has not registered the trademark. Its ability to use the trademark may be impaired if the same is not registered under the company name.

• There are certain instances of delayed filings in some of the corporate records of the Company.

• A failure to obtain, retain and renew approvals, permits and licenses or changes in applicable regulations or their implementation could have an adverse effect on its business.

• The company will face intense competition, some of its future competitors will have superior resources, which may place its at a cost and price disadvantage. which could adversely affect it.

• The company inability to manage growth could disrupt its business and reduce the company profitability.

• The company has relied on declarations and undertakings for certain details in relation to its Promoters, Directors and Key Managerial Personnel as mentioned in "Our Management" chapter in this Prospectus.

• The company is dependent on a number of Key Management Personnel, including its Promoters, Directors, senior management, and the loss of or its inability to attract or retain such persons could adversely affect its business, results of operations and financial condition.

• The company ability to pay dividends will depend upon future earnings, financial condition, cash flow, working capital requirements, capital expenditures and other factors.

• The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Offer.

• Delay in raising funds from the IPO could adversely impact the implementation schedule.

• The company Board of Directors and management may change its operating policies and strategies without prior notice or shareholder approval.

• In addition to normal remuneration or benefits and reimbursement of expenses, some of its Promoters and/ or Directors and/ or Key Managerial Personnel`s are interested in the Company to the extent of their shareholding and dividend entitlement thereon in the Company.

• There is no monitoring agency appointed by the Company and the deployment of funds are at the discretion of its Management and its Board of Directors, though it shall be monitored by the Audit Committee.

• The Company has not appointed any independent agency for the appraisal of the proposed Project.

• Any variation in the utilization of the Net Proceeds as disclosed in this Prospectus shall be subject to certain compliance requirements, including prior Shareholders` approval.

• The company has not commissioned an industry report for the disclosures made in the chapter titled "Industry Overview" and made disclosures on the basis of the data available on the internet.

• The requirements of being a listed company may strain its resources.