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The Company and some of its group companies are party to certain litigation and claims. These legal proceedings are pending at different levels of adjudication before various regulatory authorities. Any adverse decision may make it liable to liabilities or may adversely affect its reputation/ business/financial status.
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There have been instance of deficiency and/or inaccuracies in the regulatory filings by the Company. Consequently, its may be subject to regulatory actions and penalties for such delays which may adversely impact its business and financial condition.
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The company does not own registered office which is used by it currently.
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The company operates in highly competitive markets, and fragmented market with low entry barrier.
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The company is highly dependent on certain key customers for a substantial portion of its revenues. Loss of relationship with any of these customers may have a material adverse effect on its profitability and results of operations.
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Its top ten suppliers contribute majority of the company purchases. Any loss of business with one or more of them may adversely affect its business operations and profitability.
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The Company has reported certain negative cash flows from its investing activity and financing activity, details of which are given below. Sustained negative cash flows could impact its growth and business.
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Changes in technology render its current IT equipments obsolete and require the company to make substantial capital investments.
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Its business relies heavily on capital investments. If its cannot secure additional funds when required, or if the terms are not favorable, the company may need to scale back or even abandon its expansion and growth initiatives. This could also entail reducing capital spending and the scale of its operations, any of which could have a significant and negative impact on its business, financial standing, and operational results.
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If customers choose not to outsource their IT product needs or if there is a decline in the demand for IT equipment rentals, it may negatively impact its business, financial performance, financial health, and cash flow.
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The company generally doing business with its customers on purchase order basis and does not enter into long term contracts with them. Its inability to maintain relationships with the company customers could have an adverse effect on its business, prospects, results of operations and financial condition.
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The company has not entered into any long term or definitive agreements with its Suppliers. The company`s inability to obtain necessary inventory from its Suppliers in a timely manner, in sufficient quantities and / or at competitive prices could adversely affect its operations, financial condition and / or profitability.
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Its business operations are majorly concentrated in certain geographical regions and any adverse developments affecting its operations in these regions could have a significant impact on the company revenue and results of operations.
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A substantial rise in IT equipment repair and maintenance expenses exceeding its budget, or the inability to deliver high-quality customer service and support, could harm our relationships with both current and potential customers. Consequently, this could negatively influence its business, operational outcomes, and financial stability.
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The company may faces Potential Damage and Loss of IT Equipment.
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Its ability to maintain continuing relationships with the company customers is essential to the growth, profitability and the results of operations. Any impairment of its long-term relationships with its customers would adversely affect its business, results of operations and financial conditions.
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The company`s 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 Promoters will hold significant part of the equity shares of the Company post the proposed Issue and will continue to control the Company.
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Loans availed by the Company has been secured on personal properties and guarantees of its Directors, Promoters, Promoter Group, Group Companies and third party. Its business, financial condition, results of operations, cash flows and prospects may be adversely affected in case of invocation of any personal guarantees provided by its Directors, Promoters, Promoter Group, Group Companies and third party.
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Its historical performance is not indicative of the company future growth or financial results and its may not be able to sustain its historical growth rates.
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Security breaches and any disruptions to its information technology could adversely impact the company`s business.
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Its Promoters, Directors and Key Management Personnel may have interests other than reimbursement of expenses incurred and receipt of remuneration or benefits from the Company. Certain of its Promoters and Directors may have interest in entities, which are in businesses like its and this may result in conflict of interest with the company.
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The company has in the past entered related party transactions and may continue to do so in the future.
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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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Its future funds requirements, in the form of issue of capital or securities and/or loans taken by it, may be prejudicial to the interest of the shareholders depending upon the terms on which they are eventually raised.
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The company has not commissioned an industry report for the disclosures made in the section titled "Industry Overview" and made disclosures based on the data available on the internet and such data has not been independently verified by the company.
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The company faces credit risk from its customers, and the ability to recover the company trade receivables is uncertain.
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Its funding requirements and the proposed deployment of Net Proceeds have not been appraised by any bank or financial institution or any other independent agency and its management will have broad discretion over the use of the Net Proceeds.
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Its ability to pay dividends in the future will depends on the company future earnings, cash flows, working capital requirements, capital expenditures and financial condition.
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Failures to effectively manage employees or failure to ensure availability of sufficient employees could affect the business operations of the Company.
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Increases in wages for IT professionals could reduce its cash flows and profit margins.
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The future operating results are difficult to predict and may fluctuate or adversely vary from the past performance.
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The company requires certain approvals, licenses, registrations and permits to operate its business, and failure to obtain or renew them in a timely manner or maintain the statutory and regulatory permits and approvals required to operate its business may adversely affect the company operations and financial conditions.
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The company has to update the name of the company in some of the statutory approvals and certificates due to the conversion of Company from Private Limited into the Public Limited Company.
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The company has incurred indebtedness and an inability to comply with repayment and other covenants in its financing agreements could adversely affect the company business and financial condition. Further, certain of its financing agreements involve variable interest rates and an increase in interest rates may adversely affect its results of operations and financial condition.
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Excessive dependence on Bharat Co-Operative Bank (Mumbai) Ltd in respect of loan facilities obtained by the Company.
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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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The other income earned by the Company during the three months period ended June 30, 2024 and for the financial years ended March 31, 2024, March 31, 2023 and March 31, 2022, contribute to the profit margins Company.