Sahana Systems

Risks

• One of the Objects of the issue is for installation of EV charging station in which promoter has no experience.

• The company may be unable to procure confirmed order from New & Renewable Energy Development Corporation of Andhra Pradesh Limited (NREDCAP) for the purpose for which funds are being raised from this Issue.

• The Secured Loan from Tamilnad Mercantile Bank Limited (TMB) is not transferred by the bank from partnership to the company name.

• There are certain outstanding legal proceedings involving the Company, Promoter and Director, an adverse outcome of which may adversely affect its business, reputation and results of operations.

• The company do not own the premises in which its registered office is located and the same is on leave and license arrangement. Any termination of such lease / license and / or non-renewal thereof could adversely affect its operations.

• Its Restated Financial Statements are Prepared and Signed by the Peer Review Auditors who is not Statutory Auditors of the Company as required under the provisions of ICDR.

• The company is a company with limited operating history, and therefore investors may not be able to assess its prospects on the basis of historical results.

• Its business requires the company to obtain and renew certain registrations, licenses, approvals, NOCs and permits in the ordinary course of its business. Its inability to obtain, renew or maintain the company statutory and regulatory permits and approvals required to operate its business may have a material adverse effect on the company business, financial condition and results of operations.

• The company has not received No Objection Certificate ("NOC") from the lender of erstwhile partnership firm M/s. Oceans Technologies.

• Its business is dependent on developing and maintaining continuing relationships with the company 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.

• The Company requires Shops & Establishments Licenses for all the premises in the ordinary course of its business(es) and the failure to obtain them in a timely manner may adversely affect its operations.

• If the company fail to innovate in response to changing customer needs and adopt and develop new technologies, or adapt to evolving industry standards, its business, financial condition, and results of operations could be adversely affected.

• The company product and services expose it to numerous risks, including sometimes conflicting legal and regulatory requirements, and violation of these regulations could adversely its business and results of operations.

• In past, there have been instances of delay in filing of certain forms under companies act with registrar of companies.

• The Company is dependent on few numbers of customers for its sales. Loss of any of these large customers will significantly affect its revenues and profitability.

• Data networks are vulnerable to attacks, unauthorised access and disruptions. Losses or liabilities that are incurred as a result of any of the foregoing could materially adversely affect its business, financial condition and results of operations.

• The length of its sales cycle may fluctuate significantly and depends on several external factors which may result in significant fluctuations in its revenues.

• Failure to offer client support in a timely and effective manner may adversely affect its relationships with the company clients.

• The company may become liable to its customers and lose customers if the company has defects or disruptions in its service or if the company provide poor service. Its may also be liable in the event of misuse of the company services.

• If the company is unable to source business opportunities effectively, its may not achieve the company financial objectives.

• The company face competition in its business from organized and unorganized players, which may adversely affect its business operation and financial condition.

• Its success depends heavily upon the company Promoter and Senior Management for their continuing services, strategic guidance and financial support.

• The company utilize the services of certain consultants for some of its operations. Any deficiency or interruption in their services could adversely affect its business operations and reputation.

• Product development is a long, expensive and uncertain process and its current expenditure in product development may not provide a sufficient or timely return.

• 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.

• Its insurance coverage may not adequately protect the company against potential risk and this may have a material adverse effect on its business.

• The company has had negative cash flows from operating activities in the past and may, in the future, experience similar negative cash flows.

• The company may not be successful in implementing its business strategies.

• Sometimes the company do business with its customers on purchase order basis and do not have long term contracts with most of them.

• The company develop certain software assessing and anticipating the requirement and usefulness of its software.

• The company Logo is not Registered with the Trade Mark registration authority, its may be unable to protect the Logo from being infringed by others which may adversely affect its business value, financial condition and results of operations.

• The company require high working capital for its smooth day to day operations of business and any discontinuance or its inability to acquire adequate working capital timely and on favorable terms may have an adverse effect on its operations, profitability and growth prospects.

• The company client`s proprietary rights may be misappropriated by its employees in violation of applicable confidentiality and non-disclosure agreements and as a result, cause it to breach the company contractual obligations in relation to such proprietary rights.

• Increases in wages for IT professionals could reduce its cash flows and profit margins.

• The Company has unsecured loans with a total outstanding amount of Rs. 1.35 crores as of August 31, 2022, that may be recalled by the lenders at any time.

• Its actual results could differ from the estimates and projections used to prepare its financial statements.

• The company has entered into, and may continue to enter into related party transactions and there can be no assurance that such transactions have been on favourable terms.

• Its Promoter, Directors and Key Managerial Personnel may have interest in our Company, other than reimbursement of expenses incurred or remuneration.

• Sale of shares by its promoter or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.

• The issue price of the Equity Shares may not be indicative of market price of its equity shares after the issue and the market price of the company Equity shares may decline below the issue price.

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

• The company has not identified any alternate source of financing the `Objects of the Issue`. If its fail to mobilize resources as per the company plans, its growth plans may be affected.

• Its ability to pay dividends in the future will depend upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.

• Its Promoter 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.

• The company has not yet placed orders in relation to the capital expenditure to be incurred for the purchase of equipment / machinery. In the event of any delay in placing the orders, or in the event the vendors are not able to provide the equipment / machinery or other materials in a timely manner, or at all, may result in time and cost overruns and its business, prospects and results of operations may be adversely affected.

• The company has not independently verified certain data in this Draft Red Herring Prospectus.

• Its funding requirements and proposed deployment of the Net Proceeds are based on management estimates and have not been independently appraised, and may be subject to change based on various factors, some of which are beyond its control.

• Any future issuance of Equity Shares may dilute the shareholding of the Investor or any sale of Equity Shares by our Promoter or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.

• The Equity Shares have never been publicly traded, and, after the Issue, the Equity Shares may experience price and volume fluctuations, and an active trading market for the Equity Shares may not develop. Further, the price of the Equity Shares may be volatile, and you may be unable to resell the Equity Shares at or above the Issue Price, or at all.

• There are restrictions on daily weekly monthly movement in the price of the equity shares, which may adversely affect the shareholder`s ability to sell for the price at which it can sell, equity shares at a particular point in time.