Sattrix

Risks

• If the company cannot attract and retain highly-skilled IT professionals, its ability to obtain, manage and staff new projects and to continue to expand existing projects may result in loss of revenue and an inability to expand its business.

• its business subjects it to risks in multiple countries where subsidiary companies and its customers are situated.

• Its Industry is highly employee intensive industry. Thus, Employees Benefit expenses constitutes a major portion of its expenses. Such significant increase in this cost could lead to lower profitability.

• its present promoters of the Company are first generation entrepreneur.

• Its business is dependent on a few customers and the loss of, or a significant reduction in award of contracts by such customers could adversely affect our business.

• The Company does not own the Registered Office, Administrative office and Branch office from which it carries out its business activities.

• Significant security breaches in its software, data and network infrastructure and fraud could adversely impact its business.

• The Company may be liable as per Service Level Agreement (SLA) with its clients for defaults caused while providing services to its clients which may attract penalties, harm its reputation and cause it to lose clients.

• The Company is subject to certain obligations towards its clients, and a failure to comply with the technical specifications may lead to loss of business from such clients and could negatively impact its reputation, business prospects, results of operations, financial condition, and cash flows.

• The Company has experienced negative operating cash flows in the past. Any operating losses or negative cash flows in the future could adversely affect its results of operations and financial conditions.

• The Company is subject to foreign exchange control regulations which can pose a risk of currency.

• There have been certain instances of non-compliances/ discrepancies, including with respect to certain secretarial/ regulatory filings for corporate actions taken by the Company and Subsidiaries in the past. Consequently, it may be subject to regulatory actions and penalties for any such non-compliance/discrepancies and its business, financial position and reputation may be adversely affected.

• There are no outstanding legal proceedings on the date of this prospectus involving the Company, however, there may be possible litigation which may adversely affect its business, financial condition and results of operations.

• Failure to offer customer support in a timely and effective manner may adversely affect its relationship with its customers.

• The Company has not entered into any formal binding contracts with its clients and the company may not have any firm arrangements which govern the provision of services of the Company. In the event its clients choose not to source their requirements by engaging it, its business, profitability and results of operations may be adversely affected.

• The International transactions may depend upon international sanctions. Any significant change or restriction may adversely affect its business.

• The company may incur penalties or liabilities for non-compliance or delay in compliance with certain provisions of GST Act, Income tax and other applicable laws in the last Three years and in stub period.

• 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 Years.

• Its Statutory Auditors have included a modification in the Audit Report on the special Purpose Consolidated Financial Statement for the financial year ended on March 31, 2023.

• 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.

• As of now, the company has not conducted independent Information Technologies Audit (IT Audit) from any certified IT Auditor. Non-adherence of such audit could create threat on its corporate assets and data integrity.

• Its profitability, business and commercial success is significantly dependent on its ability to successfullyanticipate the industry and client requirements and utilize its resources to enhance and develop its services that efficiently cater to its client`s specific requirements in a timely manner. Any failure on its part to do so, may have an impact on its services, which could have an adverse effect on its revenue, reputation, financial conditions, results of operations and cash flows.

• The average cost of acquisition of Equity shares by its Promoters is lower than the Issue price.

• The Logo used by the Company is currently under process of registration under Trade Marks Act, 1999. Failure to protect its intellectual property rights may adversely affect its competitive business position, financial condition and profitability.

• The Company has in past entered into related party transactions and it may continue to do so in the future.

• Its 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 operates in an evolving industry, which makes it difficult to evaluate its future prospects and may increase the risk that the company will not continue to be successful in cyber-security and digital transformation solutions. If the company is not successful, it could materially adversely affect its business, reputation and cash flows.

• Its sales cycles can be long and unpredictable, and its sales efforts require considerable time and expense. As a result, its sales, billings and revenue are difficult to predict and may vary from period to period.

• The Company does not have any single software to check cost and benefit of its human resources & to manage its day-to-day business activities such as accounting, procurement, project management, risk management and compliance, and supply chain operations. Failure to manage its resources could have an adverse effect on its sales, profitability, cash flow and liquidity.

• Any delays and/or defaults in client payments could resultin increase of working capital investment and/or reduction of the Company`s profits, thereby affecting its operation and financial condition.

• The Company has obtained various quality certifications for its services. Its inability to renew such accreditationsin a timely manner may have an adverse impact on its business.

• If the company fails to maintain an effective system of internal controls, it may not be able to successfully manage oraccurately report its financial risk.

• If the company is unable to execute its strategy to increase its sales by engaging new clients and retaining clients at existing levels, its revenue and growth will be adversely affected.

• The Company is dependent on its Individual Promoters and its management team and the loss of, or its inability to hire, retain, train, and motivate qualified personnel could adversely affect its business, results of operations and financial condition.

• If its solutions fail to deliver or perform because of any defects, delays or problems of similar nature, and if the company is not able to develop enhancements to solve any of the problems, the company could lose clients, become subject to service performance claims or incur significant costs.

• The Company faces significant amount competition from established as well as new businesses offering cyber security solutions and other similar services offered by us which mayhave a negative effect on its ability to engage new clients, retain existing clients and grow its business.

• The Company`s performance in the past may not be an indicative factor for the Company`s future growth or performance.

• Maintaining the Company image and reputation among existing and potential clients is critical to its success, and any failure to do so could damage its reputation and brand.

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

• If the company is unable to continue to innovate or if it fails to adapt to changes in its industry, its business, financial condition, cash flows and results of operations would be adversely affected.

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

• An inability to maintain adequate insurance coverin connection with its business may adversely affect its operations and profitability.

• The Company has not made any alternate arrangements in order to meet its capital requirements for the Objects ofthe Issue. Additionally, the company has not identified any alternate source of financing the objects of the Issue`. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.

• Its 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 the 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.

• The Company`s future funding requirements, in the form of further issue of capital or other securities and/or loans that might be availed by us, may turn out to be prejudicial to the interest of the shareholders depending upon the terms and conditions on which they are raised.

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

• In the event there is any delay in the completion of the Issue, there would be a corresponding delay in the completion of the objects / schedule of implementation of this Issue which would in turn affect its revenues and results of operations.

• The requirements of being a public listed company may strain its resources and impose additional requirements.