Share Samadhan

Risks

• Inadequate management of technical glitches may compromise user satisfaction, engagement, and subscriber retention, posing a threat to its website seamless operation and user experience.

• The company`s business heavily relies on the expertise and guidance of its Directors and Key Managerial Personnel to ensure sustained success. The loss of any of them could have a significant impact on the company.

• The success of its business is highly dependent on its relationships with the company`s business associates. Any loss of these associates, or their unavailability, could have a significant negative impact on the business and its operations, potentially leading to increased costs, decreased revenue, and damage to the business`s reputation.

• There is outstanding litigation pending against its Promoters which, if determined adversely, could affect the company`s business, results of operations and financial condition.

• Its business model runs largely on a success-based fee structure, in case of any wrong outcomes or nonrecovery of an investment its business operations will be affected.

• Maintaining the Company image and reputation in the industry is critical to its success, and any failures to do so could damage the company reputation and brand.

• The company has applied for registration of registration of logo under the Class 36. & the Company is in the process of registration of its logo under the provisions of the Trademarks Act, 1999. If, the company is unable to adequately protect its intellectual property, its may be subject to claims alleging breach of third-party intellectual property rights.

• Absence of any law and regulation on its Litigation funding business, which can adversely affect its ability to operate, obtain funding, or manage the company`s business effectively.

• If the company is not successful in executing its business and marketing strategies the company results of operations may suffer.

• The Company had negative cash flows from its operating, investing and financing activities in the previous years, details of which are given below. Sustained negative cash flow could impact on its growth and business.

• its major revenue is sourced from the company consultancy services. Its inability or failures to manage and attract more clients to this segment could adversely affect its business.

• 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.

• The intellectual Property Rights used by the company are "objected" and are not registered in the name of the company. Any failure to protect its intellectual property rights may adversely affect its business.

• The Company may incur penalties or liabilities for non-compliance with certain provisions of the GST Act, Income Tax and other applicable laws in previous years.

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

• Its major revenue is directed towards the payment of fees to legal professionals for its litigation funding solutions and marketing expenses.

• Its profitability will suffer if the company is not able to maintain its pricing structure for wealth Samadhan card, control costs or continue to expand its business through customer engagements.

• The legal professionals, consultants, marketing and Tech team are key to its business. Thus, Employees Benefit expenses and professional charges constitutes a major portion of the company expenses. Such significant increase in this cost could lead to lower profitability.

• Its group companies have incurred losses in the past and may incur losses in the future.

• The Company requires a significant amount of working capital for a continuing growth. Its inability to meet the company working capital requirements may adversely affect its results of operations.

• Its Promoters and promoter group have significant controlling interest over the Company and have the ability to direct its business and affairs; their interests may conflict with your interests as a shareholder. Further they have interests in he Company other than reimbursement of expenses incurred or normal remuneration or benefits.

• Its business operations are dependent on Internet Connectivity and Electricity Infrastructure.

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

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

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

• The Company may not have complied with certain statutory provisions of the Companies Act, 2013. Such non-compliances / lapses may attract penalties and prosecution against the Company and its directors which could impact the financial position of the Company to that extent.

• Business operation and stability depends on many factors, its may not be able to effectively implement the company`s business and growth strategy.

• The Company has issued Equity Shares during the last twelve months at a price which may be lower than the Offer Price.

• Its marketing and advertising activities may not be successful in increasing the popularity of the Company among potential customers and business associates. If its marketing or advertising initiatives are not effective, this may affect the popularity of the Company.

• Its funding requirements and proposed deployment of the Net Proceeds have not been appraised by a bank or a financial institution and if there are any delays or cost overruns, its may have to incur additional cost to fund the objects of the Issue because of which its business, financial condition and results of operations may be adversely affected.

• The company is required to maintain certain approvals and licenses required in the ordinary course of business and the failures to obtain or renew them in a timely manner or at all may adversely affect its operations.

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

• The company has not identified any alternate source of funding and hence any failures or delay on its part to mobilize the required resources or any shortfall in the issue proceeds may delay the implementation schedule.

• Certain Agreements, deeds or licenses may be in the previous name of the company.

• Its insurance policy may not be adequate to cover all the losses which a business could incur. Any inability to maintain adequate cover from material adverse incidents may adversely affect its operation and profitability.

• Significant differences exist between Ind AS and other accounting principles, such as Indian GAAP, IFRS and U.S. GAAP, which may be material to investors` assessments of its financial condition, result of operations and cash flows.

• The company has not made any alternate arrangements in order to meet its capital requirements for the Objects of the 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.

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

• Fluctuation of Interest rate may adversely affect the Company`s business.

• 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.

• 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 it, may turn out to be prejudicial to the interest of the shareholders depending upon the terms and conditions on which they are raised.

• Industry information included in this Red Herring Prospectus has been derived from various industry reports from various websites including research done by the company. The reliability on the forecasts of the reports could be incorrect and would significantly impact its operations.

• There are certain restrictions on daily movements in the price of Equity Shares, which may adversely affect a shareholder`s ability to sell, or the price at which it can sell, Equity Shares at a particular point in time.

• After this Issue, the price of the Equity Shares may be highly volatile, or an active trading market for the Equity Shares may not develop.

• Equity Shares of the Company have never been publicly traded, and after the Issue, the Equity Shares may be subject to price and volume fluctuations, and an active trading market for the Equity Shares may or may not develop. Further, the Issue Price may not be indicative of the market price of the Equity Shares after the Issue.

• Investors may be subject to Indian taxes arising out of income arising on the sale of the Equity Shares.

• QIBs and Non-Institutional Investors are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after the submission of their Bid, and Retail Individual Investors are not permitted to withdraw their Bids after closure of the Bid/ Issue Closing Date.

• Sale of Equity Shares by its Promoters or other significant shareholder(s) or any future issue of Equity Shares may dilute your shareholding and adversely affect the trading price of the Equity Shares.

• Investors will not be able to sell immediately on an Indian stock exchange any of the Equity Shares they purchase in the Issue.

• Holders of Equity Shares may be restricted in their ability to exercise pre-emptive rights under Indian law and thereby may suffer future dilution of their ownership position.

• A third-party could be prevented from acquiring control of it post this Issue, because of anti-takeover provisions under Indian law.