Unified Data

Risks

• The company is dependent on a few customers for a major part of its revenues. Further the company does not have any long-term commitments from customers and any failures to continue its existing arrangements could adversely affect its business and results of operations.

• The company primarily dependent on few key suppliers for procurement of products and services. Any delay, interruption or reduction in the supply of products and services may adversely affect its business, results of operations, cash flows and financial conditions.

• The company depends on few Customer Industries for majority of its revenue from operations. Loss of customers in these Customer Industries may result in an adverse effect on its business, revenue from operations and financial conditions.

• Its operations are heavily dependent on the company technology partnership.

• The company`s success hinges on its ability to adapt to changing customer needs and technological advancements. If the company fails to innovate and improve its product offerings to keep pace with industry trends, it could adversely impact its business performance.

• The company generate its major portion of revenue from certain geographical regions and any adverse developments affecting its operations in these regions could have an adverse impact on its revenue and results of operations.

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

• Failures to offer client support in a timely and effective manner may adversely affect its relationships with the company clients and have an adverse impact on results of operations and financial conditions.

• Its Registered Office from where the company conduct its business is not owned by it. In the event the company lose right to the office, its business, financial condition and results of operations and cash flows could be adversely affected.

• The restated financial statements have been provided by peer reviewed chartered accountants who is not statutory auditor of the Company.

• The company`s investments are exposed to market risks. This means that the value of these investments can fluctuate due to factors beyond its control, such as economic conditions, geopolitical events, or changes in market sentiment. The company has not made any provision to account for potential losses from these investments.

• Its Group Company i.e. Value Data Technologies Private Limited operate in similar line of business as it, which may lead to conflict of interest.

• Any failures to accurately estimate the overall risks, revenues or costs in respect of a project, may adversely affect its profitability and results of operations. Its actual cost in executing a contract may vary substantially from the assumptions underlying its contract.

• Its Managing Director & Whole time Directors does not possess experience of being on the board of any listed company.

• 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.

• There are outstanding legal proceedings involving the Company and its directors in respect of direct and indirect taxes. Any adverse outcome in such proceedings may have an adverse impact on its reputation, business, financial condition, results of operations and cash flows.

• The company has had certain inaccuracy in relation to regulatory filings to be made with the RoC and the company has made noncompliances of certain provision under applicable law.

• Some of its work orders are awarded primarily through competitive bidding processes. There is no assurance that future contracts will be awarded to it by these customers. Also, the tenders floated by the government agencies have terms that are suitable to such agencies. This may result in an adverse effect on its business growth, financial and results of operations.

• Certain contracts with its customers and purchase orders placed with its customers typically include provisions for liquidated damages which if invoked, could have an adverse effect on its business, result of operations and financial condition.

• The company is exposed to counterparty credit risk of its customers and any significant delay in receiving payments or non-receipt of payments may materially adversely impact its results of operations.

• Its may faces liability due to any damage to, or any failures of its information technology systems or security breaches in its information technology systems or if the company inappropriately disclose confidential information and such liability may have an adverse effect on its business, result of operation and financial condition.

• The company operates in a competitive environment and face fair competition in its business from organized and unorganized players, which may adversely affect its business operations and financial condition.

• Pricing pressure from customers may adversely affect its gross margin, profitability and ability to increase its prices, which may in turn materially adversely affect its results of operations and financial condition.

• Inability to obtain or protect our intellectual property rights may adversely affect its business.

• A decline in the financial condition of its customers or suppliers could have a material adverse effect on its business and results of operations.

• The company has outstanding debts to creditors. Failures to timely fulfill these obligations may have a material adverse impact on its financial condition, reputation, and overall business operations.

• The company requires certain licenses, permits and approvals in the ordinary course of business, and the failures to obtain or retain them in a timely manner may adversely affect its operations.

• Its insurance coverage may be inadequate, which could have an adverse effect on its financial condition and results of operations.

• If the company is unable to manage its growth effectively or if its estimates or assumptions used in developing its strategic plan are inaccurate or the company is unable to execute its strategic plan effectively, its business and future prospects may be materially and adversely affected.

• The average cost of acquisition of Equity Shares by its Promoters, is lower than the face value of the Equity Shares.

• The company has 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 has certain contingent liabilities that have not been provided for in its financial statements, which, if they materialize, may adversely affect its financial condition.

• Its business is reliant on skilled personnel and its Promoters, Key Managerial Personnel. If the Company is unable to retain its existing skilled personnel and key managerial personnel or attract new skilled personnel or key managerial personnel may have an adverse effect and consequently have an adverse impact on its business, result of operation and financial condition.

• The Company has issued Equity Shares in the last 12 months at a price which may be lower than the Issue Price.

• Its ability to pay dividends in the future will depends on its earnings, financial condition, working capital requirements, capital expenditures and restrictive covenants of its financing arrangements.

• The Company is promoted by first generation entrepreneurs and the investors will be subject to all consequential risk associated with such ventures.

• The company will continue to be controlled by its Promoters after the completion of the Offer.

• Any Penalty or demand raise by statutory authorities in future will affect its financial position of the Company.

• Certain key performance indicators for certain listed industry peers included in this Red Herring Prospectus have been sourced from public sources and there is no assurance that such financial and other industry information is complete.

• Its may be subject to surveillance measures, such as the Additional Surveillance Measures (ASM) and the Graded Surveillance Measures (GSM) by the Stock Exchanges which may adversely affect trading price of its Equity Shares.

• The Equity Shares have never been publicly traded and the Offer may not result in an active or liquid market for the Equity shares. Further, the price of the Equity Shares may be volatile, and you may be unable to resell the Equity Shares at or above the Offer Price.

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

• Any future issuance of Equity Shares, or convertible securities or other equity linked securities by it or options given under employee stock options scheme and any sale of Equity Shares by its significant shareholders may dilute your shareholding and adversely affect the trading price of the Equity Shares.

• The Offer price of its Equity Shares may not be indicative of the market price of its Equity Shares after the Offer and the market price of its Equity Shares may decline below the Offer price and you may not be able to sell your Equity Shares at or above the Offer Price.

• In addition to normal remuneration, other benefits and reimbursement of expenses some of its promoters and Key Management Personnel are interested in the Company to the extent of their shareholding and dividend entitlement in the Company.

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

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

• Its may acquire or make strategic investments in complementary businesses, technologies, services or products, or enter into strategic partnerships or alliances with third parties, which may not turn out to be successful.