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Software Product development is a long, expensive and uncertain process and its current expenditure in product development may not provide a sufficient or timely return.
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The Company, Promoters, Directors as well as its Group Companies are party to certain tax proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.
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As one of its Directors, Mr. Ajay Babu Rajendran is Non-resident Indian (NRI) and one of its group companies, Chain Fintech Solutions Limited` (Bangladesh), as well as its two subsidiaries, Veefin Solutions Limited` (Bangladesh) and Veefin Solutions FZCO` (Dubai), are located outside of India, the company has obtained separate undertakings to ensure that they are not involved in any litigation.
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The company Digital Lending and Supply Chain Finance technology product solutions may not be protected by all intellectual property laws.
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The company revenues are dependent on clients concentrated in the BFSI segment. An economic slowdown or factors affecting this segment may have an adverse effect on its business, financial condition and results of operations.
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If the company fail to attract and retain highly skilled IT professionals, its may not have the necessary resources to properly staff projects, and failure to successfully compete for such IT professionals could materially adversely affect its business, financial condition and results of operations.
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The current and continuing effect of the COVID-19 pandemic on its business, results of operations, operations and financial condition is highly uncertain and cannot be predicted.
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The company is dependent on its ability to customize software products as per the demands and requirements of the customer based on latest technology. If its are not able to enhance current portfolio in response to evolving industry requirements, its operating results may be negatively affected.
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The company may become liable to its customers and lose customers if the company have defects or disruptions in its software products. Its may also be liable in the event of misuse of the company software products or platforms.
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The Restated Financial Statements have been provided by Peer Reviewed Chartered Accountants who is not Statutory Auditor of the Company.
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The software product exposes us to numerous risks, including sometimes conflicting legal and regulatory requirements, and violation of these regulations could adversely its business and results of operations.
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The company promoters, directors, key managerial personnel and senior management play key role in its functioning and the company heavily relies on their knowledge and experience in operating its business and therefore, it is critical for the company business that they remain associated with it.
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The company conduct its business in various jurisdictions globally and may be unsuccessful in operating and expanding into new markets and face numerous legal and regulatory requirements while operating and expanding and violation of these regulations could harm its business.
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Undetected software design defects, errors or failures may result in loss of or delay in market acceptance of its products or in liabilities that could materially adversely affect the company business, financial condition and results of operations.
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If the company is not successful in executing its growth strategies, the company business and results of operations may suffer.
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The company generate a significant portion of its revenues from a limited number of clients, and any loss or reduction of business from these clients could reduce the company revenues and materially adversely affect its business, financial condition, and results of operations.
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The Company logo is not registered with Registrar of Trademark; any infringement of its brand name or failure to get it registered may adversely affect the company business. Further, any kind of negative publicity or misuse of its brand name could hamper the company brand building efforts and its future growth strategy could be adversely affected.
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The company operate in a rapidly evolving industry, which makes it difficult to evaluate its future prospects and may increase the risk that its will not continue to be successful. If the company are not successful, it could materially adversely affect its business, reputation and cash flows.
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The company existing international operations and its plans to expand into additional overseas markets subject it to various business, economic, political, regulatory and legal risks.
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The company face strong competition from onshore and offshore IT services companies, and increased competition, its inability to compete successfully against competitors, pricing pressures or loss of market share could materially adversely affect its business, financial condition and results of operations.
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The company utilize the services of certain consultants for some of its operations. Any deficiency or interruption in their services could adversely affect the company business operations and reputation.
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The Company had negative cash flows in the past years, details of which are given below. Sustained negative cash flow could impact its growth and business.
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The company Registered Office is not owned by it. In the event the company lose such rights, its business, financial condition and results of operations and cash flows could be adversely affected.
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If the company is not successful in managing increasingly large and complex projects, its may not achieve the company financial goals and its results of operations could be materially adversely affected.
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The company incorporate third-party open-source software into its customer deliverables and the company failure to comply with the terms of the underlying open-source software licenses could adversely impact its customers and create potential liability on it.
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Any adverse change in regulations governing its business and business of its clients, may adversely impact the company business prospects and results of operations.
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Failure to offer client support in a timely and effective manner may adversely affect its relationships with the company clients.
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There have been instances of delays/ non-filing/ non-compliance in the past with certain statutory authorities with certain provision of statutory regulations applicable to it. If the authorities impose monetary penalties on its or take certain punitive actions against the Company in relation to the same, its business, financial condition and results of operations could be adversely affected.
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Exchange rate fluctuations in various currencies in which its do business could materially and adversely impact the company business, financial condition and results of operations.
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The company use third-party software, hardware and Software-As-A-Service (SaaS), technologies from third parties that may be difficult to replace or that may cause errors or defects in, or failures of, the software products or solutions its provide.
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The company inability to obtain, renew or maintain its statutory and regulatory permits and approvals required to operate the company business may have a material adverse effect on its business, financial condition and results of operations.
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Interruptions or performance problems associated with its technology and infrastructure may harm our business and results of operations.
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Failure to perform or observe any contractual obligations could result in cancellation or non-renewal of a contract, which could cause it to experience a higher-than-expected number of unassigned employees and an increase in its expenses as a percentage of revenues, until the company are able to reduce or reallocate its headcount and may adversely affect the company business, results of operations and financial condition.
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The company has in the past experienced, and may in the future experience, a long selling and implementation cycle with respect to certain projects that require it to make significant resource commitments prior to realising revenue for its services.
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Significant disruptions in the company information technology systems or breaches of data security could adversely affect its business and reputation.
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If the company is unable to source business opportunities effectively, its may not achieve its financial objectives.
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The company may not be able to recognise revenues in the period in which its software product are performed, which may cause the company margins to fluctuate.
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The Company has entered into related party transactions in the past and may continue to enter into related party transactions in the future, which may potentially involve conflicts of interest with the equity shareholders.
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In addition to normal remuneration, other benefits and reimbursement of expenses some of its directors (including its Promoters) are interested in the Company to the extent of their shareholding and dividend entitlement in the Company.
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The company business, results of operations and financial condition could be negatively affected if its incur legal liability, including with respect to the compnay indemnification obligations, in connection with providing its software product solutions.
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The company has unsecured loans from directors, relatives of directors, and others which are repayable on demand. Any demand from lenders for repayment of such unsecured loans, may adversely affect its business operations.
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The company actual results could differ from the estimates and projections used to prepare its financial statements.
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Certain agreements may be inadequately stamped or may not have been registered as a result of which its operations may be adversely affected.
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The company do not have any insurance coverage for protecting it against any material hazards.
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If the company fail to maintain an effective system of internal controls, its may not be able to successfully manage, or accurately report, its financial risks.
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If security measures implemented by it are compromised or if its software products are perceived as vulnerable, the company operations could be materially adversely affected.
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The proper functioning of its solutions may be impaired by fraudulent or malicious activity, including non-human traffic.
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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 its contractual obligations in relation to such proprietary rights.
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Increases in wages for IT professionals could reduce its cash flows and profit margins.
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Its may not be successful in executing the company strategy to increase sales of its offerings to new and existing large enterprise clients, the company operating results may suffer.
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Industry information included in this Prospectus has been derived from industry reports. There can be no assurance that such third-party statistical, financial and other industry information is either complete or accurate.
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Within the parameters as mentioned in the chapter titled "Objects of the Offer" beginning on page 94 of this Prospectus, the Company`s management will have flexibility in applying the net proceeds of this Offer. The fund requirement and deployment mentioned in the Objects of this Offer have not been appraised by any bank or financial institution.
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The deployment of funds raised through this Offer shall not be subject to any Monitoring Agency and shall be purely dependent on the discretion of the management of the Company.
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The company ability to pay dividends in the future will depend upon its future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in its financing arrangements.
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In the event there is any delay in the completion of the Offer, there would be a corresponding delay in the completion of the objects / schedule of implementation of this Offer which would in turn affect its revenues and results of operations.
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The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Offer. Further its have not identified any alternate source of financing the Objects of the Offer. Any shortfall in raising / meeting the same could adversely affect its growth plans, business operations and financial condition.
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The average cost of acquisition of Equity Shares by its Promoters and the Selling Shareholders could be lower than the price determined at time of registering the Prospectus.
