1. The company is heavily reliant on its top 10 customers, and the loss of such customers or a significant reduction in purchases by such customers will have a material adverse impact on its business.
2. 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.
3. The company is heavily reliant on a few vendors/ suppliers and the company typically does not enter into long-term contracts or arrangements with its vendors. Any loss of such vendors/suppliers or any increase in the price will have a material adverse impact on its business and the company revenue.
4. Its success depends on the company long-term relationship with its customers. The company does not, generally, enter into long-term contracts with its customers. Loss of one or more of its customers or reduction in their demand for the company solutions offering could adversely affect its business, results of operation and financial conditions.
5. Delays or defaults in customer payments and receivables may have an adversely impact its profits and cash flows.
6. The company intend to utilise a portion of the Net Proceeds for funding its capital expenditure requirements for interior development and purchase of equipment for its new office. If the costs of this development and the risk of unanticipated delays in implementation and cost overruns related to the said development are higher than expected, it could have a material adverse effect on its financial condition, results of operations and growth prospects.
7. The company intend to utilise a portion of the Net Proceeds towards acquisition of identified office premise at Navi Mumbai for which the company has entered into an Agreement for Sale. Its inability to acquire the office premise could have a material adverse effect on its financial condition, results of operations and growth prospects.
8. Its future success will depends on the company ability to effectively implement its business and growth strategies. Further, the Company is under the process of adopting a new line of business. its failures in effectively implementing the company's business and growth strategies or successfully operating in its new line of business may adversely affect its results of operations.
9. The company has dues which are outstanding to its creditors. Any failures in payment of these dues may have a material adverse effect on its reputation, business and financial condition.
10. The company has incurred negative net cash from operating activities, investing activities and financing activities in the past. Negative net cash in operating activities, investing activities and financing activities in the future could have an adverse impact on its growth prospectus.