1. The company has experienced significant growth in recent years and may be unable to sustain its growth or manage it effectively.
2. Majority of its geographical wise revenues from operations for the last 3 years is majorly derived from Karnataka and Maharashtra. Any adverse developments affecting its operations in this state could have an adverse impact on the company revenue and results of operations.
3. The company depends on a single customer for a significant portion of its revenues. The loss of a major customer or significant reduction in demand from any of its major customers may adversely affect the company's business, financial condition, results of operations and prospects.
4. For its digitally enabled services business, the company depends on its information technology systems and softwares, and any failures, disruption, or weakness in these systems, or a data breach, could negatively impact its operations and reputation. Additionally, the company's success hinges on its ability to innovate, upgrade, and adapt to new technological advancements.
5. The company proposed capital expenditure relating to development of software are subject to the risk of unanticipated delays in implementation and cost overruns. Changes in technology and modernization may render its current technologies or newly developed technologies obsolete or requires it to make substantial investments again.
6. The company depends on third parties or OEMs for the channel sales segment and such third parties could fails to meet their obligations, which may have a material adverse effect on its business, results of operations and financial condition.
7. The company Registered Office and corporate office is shared with its promoter group companies and holding company and are not owned by it. Any termination of the relevant lease or leave and license agreement in connection with such property or the company failures to pay annual lease rental, the same could adversely affect its operations. If the company is required to vacate the same, due to any reason whatsoever, it may adversely affect its business operations.
8. The company corporate promoter, Rosmerta Technologies Limited, has been issued Inspection Notice from the Ministry of Corporate Affairs, New Delhi.
9. The company has had negative cash flows in the past and may continue to have negative cash flows in the future.
10. The Company is involved in certain legal proceedings/litigations. Any adverse decision in such proceedings may render it/them liable to penalties and may adversely affect its business and result of operations.