1. The Coronavirus pandemic (COVID-19) has had certain adverse effects on the Company business, operations, cash flows and financial condition and the extent to which it or the effect of outbreaks of any other severe communicable disease may continue to do so in the future, is uncertain and cannot be predicted.
2. The quality of the Company portfolio may be impacted due to higher levels of NPAs and the Company business may be adversely affected if the Company is unable to provide for such higher levels of NPAs.
3. Non-compliance with the RBI's observations made pursuant to its periodic inspections and violations of regulations prescribed by the RBI, could expose it to certain penalties and restrictions.
4. The Reserve Bank of India has issued a letter to the Company for violation of paragraph 61 of
DNBR.PD.007/03.10.119/2016-17 - Non-Banking Financial Company - Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016 dated September 1, 2016. The Company cannot assure you that such or other instances of violations may not occur in future and the Company, Promoters and Directors may not be subjected to the disciplinary penal action or fine and penalties by the Reserve Bank of India. And if such actions is initiated or penalty and fine imposed, the same may adversely affect the results of the Company operations, revenues and profitability and adversely impact the Company reputation in the market.
5. The Company, Promoters and Directors are parties to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on the Company business, results of operations and financial condition.
6. The income-tax authorities have conducted survey at the premises the Company and search at its Promoters residence. Any adverse outcome of these IT survey and such proceedings would have an adverse effect on the operations and reputation of the Company, which in turn could have an adverse impact on the Company business, financial condition and results of operations.
7. The Company has in the past, made certain issuances and allotments of the Company equity shares which may not be in compliance with the applicable provisions and rules of the Companies Act, 1956. The Company cannot guarantee that the Company will not be subject to any other complaints and penalties in the future regarding the said violations.
8. Any downward revision in the Company credit ratings could adversely affect the Company ability to service th Company debts as well as raise funds in the future hence affecting the Company results of operations and financial conditions.
9. The Company significantly depend on its Business Loans and any adverse developments in this sector, or in the other industries in which the Company Business loan customers operate, could adversely affect the Company business, results of operations, financial condition and cash flows.
10. Certain statutory and regulatory licenses and approvals is required for conducting the Company business and any failure or omission to obtain, maintain or renew these licenses and approvals in a timely manner, or at all, could adversely affect the Company business and results of operations.