1. The company predominantly undertakes fee and commission-based activities, and its financial performance may be adversely affected by the company inability to generate income from such activities.
2. Its contracts with respect to E-Governance projects are awarded to its Promoter, BLS International Services Limited by governmental agencies for providing G2C services to the citizens.
3. As a result of its limited operating history, the company may not be able to compete successfully, and it may be difficult to evaluate its business and future operating results on the basis of the company past performance.
4. A substantial portion of the revenue is generated by BC business operated by its subsidiaries, ZMPL and Starfin for the company banking partners. The businesses of its banking partners are regulated by the RBI and any change in the RBI's policies, decisions and regulatory framework could adversely affect its business, cash flows, results of operations and financial condition.
5. Some of its operations involve handling significant amounts of cash, making it susceptible to operational risks, including fraud, petty theft, negligence and embezzlement by the company employees or its merchants, which could harm its results of operations and financial position.
6. The company provide E-Governance Services only in the states of Punjab, Uttar Pradesh and West Bengal, and accordingly any adverse changes in the conditions affecting these regions can adversely affect its business, financial condition and results of operations.
7. In the past Punjab State e-Governance Society has terminated master service agreement with the Company.
8. The company is yet to place orders for its technology infrastructure and capital expenditure equipment for which a significant portion of the Net Proceeds are proposed to be utilized. Unavailability or increase in costs of the technology infrastructure and equipment could adversely impact financial condition and its growth prospects.
9. The company significantly depends on its merchants for its product and service distribution network. Changes in the company relationships, or adverse conditions (such as COVID-19 pandemic), could impair their respective operations and therefore their ability to meet their obligations under its agreements, which in turn could have an adverse effect on its growth, business, results of operations, financial condition and cash flows.
10. There are pending litigations against the Company, its Promoter, & Subsidiaries and its Group Companies. Any adverse decision in such proceedings may render it / them liable to liabilities / penalties and may adversely affect its business, results of operations and financial condition.