1. The Company total contingent liability amounting to Rs.1,255.88 Lakhs for the FY 23-24, if the company has to pay the amount then it will be financial challenge for the company, potentially impacting its profitability and financial stability.
2. The Company involves in the case of the M/S Cash Ur Drive Marketing Private Limited V. Deputy Commissioner State Tax, Sector-2, Noida, under section 73 of GST Act, against order no. ZD0903230398638 dated 15th September 2020.
3. The advertising business relies on having enough space or sites to display ads through the media agency. If the prices for these ad spaces increase significantly or if they become unavailable, it could negatively impact its business and financial performance.
4. The Company and Promoters is involved in certain legal proceeding(s) and potential litigations. Any adverse decision in such proceeding(s) may render them liable to liabilities/penalties.
5. Its Group Companies have incurred losses during the last three financial years.
6. Its top ten clients contribute approximately 63.12%, 68.74% and 83.20% of the company revenues from operations for the year ended March 31, 2024, March 31, 2023 and March 31, 2022 respectively. Any loss of business from one or more of them may adversely affect its revenues and profitability.
7. The company's majority revenue from operations for the last 3 years is dependent on Delhi. Any adverse developments affecting the company operations in this region may have an adverse impact on its revenue and results of operations.
8. There are certain discrepancies and non -compliances noticed in some of its corporate records relating to forms filed with the Registrar of Companies, taxation authorities and other public authorities.
9. The Company had negative operating cash flows in the past years, details of which are given below. Sustained negative cash flow could impact its growth and business.
10. The Company has in the past entered into related party transactions which are in non-compliances with Companies Act, 2013 and may continue to do so in the future. There can be no assurance that such transactions, individually or in the aggregate, will not have an adverse effect on the Company's financial condition and result of operations.