1. The Company, Promoters / directors and promoter group entities are involved in certain legal proceedings and potential litigations. Any adverse decision in such proceedings may render it/them liable to liabilities/penalties which may adversely affect its business, financial condition and results of operations.
2. The company propose to utilize a portion of its Net Proceeds towards setting up of an additional office cum in-house Studio at Mumbai. Any delay or failures in successfully setting up its in-house Studio may affect the company business growth, thereby affecting its future business plans, business operations and financial conditions.
3. In order to effectively manage its growth and/ or to successfully implement the company business plan and growth strategies, the company proposes to invest upto Rs. 1110.00 Lakhs towards the capital expenditure. In case there is delay or failure towards deploying of capital expenditure in a structured manner, it could have an adverse effect on its business, results of operations and financial condition.
4. The company requires to continuously strength its brand visibility as an Influencer's and digital marketing and social media management company. If the company fails to ensure the same, the company revenue from operations shall decrease thereby effecting its overall business and financial condition.
5. The cost of outsourcing the video shooting and/or renting the studio and equipment for video shooting leads to increase in the company operating expenditure. If the company is unable to reduce the above cost or find alternatives for outsourcing and/ or renting studio and equipment, then its cash flows and profitability shall be affected.
6. The company business is working capital intensive. If its unable to fund the company working capital requirements, it may materially and adversely affect its business and results of operations.
7. A significant portion of its revenue is derived from Western, Northern and Southern India and Southeast Asia . Any downturn and/ or any economic, regulatory, social and political change in any of these regions in which the company operate or seek to operate may affect the company market share and/ or may adversely affect its business, financial condition and results of operations.
8. The company results of operations and its key business measures are subject to quarterly variations that could cause fluctuations in the company results of operations.
9. The company does not own the Registered Office premises and the same are on lease arrangement. Any termination of such lease/license and/or non-renewal thereof and attachment by Property Owner could adversely affect its operations.
10. The company Promoters and Directors, QYOU Media Inc. and Rajnandan Mishra plays key role in its functioning and the company heavily depends on their knowledge and experience in operating the company business and therefore, it is critical for its business that the company Promoters remain associated with it. The company success also depends on its key managerial personnel and the company ability to attract and retain them. Any loss of its key person could adversely affect the company business, operations and financial condition.