1. Major portion of the company revenue generated from operation are through exports, any change in the government laws or policies may affect its business.
2. The company top 10 and top 5 customers contribute majority of its revenues from operations for the financial year ended March 31, 2023, March 31, 2022 and March 31, 2021. Any loss of business from one or more of them may adversely affect the company revenues and profitability.
3. The Company operates in the constantly evolving VFX market, which is subject to rapidly changing client's behaviour and tastes, and depends on audience acceptance of content for which the Company provides VFX services and the long-term popularity of the brands.
4. The company ability to remain competitive may be adversely affected by rapid technological changes and its ability to access such technology.
5. Intensified competition may restrict the company ability to access content and/or talent.
6. The company has substantial working capital requirements and may require additional financing to meet working capital requirements in the future. A failure in obtaining such additional financing at all or on terms favourable to it could have an adverse effect on its results of operations and financial condition.
7. The company do not own the premises in which its registered office and Corporate Office are located 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 the company operations.
8. The Company, its Promoters and Directors are involved in certain legal proceeding(s). Any adverse decision in such proceeding(s) may render us/them liable to liabilities/penalties and may adversely affect its business and results of operations.
9. The company Auditor has not considered the financials for the audit report year ending on March 31, 2023 & March 31, 2022 for one of its foreign subsidiaries.
10. The company has one wholly owned foreign subsidiary Company named Digikore Visual Effects Inc., Canada, for which no prior approval of Reserve Bank of India ("RBI") for making Overseas Direct Investment ("ODI") is taken.