1. Its funding requirements and proposed deployment of the Net Proceeds of the Offer have not been
appraised by a bank or a financial institution and if there are any delays in the schedule of implementation or cost overruns, its business, cash flows, financial condition and results of operations may be adversely affected.
2. The company has not entered into any formal contracts or exclusive arrangement with its suppliers from whom the company procure equipment's, plant and machinery. In the event, the company is unable to procure such items at terms favourable to it, or at all, its business, financial condition and results of operations may be adversely affected.
3. The company requires a number of approvals, NOCs, licenses, registrations and permits in the ordinary course of its business. Some of the approvals are required to be transferred in the name of Enser Communications Limited from Enser Communications Private Limited pursuant to name change of the company and any failure or delay in obtaining the same in a timely manner may adversely affect its operations.
4. If the company is unable to renew its existing leases or secure new leases for the company existing or premises, or offices on commercially acceptable terms, or if the company fails to comply with the terms and conditions of its leases resulting in termination of its leases, it could have a material adverse effect on the company's business, financial condition and results of operations.
5. Its present promoters of the Company are first generation entrepreneurs.
6. Changes in technology may render its current technologies obsolete or require the company to make substantial capital investments. Any failure on its part to effectively address such situations, innovate and keep up with technological advancements, could adversely affect its business, results of operations, financial condition and cash flows.
7. Its business is subject to volatility due to change in technology and vulnerable to failures of its information technology systems, which may contribute to fluctuations in its results of operations and financial condition.
8. The company derives its significant amount of revenue from providing the service of Business Process Management and Customer Interaction Management Services. Any fall in demand of these services may adversely affect its business operations.
9. The Company has negative cash flows from its operating activities, investing activities as well as financing activities in the current and past years, details of which are given below. Sustained negative cash flow could impact its growth and business.
10. The company has not entered into any long term or definitive agreements with its customers. If the company customers choose not to source their requirements from it, its business, financial condition and results of operations may be adversely affected.