1. There are outstanding legal proceedings involving the Company. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.
2. Its Registered Office and other premises from where the company operate are not owned by it.
3. The Company has taken offices on lease basis and some of the lease agreements are not renewed/not
executed/inadequately executed, because of which operations may be adversely affected.
4. The company requires certain approvals and licenses in the ordinary course of business, some of the approvals are required to be transferred in the name of 'Fonebox Retail Limited', the company is yet to apply for the some of the said registrations and the failure to successfully obtain/renew such registrations would adversely affect its operations, results of operations and financial condition.
5. The Company has entered into Franchisee Agreements, some of the agreements are not renewed/inadequately executed, stamped, because of which operations may be adversely affected.
6. Its business is a high volume-low margin business.
7. Its Restated Financial Statements are prepared and signed by the Peer Review Auditor who is not Statutory Auditors of the Company as required under the provisions of ICDR.
8. Its Promoters, Directors and Group Company have provided personal / corporate guarantees for financing facilities availed by the Company and may in the future provide additional guarantees and any failure or default by the Company to repay such facilities in accordance with the terms and conditions of the financing agreements could trigger repayment obligations on them, which may impact their ability to effectively service their obligations as its Promoters and Directors and thereby, adversely impact its business and operations.
9. The Company had negative cash flow from operating activity in recent fiscals, details of which are given below. Sustained negative cash flow could adversely impact its business, financial condition and results of operations.
10. There are certain discrepancies and non-compliances noticed in some of its financial reporting and/or records relating to filing of returns and deposit of statutory dues with the taxation and other statutory authorities.