1. One of the Company's Promoters and one of the Company's Directors are parties to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on the business, results of operations and financial condition of the Company.
2. The company relies on clients of one of its Promoters namely Gretex Corporate Services Limited for its major revenue generating services i.e. Market Making and Underwriting and its dependence on Gretex Corporate Services Limited leaves it vulnerable to changes in its relationship.
3. The revenues earned from its business activities have been inconsistent in the past and may continue to be inconsistent due to the very nature of this business which is dependent on the overall volatility in the Capital Markets in India.
4. Credit risk exposes the Company to losses caused by financial or other problems experienced by third parties.
5. General economic and market conditions in India and globally could have a material adverse effect on its business, financial condition, cash flows, results of operations and prospects.
6. Downturns or disruptions in the securities markets could reduce transaction volumes and could cause a decline in the business and impact its profitability.
7. One of its Promoters namely Gretex Corporate Services Limited has received an observation letter from SEBI in course of its regular inspection pertaining to maintenance of Structured Digital Database, maintenance of net worth requirements, due diligence being carried and ensuring market making activities. Any adverse outcome of such proceeding could have an impact on the Company's reputation, financial condition, and the results of operations.
8. The company requires certain approvals and licenses in the ordinary course of business and are required to comply with certain rules and regulations to operate its business, and the failure to obtain, retain and renew such approvals and licences in timely manner or comply with such rules and regulations or at all may adversely affect its operations.
9. Significant security breaches in its computer systems and network infrastructure, fraud, systems failures and calamities would adversely impact its business.
10. The company has experienced negative cash flows in the past and may continue to do so in the future and the same may adversely affect its cash flow requirements, which in turn may adversely affect its ability to operate the company's business and implement its growth plans, thereby affecting its financial condition.