Adisoft Technologies Ltd IPO

The company's business is dependent on the sale of its services to certain key customers. The loss of any of these customers or loss of revenue from sales to these customers could have a material adverse effect on the company's business, financial condition, results of operations and cash flows.

The company depends significantly on the performance of automotive sector for sale of its automation solutions. Any adverse change in performance of automotive sector could adversely affect the company's business and profitability.

The Company is dependent on limited number of suppliers, within limited geographical locations for procurement of raw materials. Any delay, interruption or reduction in the supply of raw materials required for its products may adversely affect the company's business, results of operations, cash flows and financial condition.

The industry where the Company operates is a highly skilled and technical employee intensive industry and the company's success depends largely upon its skilled professionals and its ability to attract and retain these personnel.

The company is subject to strict quality requirements and any failures to comply with quality standards may lead to cancellation of existing and future orders, product recalls, product liability, warranty claims and other disputes and claims.

If there are delays in setting up the Proposed factory unit or if the costs of setting up and the possible time or cost overruns related to the Proposed factory unit or the purchase of furniture, fixtures and laptops for the Proposed factory unit are higher than expected, it could have a material adverse effect on its financial condition, results of operations and growth prospects.

The Company has not adequately complied with some of the provisions of the Companies Act, 2013. There are certain discrepancies/errors noticed in some of its corporate records and forms filed with the Registrar of Companies and other provisions of the Companies Act. Any penalty or action taken by any regulatory authority in future for such non-compliance could impact the reputation and financial position of the Company to that extent.

The restated consolidated financial statements have been provided by peer reviewed chartered accountants who is not statutory auditor of the Company.

The company does not own its registered office, Assembly unit and Sales & Service Support offices from where the company carry out its business activities.

The company has experienced negative operating cash flows in the past. Any operating losses or negative cash flows in the future could adversely affect its results of operations and financial conditions.