Esconet Technologies Ltd IPO

The Company has given commitments of Rs. 260.53 Lakhs on September 30, 2023 in respect to the assignments undertaken from the clients. The company cannot assure that there will be no default on its part in the future.

Its lenders have charged over the company movable properties and book debts in respect of finance availed by it.

Its top five clients contribute approximately 41.35 %, 37.93% and 32.91% of its revenues from operations for the year ended March 31, 2023, March 31, 2022 and March 31, 2021 respectively. Any loss of business from one or more of them may adversely affect its revenues and profitability.

A significant portion of its revenues from operations for the last 3 years is generated from Government Projects. Any loss of business from may adversely affect its revenues and profitability.

The company has experienced negative cash flows and any negative cash flows in the future could adversely affect its financial conditions and results of operations.

The Company has availed Rs. 671.62 Lakh as unsecured loan which are repayable on demand. Any demand from the lenders for repayment of such unsecured loan may affect its financial condition.

If the company is unable to attract new clients or its existing clients does not renew their contract, the growth of its business and cash flows will be adversely affected.

If the company is unable to successfully protect its computer systems from security risks, its business could suffer.

The company is engaged in industry of Information Technology which is the fastest evolving industry in the world, (risk of obsolescence in current technology).

The property used by the Company for the purpose of its operations is owned by its Promoter. Any termination of the relevant rent agreement in connection with such property or its failure to renew the same could adversely affect the company's operations.