Euphoria Infotech (India) Ltd IPO

The income tax department for the Assessment Year 2017-18 has made an addition of the entire turnover of Rs.626.63 Lakhs and demanded tax of the Rs.484.07. The Company has filed an appeal before the Division Bench of the Hon'ble Calcutta High Court against the demand of the Income Tax Department.

The company is dependent on its ability to develop new services and products, and enhance the existing services and products. If its products and services do not gain market acceptance, the company operating results may be negatively affected.

The length of its sales cycle may fluctuate significantly and depends on several external factors which may result in significant fluctuations in its revenues.

Its may become liable to the customers and lose customers if the company has defects or disruptions in its service or if the company provide poor service.

The company's business is dependent on the contractual arrangements entered into by it. Many of its client contracts can be terminated with or without cause by providing notice and without termination- related penalties.

The company is registered with Webel Technologies Limited which is a nodal agency for the Government of West Bengal for implementation of IT and ITes. In case its lose the registration with Webel Technologies Limited, the company business and results of operations may be adversely affected.

The Company requires several statutory and regulatory permits, licenses and approvals for its operations. The company inability to obtain, renew or maintain the statutory and regulatory licenses, permits and approvals required to operate its business may have a material adverse effect on the business & operations.

The company Promoter play key role in the functioning and its heavily relies on his knowledge and experience in operating the business and therefore, it is critical for the company business that the Promoter remain associated with it.

Any IT system failures or lapses on part of any of the company employees may lead to operational interruption, liabilities or reputational harm.

The company failure to adapt to technological developments or industry trends could affect the performance and features of the products and services and reduce its attractiveness to the customers.