Neilsoft Limited IPO

The company has generated 45.56%, 39.94%, 37.98% and 41.80% revenues from its top 20 customers in the 9 months ended December 31, 2024 and in Fiscals 2024, 2023 and 2022, respectively and the loss of such customers or a reduction in the company's revenue from such customers will have a material adverse impact on the company's business. Further, the company's success depends on the company's long-term relationship with its customers. Loss of one or more of the company's customers or reduction in their demand for the company's offerings could adversely affect its business, results of operations and financial conditions.

The company's source of revenue is concentrated to certain geographical locations. The company's revenue from customers located outside India (based on the location of our customers with which the company had a subsisting master service agreement/ project contract/purchase orders) constituted 74.56%, 77.97%, 76.67% and 73.77% of the company's revenue from operations in the 9 months ended December 31, 2024, and in Fiscals 2024, 2023 and 2022, respectively. The company's inability to operate and grow its business in such countries may have an adverse effect on the company's business, financial condition, result of operation, cash flow and future business prospects.

The company has derived 69.28%, 71.70%, 72.40% and 68.26% of its Engineering Services revenues in the 9 months ended December 31, 2024 and in Fiscals 2024, 2023 and 2022, respectively, from select industry segments and, in particular, the Architecture, Engineering, and Construction (AEC) industry. An economic slowdown or factors affecting this sector may have an adverse effect on the company's business, financial condition and results of operations.

The company's pricing structures and scope of offerings may not accurately anticipate the cost and complexity of performing its work and if we are unable to manage costs successfully, certain of the company's contracts could become unprofitable.

One of the company's offerings within its Engineering Services segment is Building Information Modelling (BIM). The company's percentage of Engineering Services revenue from AEC & BIM was 69.28%, 71.70%, 72.40% and 68.26% during 9 months ended December 31, 2024, Fiscal 2024, Fiscal 2023 and Fiscal 2022, respectively. There are country/state specific BIM norms which must be adhered to when undertaking a BIM project. Any substantial change in these norms could impact its ability to deliver BIM projects and hence negatively impact the company's revenues.

The company's revenue from customers located outside India (based on the location of the company's customers with which the company had a subsisting master service agreement/ project contract/purchase orders) constituted 74.56%, 77.97%, 76.67% and 73.77% of the company's revenue from operations during 9 months ended December 31, 2024, Fiscal 2024, Fiscal 2023 and Fiscal 2022, respectively. Contracts with such customers are governed by foreign laws. Any failures to comply with the terms of such agreements resulting in breach under such agreements may have monetary implications and cause us reputational harm.

The company is a value-added reseller of software solutions for leading computer aided design (CAD)/BIM software providers. The company's costs associated with the purchase of engineering solutions related software as a % of revenue from value added resell, for the 9 months ended December 31, 2024, Fiscal 2024, Fiscal 2023, and Fiscal 2022 was 82.23%, 84.28%, 83.92% and 81.02%, respectively. Any adverse impact on the relationship and/or change in engagement model with these software companies could lead to a decline in the company's revenues and margins.

The Company is unable to trace certain statutory records i.e., share transfer forms and certain minor variations in the company's corporate records. The company cannot assure you that the company will not be subject to penalties or that no other action will be initiated against the company in this regard.

The company has negative cash flow from investing and financing activities in previous financial periods.

The company has availed on lease, the use of certain properties, including the land on which its Registered Office is located, the company's Corporate Office and certain operations offices, from which the company operates its business. There can be no assurance that the lease agreements will be renewed upon termination or that the company will be able to obtain other premises on lease on the same or similar commercial terms.