Netweb Technologies India Ltd IPO

The company success is dependent on its long-term relationship with it Customers. In particular, the company is heavily reliant on its top 10 Customers. The company do not, generally, enter into long term contracts with Customers, which exposes it to risks emanating from the inability to retain its established Customers as the company clients.

The company derive a majority portion of its revenues from operations from a select few of the company HCS offerings. Loss or decline in the demand of such offerings may result in an adverse effect on its business, revenue from manufacturing operations and financial condition.

The company depend on few Application Industries for majority of its revenue from operations. Loss of Customers in these Application Industries may result in an adverse effect on its business, revenue from manufacturing operations and financial condition.

The Company has entered into various non- disclosure agreements with its technology partners to collaborate on design and innovation of products and solutions, most of which are governed by foreign laws. Any failure to comply with the terms of such agreements resulting in breach under such agreements may have monetary implications and cause us reputational harm.

There are common pursuits between the Company and a member of its Promoter Group. Further, the member of the promoter group provides same products and solutions as it in jurisdictions that are demarcated by a noncompete agreement. Any breach of the non-compete agreement may adversely impact its business operations.

The Company and one of the members of its Promoter Group use the identical intellectual property rights (i.e.,trade marks) in their respective jurisdictions. Any adverse actions initiated against the member of its Promoter Group in relation to the business operations carried out under these brands (trade marks) may adversely impact its business operations including reputational harm.

A significant proportion of its orders are from government related entities which award the contract through a process of tender. Tenders, typically, are awarded to the lower bidder once all other eligibility criteria are met. Its performance could be adversely affected if the company is not able to successfully bid for these contracts or required to lower itd bid value.

Delays in Customer payments and receivables may adversely impact its profits and affect the company cash flows.

Failure to meet quality standards for its product and solutions offering required by the company Customers may lead to cancellation of existing and future orders and expose us inter alia to warranty claims, including monetary liability.

The company has a high working capital requirement and if its unable to raise sufficient working capital the company operations will be adversely affected.