Novus Loyalty Ltd IPO

The company is highly dependent on certain key customers for a substantial portion of its revenues. Loss of relationship with any of the customers may have a material adverse effect on the Company's profitability and results of operations.

The Company's success is dependent on its ability to develop and innovate the Company's platform, products and solutions in a cost efficient and timely manner. Any failure to do so or inability of its products/solutions to satisfy the Company's customers or perform as desired could adversely impact its business, results of operations, cash flows and financial condition.

The Company has not entered into any long-term contracts with few of its customers. Inability to maintain regular order flow would adversely impact the Company's revenues and profitability.

The success of its business hinges on the Company's ability to continually innovate in response to shifting customer needs, adopt and develop new technologies, and adapt to evolving industry standards. Operating in an industry characterized by rapid technological advancements, dynamic industry standards, frequent service introductions, and changing customer demands, the company recognize the necessity to stay ahead.

Significant disruptions in the Company's information technology systems or breaches of data security could affect the Company's business and reputation.

The Company has negative cash flows in the past years, details of which are given below. Sustained negative cash flow could impact its growth and business.

Certain of the company Group companies have incurred losses and have negative Net Worth in the past years.

The company generates its majority of the sales from domestic market of which major portion of sales from the Company's operations is generated from certain geographical regions especially, Telangana, Haryana, Uttar Pradesh, Maharashtra, Punjab, Tamil Nadu, Rajasthan, New Delhi, Karnataka and minority portion of sales is from international market. Any adverse developments affecting its operations in these regions could have an adverse impact on the Company's revenue and results of operations.

The company has certain outstanding litigation against it, an adverse outcome of which may adversely affect the Company's business, reputation and results of operations.

The company has relied on certain suppliers for its operations. Furthermore,the company has not entered into any long-term agreement or contract with the suppliers. The potential loss of any one or more of the Company's major suppliers would have a material effect on its business operations and profitability.