Plada Infotech Services Ltd IPO

The company fails to perform in accordance with the standards prescribed in its client contracts could result in loss of business or payment of liquidated damages.

Uncertainty of Client Commitment and Potential Contract Termination.

The company recent rapid growth may not be indicative of its future growth, and, if the continue to grow rapidly, the company may not be able to manage its growth effectively.

The company's business is subject to extensive government regulation, which may restrict the types of services the company is permitted to issue or result in additional tax or other costs that reduces the company revenues and earnings. Its inability to receive or renew the necessary licenses, approvals and registrations in a timely manner or at all may lead to interruption of the Company's operations.

The company may fails to attract and retain sufficiently trained employees to support its operations, as competition for qualified personnel is intense and the company experience significant employee turnover rates.

The Company has not made provision for gratuity as per AS 15 - Employee Benefits issued by ICAI in its books relating to certain employees of the Company given the contractual arrangement with client for providing Gratuity reimbursement along with Employee Compensation.

The company has not consolidated the financial statement of its assoicate Company for certain years.

The Company has availed moratorium facility from certain banks/ financial institution during the Covid-19 Period.

Due to the nature of the staffing services business, its may be exposed to employee-related risks, claims and losses that could have an adverse effect on the company business and reputation.

The company offices are located on leased premises and there can be no assurance that these leases will be renewed upon termination or that the company will be able to obtain other premises on lease on same or similar commercial terms.