Virtual Galaxy Infotech Ltd IPO

Substantial portion of its revenues has been dependent upon the company Core Banking software i.e. E-Banker. The loss of any one or more of its major clients would have a material effect on the company business operations and profitability.

The company depends on orders from the banks, government and private sector clients for majority of its revenue, which may expose it to risk. Additionally, the loss of or inability to qualify for such orders may adversely affect its business, financial condition, results of operations and prospects.

The company derives a significant portion of its revenue from customers located in Maharashtra. Any adverse developments in the region could adversely affect its business, results of operations, cash flows and financial condition.

The company revenues are dependent on clients concentrated in the BFSI segment. An economic slowdown or factors affecting this segment may have an adverse effect on its business, financial condition and results of operations.

Most projects the company operates have been awarded primarily through a competitive bidding process and its financial performance is largely dependent on the company successful bidding for new projects. Its may not always be able to qualify for, compete and win projects. If the company is not able to successfully bid for newprojects, it may adversely affect its business operations and financial conditions.

The restated financial statements have been provided by peer reviewed chartered accountants who is not statutory auditor of the Company.

Significant disruptions in its information technology systems or breaches of data security could affect its business and reputation.

The company is dependent on its ability to customize software products as per the demands and requirements of the customer based on latest technology. If the company is not able to enhance current portfolio in response to evolving industry requirements, its operating results may be negatively affected.

The company has not yet placed orders for the GPU, server & storage system at Data Centre, which its propose to finance from the Net Proceeds. In the event of any delay in placing such orders, or in the event the vendors are not able to provide the equipment's in a timely manner, or at all, it may result in time and cost overruns and its business, prospects and results of operations may be adversely affected.

Its may faces several risks associated with the proposed expansion of the company development facility at Mihan SEZ, Nagpur, which could hamper its growth, prospects, cash flows and business and financial condition.