Armee Infotech Limited IPO

We depend on orders from the Government/PSU clients for majority of our revenue, which may expose us to risk. Additionally, the loss of or inability to qualify for such orders may adversely affect our business, financial condition, results of operations and prospects.

We are dependent on our Technology Partners for various hardware and software products which we provide to our clients. The failure of our Technology Partners to deliver these products in the necessary quantities, on time or to meet specified quality standards or technical specifications, could adversely affect our business and our ability to deliver orders on time.

Most projects we operate have been awarded primarily through a competitive bidding process and our financial performance is largely dependent on our successful bidding for new projects. We may not always be able to qualify for, compete and win projects. If we are not able to successfully bid for new projects, it may adversely affect our business operations and financial conditions.

Most of our business operations are concentrated in the state of Gujarat. Due to this geographic concentration of our business operations, our results of operations and growth might be restricted to the economic and demographic conditions of Gujarat.

We have experienced negative cash flow in the past and any negative cash flows in the future would adversely affect our cash flow requirements, which may adversely affect our ability to operate our business and implement our growth plans, thereby affecting our financial condition.

We derive a significant portion of our revenues from a limited number of clients. The loss of any significant clients may have an adverse effect on our business, financial condition, results of operations, and prospects.

Our projects with Government/PSU clients usually contain terms that are premeditated by the Government/PSU clients and our ability to negotiate terms of these projects is limited and we may have to accept restrictive or onerous provisions. Our inability to negotiate terms that are favourable to us may have a material adverse impact on our financial condition and results of operations.

We are required to furnish bank guarantees as part of our business contracts. Our inability to arrange such guarantees or the invocation of such guarantees may adversely affect our cash flows and financial condition.

We enter into warehousing agreements with third party service providers from time to time, for our warehousing needs. The failure to enter into warehousing agreements in a timely manner could adversely affect our business and our ability to deliver orders on time, which in turn may have impact of our business, results of operations and financial condition.

Our Promoters have provided personal guarantees in respect of the secured and unsecured borrowings availed by the Company and its Subsidiary. Any default in repaying such borrowings will trigger repayment obligation on our Promoters. In case Promoters fail to effectively satisfy their obligations to the lenders, it could lead to termination of the credit facilities availed by us which could adversely impact our business and operations. Additionally, these obligations may impact our Promoters' ability to provide guarantees on future borrowings, affecting our potential to avail credit facilities in future.