Happy Square Outsourcing Services Limited - IPO

1. We may be unable to perform background verification procedures on our staffed personnel prior to placing them with our clients.

2. We may be exposed to risks and costs associated with protecting the integrity and security of our systems as well as our clients' operational and other confidential information.

3. Our Company had negative cash flows in the past years, details of which are given below. Sustained negative cash flow could impact our growth and business.

4. Our businesses are subject to various operational risks and any adverse incident or accident involving employees in our businesses may adversely affect our reputation, business, results of operations and financial condition.

5. An inability to recruit, train and retain qualified and experienced personnel who meet the staffing requirements of our clients may adversely affect our reputation, business prospects and future financial performance.

6. Our business is subject to extensive government regulation, which may restrict the types of services we are permitted to offer or result in additional tax or other costs that reduce our revenues and earnings.

7. India has stringent labour legislations that protect the interests of workers, and if our employees unionize, we may be subject to industrial unrest, slowdowns and increased wage costs.

8. Some of our contracts are with the Government of India or government agencies and we may face certain inherent risks associated with government contracts.

9. Our Group Companies, White force Outsourcing Services Private Limited and Happiest Resume Services Private Limited may have conflict of interest with us as it is engaged in similar business and may compete with us.

10. Our Company is reliant on the demand from certain industries for a significant portion of our revenue. Any downturn in such industries or an inability to increase or effectively manage our sales could have an adverse impact on our Company's business and results of operations.