Sahasra Electronics Solutions Limited - IPO

1. Our business is dependent on the sale of our products to certain key customers which also includes some of our Group Companies. The loss of any of these customers or loss of revenue from sales to these customers could have a material adverse effect on our business, financial condition, results of operations and cash flows.

2. We are significantly dependent on revenue from sale of PCBA. Any inability to anticipate or adapt to evolving up gradation of the required products or inability to ensure product quality or reduction in the demand of these products may adversely impact our revenue from operations and growth prospects.

3. Our company has been recently incorporated and has taken-over the running business of M/s Sahasra Electronic Solutions, thus we have limited operating history as a Company which may make it difficult for investors to evaluate our historical performance or future prospects.

4. Inventories and trade receivables form a major part of our current assets. Failure to manage our inventory and trade receivables could have an adverse effect on our sales, profitability, cash flow and liquidity.

5. Any delay, interruption or reduction in the supply of raw materials required to manufacture our products may adversely affect our business, results of operations, cash flows and financial condition.

6. Our business is substantially dependent on our engineering teams to accurately carryout the designing, engineering and estimation studies for potential orders. Any deviation during the execution of the order as compared to our estimates could have a material adverse effect on our cashflows, results of operations and financial condition.

7. We are subject to strict design & quality requirements, customer inspections and audits, and any failure to comply with design & quality standards may lead to cancellation of existing and future orders and could negatively impact our reputation and our business and results of operations and future prospects.

8. We derive a majority portion of our revenues from exports and are subject to risk of international trade.

9. Our Company operates under several statutory and regulatory approvals in respect of our operations. Failure to obtain or maintain licenses, registrations, permits and approvals may affect our business and results of operations.

10. Restrictions on foreign trade and/or any increase in shipment cost may adversely impact our business, cash flows and results of operations.