Takyon Networks Limited - IPO

1. The company is heavily reliant on a few vendors/ suppliers and the company typically does not enter into long term contracts or arrangements with its vendors. Any loss of such vendors / suppliers or any increase in the price will have a material adverse impact on the company business and its revenue.

2. Its financial condition could be materially and adversely affected if the company fails to secure new government and PSU projects.

3. A Significant proportion of its orders are from government related entities which award the contract through the process of tender. Tenders, typically, are awarded to the lower bidder once all other eligibility criteria are met. Its performance could be adversely affected if the company is not able to successfully bid for these contracts or required to lower its bid value.

4. The company depends on few Customer Industries for majority of its revenue from operations. Loss of customers in these Customer industries may result in an adverse effect on the company business, revenue from operations and financial conditions.

5. Any increase in the cost of, or a shortfall in the supply of IT Equipment's, may adversely affect the pricing and supply of its products and have an adverse effect on the company business, results of operations and financial condition.

6. There are certain discrepancies/errors noticed in some of its corporate records relating to forms filed with the Registrar of Companies and other provisions of Companies Act, 2013. Some of the company corporate records are not traceable. Any penalty or action taken by any regulatory authorities in future, for non-compliance with provisions of corporate and other law could impact the reputation and financial position of the Company to that extent.

7. If the company cannot attract and retain highly-skilled IT professionals, our ability to obtain, manage and staff new projects and to continue to expand existing projects may result in loss of revenue and an inability to expand its business.

8. The company current order book value is not necessarily indicative of future growth. Further, some of the orders that constitute its current order could be cancelled, put in abeyance, delayed, or not paid for by the company customers, which could adversely affect its financial condition.

9. The company has working capital requirements. If its experience insufficient cash flows to make required payments on the company debt or fund working capital requirements, there may be an adverse effect on its results of operations.

10. The IT solutions market is highly competitive and its competitors may have advantages that could allow them to compete more effectively than the company do to secure customer contracts. Any failures to compete effectively could have a material adverse effect on its business, financial condition and results of operations.