Travels

Risks

• The Company, Promoter Group and Group Entities are parties to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, result of operations and financial conditions.

• The travel industry is intensely competitive, and its may not be able to effectively compete in the future.

• Any failures to maintain quality of customer service, products and deal with customer complaints could materially and adversely affect its business and operating results.

• The Company had negative cash flow in recent fiscals, details of which are given below. Sustained negative cash flow could adversely impact its business, financial condition and results of operations.

• Its Group Company has incurred losses in the past and may incur losses in the future.

• The company has provided an advance to some of the related entities, which may possibly be in contravention of section 185 of the Companies Act, 2013.

• Any disruption to the supply of air, train and bus tickets, and reduced demand for hotel accommodation and related services or other travel elements, or an increase in the prices of travel elements could adversely affect its operation, turnover and profitability.

• Its may be exposed to risks relating to processing, storage, use and disclosure of customer data of the company`s customers or visitors to its website.

• Its Registered Office is located on premises which are not owned by the company and has been obtained on rent basis. Disruption of its rights as licensee/ lessee or termination of the agreements with its licensors/ lessors would adversely impact its operations and, consequently, the company business, financial condition and results of operations.

• The company has not yet applied for the registration of its logo. If the company fails to obtain registration its brand building efforts may be hampered which might lead to adverse effect on its business.

• The comkpany generally do business with its customers on travel package basis and does not enter into long term contracts with any of them.

• The travel industry in India, as well as globally, is susceptible to extraneous events. Declines or disruptions in the travel industry could adversely affect its business and financial performance.

• The company`s business involves usage of manpower and any unavailability of its employees or shortage or any strikes, work stoppages, increased wage demands by workmen or changes in government regulations may have an adverse impact on its cash flows and results of operations.

• The Financial Statements included in this Prospectus may not accurately reflect its revenue from operations.

• The company`s insurance coverage may not be adequate to protect its against all potential losses to which the company may be subject and this may have a material effect on its business and financial condition.

• The company faces competition in its business from organized and unorganized players, which may adversely affect its business operation and financial condition.

• The company requires several approvals, NOCs, licenses, registrations and permits in the ordinary course of its business. Some of the approvals are required to be transferred in the name of "Travels & Rentals Limited" from "Travels & Rentals Private Limited" pursuant to name change of the company and any failures or delay in obtaining the same in a timely manner may adversely affect its operations.

• Its inability or failures to recognise, respond to and effectively manage the accelerated impact of social media could materially adversely affect its business.

• The company continue to explore the diversification of its business and the implementation of new services. These diversifications and the company`s other strategic initiatives may not be successful, which may adversely affect its business and results of operations.

• Any deficiency in its services could make the Company liable for customer claims, which in turn could affect the Company`s results of operations.

• Its inability to manage growth could disrupt the company`s business and reduce its profitability. The company propose to expand the company`s business activities in coming financial years.

• If the company is unable to source business opportunities effectively, its may not achieve the company`s financial objectives.

• Its operations are subject to high working capital requirements. If the company is unable to generate sufficient cash flows to allow it to make required payments, there may be an adverse effect on its results of operations.

• Delays or defaults in customer payments could adversely affect its financial condition.

• The company`s insurance coverage may not be adequate to protect its against certain operating hazards and this may have a material adverse effect on its business.

• The company has issued Equity Shares in the last 12 (twelve) months at a price which is lower than the Issue Price.

• The average cost of acquisition of Equity Shares by its Promoters is lower than the Issue Price.

• Its actual results could differ from the estimates and projections used to prepare the company`s financial statements.

• The company has entered into certain related party transactions and may continue to do so.

• In addition to its existing indebtedness for the company`s operations, its may be required to obtain further loan during the course of business. There can be no assurance that the company would be able to service its existing and/or additional indebtedness.

• There are certain discrepancies noticed in some of its corporate records relating to forms filed with the Registrar of Companies.

• Its debt financing agreements contain certain restrictive covenants that may adversely affect the Company`s business, credit ratings, prospects, results of operations and financial condition.

• Its management will have broad discretion in how the company apply the Net Proceeds of the Issue and there is no assurance that the Objects of the Offer will be achieved within the time frame expected, or at all, or that the deployment of Net Proceeds in the manner intended by it will result in an increase in the value of your investment.

• Its Directors and certain Key Management Personnel hold Equity Shares in the Company and are therefore interested in the Company`s performance in addition to their remuneration and reimbursement of expenses.

• Its revenues are highly dependent on clients located in India. Any decline in the economic health of India could adversely affect its business, financial condition and results of operations.

• The company is dependent on a number of key personnel, including its senior management, and the loss of or the company inability to attract or retain such persons could adversely affect its business, results of operations and financial condition.

• The Company has availed certain unsecured loan which can be recalled at any time.

• The deployment of funds raised through this Issue shall not be subject to any Monitoring Agency and shall be purely dependent on the discretion of the management of the Company.

• Non-availability of initial period secretarial/ statutory records of the company filed with ROC since incorporation.

• Certain relevant copies of education qualification and experience certificates of its promoters/ Directors are not traceable.

• The company could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect its financial condition, results of operations and reputation.

• Major fraud, lapses of internal control or system failures could adversely impact the company`s business.

• Its may not be successful in implementing the company`s business strategies.

• Its lenders have charge over the company`s Machinery, book debts, stocks in respect of finance availed by it.

• Excessive dependence on Red Fort Capital Finance Company Limited in respect of Loan facilities obtained by the Company.

• Its Promoters have provided personal guarantees for loans availed by the Company. Its business, financial condition, results of operations, cash flows and prospects may be adversely affected by the invocation of all or any personal guarantees provided by its Promoter.

• The company has not made any alternate arrangements for meeting its regular working capital requirements. If the company operations does not generate the necessary cash flow, its working capital requirements may negatively affect its operations and financial performance.

• The company funding requirements and the proposed deployment of the Net Proceeds are based on management estimates and have not been independently appraised.

• Some of the KMPs is associated with the company for less than one year.

• Its Promoters and Promoter Group will continue to retain control over the Company after completion of the Issue, which will allow them to influence the outcome of matters submitted for approval of its shareholders.

• The company is subject to risks arising from interest rate fluctuations, which could adversely affect its business, financial condition and results of operations.

• The future operating results are difficult to predict and may fluctuate or adversely vary from the past performance.

• Certain key performance indicators for certain listed industry peers included in this Prospectus have been sourced from public sources and there is no assurance that such financial and other industry information is complete.

• Industry information included in this prospectus has been derived from industry reports. There can be no assurance that such third-party statistical, financial and other industry information is either complete or accurate.

• Portion of its Issue Proceeds are proposed to be utilized for general corporate purposes amounting to Rs.250.00 lakhs which constitute 20.42% of the total Issue Proceeds.

• In the event there is any delay in the completion of the Issue, there would be a corresponding delay in the completion of the objects of this Issue which would in turn affect our revenues and results of operations.

• There is no guarantee that its Equity Shares will be listed on the SME Platform of BSE Limited in a timely manner or at all.

• The Issue Price of its Equity Shares may not be indicative of the market price of the company Equity Shares after the Issue.

• After this Issue, the price of its Equity Shares may be volatile, or an active trading market for the company`s Equity Shares may not be sustained.

• The investors will not be able to sell immediately on an Indian stock exchange any of the Equity Shares they purchase in the Issue.

• There are restrictions on daily movements in the price of the Equity Shares, which may adversely affect a shareholder`s ability to sell, or the price at which it can sell, Equity Shares at a particular point in time.

• Any future issuance of Equity Shares may dilute the investors` shareholdings or sales of its Equity Shares by the company`s Promoters or Promoter Group may adversely affect the trading price of its Equity Shares.

• The Company has not paid any dividends till now and there can be no assurance that the company will pay dividends in future.

• Its ability to pay dividends in the future will depends upon the companay`s future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in its financing arrangements.

• The Investors may be subject to Indian taxes arising out of capital gains on sale of Equity Shares.

• Foreign investors may be restricted in their ability to purchase or sell Equity Shares.

• The investors may be restricted in their ability to exercise pre-emptive rights under Indian law and may be adversely affected by future dilution of their ownership position.

• Applicants to this Issue are not allowed to withdraw their Applications after the Issue Closing Date.

• Rights of shareholders under Indian law may be more limited than under the laws of other jurisdictions.

• Its Equity Shares are quoted in Indian Rupees in India, and therefore investors may be subject to potential losses arising out of exchange rate risk on the Indian Rupee and risks associated with the conversion of Indian Rupee proceeds into foreign currency.

• Its Equity Shares are quoted in Indian Rupees in India, and therefore investors may be subject to potential losses arising out of exchange rate risk on the Indian Rupee and risks associated with the conversion of Indian Rupee proceeds into foreign currency.