Trident Techlabs

Risks

• Its business is dependent on a few of the company clients who contribute to majority of its revenues from operations. Any loss of business from them may adversely affect itd revenues and profitability.

• If the company fail to innovate in response to changing client needs and adopt and develop new technologies, or adapt to evolving industry standards, its business, financial condition, and results of operations could be adversely affected.

• If the company cannot execute its strategy to expand its business into international markets, the company`s business and prospects may be materially and adversely affected.

• If the company is unable to hire, integrate, train and retain its engineers and technical personnel, its business could suffer.

• Its success depends upon the company`s ability to develop new tools, designs, solutions and services.

• There has been certain lapses and such as discrepancies and/or typographical errors in Statutory filings. The company cannot assure you that no regulatory action will be initiated against it and that no penalties will be imposed on the company on account of these lapses.

• Failure to implement its growth strategy to provide solutions and services to the defence and aerospace sector.

• The restated financial statements have been provided by peer reviewed chartered accountants who is not statutory auditor of the Company.

• Relevant copies of educational qualifications of some of its Directors and Promoters are not traceable.

• There has been instances in past for Non-Provisioning of Gratuity Expenses and failure to obtain the actuarial report for purpose of determining the gratuity liability required as per AS-15 of Employees Benefits which may result into increase/decrease in expenses and gratuity liability.

• Any delays and/or defaults in clients payments could result in increase of working capital investment and/or reduction of the Company`s profits, thereby affecting its operation and financial condition.

• Any failure of its solutions implemented at the company clients project or business operations may adversely affect its business and results of operations.

• The Company has experienced negative cash flow in the past and may continue to do so in the future, which could have a material adverse effect on its business, prospects, financial condition, cash flows and results of operations.

• In past, there has been instances of delayed filing of Statutory Returns.

• An inability to comply with repayment and other covenants in the financing agreements or otherwise meet its debt servicing obligations could adversely affect its business, financial condition, cash flows and credit rating.

• The Company has availed certain unsecured loans which may be recalled at any time.

• Its inability to manage inventory in an effective manner could affect its business.

• There are outstanding legal proceedings involving the Company which may adversely affect its business, financial condition and results of operations.

• Its Promoters, Directors and Key Managerial Personnel have interests in the Company other than reimbursement of expenses incurred or normal remuneration or benefits.

• The requirement of funds in relation to the objects of the Issue has not been appraised.

• Its Promoters and members of the Promoter Group have significant control over the Company and have the ability to direct its business and affairs; their interests may conflict with your interests as a shareholder.

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

• Its future fund requirements, in the form of further issue of capital or securities and/or loans taken by it, may be prejudicial to the interest of the Shareholders depending upon the terms on which they are eventually raised.

• The company has in past entered into related party transactions and its may continue to do so in the future.

• Its Promoters has extended personal guarantees with respect to various loan facilities availed by the Company. Revocation of any or all of these personal guarantees may adversely affect its business operations and financial condition.

• The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Issue. Further, the company has not identified any alternate source of financing the `objects of the Issue`. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.

• Its success largely depends upon the knowledge and experience of the company Promoters, Directors, and its Key Managerial Personnel. Loss of any of its Directors and key managerial personnel or its ability to attract and retain them could adversely affect its business, operations and financial condition.

• Any defect in title/ ownership of owner (s) (including the Promoters/ Promoter Group), from whom the Company has bought space/ taken space on lease, may adversely affect the operations of the Company resulting in loss of business.

• Relevant copies of educational qualifications of its Promoters, Directors and Senior Management are not traceable.

• Industry information included in this Red Herring Prospectus has been derived from the CRISIL Report.

• The requirement of funds in relation to the objects of the Issue has not been appraised.

• Its funding requirements and proposed deployment of the Net Proceeds are based on management estimates and have not been independently appraised, and may be subject to change based on various factors, some of which are beyond its control.

• Industry information included in this Red Herring Prospectus has been derived from the CRISIL Report.

• Its ability to pay dividends in the future may be affected by any material adverse effect on its future earnings, financial condition or cash flows.

• Its insurance coverage may not be adequate to protect it against all potential losses, which may have a material adverse effect on its business, financial condition and results of operations.

• The deployment of funds is entirely at its discretion and as per the details mentioned in the chapter titled "Objects of the Issue".

• The company has not independently verified certain data in this Red Herring Prospectus.

• The requirements of being a listed company may strain its resources.

• The Equity Shares have never been publicly traded and the Issue may not result in an active or liquid market for the Equity Shares.

• There is no guarantee that the Equity Shares issued pursuant to the Issue will be listed on the SME Platform of National Stock Exchange of India Limited in a timely manner or at all.

• You will not be able to sell immediately on the Stock Exchanges any of the Equity Shares you purchase in the Issue.

• There is no existing market for its Equity Shares, and the company does not know if one will develop to provide you with adequate liquidity. Further, an active trading market for the Equity Shares may not develop and the price of the Equity Shares may be volatile.

• The price of the Equity Shares may be highly volatile after the Issue.

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

• The price of the Equity Shares may be volatile, which could result in substantial losses for investors acquiring the Equity Shares in the Issue.

• Any future issuance of Equity Shares, or convertible securities or other equity-linked securities by the Company may dilute your shareholding and any sale of Equity Shares by its Promoters or members of its Promoters Group may adversely affect the trading price of the Equity Shares.

• Sale of Equity Shares by its Promoters or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.

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