Novus Loyalty Ltd IPO

Comprehensive Loyalty Solutions.

Experienced promoters and management team.

Clients in International Market.

Quality assurance, quality certification and compliance.

Professional Management.

The company is highly dependent on certain key customers for a substantial portion of its revenues. Loss of relationshipwith any of the customers may have a material adverse effect on the Companys profitability and results of operations.

The Companys success is dependent on its ability to develop and innovate the Companys platform, products and solutions in a costefficient and timely manner. Any failure to do so or inability of its products/solutions to satisfy the Companys customers orperform as desired could adversely impact its business, results of operations, cash flows and financial condition.

The Company has not entered into any long-term contracts with few of its customers. Inability to maintainregular order flow would adversely impact the Companys revenues and profitability.

The success of its business hinges on the Companys ability to continually innovate in response to shifting customer needs,adopt and develop new technologies, and adapt to evolving industry standards. Operating in an industrycharacterized by rapid technological advancements, dynamic industry standards, frequent service introductions,and changing customer demands, the company recognize the necessity to stay ahead.

Significant disruptions in the Companys information technology systems or breaches of data security could affect the Companys business and reputation.

The Company has negative cash flows in the past years, details of which are given below. Sustained negative cashflow could impact its growth and business.

Certain of the company Group companies have incurred losses and have negative Net Worth in the past years.

The company generates its majority of the sales from domestic market of which major portion of sales from the Companys operationsis generated from certain geographical regions especially, Telangana, Haryana, Uttar Pradesh, Maharashtra,Punjab, Tamil Nadu, Rajasthan, New Delhi, Karnataka and minority portion of sales is from internationalmarket. Any adverse developments affecting its operations in these regions could have an adverse impact on the Companys revenue and results of operations.

The company has certain outstanding litigation against it, an adverse outcome of which may adversely affect the Companys business,reputation and results of operations.

The company has relied on certain suppliers for its operations. Furthermore,the company has not entered into any long-termagreement or contract with the suppliers. The potential loss of any one or more of the Companys major suppliers would havea material effect on its business operations and profitability.