SRS Limited (RHP) - Karvy

SRS LimitedSECTION II - RISK FACTORSAn investment in Equity Shares involves a high degree of risk. The Investors should carefully read all theinformation in this Red Herring Prospectus, including the risks and uncertainties described below, beforemaking an investment in the Equity Shares of the Company. To obtain a complete understanding, theinvestors should read this section in conjunction with sections titled “Business Overview” and“Management’s Discussion and Analysis of Financial Condition and Results of Operations” on pages85 and 300 respectively, as well as, the other financial and statistical information contained in this RedHerring Prospectus. The risks and uncertainties described in this section are not the only risks that theCompany currently faces. Additional risks and uncertainties not presently known to the Company or thatthe Company currently believes to be immaterial may also have an adverse effect on its business, results ofoperations and financial condition. If any of the following risks, or other risks that are not currently knownor are now deemed immaterial, actually occur, the business, results of operations and financial condition ofthe Company could suffer, the price of the Equity Shares of the Company could decline and the investormay lose all or part of its investment.This Red Herring Prospectus also contains forward-looking statements that involve risks and uncertainties.The actual results of the Company could differ materially from those anticipated in these forward-lookingstatements as a result of certain factors, including the considerations described below and elsewhere in thisRed Herring Prospectus. Unless otherwise stated in the relevant risk factors set forth below, the Companyis not in a position to specify or quantify the financial or other implications of any of the risks mentionedherein. Unless otherwise stated, the financial information of the Company used in this section is derivedfrom its audited financial statements under Indian GAAP, as restated.In making an investment decision, prospective investors must rely on their own examination of theCompany and the terms of the Issue, including the merits and risks involved.I. INTERNAL RISK FACTORSRISKS RELATED TO THE COMPANY1. The Company and its Promoters are involved in various legal proceedings which, if determinedagainst them, could affect the business and financial conditions of the Company.The Company and its Promoters are party to several legal proceedings. No assurances can be given asto whether these proceedings will be settled in their favor or against them. If a claim is determinedagainst the Company and it is required to pay all or a portion of the disputed amount, it could have anadverse effect on the results of operations and cash flows of the Company. A classification of the legalproceedings instituted against and by the Company and the monetary amount involved in these cases ismentioned in brief below:a. Proceedings initiated against the CompanyCategory Number of Litigations Aggregate amountinvolved(Rs. in Mn.)Criminal 1 Not AscertainableCivil 3 4.93Labour 2 0.26Income Tax 3 Not AscertainableSales Tax 5 Not AscertainableService Tax 1 Not Ascertainablexii