Usha Financial Services Limited - IPO

1. Good track record.

2. Leveraging the experience of our Promoters.

3. Experienced management team and a motivated and efficient work force.

1. The company requires substantial capital for its business and any disruption in the cost and availability of capital, including the company sources of financing, could have an adverse effect on its business, results of operations, financial condition and cash flows.

2. Any deterioration in the credit quality of its loans could adversely affect the company's business, results of operations, financial condition and cash flows.

3. While the company has applied for consent to undertake the Offer from certain of its lenders, the company has not received consents from some of these lenders as on the date of this Draft Red Herring Prospectus. Any failures to obtain these consents could lead to changes in its plans or strategies, including the company capital raising plan through the Offer.

4. The company depends on the accuracy and completeness of information provided by its borrowers. Any misleading information provided to it by the company borrowers may affect its judgement of their credit worthiness, which could have an adverse effect on its business, cash flows, results of operations, financial condition.

5. A major portion of its expenses is incurred in Portfolio Management charges included in other expenses. Its Inability to effectively reduce and control these expenses may adversely impact its profitability in the future.

6. The company depends on a limited number of customers for a significant portion of its revenues. The loss of a major customer or significant reduction in demand from any of the company major customers may adversely affect its business, financial condition, results of operations and prospects.

7. Its top two states contribute the company major revenue for the year ended 31st March 2024, 2023, 2022. Any loss of business from one or more of these states may adversely affect its revenues and profitability.

8. Its contingent liabilities as stated in the company Restated Financial Statements could adversely affect its financial conditions.

9. Its underwriting, risk management and collection processes may not be able to effectively identify, monitor or mitigate the risks in its lending operations.

10. The company is required to comply with guidelines issued by regulatory authorities in India, which are evolving and may increase its compliance costs and subject it to penalties.