HP Telecom India Limited

1. Exclusive Distribution Rights.

2. Strong Brand Reputation.

3. Experienced and Visionary Leadership.

4. Robust network and relationships with suppliers.

5. Financial Stability and Resources.

1. The company is dependent on original equipment manufacturers for the telecommunication products its distribute. Any delay or failures on part of such global technology brands to supply products may materially and adversely affect its business, profitability and reputation.

2. The company business is dependent on telecommunication brands effectively maintaining, promoting or developing their brands and maintaining standard quality products including launching new information and communications technology products at regular intervals.

3. The Company, its Promoters and Directors are parties to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on the company business, results of operations and financial condition.

4. If the company is unable to maintain its relationships with the companay customers or if any of these parties change the terms of their arrangements with it, the company business could be materially and adversely affected.

5. The company could be subject to product liability claims, which may have a material adverse impact on it.

6. The reputation and goodwill associated with its brand name is critical to the success of the company business. An inability to maintain or enhance the popularity of its brand among brands and customers may adversely impact its business prospects and financial performance.

7. The business premises from where the company operates are not owned by it.

8. The company extend credit to its customers for a significant portion of the company sales to them. Any negative trends in their businesses could cause it significant credit loss and negatively impact the company cash flow and liquidity position.

9. The company has experienced negative cash flows from operating activities and may do so in the future, which could have a material adverse effect on its business, prospects, financial condition, cash flows and results of operations.

10. The company purchase inventory in anticipation of sales, and if its fails to manage the company inventory effectively during that period or if the inventory value declines, its business and results of operations could be adversely affected.