Company: KNRX
Filing Date: 2025-08-21
Form Type: F-1/A
Source: 0001641172-25-025066
Chunk: 47

Company: KNOREX LTD.
Filing Date: 2025-08-21
Form: F-1/A
Chunk 47
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 Personal Data Protection Department.

These proposed amendments to the PDPA could significantly impact operations and compliance requirements for businesses operating in the digital marketing sphere, requiring adaptations to data handling practices, operational strategies, compliance protocols, resource allocation and risk mitigation to ensure regulatory adherence.

Information technology failures and data security breaches would have an adverse effect on our business, financial condition and results of operations.

The integrity and security of our information technology infrastructure are pivotal for the seamless operation of our business. Should there be any failures or breaches in our information technology systems, it could substantially impact our business, financial stability and operational outcomes.

Our operations heavily depend on the effectiveness of our information technology and communication systems. Any disruption or damage to these systems, whether due to power outages, technical failures, cyber threats, natural disasters, human errors, or faults in our backup systems and external cloud services, poses a considerable risk to our business continuity.

A significant malfunction in these crucial systems could not only harm our reputation but also impede our ability to conduct business efficiently. It might affect our decision-making processes regarding credit and risk exposure, lead to customer attrition, expose us to legal action, and necessitate substantial expenditures for resolution. These ramifications would inevitably have an adverse impact on our business standing, financial well-being and operational performance.

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Further, data breaches and/or non-compliance to data security regulations would attract potential regulatory actions that may arise which would warrant an enforcement on such breach which could impose administrative remedies, civil penalties, and even criminal charges on our Subsidiary in the event of a violation of the PDPA. These penalties can include fines of up to MYR500,000 and imprisonment of up to three years.

Our business and activities are regulated and subjected to various legal regulations and compliances under the Indian Law.

The Digital Personal Data Protection Act, 2023 (“DPDPA”) was passed by Lok Sabha (lower house of the Indian Parliament) on August 7, 2023, and by the Rajya Sabha (upper house of the Indian Parliament) on August 9, 2023. The DPDPA has also received the President’s assent, and upon being enacted, it will bring in several significant changes to the existing data protection regime. Since 2018, the Indian Government has been in the process of legislating a standalone data protection legislation. The DPDPA, once enacted, will replace the Information Technology (Reasonable security practices and procedures and sensitive personal data or information) Rules, 2011.

The DPD