Company: KNRX
Filing Date: 2025-01-15
Form Type: F-1/A
Source: 0001493152-25-002249
Chunk: 48

Company: KNOREX LTD.
Filing Date: 2025-01-15
Form: F-1/A
Chunk 48
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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 DPDPA introduces several compliance requirements for collection and processing of personal data. The DPDPA applies to the processing of digital personal data in India, where the personal data is either (i) collected in digital form; or (ii) collected in a non-digitized format and subsequently digitized. The DPDPA does not apply to the processing of personal data in non-digit