assets and take possession of those assets, which could adversely affect our liquidity and materially and
adversely affect our business and operations. Further, under certain of our loan agreements, the lenders
have a right to appoint a nominee director on our Board in case there is an event of default. In addition,
to the extent that we cannot make payments on accelerated amounts, such non-payment could result in
cross-acceleration of some or all of our other outstanding indebtedness, and payment of penalty interest,
which could likewise adversely affect our liquidity and materially and adversely affect our business and
operations. For instance, in the past we have sought waivers from one of our lenders in relation to certain
non-compliances with financial covenants such as maintaining current ratio and liabilities to tangible net
worth. Though we have received waivers in relation to such non-compliances for Fiscals 2020 and 2019,
we cannot assure you that we will not breach these covenants in the future or be able to procure
corresponding waivers. In another instance, while we have sought a waiver from one of our lenders in
relation to non-compliance with the current ratio required to be maintained by us, we have not yet
received a waiver in this regard. We cannot assure that the lender will not accelerate payment and declare
the entire outstanding amounts under these loans due and payable, and enforce their security, which has
been constituted over our various assets. We cannot assure you that we will not breach such covenants
in the future which are required to be complied with under our financing arrangements or be able to
procure corresponding waivers.

Fluctuations in market interest rates may also affect the cost of our borrowings. Since the interest rates
on certain of our borrowings may be subject to changes based on the prime lending rate of the respective
bank lenders, such borrowings may be subject to renegotiation and/or escalation on a periodic basis and
may not be covered by interest rate hedge agreements.

Our Group Companies have incurred losses in the last three Fiscals.

Our Group Company, MC Craftsman Machinery Private Limited, in which we have 10.00% equity stake,
has incurred losses in Fiscals 2020, 2019 and 2018 and our Group Company, Carl Stahl Craftsman
Enterprises Private Limited, in which we have 30.00% equity stake, have incurred loss in Fiscal 2020.
Details of profits (or losses) after tax of our Group Company in Fiscals 2020, 2019 and 2018 are provided
in “Promoter, Promoter Group and Group Company — Details of loss-making Group Companies” on
page 223. There is no assurance that our Group Companies will not incur losses in future periods or that
there will not be an adverse effect on our Company’s reputation or business as a result of such losses.

The audit reports on our audited financial statements as at and for Fiscals 2020, 2019 and 2018, the
nine months ended December 31, 2020, and the examination report on the Restated Financial
Information contain certain emphases of matter and other remarks, which may affect our future
financial results.

Under Indian Auditing Standards, statutory auditors may include an emphasis of matter in their audit
opinion under certain circumstances, including when a company's financial records have not been
maintained in accordance with Ind AS.

The examination report issued by the Statutory Auditors on the Restated Financial Information contains
an emphasis of matter on description of the impact assessment due to the COVID-19 pandemic and have
stated that the impact of the global health pandemic may be different from those estimated as on date of
the approval of the Restated Financial Information. The Previous Auditors for our Company had also
drawn attention in this regard in their audit report on the audited financial statements of our Company
for Fiscal 2020.

Further, the audit reports on the audited standalone financial statements of our Company for Fiscals 2020,
2019 and 2018 issued by the Previous Auditors contain an emphasis of matter regarding non-impairment
of investments in and loans to one of its Subsidiary, Craftsman Europe B.V. (formerly known as
Craftsman Marine B.V.) in view of its future business plan and profitability. Craftsman Europe B.V.
(formerly known as Craftsman Marine B.V.) is not a material subsidiary in terms of the SEBI Listing
Regulations. The Previous Auditors, under the section ‘Other Matters’ in the audit reports, also placed
reliance on an expert appointed by the Company in respect of mark to market valuation of derivative
instruments, namely, principal only swaps, call option, interest rate swaps and interest rate collar. These
matters were included in the audit reports issued by the Previous Auditors on the audited standalone
financial statements for Fiscals 2020, 2019 and 2018. However, these matters were not included in the
audit report issued by the Statutory Auditors on the audited standalone financial statements for the six

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