56.

57.

58.

Failure or disruption of our IT systems may adversely affect our business, financial condition, results
of operations and prospects.

We have implemented various IT systems which covers key areas of our operations, procurement,
inventory, sales and dispatch and accounting. For instance, we implemented Oracle E Business Suite in
2013 which encompasses all materials management, including procurement, bill of material, inventory
finance and accounts and sales order and invoicing management. We significantly rely on our IT systems
for the timely supply of our products to customers.

These systems are potentially vulnerable to damage or interruption from a variety of sources, which could
result in an adverse effect on our operations. A large-scale IT malfunction could disrupt our business or
lead to disclosure of, and unauthorised access to, sensitive Company information. Our ability to keep our
business operating depends on the proper and efficient operation and functioning and upgradation of
various IT systems, which are susceptible to malfunctions, disruptions and interruptions (including those
due to equipment damage, power outages, computer viruses and a range of other hardware, software and
network upgrade problems). For instance, due to implementation of Enterprise Resource Planning (ERP)
system in the year 2014, the annual general meeting in the year 2014 was held after the due date, after
seeking an approval from the RoC. However, there was no financial impact on our Company due to such
implementation. Such malfunction or disruptions could cause economic losses for which we could be
held liable. A failure of our information technology systems could also cause damage our reputation
which could harm our business. Any of these developments, alone or in combination, could have an
adverse effect on our business, financial condition and results of operations.

Further, unavailability of, or failure to retain, well trained employees capable of constantly servicing our
IT systems may lead to inefficiency or disruption of IT systems thereby adversely affecting our ability
to operate efficiently.

Any failure or disruption in the operation of these systems or the loss of data due to such failure or
disruption (including due to human error or sabotage) may affect our ability to plan, track, record and
analyse work in progress and sales, process financial information, meet business objectives based on IT
initiatives such as product life cycle management, manage our creditors, debtors, manage payables and
inventory or otherwise conduct our normal business operations, which may increase our costs and
otherwise materially adversely affect our business, financial condition, results of operations and
prospects.

Any unsecured loans, including the working capital loans taken by our Company and Subsidiary may
be recalled at any time.

In case we avail of any unsecured loans, including working capital loans, some of them may be recalled
at any time at the option of the lender. There can be no assurance that the lenders will not recall such
borrowings or if we will be able to repay loans advanced to us in a timely manner or at all. In the event
that any lender seeks a repayment of any such loan, we would need to find alternative sources of financing,
which may not be available on commercially reasonable terms, or at all. As a result, if such unsecured
loans are recalled at any time, it may impact our business, results of operations and financial condition.

Our ability to pay dividends in the future will depend on our future earnings, financial condition, cash
flows, working capital requirements, capital expenditure and restrictive covenants in our financing
arrangements.

Our ability to pay dividends in the future will depend on our future earnings, cash flows, financial
condition, working capital requirements, capital expenditure, applicable Indian legal restrictions and
other factors. Our Company does not have a formal dividend policy. The declaration and payment of
dividends, if any, will be recommended by our Board and approved by the Shareholders, at their
discretion, subject to the provisions of the Articles of Association and applicable law, including the
Companies Act 2013. There can be no assurance that we will pay dividends. We may decide to retain all
of our earnings to finance the development and expansion of our business or conserve cash to cope with
the disruption in our business operations due to COVID-19 pandemic and, therefore, may not declare
dividends on our Equity Shares. Additionally, in the future, we may be restricted by the terms of our
financing agreements in making dividend payments unless otherwise agreed with our lenders. See
“Dividend Policy” and “Financial Indebtedness” on pages 224 and 322, respectively.

48
