26.

27.

28.

services. Our trade receivables as of December 31, 2020, as a percentage of the revenue from operations
for the nine months ended December 31, 2020, were higher on account of increase in our sales during
the months of November and December 2020 and the longer period of credit extended to our customers.
The trade receivables that were pending beyond the normal period of credit aggregated to approximately
18% to the outstanding trade receivables as of December 31, 2020. Also, see “Financial Statements —
Note 42 Financial Instruments - Market Risk — Credit risk” on page 272.

If our customers delay or default in making these payments, our profits margins and cash flows could be
adversely affected.

We may be subject to liquidity risks, which may adversely impact our cash flows, financial condition
and results of operations.

We may be subject to liquidity risks and cash flows mismatches due to repayment of borrowings and the
interest thereon, payment towards our lease liabilities, payment to our creditors and outflows on our
derivative liabilities.

The repayment of our borrowings in certain years may give rise to a temporary mismatch. This may
potentially give rise to a liquidity risk and interest rate risk when we are required to refinance our loans
and other borrowings. If we are unable to refinance our borrowings on favourable terms, it could
adversely affect our business, financial condition and results of operations. Our cash flows may also be
impacted by payment of our lease liabilities. While our Company has sufficient current assets to meet
the obligations related to lease liabilities as and when they fall due, we cannot assure that such obligations
will not impact our cash flows in the future. Further, our Company generates significant cash flows from
our operating activities, however such cash flows are primarily used towards payment of purchase of
property, plant and equipment and repayment of our borrowings, which may result in substantial decrease
in our cash flows and may impact our operations.

Further, we extend defined benefit plan in the form of gratuity to our employees. The Company makes
annual contribution to gratuity fund. The employees with high salaries and long durations or those higher
in hierarchy, accumulate significant level of such benefits. If some of such employees resign / retire from
our Company, there can be strain on the cash flows.

For further information, see “Financial Statements - Financial Statements — Note 42 Financial
Instruments — Financial risk management - Liquidity Risk” on page 273.

Information relating to the installed capacity, actual production and capacity utilization of our
manufacturing facilities included in this Prospectus are based on various assumptions and estimates
and future production and capacity may vary.

Information relating to the installed capacity, actual production and capacity utilization of our
manufacturing facilities included in this Prospectus are based on various assumptions and estimates of
our management that have been taken into account by the chartered engineer in the calculation of our
installed capacity, actual production and capacity utilization. Actual production levels and future capacity
utilization rates may vary significantly from the estimated production capacities of our manufacturing
facilities and historical capacity utilization rates. In addition, capacity utilization is calculated differently
in different countries, industries and for the different kinds of products we manufacture. Undue reliance
should therefore not be placed on our historical installed capacity, actual production and capacity
utilization for our existing manufacturing facilities included in this Prospectus. See “Business — Our
Business Segments” on page 177.

We may face difficulties in executing our strategies including our expansion plans.

Our growth strategy includes expanding our existing business in our Automotive - Powertrain and Others
segment and our product portfolio in our Automotive - Aluminium Products and Industrial and
Engineering segments. As a part of our growth strategy, we also seek to pursue emerging opportunities,
including storage solutions and material handling, which are growing market opportunities. We cannot
assure you that our growth strategies will be successful in a timely manner or at all or that we will be
able to continue to expand further or diversify our product portfolio.

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