**includes operating lease, sales bill discounting and sales/purchase invoice bill discounting facilities availed by our
Company.

Our Company proposes to utilize the funds which are being raised through the Fresh Issue for repayment/pre-
payment, in full or part, of certain borrowings availed by our Company. For further details, see “Objects of the
Offer - Details of the Objects of the Fresh Issue - Repayment/pre-payment, in full or part, of certain borrowings
availed of by our Company” on page 81.

Contingent Liabilities and Capital Commitments

The following table sets forth the principal components of our contingent liabilities and capital commitments:

(in & million)

 

Particulars Nine Fiscal ‘Fiscal ‘Fiscal
months 2020 2019 2018
ended
December

31, 2020
Claims against us not acknowledged as debt
- Excise 0.69 0.69 7.33 12.60
- VAT 6.21 5.53 5.23 6.83
- Service Tax 6.72 6.72 7.70 6.86
-GST 4.33 2.74 2 :
- Income Tax 176.79 176.79 173.28 «69.48
- Stamp duty 5.62 5.62 5.62 E

Sales Bill Discounting - 5.62 376.38 459.83
Commitment on Capital Account 864.92 304.90 928.10 1,120.00

 

Off-balance Sheet Arrangements
We do not have any material off-balance sheet arrangements.
Related Party Transactions

We have entered into, and expect to continue entering into, transactions with certain related parties, in the normal
course of business with Carl Stahl Craftsman Enterprises Private Limited and MC Craftsman Machinery Private
Limited.

For further information, see “Risk Factors - We have entered into transactions with related parties. These or
any future related party transactions may potentially involve conflicts of interest and there can be no assurance
that we could not have achieved better terms, had such arrangements been entered into with unrelated parties.”
and “Financial Statements — Restated Financial Information — Annexure VII —Note No. 43” on pages 45 and
276, respectively.

Significant Developments after December 31, 2020

There are no developments or circumstances that have arisen after December 31, 2020 that we expect to have a
material and adverse impact on our reserves, profits, earnings per Equity Share, book value or ability to pay our
liabilities within the next 12 months.

Quantitative and Qualitative Disclosure about Market Risks

General market risk

Market risk is the risk that changes in market prices, liquidity and other factors could have an adverse effect on
realizable fair values or future cash flows. Our activities expose us primarily to the financial risks of changes in
foreign currency exchange rates and interest rates.

Also see, “Risk Factors” on page 22.

Foreign exchange rate risk

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