85.

36.

on skills and experience of our personnel, the quality of our training program, and our ability to ensure
that such personnel adhere to our policies and guidelines. Any adverse change in the quality of products
rendered by us including due to reasons beyond our control, or allegations of defects, even when false,
at any of our manufacturing facilities could tarnish the image of our brands, result in negative reviews
and feedback from our customers.

Further, our brand building would also depend on the effectiveness of sales and promotional activities
and choice of channel partners. There can be no assurance that our efforts in these areas would always
be effective. Any adverse development or decline in our brand value and reputation may adversely affect
our business, results of operations and financial condition.

Delay in schedule of implementation may subject us to risks related to time and cost overrun which
may have an adverse effect on our business, results of operations and financial condition.

We have in the past faced time and cost overrun and have sought time extensions to commence
production for a planned manufacturing facility at Sriperumbudur, near Chennai. Further, in relation to
our proposed manufacturing facility at Perundurai in Tamil Nadu, we have now surrendered the lease
and are no longer seeking to develop as we don’t envisage further expansion of our manufacturing
capacity due to the current COVID-19 pandemic. In relation to the surrender of lease for our
manufacturing facility at Perundurai in Tamil Nadu, an amount equal to one percent of the total amount
paid by us was deducted by the State Industries Promotion Corporation of Tamil Nadu Limited from the
refund amount. For further information, see “- Some of our manufacturing facilities are operated on
industrial land allotted to us by industrial development corporations. Failure to comply with the
conditions of use of such land could result in an adverse impact on our business and financial
condition.” and “History and Certain Corporate Matters” on pages 40 and 194, respectively.

Further, for our future projects, we may face risks relating to commissioning including delays in
construction, failure of our contractors and suppliers to adhere to our specifications and timeline, among
other things. We have limited control over the timing and quality of services, equipment or other supplies
from third party contractors appointed by us, and we may be required to incur additional unanticipated
costs to remedy any defect or default in their services or products to ensure that the planned timelines
are adhered to.

We have substantial capital expenditure and working capital requirements and may require additional
capital to meet those requirements, which could have an adverse effect on our results of operations
and financial condition.

Our business is capital intensive as we have expanded and upgraded our existing production facilities.
For the nine months ended December 31, 2020 and Fiscals 2020, 2019 and 2018, our capital expenditure
was % 507.29 million, = 1,206.01 million, = 4,559.86 million and % 1,811.24 million, respectively, which
represented 5.32%, 8.39%, 26.95% and 12.24% of our total expenditure for the respective periods. The
actual amount and timing of our future capital requirements may differ from estimates as a result of,
among other factors, unforeseen delays or cost overruns, unanticipated expenses, regulatory changes,
economic conditions, engineering design changes, weather related delays, technological changes and
additional market developments and new opportunities in the Automotive - Powertrain and Others,
Automotive - Aluminium Products and Industrial and Engineering segments. Our sources of additional
capital, where required to meet our capital expenditure plans, may include the incurrence of debt or the
issue of equity or debt securities or a combination of both. Further, our budgeted resources may prove
insufficient to meet our requirements which could drain our internal accruals or compel us to raise
additional capital. If we are required to raise additional funds through the incurrence of debt, our interest
and debt repayment obligations will increase, and could have a significant effect on our profitability and
cash flows and we may be subject to additional covenants, which could limit our ability to access cash
flows from operations. If we are unable to successfully utilise the facilities for which we have raised
additional funds, it will have adverse effect on our business. Further, any issuance of equity, on the other
hand, would result in a dilution of your shareholding.

In many cases, a significant amount of our working capital is required to finance the purchase of materials
and the performance of manufacturing and other work before payment is received from customers. Our
working capital requirements may increase if the payment terms in our agreements include reduced
advance payments or longer payment schedules. These factors may result, or have resulted, in increases

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