10.

11.

12.

future on terms acceptable to us, or at all. Further, in the future if such arrangements are severed or
disrupted, it would impair our investments and impact our business, financial condition and results of
operations.

A substantial portion of our assets are hypothecated or mortgaged in favour of lenders as security for
some of our borrowings. Our lenders may enforce the security in the event of our failure to service
our debt obligations which may affect our business, financial condition, and results of operations.

As of December 31, 2020, we had total secured borrowings (long term and short term) of = 8,901.12
million. These borrowings are secured, inter alia, through a charge by way of hypothecation on our
present and future current assets and fixed assets as well as through mortgage on our land and building
in favour of the lenders. See “Financial Indebtedness” on page 322.

As these assets are hypothecated or mortgaged in favour of lenders, our rights in respect of transferring
or disposing of these assets are restricted. Further, in the event we fail to service our debt obligations, the
lenders have the right to enforce the security created in respect of our secured borrowings. If the lenders
choose to enforce security and dispose our assets to recover the amounts due from us, our business,
financial condition and results of operations may be adversely affected.

We are subject to risks arising from interest rate fluctuations, which could adversely affect our results
of operations planned expenditures and cash flows.

As of December 31, 2020, 71.54% of our indebtedness was at floating interest rates while 28.46% of our
indebtedness was at fixed interest rate or hedged against interest rate risks. If the interest rates of our
existing or future borrowings increase significantly, our cost of funds will increase. A further increase in
interest rates may have an adverse effect on our results of operations and financial condition. While we
could consider refinancing the loan or hedging interest rate risks in appropriate cases, there can be no
assurance that we will be able to do so on commercially reasonable terms or at all, that our counterparties
will perform their obligations, or that these agreements, if entered into, will protect us adequately against
interest rate risks. Further, if such arrangements do not protect us adequately against interest rate risks,
they would result in higher costs. Further, some of our indebtedness that we have availed are in foreign
currencies and are therefore, exposed to foreign exchange risk between the Indian Rupee and U.S. Dollars
and other foreign currencies. There can be no assurance that we will be able to avoid the effect of any
adverse fluctuations in the value of the Indian Rupee against other relevant foreign currencies. Any
significant fluctuation in the value of the Indian Rupee against such currencies including as noticed
recently in the case of the U.S. Dollar, may adversely affect our results of operations. Any appreciation
of foreign currencies against the Indian Rupee may result in increase in our debt obligations and
consequently, have an adverse effect on our cash flows and results of operations. Also, see
“Management’s Discussion and Analysis of Financial Condition and Results of Operations -
Quantitative and Qualitative Disclosure about Market Risks — Foreign exchange rate risk” on page
319.

We export our products to various countries including, USA and Japan. Any adverse events affecting
these countries could have an adverse impact on our results from operations.

We generated % 1,006.86 million, = 1,393.23 million, = 1,619.62 million and % 1,275.09 million export
sales as on December 31, 2020 and in Fiscals 2020, 2019 and 2018, respectively, which represented
9.84%, 9.34%, 8.91% and 8.44% of our revenue from operations for the respective periods. During such
periods, we exported our products to over 20 countries across North America, South America, Europe
and Asia. These export destination countries impose varying duties on our products. There can be no
assurance that the duties imposed by such countries will not increase. Any change or increase in such
duties may adversely affect our business, financial condition and results of operations.

Additionally, export destination countries may also enter into free trade agreements or regional trade
agreements with countries other than India. Such agreements and alteration of existing tax treaties may
lead to increased competition or may even place us at a competitive disadvantage compared to
manufacturers in other countries and could adversely affect our business, financial condition and results
of operations. Further, changes in import policies or an economic slowdown in countries to which we
export our products may have a significant adverse impact on our business, financial condition and results
of operations. India is also a party to, and is currently negotiating, free trade agreements with several

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