Credit risk is the risk of financial loss to us if a customer or counterparty to a financial instrument fails to meet
its contractual obligations, and arises principally from our receivables from customers and investments. The
carrying amounts of financial assets represent the maximum credit risk exposure.

Liquidity Risk

Liquidity risk is the risk that we will encounter difficulty in meeting the obligations associated with our financial
liabilities that are settled by delivering cash or another financial asset. Our approach to managing liquidity is to
ensure, as far as possible, that we will have sufficient liquidity to meet our liabilities when they are due, under
both normal and stressed conditions, without incurring unacceptable losses or risking damage to our reputation.

Exchange Rate Risk

Our functional currency is the Indian Rupee. We are exposed to currency risk to the extent that there is a
mismatch between the currencies in which sales, purchases and borrowings are denominated and the functional
currency. We use forward exchange contracts to hedge our currency risk on borrowings, most with a maturity of
less than one year from the reporting date.

Exposure on trade receivables and trade payables is unhedged. We manage ourselves against currency risk of
external commercial borrowings by entering into cross-currency swaps.

Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. Interest rate risk can be either fair value interest rate risk or cash
flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing
investments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future
cash flows of floating interest-bearing investments will fluctuate because of fluctuations in the interest rates.
Our management is responsible for the monitoring of our interest rate position. Various variables are considered
by our management in structuring our borrowings to achieve a reasonable, competitive, cost of funding. We use
cross-currency swaps to hedge the interest rate of external commercial borrowings.

Unusual or Infrequent Events or Transactions

To our knowledge, there have been no transactions or events which, in our judgment, would be considered
unusual or infrequent.

Known Trends or Uncertainties

Our business has been affected and we expect that it will continue to be affected by the trends identified above
in “- Significant Factors Affecting Our Results of Operations and Financial Condition” and the uncertainties
described in the section “Risk Factors” on pages 322 and 24, respectively. To our knowledge, except as
disclosed in this Prospectus, there are no known factors which we expect to have a material adverse effect on
our income.

Future Relationship between Cost and Revenue

Other than as described in “Risk Factors” on page 24 and this section, there are no known factors that might
affect the future relationship between cost and revenue.

Competitive Conditions

We expect competition in our industry from existing and potential competitors to intensify. For details, please
refer to the discussions of our competition in the sections “Risk Factors” and “Our Business” on pages 24 and
153, respectively.

Seasonality of Business

Our business is not seasonal in nature.

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