29.

30.

We may not be able to sustain our rates of growth, due to a variety of reasons including a decline in the
demand for our products and services in the Automotive - Powertrain and Others, Automotive -
Aluminium Products and Industrial and Engineering segments, increased price competition, non-
availability of raw materials, lack of management availability or a general slowdown in the economy. A
failure to sustain our growth may have an adverse effect on our business, results of operations and
financial condition.

Our growth strategy will place significant demands on our management as well as our financial,
accounting and operating systems. If we are unable to increase our production capacity in line with our
customer requirements, we may not be able to successfully execute our growth strategy. Further, as we
scale-up and diversify our operations, we may not be able to execute our operations efficiently, which
may result in delays, increased costs and lower quality products. We cannot assure you that our future
performance or growth strategy will be successful. Any of our current or future horizontal and/or vertical
integration related strategies may not be executed as planned on account of factors such as lack of
adequate experience, increase in competition from peers, amongst others.

We have incurred significant capital expenditures in the past and there can be no assurance that our
past or planned capital expenditures will result in growth and/or additional profitability for our
Company.

We have already incurred significant capital expenditure in the past few years, including setting up an
entire range of facilities such as no-bake sand foundry, high pressure, low pressure and gravity die casting
capabilities for production of various types of aluminium castings for different applications for our
customers, allowing us to offer a diverse product suite, reduce operating costs and drive our productivity.
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.

To compete effectively, we must be able to develop and produce new products to meet our customers’
demand in a timely manner, which requires a significant capital expenditure. We may also be required
to make substantial investments to adapt to the expansions plans made by our existing OEM customers
to ensure continuity in business from such OEM customers, however there is no assurance that such
investments will be as profitable as our existing business and investments, or at all. Further, we may
incur significant costs in supplying OEM products from such locations to other customers. Further, we
may not be able to take on new opportunities from our existing OEM customers if such opportunities do
not offer attractive value proposition or commercial viability. We cannot assure you that we will be able
to successfully convert these capital expenditures profitable in the future. Our capital expenditures may
also lead to unsuccessful projects which may cause loss to our business. Additionally, we incur certain
bare minimum capital expenditure for maintenance irrespective of the business or revenue, such as for
upgradation and modernization of our manufacturing facilities, infrastructure, machines, equipment and
technology to allow us to offer a diverse product suite, reduce operating costs and drive productivity and
in the event of any negative impact of the business, such capital expenditure may result in negative cash
flows. Our failure to manage our growth effectively may have an adverse effect on our business, results
of operations and financial condition. Further, expansion and acquisitions may require us to incur or
assume new debt, expose us to future funding obligations or integration risks and we cannot assure you
that such expansion or acquisition will contribute to our profitability.

Our failure to identify and understand evolving industry trends and preferences to develop new
products to meet our customers’ demands or our limitation including on account of knowledge of new
segments into which we are expanding may adversely affect our business.

We expect to continue to dedicate significant financial and other resources to our product development
efforts in order to maintain our competitive position. Investing in product development, including
developing new products and enhancing existing products, is expensive and time consuming, and there
is no assurance that such activities will result in significant new marketable products or enhancements to
our products, design improvements, cost savings, revenues or other expected benefits. If we spend
significant time and effort on research and development, and are unable to generate an adequate return
on our investment, our business and results of operations may be materially and adversely affected.

In the past, as part of our growth and expansion plan, we have diversified into new segments. Any
inability to do such diversification in the future to expand our business will cause adverse effect on

36
