46.

47.

obligations on our Subsidiary. If we are unable to comply with such laws, our business, results
of operations and financial condition could be adversely affected.

. Changes in foreign laws, regulations and policies, including restrictions on trade, import and
export licence requirements, and tariffs and taxes, intellectual property enforcement issues as
well as changes in policies relating to foreign trade and investment, may affect our ability to
operate and the way in which we manage our business in the countries in which we operate.

. Fluctuations in foreign currency exchange rates against the Indian Rupee, which can affect our
results of operations, the value of our foreign assets, the relative prices at which we and foreign
competitors sell products in the same markets and the cost of certain inventory and non-
inventory items required in our operations. For instance, fluctuation of the Indian Rupee, USD,
Euros, JPY and SGD would have an impact on the export revenues and profits of our operations.

Any of these risks could have an adverse effect on our business, prospects, results of operations and
financial condition.

Our quarterly results may fluctuate significantly, which could have a negative effect on the price of
our Equity Shares.

Our quarterly results of operations may fluctuate significantly as a result of a variety of factors, including
the seasonal nature of the segments in which we operate. For instance, our sales, operating profit and
cash flows have historically declined during the third quarter of each Fiscal, primarily due to a reduction
in sales on account of reduced number of working days due to festivities and holidays in India, and a
reduction in export sales due to festivities and holidays in such jurisdictions. As a result, our financial
statements for consecutive quarters may not be directly comparable with each other. Moreover, any
significant disruption in our operations or other factors that result in a significant shortfall compared with
our expectations for the first or fourth quarter could, consequently, result in a significant shortfall in sales
and operating cash flows for the full year.

Our manufacturing facilities are subject to disruptions in or lack of basic infrastructure such as fuel
and electricity, which could increase our manufacturing costs or interrupt our operations, which in
turn may adversely impact our results of operations.

We own and operate 12 strategically located manufacturing facilities across seven cities in India. For a
description of our manufacturing facilities, see “Business - Manufacturing Facilities” on page 183. Any
disruptions at any or all of such manufacturing facilities would significantly impact our ability to
manufacture certain products and may consequently delay production or require us to shut down our
manufacturing facilities. We may be subject to manufacturing disruptions due to contraventions by us of
any of the conditions of our regulatory approvals such as any norms prescribed by pollution control
authorities.

We require substantial power and fuel for our manufacturing facilities, and energy costs represent a
significant portion of the production costs for our operations. For the nine months ended December 31,
2020 and Fiscals 2020, 2019 and 2018, our power and fuel costs was = 547.20 million, = 850.87 million,
% 966.38 million and 2 855.95 million, constituting 5.35%, 5.70%, 5.32% and 5.66%, respectively, of
our revenue from operations. If power or fuel costs were to rise, or if their supply arrangements were
disrupted, our profitability could decline.

We source most of our electricity requirements for our manufacturing facilities from state electricity
grids, power exchange and to a lesser extent from our group captive power arrangements in the State of
Tamil Nadu and diesel generating sets for standby supply. If supply is not available for any reason, we
will need to rely on diesel generating sets, which may not be able to consistently meet our requirements.
The cost of electricity from diesel generating sets could be significantly higher, thereby adversely
affecting our cost of production and profitability. Further, if for any reason such electricity is not
available or we are unable to switch to alternate power source in a short time, we may need to shut down
our plants until an adequate supply of electricity is restored. Interruptions of electricity supply can also
result in production shutdowns, increased costs associated with restarting production, the loss of
production in progress and delays in delivery schedules.
