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in the amount of, our receivables, short-term borrowings and the cost of availing such working capital
funding. Additionally, our inability to obtain adequate amount of working capital at such terms which
are favourable to us and in a timely manner or at all may also have an adverse effect on our financial
condition. Continued increases in our working capital requirements may have an adverse effect on our
financial condition and results of operations.

Our joint venture partner may not perform its obligations satisfactorily and its interests may differ
from ours, which could have an adverse effect on our business and results of operations.

We currently have a joint venture and may continue to pursue strategic alliances in the future. See
“Business” and “History and Certain Corporate Matters” on pages 168 and 194, respectively. The
success of our business collaborations depends significantly on the satisfactory performance by our joint
venture partner of its contractual and other obligations. As we do not control our joint venture partner,
we face the risk that it may not perform its obligations. If it fails to perform its obligations satisfactorily,
we may be unable to successfully carry out our operations. In such a circumstance, we may be required
to make additional investments or become liable for our partner’s obligations, which could result in
reduced profits or, in some cases, significant losses. Our collaborations may face difficulties in its
operations due to a variety of circumstances, which could have an adverse effect on our business, results
of operations and financial condition. If the interests of our partner conflict with our interests, this, and
other factors may cause our joint venture partner to act in a manner that is contrary to our interests, or
otherwise be unwilling to fulfil their obligations under our arrangements with them. Any of the foregoing
could have an adverse effect on our business, results of operations, financial condition, and reputation.

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.

We own and operate 12 strategically located manufacturing facilities across seven cities in India, out of
which three facilities are operated on industrial land allotted by the state-owned Industrial Development
Corporations (“IDCs”). Under the terms of allotment of such lands, we are required to comply with
certain ongoing conditions, including achieving the investment commitment set out in the project report,
adhering to the timelines for completion of setting up of the manufacturing facility, and commencement
of manufacturing activity. If we fail to meet any such conditions, we may be required to incur additional
liability. Further, according to the statutory rules under which the IDCs function, IDCs also retain the
power to cancel allotment of land in the event of breach of any rules of allotment. Though none of the
leases that we have entered into with IDCs are expiring in the next five years from the date of this
Prospectus, we cannot assure you that we will be able to renew such leases as and when they expire.

We have in the past sought time extensions to commence production for one of our manufacturing
facilities at Sriperumbudur, near Chennai, for which the extension was granted.

As we are constantly looking to expand our business, we will be required to enter into arrangements with
IDCs and other third parties to secure land for setting up new manufacturing facilities or expanding
existing ones. However, there are several factors and variables such as delay in receipt of confirmed
orders from our customers, inability to arrange for manpower, inability to raise debt for unforeseen
increases in project outlays and delay in securing requisite licenses and approvals which could delay the
completion of the manufacturing facility beyond the timeline agreed upon with the IDC or other third
parties. In such an event, we are subject to the risk of paying a premium or, even, the cancellation of land
allotment. Cancellation of land allotment could have an impact on our financial condition on account of
the capital invested on a facility being blocked without any returns while we continue to service the cost
of the capital raised which could adversely impact our results of operations and financial condition.

Certain of our immovable properties, including our registered and corporate office and where some
of our manufacturing facilities are located, are leased. If we are unable to renew existing leases or
relocate our operations on commercially reasonable terms, there may be an adverse effect on our
business, financial condition and operations.

Our registered and corporate office and certain of our manufacturing facilities are on leasehold basis

from certain third parties. For details of our registered and corporate office and our manufacturing
facilities, see “Business — Property” on page 187. The leases for some of these premises such as our

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