cyclical in the past and we expect this cyclicality to continue. Our operations and performance are directly
related to levels of global vehicle production and are therefore affected by factors that generally affect
the automotive industry. The automotive industry is sensitive to factors such as consumer demand,
consumer confidence, disposable income levels, employment levels, fuel prices and general economic
conditions.

Even before COVID-19 related slowdown and disruptions, automobile sales in India had been de-
growing. We believe that the de-growth was on account of slow-down in the overall economy, higher
insurance costs and the scheduled adoption of BS-VI norms and are not certain that even after the impact
of COVID-19 is over automobile sales will recover. Weak automobile sales will impact demand for auto-
components manufactured and supplied by our Company to our OEM customers and will materially
impact our business outlook, result of operations and financial condition.

Our inability to meet our obligations under our debt financing arrangements could adversely affect
our business, results of operations and cash flows.

As of December 31, 2020, we had total secured borrowings (long term and short term) of = 8,901.12
million.

Our substantial indebtedness could:

. require us to dedicate a substantial portion of our cash flow from operations to payments in
respect of our indebtedness, thereby reducing the availability of our cash flow to fund working
capital, capital expenditures and other general corporate expenditures;

. increase our vulnerability to adverse general economic or industry conditions;

. limit our flexibility in planning for, or reacting to, competition and/or changes in our business
or our industry;

. limit our ability to borrow additional funds;

. restrict us from making strategic acquisitions, introducing new products or services or
exploiting business opportunities; and

. place us at a competitive disadvantage relative to competitors that have less debt or greater
financial resources.

We cannot guarantee that we will be able to generate enough cash flow from operations or that we will
be able to obtain enough capital to service our debt or fund our planned capital expenditures. In addition,
adverse changes in the business conditions affecting us could cause the amount of refinancing proceeds
to be insufficient to meet our interest payments or fully repay any existing debt upon maturity and we
may be unable to fund the payment of such shortfalls. If we cannot obtain alternative sources of financing
or our costs of borrowings become significantly more expensive, then our financial condition and results
of operations will be adversely affected.

Moreover, the agreements governing certain of our debt obligations include terms that, in addition to
certain financial covenants, restrict our ability to invest any funds by way of deposit, extending loan or
advance to or place deposit with other companies, declare or pay any dividend or any other distribution
to any of the Shareholders, effect a merger, amalgamation or scheme of arrangement or compromise,
amend our Memorandum of Association and Articles of Association, incur further indebtedness of any
nature and create any charge, mortgage, pledge, hypothecation, lien or other encumbrance over assets
constituting security, undertake any new project, diversify, modernise or substantial expand our projects,
change our management, transfer or dispose of the Equity Shares held by our Promoter and change our
capital structure. As on date of this Prospectus, we have obtained necessary consents from our lenders as
required under our loan documentation, for undertaking the Offer and related actions. Any failure on our
part to comply with these terms in our loan agreements would generally result in events of default under
these loan agreements. In such a case, the lenders under each of these respective loan agreements may,
at their discretion, accelerate payment and declare the entire outstanding amounts under these loans due
and payable, and in certain instances, enforce their security which has been constituted over our various

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