In response to the COVID-19 outbreak, the governments of many countries, including India have taken
preventive or protective actions, such as issuing advisories and imposing country or state wide
lockdowns, including restrictions on travel and temporary closure of business operations and increased
remote working protocols, which have significantly slowed down economic activity. On March 14, 2020,
India declared COVID-19 as a “notified disaster” and imposed a nationwide lockdown announced on
March 24, 2020. While there have been progressive relaxations and calibrated easing of lockdown
measures by the Government, we cannot predict if stricter lockdowns will not be re-introduced or
extended in the future. The COVID-19 pandemic and resulting government actions may affect our
business, results of operations and financial condition, in the future, in a number of ways such as
requiring a complete or partial closure of our operations, disruptions or restrictions on our ability to
conduct our business, our manufacturing operations and pursue partnerships and other business
opportunities, and delay shipments of our products; result in inability to source key raw materials as a
result of the temporary or permanent closure of the facilities of suppliers of our key raw materials; lead
to non-availability of labour, which could result in a slowdown in our operations; adversely impact our
ability to access debt and equity capital on acceptable terms, or at all; the effects of the COVID-19
pandemic on our future results of operations, cash flows and financial condition could adversely impact
our compliance with the covenants in our credit facilities and other financing agreements and could result
in events of default and the acceleration of indebtedness; uncertainty as to what conditions must be
satisfied before government authorities completely lift lockdown orders; and the potential negative
impact on the health of our employees, particularly if a significant number of them are afflicted by
COVID-19, could result in a deterioration in our ability to ensure business continuity during this
disruption.

 

On account of the government imposed lockdown in India, operations at all of our manufacturing
facilities were temporarily shut down with effect from March 24, 2020 and resumed operations in
accordance with permissions from the local authorities. Such disruptions in operations impacted our
business performance during the first quarter of Fiscal 2021 and had caused us to postpone the delivery
terms for certain orders. Further, the automotive industry has been significantly impacted, which may
have an impact on our revenues as a majority of our customers are from this sector. The pandemic may
affect production, create supply chain and market disruption and may result in financial impact. Events
beyond our control may unfold in the future, which makes it difficult for us to predict the impact that
COVID-19 will have on us, our customers or suppliers in the future and this may affect the underlying
assumptions and estimates with respect to demand for our products in future.

The COVID-19 pandemic may cause additional disruptions to operations if our employees or staff
become sick, are quarantined, or are otherwise limited in their ability to travel or work. To contain the
spread of the virus, we may be required to implement staggered shifts and other social distancing efforts
at manufacturing facilities, which could result in labour shortages and decreased productivity. This may
negatively affect our ability to meet consumer demand and may increase our costs of production and
sales. We cannot assure you that we will be able to generate sufficient revenue to meet our working
capital requirements. All of the foregoing developments may have a significant effect on our results of
operations and on our financial results.

We cannot predict the degree to, or the time period over, which our business will be affected by the
COVID-19 outbreak. The COVID-19 pandemic may intensify and events beyond our control may unfold
in future which could necessitate further lockdowns, resulting in significant additional effects on our
revenue, financial condition and results of operations. There are numerous uncertainties associated with
the COVID-19 outbreak, including the number of individuals who will become infected, availability of
a vaccine or a cure that mitigates the effect of the virus, the extent of the protective and preventative
measures imposed by governments and whether the virus’ impact will be seasonal, among others.
Consequently, there may be adverse effects of this pandemic on our short-term business operations and
our financial results may be impacted.

There has been a significant decline in automobile sales even prior to COVID-19 and we are not
certain that the sales will recover even after the impact of COVID-19 is over.

Substantially all of our business is directly related to vehicle sales and production by our customers, who
consist primarily of large automotive OEMs, and demand for our products is largely dependent on the
industrial output of the automotive industry. The sales, volumes and prices for vehicles are influenced
by the cyclicality and seasonality of demand for these products. The automotive industry has been

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