24.

25.

date of procurement of those primary raw materials and date on which we can reset the component prices
for our customers, to account for the increase in the prices of such raw materials. In addition, if we are
not able to pass our entire raw material price increases to our customers for our operations, as we sell
integrated systems rather than individual components, our results of operations may get affected
adversely. The inability to pass fluctuations in raw material prices on to our customers may adversely
affect our profits and profit margins. Our need to maintain a continued supply of raw materials may make
it difficult to resist price increases and surcharges imposed by our suppliers, which may have an adverse
effect on our business and results of operations.

Our operational flexibility may be limited in certain respects on account of our obligations under some
of our major long-term customer agreements.

We have entered into long-term customer agreements with some of our customers. Our pricing terms,
payment cycles and permitted adjustments are generally set out in advance in our customer contracts or
purchase orders and only allow adjustments at specific intervals and in the event of significant
unanticipated changes in, for instance, raw material prices or currency exchange rate fluctuation. Due to
committed delivery schedules at a pre-agreed price, we may not be able to adequately adjust our
inventory and raw material costs in the event of an unanticipated change or cancellation in orders from
our customers and we may, therefore, in certain events, incur additional costs that we are unable to pass
through to our customers or be required to write off certain expenses.

While various terms of our long-term customer agreements with customers generally allow us a right of
consultation as to difficulties faced by us or provide for certain decisions or adjustments to be made as
per mutual agreement, our customers are generally permitted under the terms of such agreements to
exercise a high level of discretion. For instance, our customers reserve the right at any time to direct
changes, or cause us to make changes, to drawings and specifications of the goods or to otherwise change
the scope of the work covered by our long term contract. Price and time for performance resulting from
such changes are equitably adjusted by our customers based on supply of documentation in such form
and detail as required by our customer. Consequently, we are exposed to the risk that our submissions or
requests as to price adjustments or delivery schedules or otherwise may not be agreed to by our customers
or our customers may not accede to provide consents sought by us. Any such significant operational
constraint may adversely affect our business, financial condition, results of operations and cash flows.

We extend significant credit terms to our customers and are subject to counterparty credit risk. Any
deterioration in such customers’ financial position and their ability to pay or our inability to extend
credit in line with market practice may adversely impact our profitability.

Due to the nature of agreements and arrangements that we enter into, we are subject to counterparty
credit risk and any delay in receiving payments or non-receipt of payments may adversely impact our
results of operations. Our operations involve extending credit, ranging typically from 7 to 90 days, to our
customers in respect of our products and services. Consequently, we face the risk of the uncertainty
regarding the receipt of these outstanding amounts. There is no guarantee that we will accurately assess
the creditworthiness of our customers. Macroeconomic conditions, such as a potential credit crisis in the
global financial system, could also result in financial difficulties for our customers, including limited
access to the credit markets. Such conditions could cause our customers to delay payment, request
modifications of their payment terms, or default on their payment obligations to us, all of which could
increase our receivables. Timely collection of dues from customers also depends on our ability to
complete our contractual commitments and subsequently bill for and collect from our clients. If we are
unable to meet our contractual obligations, we might experience delays in the collection of, or be unable
to collect, our customer balances, and if this occurs, our results of operations and cash flows could be
adversely affected. We have experienced delays in billing and collection for our products and services in
the past and we cannot assure you that we will not experience any such delays in the future. If we
experience delays in billing and collection for our products and services, our cash flows could be
adversely affected.

Accordingly, we had and may continue to have high levels of outstanding receivables. As of December
31, 2020 and Fiscals 2020, 2019 and 2018, our trade receivables were 2 2,142.00 million, = 1,943.19
million, = 2,100.32 million and % 2,016.86 million, respectively, which constituted 20.94%, 13.02%,
11.55% and 13.34% of our revenue from operations for the respective periods. Our operations involve
extending credit, ranging typically from 7 to 90 days, to our customers in respect of our products and

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