40.

41.

satellite facilities located at Sriperumbudur, Pithampur and Jamshedpur are long-term lease agreements.
ranging from 30 years to 99 years and provide us a substantial time period to ensure alternative
arrangement for these facilities. However, the lease arrangements for our integrated facilities and our
other satellite facilities at other locations are entered for a medium-term period ranging from five years
to 20 years. Further, the premises for our Registered and Corporate Office is leased by us for a short-
term period of three years. While we have, in the past, renewed such short-term and medium-term lease
arrangements for our facilities and offices from time to time, if we are unable to renew certain or all of
these leases on commercially reasonable terms, we may suffer a disruption in our operations or be unable
to continue to operate from those locations in the future (and may, to that extent, need to revise our raw
material sourcing, product manufacturing and raw material and product inventory schedules and/or incur
significant costs to relocate or expand our operations elsewhere in order to continue to honour our
commitments to our customers). In addition, the terms of certain of our leases require us to obtain the
lessor's prior consent for certain actions (including making significant structural alterations to the factory
building, which may be required if we were to undertake a significant expansion in the future, or for
undertaking a corporate restructuring or to sublet, transfer, assign, charge or mortgage such properties).
In the event that any lease agreement is not renewed, we will be required to expend time and financial
resources to locate suitable land or premises to set up new warehouses and offices, which may adversely
affect our financial condition. Further, if the vacated property or premises is leased or sold to a
competitor, we may also face increased competition in that geographic area which could adversely affect
our market share and revenues.

We are dependent on third party transportation for the delivery of raw materials and finished products
and any disruption in their operations or a decrease in the quality of their services could adversely
affect our business and results of operations.

Our success depends on the smooth supply and transportation of the various raw materials required for
our various manufacturing facilities which is subject to various uncertainties and risks and finished
products. We use third party transportation providers for the supply of most of our raw materials.
Transportation strikes have had in the past and could again have in the future, an adverse effect on
supplies from our suppliers. In addition, raw materials and finished products maybe lost or damaged in
transit for various reasons including occurrence of accidents or natural disasters. There may also be delay
in delivery of raw materials and finished products which may also affect our business and results of
operation negatively. A failure to maintain a continuous supply of raw materials could have a material
and adverse effect on our business, financial condition and results of operations.

Additionally, if we lose one or more of our transportation providers, we may not be able to obtain terms
as favourable as those we receive from the third party transportation providers that we currently use,
which in turn would increase our costs and thereby adversely affect our operating results. Further, if our
transportation providers do not carry sufficient insurance coverage, any losses that may arise during the
transportation process will have to be claimed under our insurance policies. There can be no assurance
that we will receive compensation for any such claims in a timely manner or at all, and consequently,
any such loss may adversely affect our business, financial condition, results of operations and cash flows.

Disruptions of transportation services because of weather-related problems, strikes, inadequacies in the
road or rail infrastructure, or other events could impair the ability of the third-party transportation
providers to deliver us the raw materials and our finished products to our customers in a timely manner
orat all. Asa result, in the event there is any disruption in the supply of our raw materials and our finished
products, performance of our business, results of operations and cash flows may be adversely affected.

Our sustained growth depends on our ability to attract and retain skilled and qualified manpower.
Failure to attract and retain skilled and qualified manpower or to effectively manage our growth could
adversely affect our business, and increased employee compensation costs could adversely affect our
financial condition. Our operations are labour intensive and our manufacturing operations may be
materially adversely affected by strikes, work stoppages or increased wage demands by our employees
or those of our suppliers.

Our ability to provide high-quality products and services and to manage the complexity of our business
depends, in part, on our ability to retain and attract semi-skilled and skilled and qualified manpower in
the areas of management, product engineering, design, manufacture, servicing, sales, information
technology, and finance. Competition for such personnel is intense and the cost of retaining or replacing

Al
