SECTION II - RISK FACTORS

An investment in Equity Shares involves a high degree of risk. You should carefully consider all the information
in this Prospectus, including the risks and uncertainties described below, before making an investment in the
Equity Shares. If one, or a combination of any of the following risks occurs, our business, prospects, financial
condition and results of operations could suffer, the trading price of the Equity Shares could decline, and you may
lose all, or part of your investment. In addition, the risks set out in this section are not exhaustive, and additional
risks and uncertainties not presently known to us, or which we currently deem to be immaterial, may arise or may
become material in the future.

Unless specified in the relevant risk factors below, we are not in a position to quantify the financial implication
of any of the risks mentioned below. To the extent the COVID-19 pandemic adversely affects our business and
financial results, it may also have the effect of heightening many of the other risks described in this section. Any
potential investor in, and purchaser of the Equity Shares should pay attention to the fact that we are governed in
India, by a legal and regulatory environment which may be different from that which prevails in other countries
in material respects.

Unless otherwise stated, the financial information in this section is derived from our Restated Financial
Information. Further, unless the context otherwise requires, references to “our Company” are to Craftsman

Automation Limited on a standalone basis, while references to “we”, “us” or “our” are to Craftsman Automation
Limited on a consolidated basis.

 

The industry data in this section has been extracted from a report titled “Studying the Automotive and Industrial
Engineering Business in India” dated December 2020, prepared by CRISIL Research. Neither we nor any other
person connected with the Offer has independently verified this information. Industry sources and publications
generally state that the information contained therein has been obtained from sources generally considered to be
reliable, but their accuracy, completeness and underlying assumptions are not guaranteed and their reliability
cannot be assured. Industry publications are also prepared based on information as of specific dates and may no
longer be current. For further information, see “Industry Overview” on page 96.

In making an investment decision, investors must rely on their own examination of us on a consolidated and
standalone basis and the terms of the Offer including the merits and the risks involved. To obtain a complete
understanding of our business, see “Business”, “Financial Statements” and “Management's Discussion and
Analysis of Financial Condition and Result of Operations” on pages 168, 225 and 288, respectively. If our
business, results of operations or financial condition suffer, the price of our Equity Shares and the value of your
investments in the Equity Shares could decline. This Prospectus also contains forward-looking statements that
involve risks and uncertainties. Our results could differ materially from those anticipated in these forward-looking
statements as a result of certain factors, including the considerations described below and elsewhere in this
Prospectus.

Internal risk factors
Risks relating to business and operations

1. The extent to which the coronavirus disease (COVID-19) affects our business, results of operations
and financial condition will depend on future developments, which are uncertain and cannot be
predicted.

An outbreak of a novel strain of coronavirus (COVID-19) was recognized by the World Health
Organization as a public health emergency of international concern on January 30, 2020, and as a
pandemic on March 11, 2020. The outbreak of COVID-19 has significantly and adversely impacted and
will likely continue to impact economic activity and has contributed to significant volatility in global
financial markets and led to operational challenges. It is possible that the outbreak of COVID-19 will
cause a prolonged global economic crisis, stagnation, recession or depression, despite monetary and fiscal
interventions by governments and central banks globally. In particular, a number of governments and
organizations have revised GDP growth forecasts for 2020 downwards in response to the economic
slowdown caused by the spread of COVID-19, and it is possible that the COVID-19 pandemic will cause
a prolonged global economic crisis or recession.

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