The Environment Protection Act, 1986

The Environment Protection Act, 1986, as amended (the “Environment Act”) has been enacted for the protection
and improvement of the environment. The Environment Act empowers the Government of India to take measures
to protect and improve the environment such as by laying down standards for emission or discharge of pollutants,
providing for restrictions regarding areas where industries may operate and so on. The Government of India may
make rules for regulating environmental pollution.

Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016

Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016, as amended (the
“Hazardous Waste Rules”) are to be read with the Environment Act. The term “hazardous waste” has been
defined in the Hazardous Waste Rules and any person who has, control over the affairs of the factory or the
premises or any person in possession of the hazardous waste has been defined as an “occupier”. Furthermore, in
terms of the Hazardous Waste Rules, the occupier has been, inter alia, made responsible for safe and
environmentally sound handling of hazardous wastes generated in his establishment and shall require
license/authorization for generation, processing, treatment, package, storage, transportation, use, collection,
destruction, conversion, offering for sale, transfer or the like of the hazardous waste from the State Pollution
Control Board. However, an entity is exempted from obtaining an authorization under the Hazardous Waste Rules
if it has obtained consent to establish, or operate, under the Water (Prevention and Control of Pollution) Act, 1974
and Air (Prevention and Control of Pollution) Act, 1981.

Water (Prevention and Control of Pollution) Act, 1974 and Air (Prevention and Control of Pollution) Act, 1981

The basic purpose of these statutes is to control, abate and prevent pollution. In order to achieve these objectives,
Pollution Control Boards (the “PCBs”), which are vested with diverse powers to deal with water and air pollution,
have been set up in each State. The PCBs are responsible for setting the standards for maintenance of clean air
and water, directing the installation of pollution control devices in industries and undertaking inspection to ensure
that industries are functioning in compliance with the standards prescribed. These authorities also have the power
to carry out search, seizure and investigation if the authorities are aware of or suspect pollution that is not in
accordance with such regulations. All industries and factories are required to obtain consent orders from the PCBs,
which are indicative of the fact that the factory or industry in question is functioning in compliance with the
pollution control norms. These consent orders are required to be renewed annually.

Foreign Investment Regulations

Foreign investment in India is governed by the provisions of Foreign Exchange Management Act, 1999, as
amended, along with the rules, regulations and notifications made by the Reserve Bank of India thereunder, and
the consolidated FDI Policy, effective from October 15, 2020, issued by the DPIIT, and any modifications thereto
or substitutions thereof, issued from time to time (the “Consolidated FDI Policy”). Under the current
Consolidated FDI Policy, foreign direct investment in companies engaged in the manufacturing sector is permitted
up to 100% of the paid-up share capital of such company under the automatic route, i.e. without requiring prior
government approval, subject to compliance with certain prescribed pricing guidelines and reporting
requirements.

Foreign Trade Regulations

Imports and exports are governed by the Foreign Trade (Development and Regulation) Act, 1992, as amended
(the “FTDR”) and the Export and Import Policy (the “EXIM Policy”) formulated by the Central Government
from time to time. FTDR provides for an Importer Exporter Code (“IEC”) to be granted to those persons licensed
to carry out imports and exports, which may be suspended or cancelled in case of violation of the provisions of
FTDR or the EXIM Policy. No person is allowed to carry out imports and exports without a valid IEC. Failure to
mention IEC number attracts a penalty of not less than 2 10,000 and not more than five times the value of the
goods or services or technology in respect of which any contravention is made or is attempted to be made,
whichever is made.

Export Promotion Capital Goods Scheme

The Export Promotion Capital Goods Scheme (the “EPCG Scheme”) provides that importers can benefit from
reduced duties on the import of capital goods provided that they fulfil an export obligation to export a prescribed

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