COX AND KINGS (INDIA) LIMITED - Securities and Exchange Board ...

in the past, either in terms of income or profit.
Further, such growth strategy will place significant demands on our management, financial and other resources. It will
require us to continuously develop and improve our operational, financial and internal controls. Continuous expansion
increases the challenges involved in financial management, recruitment, training and retaining high quality human
resources, preserving our culture, values and entrepreneurial environment, and developing and improving our internal
administrative infrastructure and more importantly adhering to quality and high standards that meet customer
expectations. Any inability on our part to manage such growth could disrupt our business prospects, impact our
financial condition and adversely affect our results of operations.
7. Future strategic investments, including acquisitions and partnerships may not necessarily prove advantageous to the
Company.
Our growth strategy in the future may involve future strategic acquisitions and reconstructions, partnerships and
exploration of mutual interests with other parties. We may not be able to identify or conclude appropriate or viable
acquisitions in a timely manner. Further, these future acquisitions may not contribute to our profitability and we may be
required to incur or assume debt, or assume contingent liabilities as part of any acquisition. We could have difficulty in
integrating operations, assimilating the personnel, operations, technology and assets of the acquired company. In
addition, we may experience difficulty in harmonizing cultures leading to a non-realisation of anticipated synergies or
efficiencies from such acquisitions, these difficulties could impact our on-going business. These difficulties may
disrupt our ongoing business, distract our Management and employees and increase our expenses.
Failure to successfully identify and conclude acquisitions or manage the integration of the businesses acquired or the
performance of such businesses being below expectations may cause profitability and operations to suffer. The success
of our business will depend greatly on our ability to implement our business and strategies effectively. Even if we have
successfully executed our business strategies in the past, there can be no assurance that we will be able to execute our
strategies on time and within the estimated budget, or that we will meet the expectations of our targeted clients. Our
inability to manage our business and strategies could have an adverse effect on our business, financial condition and
profitability. Please refer “Our Business Strategy” on page 76 of this Draft Herring Prospectus.
8. We cannot assure you that we will be able to secure adequate financing in the future on acceptable terms, in time, or
at all.
We may require additional funds in connection with other future business expansion and development initiatives. In
addition to the net proceeds of this offering and our internally generated cash flow, we may need additional sources of
funding to meet these requirements, which may include entering into new debt facilities with lending institutions or
raising additional debt in the capital markets. If we decide to raise additional funds through the incurrence of debt, our
interest obligations will increase, and we may be subject to additional covenants. Such financings could cause our debt
to equity ratio to increase or require us to create charges or liens on our assets in favour of lenders. If we decide to raise
additional funds through the issuance of equity (other than through a rights issue to the existing shareholders), the
ownership interest of our existing shareholders will be diluted. We cannot assure you that we will be able to secure
adequate financing in the future on acceptable terms, in time, or at all. Our failure to obtain sufficient financing could
result in the delay or abandonment of any acquisition plans or implementation of our business development plans and
this may affect our business and future results of operations.
9. We are operating in geographies / overseas markets and products / services which are new to us and some of our
subsidiaries and joint venture have not yet commenced commercial operations.
To accelerate our growth we are exploring newer geographies and businesses which are of strategic fit to our existing
operations. During fiscal 2009, we made few acquisitions which have exposed us to geographies / overseas markets
which are new to us. We acquired Tempo Holidays Pty Ltd. based in Australia with its wholly owned subsidiary
Tempo Holidays NZ Ltd. in New Zealand. We also recently completed acquisition of East India Travel Company Inc.,
which is in the business of selling upmarket tour and travel packages in the US. Though we had presence in Australia
and US earlier through our representative office and branch respectively, we may not have significant past experience
in these geographies / overseas markets in selling our travel products / services. Our inexperience in new geographies
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