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

However, we may not be able to cover all such risks. We may face financial liabilities or loss of reputation, in the event
of accidents / mishaps on our tours. Our business involves taking people on tours. We arrange tours directly and
through our associates. While we endeavour to take maximum possible precautions, any mishap, accident during the
tour, which may or may not lead to personal injuries, may take place due to factors which are beyond our control.
Occurrence of such events may have an adverse implication on our business.
28. Certain material agreements relating to our operations do not have provisions for arbitration
Certain material agreements relating to our operations, including our services arrangements with strategic partners, do
not have provisions for arbitration. Thus enforcement of these agreements can be done only in a court of law. Any
delay in the enforcement of these agreements may result in disruption of our business activities and operations and in
turn may adversely impact our profitability.
29. We do not have escalation clauses in our contract with our customers.
We do not have escalation clause in the contract with our customer and consequently during period of rising prices or
any adverse change in tariffs by our business associates/intermediaries, we may not be able to pass price increases to
our customers, which could harm our operational results and financial condition.
30. Capital commitments to subsidiaries
Our Company has made and continues to incur capital investments and other commitments towards its subsidiaries for
augmenting their respective business. These investments and commitments may include capital contributions to
enhance the financial condition or liquidity position of our subsidiaries. Our Company may make capital investments in
the future, which may be financed through additional debt, including through debt of subsidiaries. If the business and
operations of these subsidiaries deteriorate, our Company’s investments may be required to be written down or written
off. Additionally, certain advances may not be repaid or may need to be restructured or our Company may be required
to outlay further capital under its commitments to support such companies. The aggregate value of investments made
by our Company to our subsidiaries as on March 31, 2009 is as follows:
Investments In Subsidiary Companies Amount Rs. Millions
Clearmine Limited 163.39
CNK Internet Pte Limited 2.88
Cox & Kings Tours LLC 3.67
Cox & Kings Ltd 390.28
Cox & Kings (Japan) Ltd 20.25
Cox & Kings (Australia) Pty. Ltd 85.51
Quoprro Global Services Private Limited 0.10
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Total 666.08
31. Material changes in the regulations that govern us or any change in the laws and regulations of other countries
where we operate could have an adverse affect on our business.
Our business and activities are regulated by the Foreign Exchange Management Act, 1999 including the rules,
regulations and policies made there under, the circulars/ notifications, guidelines and instructions issued by the RBI
from time to time as well as the Ministry of Tourism and IATA. A significant portion of our revenues are derived from
our outbound tours i.e. tours taken to other countries. All the countries over the world recognise tourism as an
important industry and, generally, the laws of a country are devised to promote tourism. But any change in the Indian
laws or la ws and regulation of such countries, where we take tours, which results in restricting the number of tourist
visas or such other restriction which directly or indirectly restricts the number of arrivals in general or from a specific
country in particular could have an adverse affect on our business. For more information see the chapter titled
“Regulations and Policies” beginning on page 93 of this Draft Red Herring Prospectus.