KAMDHENU ISPAT LIMITED - Securities and Exchange Board of India

The central and state tax scheme in India is extensive and subject to change from time to time. Any adverse
changes in any of the taxes levied by the central or state governments may adversely affect our competitive position
and profitability.
Several state governments in India have recently introduced a value added tax regime. The impact of the introduction
of the value added tax regime on our business and operations will depend on a range of factors including the rates
applicable and the exemptions available to our facilities. Currently, we are unable to ascertain the impact of the
value added tax regime on our business and operations.
The Government of India has recently introduced a fringe benefit tax payable in connection with certain expenditures
incurred by the Company which is likely to increase the tax liability of the Company.
We are subject to risks arising from interest rate fluctuations, which could adversely affect our business,
financial condition and results of operations.
Changes in interest rates could significantly affect our financial condition and results of operations. We are exposed
to interest rate risk on our working capital loans and on additional debt financing that may be periodically needed
for the capital expenditures associated with our future acquisitions or expansion plans. Upward fluctuations in
interest rates increase the cost of both existing and new debt. The interest rate that we will be able to secure in a
future debt financing will depend on market conditions at the time, and may differ from the rates on our existing
debt. This may adversely impact our results of operations, planned capital expenditures and cash flows. Although
we may in the future enter into hedging arrangements against interest rate risks, there can be no assurance that
these arrangements will successfully protect us from losses due to fluctuations in interest rates.
Wages pressures in India may prevent our company from sustaining its competitive advantage and may
reduce its profit margin.
Wages in India are increasing at a fast rate. We need to continue to increase the levels of its employee compensation
to remain competitive and manage attrition. Compensation increases may result in a material adverse effect on the
Company’s business, results of operation and financial condition.
After the Issue, the price of the Company’s Equity Shares may be volatile, or an active trading market for the
Company’s Equity shares may not develop.
The prices of the equity shares on the Indian stock exchanges may fluctuate after this Issue as a result of several
factors, including volatility in the Indian and global securities market; the Company’s results of operations and
performance; performance of the Company’s competitors, the Indian Steel Industry; and the perception in the market
about investments in the Steel sector; adverse media reports on Company; changes in the estimates of the Company’s
performance or recommendations by financial analysts; significant developments in India’s economic liberalization
or deregulation policies; and significant developments in India’s fiscal and environmental regulations.
There has been no public market for the Equity Shares and the prices of the Equity Shares may fluctuate after this
Issue. There can be no assurance that an active trading market for the Equity Shares will develop or be sustained
after this Issue or that the prices at which the Equity Shares are initially traded will correspond to the prices at which
Equity shares will trade in the market subsequent to this Issue.
Any further issuance of Equity Shares by us or sales of our Equity Shares by our significant shareholders
may adversely affect the trading price of the Equity Shares.
Any future issuance of our Equity Shares by us could dilute your shareholding. Any such future issuance of our
Equity Shares or sales of our Equity Shares by any significant shareholder, including our Promoters, may also
adversely affect the trading price of our Equity Shares, and could impact our ability to raise capital through an
offering of our securities. In addition, any perception by investors that such issuances or sales might occur could
also affect the trading price of our Equity Shares.
Terrorist attacks or war or other serious conflicts involving India or other countries could adversely affect
business sentiment and the financial markets and adversely affect our business.
Incidents such as the terrorist attacks of September 11, 2001 in New York and Washington D.C. may adversely
affect global equity markets and economic growth as well as the Indian economy and stock markets. Such acts
negatively impact business and economic sentiment, which could adversely affect our business and profitability.
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