AMBIENCE LIMITED - Cmlinks.com

subject to property taxes. These taxes could increase in the future and new types of property taxes may be
established, which would increase our overall development and maintenance costs. Our business involves
acquiring and selling properties in various parts of India. Property conveyances are generally subject to stamp
duty in India, and if such duties were to increase, the cost of acquiring properties will rise, and sale values could
also be affected. Additionally, if stamp duties were to be levied on instruments evidencing transactions, which
we believe are currently not subject to such duties, our acquisition costs and sale values would be affected,
resulting in a reduction of our profitability. Any such changes in the incidence or rates of property taxes or
stamp duties could have an adverse effect on our financial condition and results of operations.
44. A change to India’s laws and/or government policy regarding SEZ development could adversely
affect our planned SEZ development.
Changes and/or uncertainties in the Government's policies or regulatory framework may adversely affect
planned SEZ development. In early 2007, the Government announced that it was delaying approval for hundreds
of SEZ proposals until after it had decided on several issues relating to SEZs. Even after the delay of approvals
ends, the framework under the Special Economic Zone Act, 2005 will remain in a state of evolution and there
could be further changes in the SEZ regulations. The future success of SEZ developments is dependent on the
continued availability of fiscal incentives under the SEZ regime. The possibility of the withdrawal of the
applicable benefits and concessions in the future may adversely affect the attractiveness of SEZs. Additionally,
the selection procedure for the granting of SEZ licenses is open to challenge.
45. We cannot guarantee the accuracy or completeness of facts and other statistics with respect to India,
the Indian economy, and the Indian real estate and infrastructure-related sectors contained in this Draft
Red Herring Prospectus.
While facts and other statistics in this Draft Red Herring Prospectus relating to India, the Indian economy as
well as the Indian property development and infrastructure-related sectors have been based on various
publications and reports from agencies that we believe are reliable, we cannot guarantee the quality or reliability
of such sources of materials. While our Directors have taken reasonable care in the reproduction of such
information, they have not been prepared or independently verified by us, the BRLMs or any of our or their
respective affiliates or advisers and, therefore, we make no representation as to the accuracy of such facts and
statistics, which may not be consistent with other information compiled within or outside India. These facts and
other statistics include the facts and statistics included in “Industry” on page 84. Due to possibly flawed or
ineffective collection methods or discrepancies between published information and market practice and other
problems, the statistics herein may be inaccurate or may not be comparable to statistics produced elsewhere and
should not be unduly relied upon. Further, there is no assurance that they are stated or compiled on the same
basis or with the same degree of accuracy, as the case may be elsewhere.
46. Political instability or changes in the government could delay the liberalization of the Indian economy
and adversely affect economic conditions in India generally, which could impact our financial results and
prospects.
Since 1991, successive Indian governments have pursued policies of economic liberalization, including
significantly relaxing restrictions on the private sector. Nevertheless, the role of the Indian central and state
governments in the Indian economy as producers, consumers and regulators has remained significant. The
leadership of India has changed many times since 1996. The current central government, which came to power
in May 2004, is headed by the Indian National Congress and is a coalition of several political parties. Although
the current government has announced policies and taken initiatives that support the economic liberalization
policies that have been pursued by previous governments, the rate of economic liberalization could change, and
specific laws and policies affecting real estate, foreign investment and other matters affecting investment in our
securities could change as well.
47. Any downgrading of India's debt rating by an international rating agency could have a negative
impact on our business.
Any adverse revisions to India's credit ratings for domestic and international debt by international rating
agencies may adversely impact our ability to raise additional financing, and the interest rates and other
commercial terms at which such additional financing may be available. This could have an adverse effect on our
business and future financial performance, our ability to obtain financing for capital expenditures and the
trading price of our Equity Shares.
26