Shriram City Union Finance Limited - Karvy

27. We have entered into certain related party transactions and may continue to do so in the future.We have entered into transactions with related parties, within the meaning of AS 18 as notified by theCompanies (Accounting Standards) Rules, 2006. These transactions include royalty paid to ShriramOwnership Trust pursuant to the License Agreement dated April 1, 2010 between our Company andShriram Ownership Trust in connection with the use of the brand name "Shriram" and the associated mark.For further information on our related party transactions please see the section titled “FinancialInformation”. Such transactions may give rise to current or potential conflicts of interest with respect todealings between us and such related parties. Additionally, there can be no assurance that any dispute thatmay arise between us and related parties will be resolved in our favor.28. Any failure by us to identify, manage, complete and integrate acquisitions, divestitures and othersignificant transactions successfully could adversely affect our results of operations, business andprospects.As part of our business strategy, we may acquire complementary companies or businesses, divest non-corebusinesses or assets, enter into strategic alliances and joint ventures and make investments to further ourbusiness. In order to pursue this strategy successfully, we must identify suitable candidates for andsuccessfully complete such transactions, some of which may be large and complex, and manage theintegration of acquired companies or employees. We may not fully realize all of the anticipated benefits ofany such transaction within the anticipated timeframe or at all. Any increased or unexpected costs,unanticipated delays or failure to achieve contractual obligations could make such transactions lessprofitable or unprofitable. Managing business combination and investment transactions requires varyinglevels of management resources, which may divert our attention from other business operations, may resultin significant costs and expenses and charges to earnings. The challenges involved in integration include:• combining product offerings and entering into new markets in which we are not experienced;• consolidating and maintaining relationships with customers;• consolidating and rationalizing transaction processes and corporate and IT infrastructure;• integrating employees and managing employee issues;• coordinating and combining administrative and other operations and relationships with thirdparties in accordance with applicable laws and other obligations while maintaining adequatestandards, controls and procedures;• achieving savings from infrastructure integration; and• managing other business, infrastructure and operational integration issues.29. Our success depends in large part upon our management team and key personnel and our ability toattract, train and retain such persons.Our ability to sustain our rate of growth depends significantly upon our ability to manage key issues suchas selecting and retaining key managerial personnel, developing managerial experience to address emergingchallenges and ensuring a high standard of client service. In order to be successful, we must attract, train,motivate and retain highly skilled employees, especially branch managers and product executives. If wecannot hire additional qualified personnel or retain them, our ability to expand our business will beimpaired and our revenue could decline. We will need to recruit new employees, who will have to betrained and integrated into our operations. We will also have to train existing employees to adhere properlyto internal controls and risk management procedures. Failure to train and motivate our employees properlymay result in an increase in employee attrition rates, divert management resources and subject us toincurring additional human resource related expenditure. Hiring and retaining qualified and skilledmanagers are critical to our future, as our business model depends on our credit-appraisal and asset12