LAKHOTIA POLYESTERS (INDIA) LIMITED - BSE

For further details, please see “Outstanding Litigations, Material Developments and Other Disclosures”beginning on page 150 of the Draft Prospectus.2. We have issued Equity Shares during the period of last one year at a price that may be below theIssue Price.We have issued certain Equity Shares to our Promoters, in the last twelve months, at a price that may belower than the Issue Price. Details of such issuances are given in the table below:Allotment Date No. of Shares Issue Price (Rs.) Reason for AllotmentMarch 31, 2012 3,55,000 10/- Business takeover as per Swap Agreementdated March 31, 2012For Further details of equity shares issued, please refer to the section titled “Capital Structure” beginningon page 40 of the Draft Prospectus.3. The Company has availed unsecured loan which may be demanded for repayment at any time.As on January 31, 2013; the Company has availed an unsecured loan to the tune of Rs. 41.71 lakhs from itsDirectors, their relatives and outsiders. There is no specific agreement entered into or terms of repaymentagreed between the Company and such parties. These unsecured loans may be re-called by the lender atany time. For further details please refer chapter titled “Financial Indebtedness” beginning on page 138and “Annexure XI” under chapter titled “Financial Statements” beginning on page 114 of the DraftProspectus.4. Two of our Group Entities are engaged in similar line of business, which may create a conflict ofinterest, Further, we do not enjoy contractual protection by way of a non-compete or otheragreement or arrangement with our Group Entities.Two of our Group Entities S.C. Threads (India) Private Limited and M/s. Jagdish Fabrics are involved insimilar line of business as that of our Company i.e. including but not limited to trading in yarns and greyfabrics. The said entities are likely to expand their business similar to that of our Company. As on date, ourCompany has not signed any non-compete or such other agreement / document with our Group Entities.Our Group Entities may expand their business in the future that may compete with us. The interests ofthese Group Entities may conflict with our Company’s interests and / or with each other. For furtherdetails, please refer to the chapter titled, “Our Promoter Group and Group Entities”, beginning on page107 and the “Annexure XIX” under the chapter titled ‘Related Party Transactions’ beginning on page 135of the Draft Prospectus.5. In the event there is any delay in the completion of the Issue, there would be a corresponding delayin the completion of the objects of this Issue which would in turn affect our revenues and results ofoperations.The funds that we receive would be utilized for the objects of the Issue as has been stated in the section“Objects of the Issue” on page 52 of this Draft Prospectus. The proposed schedule of implementation ofthe objects of the Issue is based on our management’s estimates. If the schedule of implementation isdelayed for any other reason whatsoever, including any delay in the completion of the Issue, we may facetime and cost overruns and this may affect our revenues and results of operations.6. We are dependent on our Individual Promoters, Mr. Madhusudan Lakhotia, Mrs. JayshreeLakhotia, Mr. Shyamsundar Lakhotia, Mrs. Kanchandevi Lakhotia & Mr. Dhanraj Lakhotia, fortheir expertise and market goodwill. Our separation, if any, from our Promoters may adverselyaffect our business.We are dependent on our Individual Promoters, Mr. Madhusudan Lakhotia, Mrs. Jayshree Lakhotia, Mr.Shyamsundar Lakhotia, Mrs. Kanchandevi Lakhotia & Mr. Dhanraj Lakhotia, for their expertise andmarket goodwill and our separation from our Promoters may adversely affect our business. We believe thatour Promoters lend strength to the trust and reliability reposed in us and enables us to attract and retain11