LAKHOTIA POLYESTERS (INDIA) LIMITED - BSE

the ordinary course. The details of approvals, licenses, registrations and permits required by us arementioned under the chapter titled “Government and Other Approvals” on page 155. Our failure to receivesuch approvals within the time frames anticipated or at all could result in interruption of our operations andmay have an adverse material effect on our business and financial position.28. We cannot assure you that we will be able to secure adequate financing in the future on acceptableterms, in time, or at all. Further, we cannot assure you that for the financing secured by us we will beable to continue servicing the principal amount, interest or both.We may require additional funds in connection with future business expansion and development initiatives.In addition to the Issue proceeds and our internally generated cash flow, we may need additional sources offunding to meet these requirements, which may include entering into new debt facilities with lendinginstitutions or raising additional funds in the capital markets. If we decide to raise additional funds throughthe incurrence of debt, our interest obligations will increase, and we may be subject to additionalcovenants. Such financings could cause our debt to equity ratio to increase or require us to create chargesor liens on our assets in favour of lenders. We cannot assure you that we will be able to secure adequatefinancing in the future on acceptable terms, in time, or at all. Our failure to obtain sufficient financingcould result in the delay or abandonment of any of our business development plans and this may affect ourbusiness and future results of operations.29. The loss of or shutdown of operations at our production facilities may have a material adverse effecton our business, financial condition and results of operations.The breakdown or failure of our equipments and/ or civil structure can disrupt our production schedules,resulting in performance being below expected levels. In addition, the development or operation of ourfacilities may be disrupted for reasons that are beyond our control, including explosions, fires, earthquakesand other natural disasters, breakdown, failure or sub-standard performance of equipment, improperinstallation or operation of equipment, accidents, operational problems, transportation interruptions, otherenvironmental risks, and labour disputes. Our production facilities are also subject to mechanical failureand equipment shutdowns. Our machineries may be susceptible to malfunction. If such events occur, theability of our facilities to meet production targets may be adversely affected which may affect our business,financial condition and results of operations.30. Our Company has been engaged in trading activities and may continue to do so in future.Our Company has been engaged in trading activities regularly. The revenues generated from tradingactivities during the FY 2012 was 6.30% of total sales for FY 2012, whereas the same has increased to14.96% of the total sales for the six month period ending September 30, 2012.31. We have not entered into any technical support service for the maintenance and smooth functioningof our equipment’s and machineries, which may affect our performance.Our manufacturing processes involve daily use of technical equipment’s and machineries. They requireperiodic maintenance checks and technical support in an event of technical breakdown or malfunctioning.Our company has not entered into any technical support service agreements with any competent thirdparty. Our failure to reduce the downtime in case such events occur may adversely affect our productivity,business and results of operations.32. Our Company is to comply with the terms and conditions/covenants laid down in license andapprovals, noncompliance of the same may affect our business operations.Our Company has obtained certain statutory licenses and approvals for the purpose of carrying ourbusiness such as import license and approvals under State Pollution Control Boards which contain termsand conditions/covenants, which are to be adhered to by our Company, in case our Company defaults incomplying with the said terms and conditions/ covenants, we may be subjected to penal provisions and itmay also lead to the cancellation of such licenses and approvals, which will adversely affect our business,financial conditions and results of operations.33. Our Promoters have given personal guarantees in relation to debt facilities provided to us.16