LAKHOTIA POLYESTERS (INDIA) LIMITED - BSE

national and international responses to terrorist attacks, or other acts of war or hostility may cause greateruncertainty and cause our business to suffer in ways that we currently cannot predict.50. The proposed adoption of IFRS could result in our financial condition and results of operationsappearing materially different than under Indian GAAP.We may be required to prepare annual and interim financial statements under IFRS in accordance with theroadmapfor the adoption of, and convergence with, IFRS announced by the Ministry of Corporate Affairs,GoI in January 2010. The convergence of certain Indian Accounting Standards with IFRS was notified bythe Ministry of Corporate Affairs on February 25, 2011. The date of implementing such converged Indianaccounting standards has not yet been determined, and will be notified by the Ministry of Corporate Affairsin due course after various tax-relatedand other issues are resolved.Our financial condition, results of operations, cash flows or changes in shareholders’ equity may appearmaterially different under IFRS than under Indian GAAP. This may have a material effect on the amountof income recognised during that period and in the corresponding period in the comparative period. Inaddition, in our transition to IFRS reporting, we may encounter difficulties in the ongoing process ofimplementing and enhancing our management information systems.51. The extent and reliability of Indian infrastructure could adversely affect our results of operationsand financial condition.India‘s physical infrastructure is less developed than that of many developed countries. Any congestion ordisruption in its port, rail and road networks, electricity grid, communication systems or any otherpublicfacility could disrupt our normal business activity. Any deterioration of India‘s physicalinfrastructure would harm the national economy, disrupt the transportation of goods and supplies, and addcosts to doing business inIndia. These problems could interrupt our business operations, which could havean adverse effect on our results of operations and financial condition.RISK RELATING TO EQUITY SHARES52. If there is any future issue of Equity Shares it may dilute your shareholding and sale of our EquityShares by our Promoters or other major shareholders may adversely affect the trading price of theEquity Shares.Any future equity issues by us, including a primary offering, may lead to the dilution of investors'shareholdings in the Company. Any future equity issuances by us or sale of Equity Shares by thePromoters may adversely affect the trading price of the Equity Shares. In addition, any perception byinvestors that such issuances or sales might occur could also affect the trading price of our Equity Shares.53. Our ability to pay any dividends in the future will depend upon future earnings, financial condition,cashflows, working capital requirements and capital expenditures.The amount of our future dividend payments, if any, will depend upon our Company’s future earnings,financial condition, cash flows, working capital requirements, capital expenditures, applicable Indian legalrestrictions and otherfactors. There can be no assurance that our Company will be able to pay dividends.54. The price of our Equity Shares may be volatile, or an active trading market for our Equity Sharesmay not develop.Earlier to this Issue, there has been no public market for our Equity Shares. Intensive Fiscal ServicesPrivate Limited is the Lead Manager whereas Intensive Softshare Private Limited and K.M Jain StockBrokers Private Limited are the Market Maker’s for the Issue. However, the trading price of our EquityShares may fluctuate after this Issue due to a variety of factors, including our results of operations and theperformance of our business, competitive conditions, general economic, political and social factors, theperformance of the Indian and global economy and significant developments in India’s fiscal regime,volatility in the Indian and global securities market, performance of our competitors, the Indian CapitalMarkets, changes in the estimates of our performance or recommendations by financial analysts andannouncements by us or others regarding contracts, acquisitions, strategic partnerships, joint ventures, orcapital commitments.20