lumax auto technologies limited - Securities and Exchange Board of ...

Lumax Auto Technologies Limited
Risk Factors
An investment in Equity Shares involves a high degree of risk. Prospective investors should
carefully consider all the information in this Draft Prospectus including the risks described
below, in addition to the other information contained in this Draft Prospectus, before making
any investment decision relating to the Equity Shares. If any of the following risks actually
occur, the Company’s business, results of operations and financial condition could suffer, the
trading price of the Company’s Equity Shares could decline, and the investor may lose all or
part of his investment.
Prior to making an investment decision, prospective investors should carefully consider all of
the information contained in this Draft Prospectus, including restated consolidated financial
statements included in this Draft Prospectus beginning on page [●]. Unless stated otherwise, the
financial data in this section is as per our stated restated consolidated financial statements
prepared in accordance with Indian GAAP.
Unless specified or quantified in the relevant risk factors below, the Company is not in a
position to quantify the financial or other implication of any risks mentioned herein under:
Materiality
The Risk factors have been determined on the basis of their materiality. The following factors
have been considered for determining the materiality:
� Some events may not be material individually, but may be found material collectively.
� Some events may have material impact qualitatively instead of quantitatively.
� Some events may not be material at present but may be having material impacts in
future.
The risk factors are as envisaged by the management along with the proposals to address the
risk, if any. Wherever possible, the financial impact of the risk factors has been quantified.
Internal Risk Factors
Orders for some of the machineries have not been placed
The total cost of setting new projects including modernization and expansion is approximately
Rs. 5,022.79 lakhs and we are yet to place orders for plant and machinery, other equipments
aggregating to Rs. 2,852.05 lakhs.
We have already received quotations from the proposed suppliers for all the major plant and
machinery and other equipment and orders would be placed as per the schedule of
implementation as stated in the Draft Prospectus and we do not foresee any delay in
implementation of the project due to this.
Delay in implementation of the project
In case of delay in implementation of the project or delay in commencement of commercial
production, the profitability proposal of the project would be affected.
We do not foresee any delay in implementation of the project or delay in commencement of
commercial production because land has been acquired, building is under construction, most of
the orders for plant & machinery have been placed. Additionally, Bajaj Auto Limited is also
having a very systematic review of the implementation of the project and is completely satisfied
with the performance as activities are happening as per the schedule.
viii