Prominent Notes: - Securities and Exchange Board of India

Any significant delay in completing the New Project as planned or on schedule may result in
commencing operations in an increased competitive environment for its products. Such a scenario may
have a material adverse effect on our business, results of operations and financial condition.
9. ����������������������������������������������������������������������������������������������������
could lead to a potential conflict of interest.
Some of our Promoter Group Companies i.e. Gautam Stainless Private Limited and Rajeshwari
Forgings Private Limited ������������������������������������������������������������������������������
date of filing the Prospectus, the aforesaid entities are not carrying any business competing with that of
our Company. Currently we do not have any non-compete agreement/arrangement with any of our
Promoter Group Entities and absence of such non-compete agreement/arrangement may result in the
situation of potential conflict of interest in future. For further details of Group entities, please refer
�������� ������� ����� ����������� ��������� ������ ���� ������ ����������� ��� ����� no.119 of this
Prospectus.
10. The success of our New Project depends largely upon highly skilled technical professionals and our
ability to employ and retain these personnels.
Our ability to execute the New Project depends largely on our ability to employ, train, and retain highly
skilled technical professionals, particularly project managers and other mid-level professionals. The
success of our New Project will be dependent on the continued service of these persons or replacement
of equally competent persons from the market. Competition for senior management in the forgings
industry is intense, and we may or may not be able to retain such senior management personnel or
attract and retain new senior management personnel in the future unless we offer industry best
compensation packages, which will have impact on our profitability. Our inability to employ and retain
such skilled professional or other senior professionals may adversely affect our New Project, along
with results of operations and financial condition of our Company.
11. We have not yet placed orders for entire plant & machinery required to set up our New Project,
which exposes us to change in prices at the time of giving orders.
We propose to acquire plant and machinery aggregating ` 7461 Lacs for our New Project. We have not
yet placed orders for plant and machinery aggregating ` 2961 Lacs required by us which constitutes
approximately 40% of the total plant and machinery required for the New Project. We are subject to
risks on account of inflation in the price of plant and machinery for which orders have not been placed.
Our Company has received quotations for these machineries, and negotiations with the vendors have
commenced. The details of quotations received appear �����������������������������������������������on
page no.43 of the Prospectus. Since part-financing of the New Project is from the IPO proceeds, any
delay in access to IPO proceeds would eventually delay the process of placing the orders. The purchase
of plant and machinery would require us to consider factors including but not limited to pricing,
delivery schedule and after-������������������������������������������������������������������������������
end in providing timely delivery of these machineries, which in turn may delay the implementation of
the New Project.
12. We have entered into major supply contracts with Danieli & Company, Italy and Dango &
Dinenthal Maschinenbau GMBH, Germany for supply of major plant & machinery required for our
New Project. Delay in delivery of the plant and machinery may have an adverse impact on the
implemnatation of the New Project. The contract entered into with Dango & Dinenthal
Maschinenbau GMBH, Germany is enforceable in jurisdictions outside India, which may expose us
to higher legal and other costs in case of any disputes with Dango & Dinenthal Maschinenbau
GMBH, Germany and affect enforceability of judgments obtained against counterparties.
We have entered into supply contracts with Danieli & Company, Italy and Dango & Dinenthal
Maschinenbau GMBH, Germany for supply of major plant and machinery required for our New
Project. In the event the plant and machinery is not delivered within the time stipulated in the contract,
it may lead to delay in implementation of the New Project and result in cost overruns. Further, the
contract with Dango & Dinenthal Maschinenbau GMBH, Germany is enforceable in Singapore. The
legal and other costs that we may incur in initiating and/or defending any actions arising out of such
contract could be significantly higher outside India as compared to in India and such higher costs may
XVI