Prominent Notes: - Securities and Exchange Board of India

35. The requirements of being a public listed company may strain our resources and distract
management.
We have no experience as a public listed company or with the increased scrutiny of its affairs by
shareholders, regulators and the public at large that is associated with being a public company. As a
public listed company, we will incur significant legal, accounting, corporate governance and other
expenses that we did not incur as an unlisted company. We will also be subject to the provisions of the
listing agreements signed with the Stock Exchanges which require us to file unaudited financial results
(on a limited review basis) on a quarterly basis. In order to meet our financial control and disclosure
obligations, significant resources and management supervision will be required. As a result, our
management's attention may be diverted from other business concerns, which could have an adverse
effect on our business and operations. There can be no assurance that we will be able to satisfy our
reporting obligations and/or readily determine and report any changes to our results of operations in as
timely a manner as other listed companies. In addition, we may need to increase the strength of team
and hire additional legal and accounting staff with appropriate experience in a public listed company
and accounting knowledge and we cannot assure you that we will be able to do so in a timely manner.
Furthermore, we may not be able to attract suitable employees which may have an adverse effect in our
results of operations and financial performance.
36. Our ability to pay dividends will depend upon future earnings, financial condition, cash flows,
working capital requirements, capital expen�����������������������������������������������
The amount of our future dividend payments, if any, will depend upon our future earnings, financial
��������������������������������������������������������������������������������������������������������
factors. There can be no assurance that we shall have distributable funds or that we will declare
dividends in the future. Additionally, the terms of any financing we obtain in the future, may contain
restrictive covenants which may also affect some of the rights of our shareholders, including the
payment of the dividend.
37. We have entered into certain related party transactions
We have, in the course of our business, entered into transactions with related parties that include our
Promoter Group, our Subsidiary, our associate companies and our Group Companies. While we believe
that all such transactions have been conducted on an arm's length basis, there can be no assurance that
we could not have achieved more favourable terms had such transactions not been entered into with
related parties. Furthermore, it is likely that we may enter into related party transactions in the future.
There can be no assurance that such transactions, individually or in the aggregate, will not have an
adverse effect on our financial condition and results of operations. For more information on Related
Party Transactions, please see the section titled "��������������������� ���������� ������������ �������
Company������appearing on page no. 149.
38. Some of our Group Companies and our Subsidiary have incurred losses in the past.
The following group companies and Subsidiary have incurred losses in the past:
Sr.
No.
Name of Entity
1. Rajeshwari
Limited
Forgings Private
2. Sanghvi Middle East (Free zone
Establishment)
XXII
PAT / (Loss) ` In Lacs
March 31, 2010 March 31, 2009 March 31, 2008
0.001 0.04 (0.05)
(16.14)
(0.68) N.A.
There is no assurance that these companies or any other companies or ventures promoted or acquired
by the Promoters or by the Company will not incur losses in any future periods or that there will not be
an adverse effect on our reputation or business as a result of such losses.