Prominent Notes: - Securities and Exchange Board of India

51. You may be restricted in your ability to exercise pre-emptive rights under Indian law and may be
adversely affected by future dilution of your ownership position.
Under the Companies Act, a company incorporated in India must offer its holders of equity shares preemptive
rights to subscribe and pay for a proportionate number of shares to maintain their existing
ownership percentages before the issuance of any new equity shares, unless the pre-emptive rights have
been waived by adoption of a special resolution by holders of three-fourths of the shares which are
voted on the resolution unless we have obtained government approval to issue without such rights.
However, if the law of the jurisdiction you are in does not permit you to exercise your pre-emptive
rights without us filing an offering document or registration statement with the applicable authority in
the jurisdiction you are in, you will be unable to exercise your pre-emptive rights unless we make such
a filing. If we elect not to make such a filing, the new securities may be issued to a custodian, who may
sell the securities for your benefit. The value such custodian would receive upon the sale of such
securities, if any, and the related transaction costs cannot be predicted. To the extent that you are
unable to exercise pre-emptive rights granted in respect of the Equity Shares held by you, your
proportional interest in us would be reduced.
52. Increasing employee compensation in India may erode some of our competitive advantage and may
reduce our profit margins.
Wage costs in India have historically been significantly lower than the wage costs in the developed
countries, which has been one of our competitive strengths. However, wage increases in India may
prevent us from sustaining this competitive advantage and may negatively affect our profit margins.
This could impact our performance, profit margins and may have a material adverse effect on our
business
53. Any disruption in the supply of power, raw materials, telecom lines could disrupt our business
process or subject us to additional costs.
Any disruption in basic infrastructure could negatively impact our business since we may not be able to
provide timely or adequate services to our clients. We do not maintain business interruption insurance
and may not be covered for any claims or damages if the supply of power, raw materials and telecom
lines is disrupted. This may result in the loss of a client, impose additional costs on us and have an
adverse effect on our business, financial condition and results of operations and could lead to decline in
the price of our Equity Shares.
54. Natural calamities could have a negative impact on the Indian economy and cause our business to
suffer.
India has experienced natural calamities such as earthquakes, tsunami, floods and drought in the past
few years. Natural calamities could have a negative impact on the Indian economy and may cause
suspension, delays or damage to our current projects and operations, which may adversely affect our
business and our results of operations.
55. We operate in a very competitive industry and our failure to successfully compete could result in the
loss of one or more significant customers.
We operate in a very competitive environment and compete against various domestic and foreign
forging companies. Our competitive edge depends on various factors, such as the type of project,
contract value, potential margins, the complexity, location of the project and risks relating to revenue
generation. While service quality, technical ability, performance record, experience, health and safety
records and the availability of skilled personnel are key factors in client decisions among competitors,
price often is the deciding factor in most tender awards.
Risks Relating to issue and the Equity Shares
XXVI