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Sixty-Seventh Annual Report 2011-2012
Insurance coverage may not be adequate to protect us
against all potential losses:
The Company believes that the
insurance coverage that it maintain is reasonably adequate
to cover all normal risks associated with the operation of
our business. To the extent that we suffer loss
or damage that is not covered by insurance or which
exceeds our insurance coverage, our financial condition
may be affected.
Manufacturing and engineering:
The Company has
manufacturing facilities and design and engineering centres,
located in India, the United Kingdom, South Korea, Thailand,
Spain and South Africa. The Company could experience
disruption to its manufacturing, design and engineering
capabilities for a variety of reasons, including, among others,
extreme weather, fire, theft, system failures, natural calamities,
mechanical or equipment failures and similar risks. Any
significant disruptions could adversely affect the Company’s
ability to design, manufacture and sell the Company’s products
and, if any of those events were to occur, the Company cannot
be certain that the company would be able to shift its design,
engineering and manufacturing operations to alternative sites
in a timely manner or at all. Any such disruption could therefore
materially affect the Company’s business, financial condition
or results of operations.
Regulation of production facilities:
The Company ’s
production faci l ities are subject to a wide range of
environmental , health and safety requirements. These
requirements address, among other things, air emissions,
wastewater discharges, accidental releases into the
environment, human exposure to hazardous materials, the
storage, treatment, transportation and disposal of wastes and
hazardous materials, the investigation and clean up of
contamination, process safety and the maintenance of safe
conditions in the workplace. Many of the Company’s operations
require permits and controls to monitor or prevent pollution.
The Company has incurred, and will continue to incur,
consent. These patents and trademarks have been of value in
the growth of the business and may continue to be of value in
the future. Although the Company does not regard any of its
businesses as being dependent upon any single patent or
related group of patents, an inability to protect this intellectual
property generally, or the illegal breach of some or a large
group of our intellectual property rights, would have amaterially
adverse effect on the Company’s operations, business and / or
financial condition. The Company may also be affected by
restrictions on the use of intellectual property rights held by
third parties and it may be held legally liable for the infringement
of the intellectual property rights of others in its products.
Although the Company does not regard any of its businesses
as being dependent upon any single patent or related group
of patents, its inability to protect this intellectual property
generally, or the illegal breach of some or a large group of the
company’s intellectual property rights, would have a materially
adverse effect on the Company’s operations, business and / or
financial condition.
I
nability to manage growing international business:
The
Company’s growth strategy relies on the expansion of its
operations by introducing certain automotive products in other
parts of the world, including Europe, China, Russia, Brazil, US,
Africa, and other parts of Asia. The costs associatedwith entering
and establ ishing in new markets, and expanding such
operations, may be higher than expected, and the Company
may face significant competition in those regions. In addition,
the Company’s international business is subject to many
actual and potential risks and challenges, including language
barriers, cultural differences and other difficulties in staffing
and managing overseas operations, inherent difficulties and
delays in contract enforcement and the collection of receivables
under the legal systems of some foreign countries, the risk of
non-tariff barriers, other restrictions on foreign trade or
investment sanctions, and the burdens of complying with a
wide variety of foreign laws and regulations.