WABCO-TVS (INDIA) LIMITED INFORMATION MEMORANDUM ...

WABCO-TVS (INDIA) LIMITED INFORMATION MEMORANDUM
The Company does not have any obligation to, and does not intend to, update or
otherwise revise any statements reflecting circumstances arising after the date
hereof or to reflect the occurrence of underlying events, even if the underlying
assumptions do not materialize. In accordance with SEBI requirements, the
Company will ensure that investors are informed of material developments until such
time as the grant of listing and trading permission by the Stock Exchanges.
II. RISK FACTORS AND MANAGEMENT PERCEPTIONS THEREOF:
An investment in equity shares involves a high degree of risk.
Investors should carefully consider all of the information in the Information
Memorandum, including the risks and uncertainties described below, before making
an investment in the Equity Shares. Occurrence of any of the following risks as well
as the other risks and uncertainties discussed in the Information Memorandum could
have a material adverse effect on the Company’s business, financial condition and
results of operations and could cause the trading price of the Company’s Equity
Shares to decline, which could result in loss to the investor.
The investor(s) should consider the following risk factors carefully in evaluating the
Company and its business before making any investment decision.
Internal Risks:
• The Company’s ability to generate revenues and pay dividends is dependent on a
number of factors and may vary significantly from quarter to quarter.
• The Company’s growth depends on acquiring new customers apart from
increasing business from existing customers.
• The Company operates in a highly competitive environment and this competitive
pressure on the business is likely to continue. This competition may adversely
affect the Company’s business and operations materially in the future.
• The Company’s success depends largely upon its senior management and key
personnel and the Company’s ability to attract and retain them.
• The Company’s cost of producing and acquiring parts for the brake systems may
increase and this could adversely affect its results of operation, if the customers
of the Company do not compensate the Company for such increases.
• The Company is subject to regulation by central, state and local governments /
bodies, which may impose costs and restrictions. Central, state and local
governments/bodies extensively regulate the automotive industry and when
required for the proper control of the road safety. The Government may consider
new legislative requirements, which potentially can affect the Company’s
businesses. The results of these legislative, judicial and administrative actions
may materially affect the business operations.
• The Company may face increased competition because of technological advances
and new regulatory requirements, which could adversely affect the results of
operations in future.
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