Annexure XIV Continued… - Edelweiss

Future Relationship Between Cost and Income
Except as described in this Draft Red Herring Prospectus, particularly in the sections titled "Risk Factors,"
"Our Business" and "Management's Discussion and Analysis of Financial Condition and Results of
Operations," on page 18, page 136 and page 280 of this Draft Red Herring Prospectus, respectively, to our
knowledge there are no known factors that will have a material adverse impact on our operations and finances.
New Products or Business Segments
We have not announced and do not expect to announce in the near future any new products or business
segments.
Seasonality of Business
Our operations may be adversely affected by difficult working conditions due to high temperatures during
summer months and rain during monsoon that restrict mining activities and consequently decrease our coal
beneficiation activities and curtail our ability to fully utilize our resources, particularly during the second
quarter of our fiscal year. During periods of curtailed activity due to adverse weather conditions, we may
continue to incur operating expenses, but our revenues from operations may be delayed or reduced. Although
such adverse weather conditions do not typically have a material impact on our revenue from operations,
abnormally hot summer months or rainy monsoons could have a material impact. We have also in the past
faced an increase in the shortage of adequate rail transportation facilities for coal supplies during the third and
fourth quarters of our fiscal year, when India tends to experience higher freight transportation activities, which
may result in our inability to meet fully the typically higher demand for our coal and coal beneficiation
services during these quarters. In respect of our power generation business, the demand for power peaks in the
summer months and troughs in the monsoon months.
Significant Dependence on a Single or Small Group of Suppliers or Customers
We are not dependent on a single or a small group of suppliers in any of our businesses. In our sale of coal
business, we are also not dependent on a single or a small group of customers. However, in our coal
beneficiation business, we are dependent on a small group of customers for our revenues, since coal
beneficiation is primarily performed for government entities engaged in power generation who have selected
us for coal beneficiation through a public tendering process. In our power generation business, we currently
have only two customers, Chhattisgarh SPTC and Maharashtra State Electricity Distribution Company
Limited. We have also entered into contracts with Gujarat Urja Vikas Nigam Ltd. and Reliance Energy and
Chhattisgarh SPTC in connection with the power plants that we have under construction.
Competitive Conditions
Please see the sections titled "Our Business – Competition," "Industry Overview" and "Risk Factors" on page
173, page 125 and page 18, respectively, of this Draft Red Herring Prospectus for discussions regarding
competition.
Significant Developments after December 31, 2010
Except as stated in this Draft Red Herring Prospectus, to our knowledge, no circumstances have arisen since
December 31, 2010, which is the date of the most recent financial statements included in this Draft Red
Herring Prospectus, which materially and adversely affect or are likely to affect our profitability, our financial
condition or our ability to pay our material liabilities within the next 12 months.
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