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In most cases this is due to absence of an appropriate DirectX engine on your machine. Unless you are running Windows XP (it's already included), download and install the latest version of the DirectX components (version 9, 11 MB) from http://www.microsoft.com/downloads/details.aspx?FamilyId=A19BED22-0B25-4E5D-A584-6389D8A3DAD0&displaylang=en. Make sure you select the right version for your operating system. There is also no harm in installing it over an existing DirectX version.
If you ordered a packaged version of the software then you are lucky as DirectX installation files are already included in the SwarShala installation CD. Just refer to DirectX folders and choose the one that is appropriate for your operating system.