Draft Red Herring Prospectus

Dated: November 6, 2010
Please read Section 60B of the Companies Act, 1956
Draft Red Herring Prospectus will be updated upon filing with RoC
100% Book Built Issue
Bharatiya Global Infomedia Limited
(Our Company was originally incorporated as Bhartiya Global Financial & Allied Services Limited vide Certificate of Incorporation dated November 24, 1994 issued by the
Registrar of Companies, NCT of Delhi & Haryana under the provisions of the Companies Act, 1956 and obtained Certificate for Commencement of Business on January 18, 1995.
The name of the Company was changed to Bhartiya Global Software Fintec Limited vide fresh incorporation certificate dated May 3, 1999 issued by the Registrar of Companies,
NCT of Delhi & Haryana. The Company further changed its name to Bhartiya Global Software Limited vide fresh incorporation certificate dated June 27, 2001 issued by the
Registrar of Companies, NCT of Delhi & Haryana and finally changed its name to Bharatiya Global Infomedia Limited vide fresh Certificate of Incorporation dated November
13, 2003 issued by the Registrar of Companies, NCT of Delhi & Haryana.).
Registered Office: 623, 6th Floor, Devika Tower, 6, Nehru Place, New Delhi- 110 019 Tel.: +91-11- 40765562; Fax: +91-11- 41377519;
(For details of change in our Registered Office, please refer to page no. 7 of this Draft Red Herring Prospectus)
Corporate Office: B-60, Sector-57, Noida-201301 (Uttar Pradesh), Tel.: +91-120-4227792, Fax: +91-120-4227791, Website: www.bgilinfo.com
Company Secretary and Compliance Officer: Mr. Kumar Pushkar; Email: kumar.pushkar@bgilinfo.com
Name of Promoters: Mr. Rakesh Bhhatia and Mrs. Arti Bhatia
BID/ISSUE PROGRAMME
BID/ISSUE OPENS ON [] BID/ISSUE CLOSES ON []
PUBLIC ISSUE OF 67,20,000* EQUITY SHARES OF ` 10/- EACH FOR CASH AT A PRICE OF ` [] PER EQUITY SHARE, AGGREGATING ` [] LAKHS (THE
“ISSUE”). THE ISSUE WOULD CONSTITUTE 42.42% OF THE FULLY DILUTED POST ISSUE PAID-UP CAPITAL OF OUR COMPANY.
*Our Company is considering Pre-IPO Placement of upto 5,00,000 Equity Shares and/or aggregating up ` 450 lakhs with various investors (“Pre-IPO placement). The
Pre-IPO Placement is at the discretion of our Company. Our Company will complete the issuance and allotment of Equity Shares pursuant to the Pre-IPO Placement prior
to the filing the Red Herring Prospectus with the RoC. If the Pre-IPO Placement is completed, the Issue size offered to the public would be reduced to the extent of such
Pre-IPO Placement, subject to a minimum Issue size of 25% of the post Issue paid-up capital being offered to the public.
PRICE BAND: ` [] TO ` [] PER EQUITY SHARE OF FACE VALUE OF ` 10/- EACH
THE ISSUE PRICE IS [] TIMES THE FACE VALUE AT THE LOWER END OF THE PRICE BAND AND [] TIMES THE FACE VALUE AT THE HIGHER END OF
THE PRICE BAND
This Issue is being made through a 100% Book Building Process wherein not more than 50% of the Issue to Public shall be available for allocation on a proportionate basis
to Qualified Institutional Buyers (“QIBs”). 5% of the QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only and the remainder shall
be available for allotment on a proportionate basis to QIBs and Mutual Funds, subject to valid bids being received from them at or above the Issue Price. Further, not less than
15% of the Issue to Public shall be available for allocation on a proportionate basis to Non Institutional Bidders and not less than 35% of the Issue to Public shall be available
for allocation on a proportionate basis to Retail Individual Bidders, subject to valid bids being received at or above the Issue Price.
In case of revision in the Price Band, the Bidding/Issue Period shall be extended for 3 additional working days after such revision, subject to the Bidding/Issue Period not
exceeding 10 working days. Any revision in the Price Band, and the revised Bidding/Issue Period, if applicable, shall be widely disseminated by notification to the Bombay
Stock Exchange Limited and National Stock Exchange of India Limited, by issuing a press release and by indicating the change on the websites of the Book Running Lead
Manager (“BRLM”) and the terminals of the members of the Syndicate.
BOOK RUNNING LEAD MANAGER REGISTRAR TO THE ISSUE
KARVY COMPUTERSHARE PRIVATE LIMITED
Plot No. 17-24, Vithalrao Nagar Madhapur,
Hyderabad–500 086, Andhra Pradesh
Tel: +91-40-23420815-820
Fax: +91-40-23420814
Email: bgil.ipo@karvy.com
Website: www.karvy.com
Contact Person: Mr. Murali Krishna
SEBI Registration Number: INR 000000221
ALMONDZ GLOBAL SECURITIES LIMITED
3 Scindia House, Janpath, New Delhi – 110001
Tel: +91-11-41514666-69
Fax: +91-11-41514665
Website: www.almondzglobal.com
Email: bgil.ipo@almondz.com
Investor Griveance: complaint@almondz.com
Contact Person: Ms. Shivani Kohli / Ms. Anjali Rajput
SEBI Registration No: INM000000834
RISK IN RELATION TO THE FIRST ISSUE
This being the first issue of the Equity Shares of Bharatiya Global Infomedia Limited (“our Company”), there has been no formal market for the Equity Shares of our Company.
The face value of the Equity Shares of the Company is ` 10/- per share and the Floor Price is [] times of the face value and the Cap Price is [] times of the face value
of the Equity Shares of the Company. The Issue Price (has been determined and justified by the Book Running Lead Manager and our Company as stated herein under the
paragraph ‘Basis of Issue Price’) should not be taken to be indicative of the market price of the Equity Shares after the Equity Shares are listed. No assurance can be given
regarding an active and/or sustained trading in the Equity Shares of our Company or regarding the price at which the Equity Shares will be traded after listing.
GENERAL RISKS
Investments in equity and equity related securities involve a degree of risk and investors should not invest any funds in this Issue unless they can afford to take the risk of
losing their investment. Investors are advised to read the risk factors carefully before taking an investment decision in this Issue. For taking an investment decision, investors
must rely on their own examination of our Company and the Issue including the risks involved. The Equity Shares offered in the Issue have not been recommended or approved
by the Securities and Exchange Board of India (SEBI), nor does SEBI guarantee the accuracy or adequacy of this Draft Red Herring Prospectus. Specific attention of the
investors is invited to the section titled ‘Risk Factors’ beginning on page iii of this Draft Red Herring Prospectus.
ISSUER’S ABSOLUTE RESPONSIBILITY
The Issuer, having made all reasonable inquiries, accepts responsibility for and confirms that this Draft Red Herring Prospectus contains all information with regard to the
Issuer and the Issue, which is material in the context of the Issue, that the information contained in this Draft Red Herring Prospectus is true and correct in all material aspects
and is not misleading in any material respect, that the opinions and intentions expressed herein are honestly held and that there are no other facts, the omission of which makes
this Draft Red Herring Prospectus as a whole or any of such information or the expression of any such opinions or intentions misleading in any material respect.
LISTING
The Equity Shares offered through this Draft Red Herring Prospectus are proposed to be listed on Bombay Stock Exchange Limited (BSE) and National Stock Exchange of
India Limited (NSE). The in-principle approvals of BSE and NSE for listing of Equity Shares of our Company have been received pursuant to letters dated [] and []
respectively. BSE shall be the Designated Stock Exchange for the purpose of this Issue.
GRADING
This Issue has been graded by CARE. CARE has assigned “[]” IPO GRADE []”, indicating [] to the Initial Public Offering of our Company. The rationale furnished by
the grading agency for its grading, will be updated at the time of filing of the Red Herring Prospectus with the RoC. For more information on IPO Grading, please refer to the
section titled “General Information” beginning on page no. 10 of this Draft Red Herring Prospectus.

a

5ECTION I: GENERAL- DEFINITION5 AND ABBREVIATION5

Definilions and allrevialions of cerlain capilaIised lerns used in lhis Drafl Red Herring Irospeclus are
sel forlh leIov:

Cnmµanv Rc!atcd Tcrms

Tcrm DcscrIµtInn
¨ßharaliva CIolaI
Infonedia Liniled¨ or
¨Issuer¨ or ¨lhe
Conpanv¨ , ¨Our
Conpanv¨
ßharaliva CIolaI Infonedia Liniled, a pulIic Iiniled conpanv incorporaled
under lhe Conpanies Acl, 1956 vilh regislered office al 623, 6
lh
IIoor, Devika
Tover, 6, Nehru IIace, Nev DeIhi- 11O O19, India
¨We¨ or ¨us¨ or ¨our¨ UnIess lhe conlexl olhervise requires, refers lo ßharaliva CIolaI Infonedia
Liniled
ArlicIes/ArlicIes of
Assocalion
The ArlicIes of Assocalion of ßharaliva CIolaI Infonedia Liniled, as anended.
Audilors The slalulorv audilors of ßharaliva CIolaI Infonedia Liniled viz. M/s SNMC
& Co., Charlered Accounlanls.
ßCIT ßCIL IiIns & TechnoIogies Liniled
ßoard of
Direclors/ßoard
The ßoard of Direclors of ßharaliva CIolaI Infonedia Liniled
ßranch Office C-Wing, AnaIlas Aparlnenls, Iuhu-Versova Link Road, Andheri (W),
Munlai- 4OO O53
Conpanies Acl The Conpanies Acl, 1956, as anended
Corporale Office ß-6O, Seclor-57, Noida-2O13O1, Ullar Iradesh, India
Deposilories Acl The Deposilories Acl, 1996, as anended
Direclor(s) The Direclor(s) of ßharaliva CIolaI Infonedia Liniled, unIess olhervise
specified.
Lquilv Shares Lquilv Shares of lhe Conpanv of face vaIue of C 1O each unIess olhervise
specified in lhe conlexl lhereof
CIR Nunler CeneraI Index Regislrv Nunler
HUI Hindu Undivided IaniIv
Indian CAAI CeneraIIv Accepled Accounling IrincipIes in India.
CARL Credil AnaIvsis & Research Liniled
MOA/Menorandun/
Menorandun of
Associalion
Menorandun of Associalion of ßharaliva CIolaI Infonedia Liniled as
anended
Non Residenls Iersons residenl oulside India, as defined under ILMA
NRIs/ Non-Residenl
Indians
A person residenl oulside India, as defined under ILMA and vho is a cilizen
of India or a Ierson of Indian Origin under Ioreign Lxchange Managenenl
(Deposil) ReguIalions, 2OOO.
Ironolers Mr. Rakesh ßhhalia and Mrs. Arli ßhalia

b

Ironoler Croup The persons consliluling our Ironoler Croup pursuanl lo ReguIalion 2(1)(zl)
of SLßI (ICDR) ReguIalions
Ironoler Croup
Lnlilies
ßCIL IiIns & TechnoIogies Liniled, Krili Connunicalions Irivale Liniled,
CrindIav Iinnan Irivale Liniled, Nunler One Iinvesl Irivale Liniled and
Nunler One Iinsec Irivale Liniled, ßhhalia Inveslnenl & Iinance Irivale
Liniled and Rakesh ßhhalia HUI.
Regislered Office The regislered office of lhe Conpanv Iocaled al 623, 6
lh
IIoor, Devika Tover, 6,
Nehru IIace, Nev DeIhi- 11O O19, India
ROC/Regislrar of
Conpanies
The Regislrar of Conpanies, NCT of DeIhi and Harvana Iocaled al 4
lh
IIoor,
IICI Tover, 61, Nehru IIace, Nev DeIhi 11O O19, India
SLßI The Securilies and Lxchange ßoard of India consliluled under lhe SLßI Acl,
1992
SLßI Acl Securilies and Lxchange ßoard of India Acl, 1992, as anended fron line lo
line
SLßI (ICDR)
ReguIalions
Securilies and Lxchange ßoard of India (Issue of CapilaI and DiscIosure
Requirenenls) ReguIalions, 2OO9, as anended
SLßI Takeover
ReguIalions
Securilies and Lxchange ßoard of India (SulslanliaI Acquisilion of Shares and
Takeover) ReguIalions, 1997, as anended
SICA Sick InduslriaI Conpanies (SpeciaI Irovisions) Acl, 1985
Slock Lxchanges ßonlav Slock Lxchange Liniled and NalionaI Slock Lxchange of India
Liniled

Issuc Rc!atcd Tcrms / AbbrcvIatInns

Tcrm DcscrIµtInn
AInondz AInondz CIolaI Securilies Liniled
AIIol/AIIolnenl/AIIoc
alion
Issue of Lquilv Shares pursuanl lo lhe Issue lo lhe successfuI ßidders as lhe
conlexl requires.
AIIollee The successfuI lidder lo vhon lhe Lquilv Shares are leing / have leen
issued.
AppIicalions
Supporled lv ßIocked
Anounl / ASßA
The appIicalion (vhelher phvsicaI or eIeclronic) for sulscriling lo lhis Issue
aIongvilh an aulhorizalion lo SCSß lo lIock lhe ßid Anounl in lheir
specified lank accounl
ASßA ßidders / ASßA
Inveslors
neans anv Inveslor/ ßidder, vho inlends lo appIv lhrough ASßA process
ASßA Iorn / ßid-cun-
ASßA Iorn
The forn, vhelher phvsicaI or eIeclronic, used lv an ASßA ßidder lo nake a
ßid, vhich viII le considered as lhe appIicalion for AIIolnenl for lhe
purpose of Drafl Red Herring Irospeclus, Red Herring Irospeclus and
Irospeclus
ASßA Irocess
The ASßA process, as delaiIed in lhe seclion lilIed ¨Issue Irocedure¨
leginning on page no. 155 of lhis Drafl Red Herring Irospeclus.
ASßA Revision Iorn The forns used lv lhe ASßA ßidders lo nodifv lhe quanlilv of equilv shares
or lid price in anv of lheir ßid-cun-ASßA Iorns or anv previous Revision
Iorn(s).
ßanker(s) / Lscrov |-!

c

ßankers lo lhe Issue
ßid An indicalion lo nake an offer during lhe ßidding Ieriod lv a prospeclive
inveslor lo sulscrile lo or purchase our Lquilv Shares al a price vilhin lhe
Irice ßand, incIuding aII revisions and nodificalions lherelo.
Ior lhe purposes of ASßA ßidders, ßid neans an indicalion lo nake an offer
during lhe ßidding Ieriod lv anv Inveslor/ßidder, lo sulscrile lo lhe Lquilv
Shares of our Conpanv.
ßid Anounl The highesl vaIue of lhe oplionaI ßids indicaled in lhe ßid-cun-AppIicalion
Iorn and pavalIe lv lhe ßidder on sulnission of lhe ßid in lhe Issue
ßid-cun-AppIicalion
Iorn / ßid Iorn
The forn used lv lhe ßidder (incIuding lhe fornal of such appIicalion forn
used lv lhe ASßA ßidder, vhelher phvsicaI or eIeclronic) lo nake a ßid and
vhich viII le considered as lhe appIicalion for aIIolnenl for lhe purposes of
lhe Red Herring Irospeclus.
ßid CIosing Dale /
Issue CIosing Dale
The dale afler vhich lhe Svndicale Menlers and SCSßs viII nol accepl anv
ßids for lhe Issue, vhich shaII le nolified in an LngIish NalionaI Nevspaper
and a Hindi NalionaI Nevspaper vilh vide circuIalion
ßid Opening Dale /
Issue Opening Dale
The dale on vhich lhe Svndicale Menlers and SCSßs shaII slarl accepling
ßids for lhe Issue, vhich shaII le lhe dale nolified in an LngIish NalionaI
Nevspaper and a Hindi NalionaI Nevspaper vilh vide circuIalion.
ßidder Anv prospeclive inveslor vho nakes a ßid pursuanl lo lhe lerns of lhe Drafl
Red Herring Irospeclus and lhe ßid cun AppIicalion Iorn or ASßA Iorn as
lhe case nav le.
ßidding Ieriod/ Issue
Ieriod
The period lelveen lhe ßid/Issue Opening Dale and lhe ßid/Issue CIosing
Dale incIusive of lolh davs and during vhich prospeclive ßidders nav
sulnil lheir ßids.
ßook ßuiIding Irocess The look luiIding process as descriled in ScheduIe XI of lhe SLßI (ICDR)
ReguIalions and in lerns of vhich lhis Issue is nade.
ßRLM / ßook Running
Lead Manager
The ßook Running Lead Manager lo lhe Issue, in lhis case leing AInondz
CIolaI Securilies Liniled
CAN/Confirnalion of
AIIocalion Nole
The nole or advice or inlinalion incIuding anv revisions lhereof, senl lo each
successfuI ßidder indicaling lhe Lquilv Shares aIIocaled afler discoverv of
lhe Issue Irice in accordance vilh lhe ßook ßuiIding Irocess.
Cap Irice The upper end of lhe Irice ßand, alove vhich lhe Issue Irice viII nol le
finaIized and alove vhich no ßids viII le accepled
ConlroIIing ßranches Such lranches of lhe SCSßs vhich coordinale vilh lhe ßRLMs, lhe Regislrar
lo lhe Issue and lhe Slock Lxchanges and a Iisl of vhich is avaiIalIe al
hllp://vvv.seli.gov.in
Cul-off Irice The Issue Irice finaIized lv our Conpanv in consuIlalion vilh lhe ßRLM
and il shaII le anv price vilhin lhe price land. OnIv RelaiI IndividuaI
ßidders are enlilIed lo lid al Cul-off Irice, for a ßid Anounl nol exceeding C
1,OO,OOO. OuaIified InslilulionaI ßuvers and Non-InslilulionaI ßidders are nol
enlilIed lo lid al Cul-off Irice.
Deposilorv
A deposilorv regislered vilh SLßI under lhe SLßI (Deposilories and
Iarlicipanl) ReguIalions, 1996 as anended fron line lo line
Deposilorv Acl The Deposilories Acl, 1996 as anended fron line lo line
Deposilorv Iarlicipanl A deposilorv parlicipanl as defined under lhe Deposilories Acl.

d

or DI
Designaled ßranches Such lranches of lhe SCSßs vhich shaII coIIecl lhe ASßA ßid-cun-
AppIicalion Iorns used lv ASßA ßidders and a Iisl of vhich is avaiIalIe al
hllp://seli.gov.in
Designaled Dale The dale on vhich lhe Lscrov CoIIeclion ßanks lransfer lhe funds fron lhe
Lscrov Accounl lo lhe IulIic Issue Accounl or lhe anounl lIocked lv lhe
SCSßs is lransferred fron lhe lank accounl of lhe ASßA ßidders lo lhe ASßA
IulIic Issue Accounl, as lhe case nav le, afler lhe Irospeclus is fiIed vilh
lhe ROC, and foIIoving vhich lhe ßoard of Direclors shaII AIIol Lquilv
Shares lo successfuI ßidders.
Designaled Slock
Lxchange
ßonlav Slock Lxchange Liniled
Drafl Red Herring
Irospeclus / DRHI
This Drafl Red Herring Irospeclus fiIed vilh SLßI, prepared and issued lv
our Conpanv in accordance vilh lhe SLßI ReguIalions.
LIeclronic ASßA
Sulnission of ßid-cun-ASßA Iorn eIeclronicaIIv, lv an ASßA Inveslor,
lhrough lhe inlernel lanking faciIilv offered lv lhe SCSßs.
Lquilv Shares Lquilv Shares of lhe Conpanv of face vaIue of C1O/- each, unIess olhervise
specified in lhe conlexl lhereof.
Lscrov Accounl Accounl opened vilh lhe Lscrov CoIIeclion ßank(s) for lhe Issue and in
vhose favour lhe ßidder (excIuding lhe ASßA ßidder) viII issue cheques or
drafls in respecl of lhe ßid Anounl vhen sulnilling a ßid.
Lscrov Agreenenl

Agreenenl enlered inlo anongsl our Conpanv, lhe Regislrar, lhe Lscrov
CoIIeclion ßank(s), lhe ßRLM, and lhe Svndicale Menlers for coIIeclion of
lhe ßid Anounls and for renilling refunds (if anv) of lhe anounls coIIecled,
lo lhe ßidders (excIuding lhe ASßA ßidders) on lhe lerns and condilions
lhereof
Lscrov CoIIeclion
ßank(s)
The lanks vhich are cIearing nenlers and regislered vilh SLßI as ßankers
lo lhe Issue al vhich lhe Lscrov Accounl viII le opened.
Iirsl ßidder The ßidder vhose nane appears firsl in lhe ßid cun AppIicalion Iorn or
Revision Iorn or lhe ßid-cun ASßA Iorn
IIoor Irice The Iover end of lhe Irice ßand, leIov vhich lhe Issue Irice viII nol le
finaIized and leIov vhich no ßids viII le accepled
IIO IniliaI IulIic Offering
Issue / IulIic Issue IulIic Issue of 67,2O,OOO Lquilv Shares of C 1O/- each for cash al a price of C
|ŏ! per equilv share, aggregaling C |ŏ! Iakhs. The Issue vouId conslilule
42.42° of lhe fuIIv diIuled posl issue paid-up capilaI of our Conpanv.
¯Our Ccmpanu is ccnsiúcring Prc-|PO P|accmcn| cf up|c 5.00.000 |uui|u Snarcs
anú/cr aggrcga|ing up C 450 |a|ns ui|n taricus intcs|crs (´Prc-|PO p|accmcn|).
Issue Accounl / IulIic
Issue Accounl
Accounl opened vilh ßankers lo lhe Issue for lhe purpose of lransfer of
nonies fron lhe Lscrov Accounl and fron lhe SCSßs fron lhe lank accounls
of lhe ßidders on lhe Designaled Dale
Issue Irice The finaI price al vhich lhe Lquilv Shares viII le aIIolled in lerns of lhe Red
Herring Irospeclus, as delernined lv our Conpanv in consuIlalion vilh
ßRLM.
Issue Iroceeds Cross proceeds lo le raised lv our Conpanv lhrough lhis Issue.

e

Menlers of lhe
Svndicale
The ßRLM and lhe Svndicale Menlers
MuluaI Iunds MuluaI funds regislered vilh SLßI pursuanl lo lhe SLßI (MuluaI Iunds)
ReguIalions, 1996, as anended.
MuluaI Iund Iorlion 1,68,OOO Lquilv Shares or 5° of lhe OIß Iorlion, avaiIalIe for aIIocalion lo
MuluaI Iunds oul of lhe OIß Iorlion
Nel Iroceeds Issue proceeds Iess issue expenses
Non InslilulionaI
ßidders
AII ßidders lhal are nol eIigilIe OuaIified InslilulionaI ßuvers for lhis Issue,
incIuding affiIiales of ßRLM and Svndicale Menlers, or RelaiI IndividuaI
ßidders and vho have lid for an anounl nore lhan C 1,OO,OOO.
Non InslilulionaI
Iorlion
The porlion of lhe Issue leing nol Iess lhan 15° of lhe Issue consisling of
1O,O8,OOO Lquilv Shares, avaiIalIe for aIIocalion lo Non-InslilulionaI ßidders.
IhvsicaI ASßA
ASßA Iorns sulnilled lv an ASßA Inveslor phvsicaIIv vilh lhe designaled
lranches of lhe SCSßs.
Ire-IIO IIacenenl
A Ire-IIO IIacenenl of uplo 5,OO,OOO Lquilv Shares and/or aggregaling up C
45O Iakhs vilh various inveslors underlaken lv our Conpanv prior lo fiIing
of lhe Red Herring Irospeclus vilh lhe RoC.
Irice ßand ßeing lhe price land of a nininun price of C |y! per Lquilv Share (IIoor
Irice) and lhe naxinun price of C |y! per Lquilv Share (Cap Irice) (lolh
incIusive), and incIuding revision lhereof.
Iricing Dale Means lhe dale on vhich lhe Conpanv, in consuIlalion vilh lhe ßRLM,
finaIizes lhe Issue Irice.
Irospeclus
The Irospeclus, fiIed vilh lhe ROC conlaining, in|cr-a|ia, lhe Issue Irice lhal
is delernined al lhe end of lhe ßook ßuiIding Irocess, lhe size of lhe Issue
and cerlain olher infornalion.
OuaIified InslilulionaI
ßuvers/OIßs

IulIic IinanciaI Inslilulions as specified in Seclion 4A of lhe Conpanies Acl,
Ioreign InslilulionaI Inveslors and sul accounl regislered vilh SLßI, olher
lhan a sul-accounl vhich is a foreign corporale or foreign individuaI,
ScheduIed ConnerciaI ßanks, MuluaI Iunds regislered vilh SLßI, Venlure
CapilaI Iunds regislered vilh SLßI, Ioreign venlure capilaI funds regislered
vilh SLßI, MuIliIaleraI and liIaleraI deveIopnenl financiaI inslilulions, Slale
InduslriaI DeveIopnenl Corporalions, Insurance Conpanies regislered vilh
lhe Insurance ReguIalorv and DeveIopnenl Aulhorilv, Irovidenl Iunds vilh
nininun corpus of C 25OO Iakhs, Iension Iunds vilh nininun corpus of C
25OO Iakhs, NalionaI Inveslnenl Iund, sel up lv resoIulion no. I.No.
2/3/2OO5-DDII daled Novenler 23, 2OO5 of lhe Covernnenl of India
pulIished in lhe Cazelle of India, and Insurance funds sel up and nanaged
lv arnv, navv or air force of lhe Union of India.
OIß Iorlion Nol nore lhan 5O° of lhe Issue leing 33,6O,OOO Lquilv Shares of C 1O/- each
avaiIalIe for aIIocalion lo OIß lidders.
RHI or Red Herring
Irospeclus
Means lhe docunenl issued in accordance vilh Seclion 6Oß of lhe Conpanies
Acl and does nol have conpIele parlicuIars on lhe price al vhich lhe Lquilv
Shares are offered and lhe size of lhe Issue. Il carries lhe sane olIigalions as
are appIicalIe in case of a Irospeclus and viII le fiIed vilh RoC al Ieasl lhree
davs lefore lhe ßid/ Issue Opening Dale. Il viII lecone a Irospeclus afler
fiIing vilh RoC afler lhe pricing dale.

f

Refund Accounl Accounl opened vilh an Lscrov CoIIeclion ßank fron vhich lhe refunds of
lhe vhoIe or parl of lhe ßid Anounl (excIuding lo lhe ASßA ßidders), if anv,
shaII le nade.
Refund ßank The ßanker(s) lo lhe Issue, vilh vhon lhe Refund Accounl(s) viII le opened,
in lhis case leing |-!
Refunds lhrough
eIeclronic lransfer of
funds
Refunds lhrough eIeclronic lransfer of funds neans refunds lhrough LCS,
Direcl Credil or RTCS or NLIT or lhe ASßA process, as appIicalIe.
Regislrar/Regislrar lo
lhis Issue
Regislrar lo lhe Issue, in lhis case leing Karvv Conpulershare Irivale
Liniled
RelaiI IndividuaI
ßidders
IndividuaI ßidders (incIuding HUIs and NRIs) vho have nade lheir lid for
Lquilv Shares for a cunuIalive anounl of nol nore lhan C 1,OO,OOO.
RelaiI Iorlion The porlion of lhe Issue leing nol Iess lhan 35° of lhe Issue Size consisling of
23,52,OOO Lquilv Shares of C 1O each, avaiIalIe for aIIocalion lo RelaiI
IndividuaI ßidder(s)
Revision Iorn The forn used lv lhe ßidders excIuding lhe ASßA ßidders, lo nodifv lhe
quanlilv of Lquilv Shares or lhe ßid Irice in anv of lhe ßid oplions as per
lheir ßid-cun-AppIicalion Iorn and as nodified lv lheir sulsequenl
Revision Iorn(s), if anv.
SCSßs or SeIf Cerlified
Svndicale ßanks

SCSß is a lank, regislered under lhe SLßI (ßankers lo lhe Issue) ReguIalions
1996, vhich offers lhe faciIilv of appIving lhrough lhe ASßA process and has
ils nane incIuded in lhe SLßI´s Iisl of SCSßs dispIaved on ils velsile al
vvv.seli.gov.in. ßid-cun-ASßA forns can le accepled onIv lv SCSßs.
Svndicale Agreenenl Agreenenl lo le enlered inlo anong our Conpanv and Svndicale Menler(s)
in reIalion lo lhe coIIeclion of ßids in lhe Issue (excIuding ßids fron lhe ASßA
ßidders)
Svndicale Menlers |-!
Transaclion Regislralion
SIip/TRS
The sIip or docunenl regislering lhe ßids, issued lv lhe Svndicale Menlers
lo lhe ßidder as proof of regislralion of lhe ßid on sulnission of lhe ßid cun
AppIicalion Iorn in lerns of lhe Red Herring Irospeclus
Undervrilers Menlers of lhe Svndicale
Undervriling
Agreenenl
The Agreenenl anong lhe Undervrilers and our Conpanv lo le enlered inlo
on or afler lhe Iricing Dale

AbbrcvIatInns / Gcncra! / CnnvcntInna! Tcrms

Tcrm DcscrIµtInn
ACM AnnuaI CeneraI Meeling
AS Accounling Slandards as issued lv lhe Inslilule of Charlered Accounlanls
of India
A/c Accounl
AY Assessnenl Year
ßILR ßank Irine Lending Rale
ßSL ßonlav Slock Lxchange Liniled

g

CACR Conpounded AnnuaI Crovlh Rale
CDSL CenlraI Deposilorv Services (India) Liniled
CLO Chief Lxeculive Officer
CIN Conpanv Idenlificalion Nunler
CIT Connissioner of Incone Tax
Dß Designaled ßranch
DIN Direclor Idenlificalion Nunler
DIII Deparlnenl of InduslriaI IoIicv and Ironolion, Minislrv of Connerce,
Covernnenl of India
LCS LIeclronic CIearing Svslen
LCM Lxlraordinarv CeneraI Meeling
LIS Larning Ier Share
ITI Ioreign Trade IoIicv
ICNR Accounl Ioreign Currencv Non Residenl Accounl
IDI Ioreign Direcl Inveslnenl
ILMA Ioreign Lxchange Managenenl Acl, 1999, as anended fron line lo line,
and lhe reguIalions franed lhere under
IIIß Ioreign Inveslnenl Ironolion ßoard
IIIs Ioreign InslilulionaI Inveslors (as defined under Ioreign Lxchange
Managenenl (Transfer or Issue of Securilv lv a Ierson Residenl oulside
India) ReguIalions, 2OOO) regislered vilh SLßI under appIicalIe Iavs in
India
IY / IiscaI/IinanciaI Year Ieriod of lveIve nonlhs ended March 31 of lhal parlicuIar vear, unIess
olhervise slaled
CoI/Covernnenl Covernnenl of India
CDI Cross Doneslic Iroducl
HUI Hindu Undivided IaniIv
INR Indian Rupee
IT Infornalion TechnoIogv
I.T. Acl Incone Tax Acl, 1961, as anended fron line lo line
MOU/MoU Menorandun of Underslanding
Merchanl ßanker Merchanl ßanker as defined under lhe Securilies and Lxchange ßoard of
India (Merchanl ßankers) ReguIalions, 1992
NA Nol AppIicalIe
NAV Nel Assel VaIue
NCT NalionaI CapilaI Region
NIV Nel Iresenl VaIue
NRIs Non Residenl Indians
NRL Accounl Non Residenl LxlernaI Accounl

h

NRO Accounl Non Residenl Ordinarv Accounl
NSDL NalionaI Securilies Deposilorv Liniled
NSL NalionaI Slock Lxchange of India Liniled
OCß Overseas Corporale ßodies
p.a. per annun
IAN Iernanenl Accounl Nunler
IAT Irofil Afler Tax
I/L Ralio Irice/Larnings Ralio
RßI The Reserve ßank of India
ROL Relurn on Lquilv
RONW Relurn on Nel Worlh
Rs. or C Rupees, lhe officiaI currencv of lhe RepulIic of India
RTCS ReaI Tine Cross SellIenenl
SCRA Securilies Conlracl (ReguIalion) Acl, 1956, as anended fron line lo line
SCRR Securilies Conlracls (ReguIalion) RuIes, 1957, as anended fron line lo
line
Sec. Seclion
STT Securilies Transaclion Tax
US/Uniled Slales Uniled Slales of Anerica
USD/ US$/ $ Uniled Slales DoIIar, lhe officiaI currencv of lhe Uniles Slales of Anerica
VCI /Venlure CapilaI
Iund
Ioreign Venlure CapilaI Iunds (as defined under lhe Securilies and
Lxchange ßoard of India (Venlure CapilaI Iunds) ReguIalions, 1996)
regislered vilh SLßI under appIicalIe Iavs in India.

TcchnIca! / Industrv Rc!atcd Tcrms
Tcrms DcscrIµtInn
3D Three DinensionaI
AMITII Associalion of Molion Iiclure & T.V. Irogran
AIAC Asia Iacific
AVCC Aulonalic VehicIe Counler Cun-CIassifier
ßISI ßanking, IinanciaI Services and Insurance
ßMS ßuiIding Managenenl Svslen
ßIO ßusiness Irocess Oulsourcing
ßIM ßusiness Irocess Managenenl
CCTV CIose Circuil TeIevision
CD Conpacl Disc
D.I. DigilaI Inlernediale
DII DigilaI Iosl Iroduclion
LRI Lnlerprise Resource IIanning
ICI IinaI Cul Iro
CSM CIolaI Svslen for MoliIe

i

HVAC Healing VenliIalion & Aircondilioning
ICT Infornalion and Connunicalion TechnoIogv
ID Idenlificalion
IMIIA Indian Molion Iiclure Iroducers Associalion
II Inlernel IrolocoI
LLD Lighl Lnilling Diode
M&L Media & Lnlerlainnenl
MLX MuIli LeveI Lffecls
NASSCOM NalionaI Associalion of Soflvare & Services Conpanv
IC IersonaI Conpuler
ICS Iarking Cuidance Svslen
IMS Iarking Managenenl Svslen
R&D Research & DeveIopnenl
RIID Radio Irequencv Idenlificalion
SaaS Soflvare as a Service
SAN Slorage Area Nelvork
SLZ SpeciaI Lcononic Zone
SIX Sound SpeciaI Lffecls
SOA Service Orienled Archileclure
SSL Secured Sockel Laver
STII Soflvare TechnoIogv Iark of India
TTIA TokenIess Tvo Iaclor Aulhenlicalion
UIS Uninlerrupled Iover SuppIv
UVSS Under VehicIe SurveiIIance Svslen
VIX VisuaI Lffecls
VMS Visilor Managenenl Svslen
VIN VirluaI Irivale Nelvork
WAN Wide Area Nelvork
WAI WireIess AppIicalion IrolocoI

i


5ECTION II: RI5K FACTOR5

CERTAIN CONVENTION5, PRE5ENTATION OF FINANCIAL AND MARKET DATA

UnIess slaled olhervise, lhe financiaI infornalion and dala used in lhis Drafl Red Herring Irospeclus is
derived fron our Conpanv´s reslaled financiaI slalenenl as of Iune 3O, 2O1O, IY 2OO9-1O, IY 2OO8-O9, IY
2OO7-O8, IY 2OO6-O7 and IY 2OO5-O6 prepared in accordance vilh Indian CAAI and lhe Conpanies Acl,
1956 and adjusled in accordance vilh SLßI (ICDR) ReguIalions, as slaled in lhe reporl of Audilors, M/s
K. Irasad & Co., Charlered Accounlanls, vho vas appoinled as Audilor lo reaudil lhe financiaI accounls
for lhe period ended Iune 3O, 2O1O and IY 2OO9-1O, in accordance vilh ReguIalion IX of Iarl A of
ScheduIe VIII of SLßI (ICDR) ReguIalions, 2OO9 and incIuded in lhis Drafl Red Herring Irospeclus.

References herein lo fiscaI vears i.e. fiscaI 2O1O, 2OO9, 2OO8, 2OO7 and 2OO6, are lo lhe financiaI vears ended
March 31 of lhe respeclive vears.

UnIess slaled olhervise, lhroughoul lhis Drafl Red Herring Irospeclus, aII figures have leen expressed
in Iakhs. In lhis Drafl Red Herring Irospeclus, unIess lhe conlexl olhervise requires, aII references lo one
gender aIso refers lo lhe olher gender. AII references lo ¨India¨ conlained in lhis Drafl Red Herring
Irospeclus are lo lhe RepulIic of India.

In lhis Drafl Red Herring Irospeclus, anv discrepancies in anv lalIe lelveen lhe lolaI and lhe suns of
lhe anounls Iisled nav le due lo rounding off.

Ior addilionaI definilions, see lhe seclion lilIed 'Definilions and Allrevialions´ leginning on page a of
lhis Drafl Red Herring Irospeclus. Markel and induslrv dala used lhroughoul lhis Drafl Red Herring
Irospeclus has leen ollained fron induslrv pulIicalions and inlernaI conpanv reporls. Induslrv
pulIicalions generaIIv slale lhal lhe infornalion conlained in lhose pulIicalions has leen ollained fron
sources leIieved lo le reIialIe lul lhal lheir accuracv and conpIeleness are nol guaranleed and lheir
reIialiIilv cannol le assured. AIlhough our Conpanv leIieves narkel dala used in lhis Drafl Red
Herring Irospeclus is reIialIe, il has nol leen independenlIv verified. SiniIarIv, inlernaI Conpanv
reporls, vhiIe leIieved lv our Conpanv lo le reIialIe, have nol leen verified lv anv independenl
source.

ii


FORWARD-LOOKING 5TATEMENT5

AII slalenenls incIuded in lhis Drafl Red Herring Irospeclus vhich conlain vords or phrases such as
¨viII¨, ¨ain¨, ¨viII IikeIv resuIl¨, ¨leIieve¨, ¨expecl¨, ¨viII conlinue¨, ¨anlicipale¨, ¨ eslinale¨,
¨inlend¨, ¨pIan¨, ¨conlenpIale¨, ¨seek lo¨, ¨fulure¨, ¨oljeclive¨, ¨goaI¨, ¨projecl¨, ¨ shouId¨, ¨viII
pursue¨ and siniIar expression or varialions of such expressions, lhal are ¨forvard-Iooking slalenenls¨.

AII forvard Iooking slalenenls are suljecl lo risks, uncerlainlies and assunplions aloul us lhal couId
cause acluaI resuIls lo differ naleriaIIv fron lhose conlenpIaled lv lhe reIevanl forvard- Iooking
slalenenl. Inporlanl faclors lhal couId cause acluaI resuIls lo differ naleriaIIv fron lhe expeclalions
incIude lul are nol Iiniled lo: -

• CeneraI econonic and lusiness condilions in lhe narkels in vhich ve operale and in lhe IocaI,
regionaI, nalionaI and inlernalionaI econonies:
• ReguIalorv changes reIaling lo lhe induslries in vhich ve operale:
• AliIilv lo successfuIIv inpIenenl Conpanv´s slralegv, grovlh and expansion, lechnoIogicaI
changes, Conpanv´s exposure lo narkel risks lhal have an inpacl on ils lusiness aclivilies or
inveslnenls:
• The nonelarv and fiscaI poIicies of India, infIalion, defIalion, unanlicipaled lurluIence in inleresl
rales, foreign exchange rales, equilv prices or olher rales or prices, lhe perfornance of lhe financiaI
narkels in India and gIolaIIv, changes in doneslic and foreign Iavs, reguIalions, laxes and changes
in conpelilion in induslrv:
• Changes in lhe vaIue of lhe Rupee and olher currencies:
• The occurrence of naluraI disaslers or caIanilies:
• Changes in poIilicaI condilion in India.

Ior furlher discussion of faclors lhal couId cause acluaI resuIls lo differ, see lhe seclion lilIed ¨Risk
Iaclors¨ and ¨Our ßusiness¨ leginning on page no. iii and 58 of lhis Drafl Red Herring Irospeclus. ßv
lheir nalure, cerlain narkel risk discIosures are onIv eslinales and couId le naleriaIIv differenl fron
vhal acluaIIv occurs in lhe fulure. As a resuIl, acluaI fulure gains or Iosses couId naleriaIIv differ fron
lhose lhal have leen eslinaled. Neilher our Conpanv nor lhe ßook Running Lead Manager nor anv of
lheir respeclive affiIiales have anv olIigalion lo updale or olhervise revise anv slalenenls refIecling
circunslances arising afler lhe dale hereof or lo refIecl lhe occurrence of underIving evenls, even if lhe
underIving assunplions do nol cone lo fruilion. In accordance vilh SLßI / Slock Lxchanges
requirenenls, our Conpanv, and ßook Running Lead Manager viII ensure lhal inveslors in India are
inforned of naleriaI deveIopnenls unliI such line as lhe granl of Iisling and lrading pernission lv lhe
Slock Lxchanges.


iii

RI5K FACTOR5

An intcs|mcn| in |uui|u Snarcs intc|tcs a nign úcgrcc cf ris|. Ycu sncu|ú carcfu||u ccnsiúcr a|| cf |nc infcrma|icn
in |nis Draf| Rcú Hcrring Prcspcc|us. inc|uúing |nc ris| anú unccr|ain|ics úcscri|cú |c|cu. |cfcrc ma|ing an
intcs|mcn| in |nc |uui|u Snarcs. |f anu cf |nc fc||cuing ris| ac|ua||u cccurs. cur |usincss. rcsu||s cf cur cpcra|icns
anú financia| ccnúi|icn ccu|ú suffcr. |nc |raúing pricc cf cur cuui|u snarcs ccu|ú úcc|inc. anú ucu mau |csc a|| cr
par| cf ucur intcs|mcn|. Tnc ris| fac|crs sc| fcr|n |c|cu úc nc| purpcr| |c |c ccmp|c|c cr ccmprcncnsitc in |crms cf
a|| |nc ris| fac|crs |na| mau arisc in ccnncc|icn ui|n cur |usincss cr anu úccisicn |c purcnasc. cun cr úispcsc cff
|nc |uui|u Snarcs. Tnc ris|s anú ris| fac|crs sc| fcr|n |c|cu arc nc| an cxnaus|itc |is| cf |nc ris|s currcn||u facing
us cr |na| mau úctc|cp in |nc fu|urc. Aúúi|icna| ris|s. unc|ncr |ncun cr un|ncun. mau in |nc fu|urc natc a
ma|cria| aútcrsc cffcc| cn cur |usincss. financia| ccnúi|icn anú rcsu||s cf cpcra|icns.

|ntcs|crs arc aútiscú |c rcaú |nc ris| fac|crs carcfu||u |cfcrc |a|ing an intcs|mcn| úccisicn in |nis cffcring. 8cfcrc
ma|ing an intcs|mcn| úccisicn. intcs|crs mus| rc|u cn |ncir cun cxamina|icn cf |nc cffcr anú us. Tnc Draf| Rcú
Hcrring Prcspcc|us a|sc ccn|ains fcruarú-|cc|ing s|a|cmcn|s |na| intc|tc ris|s anú unccr|ain|ics. Our ac|ua|
rcsu||s ccu|ú úiffcr ma|cria||u frcm |ncsc an|icipa|cú in |ncsc fcruarú-|cc|ing s|a|cmcn|s as a rcsu|| cf ccr|ain
fac|crs. inc|uúing |nc ccnsiúcra|icns úcscri|cú |c|cu anú in |nc scc|icn |i||cú ´|cruarú-|cc|ing S|a|cmcn|s¨ cn
pagc nc. ii cf |nis Draf| Rcú Hcrring Prcspcc|us.

Un|css spccificú cr uuan|ificú in |nc rc|ctan| ris| fac|crs mcn|icncú |c|cu. cur Ccmpanu is nc| in a pcsi|icn |c
asccr|ain |nc financia| anú c|ncr imp|ica|icn cf anu cf |nc c|ncr ris|s mcn|icncú |c|cu. Un|css c|ncruisc s|a|cú. |nc
financia| infcrma|icn uscú in |nis scc|icn is úcritcú frcm anú sncu|ú |c rcaú in ccnjunc|icn ui|n rcs|a|cú financia|
s|a|cmcn|s cf |nc Ccmpanu as cf anú fcr |nc |isca|s 2006. 2007. 2008. 2009. 2010 anú fcr |nrcc mcn|ns pcricú
cnúcú ]unc 30. 2010. in cacn casc prcparcú in acccrúancc ui|n |núian GAAP. inc|uúing |nc scncúu|cs. anncxurc
anú nc|cs |ncrc|c.

MatcrIa!Itv
The Risk faclors have leen delernined on lhe lasis of lheir naleriaIilv. The foIIoving faclors have leen
considered for delernining lhe naleriaIilv:

1. Sone evenls nav have naleriaI inpacl quaIilaliveIv inslead of quanlilaliveIv.
2. Sone evenls nav nol le naleriaI individuaIIv lul nav le found naleriaI coIIecliveIv.
3. Sone evenls nav nol le naleriaI al presenl lul nav le having naleriaI inpacl in fulure.

INTERNAL RI5K FACTOR5

1. We. our Promoters and our Promoter Grouµ Comµanles are lnto|ted ln |ega| µroceedlngs and
anµ unfatorab|e outcome of the µroceedlngs maµ adterse|µ lmµact our buslness and flnancla|
condltlons.

We, our Ironolers and our Ironoler Croup Conpanies are invoIved in IegaI proceedings and cIains in
reIalion lo cerlain nallers. These IegaI proceedings are pending al differenl IeveIs of adjudicalion lefore
various courls and lrilunaIs. ShouId anv nev deveIopnenls arise againsl us incIuding anv ruIings
againsl us in respecl of our Conpav, lv appeIIale courls or lrilunaIs, ve nav need lo nake provisions
in our financiaI slalenenls and/or our IialiIilies couId increase lo lhal exlenl.

The sunnarv of lhe cases is as foIIovs:-
Tvµc Tnta!
Numbcr
Amnunt
(C In
Naturc nf Casc

iv

Lakhs)
LItIgatInn agaInst nur Cnmµanv
Incone Tax 1 2.68 Denand under Seclion 156 of Incone Tax Acl, 1961 raised lv lhe
Incone-lax deparlnenl
CrininaI case 1 2.15 ConpIainl under Seclion 138 and 142 of NegolialIe Inslrunenls
Acl, 1881 againsl Conpanv and ils Ironoler Mr. Rakesh ßhhalia
for dishonour of cheque. The conpIainanl has fiIed an
appIicalion for vilhdravaI of lhe conpIainl and lhe sane is
Iisled for appropriale order of lhe courl on Novenler 18, 2O1O.
TOTAL 2 4.83
LItIgatInn bv nur Cnmµanv, nur Prnmntcr and Prnmntcr Grnuµ Cnmµanv
CiviI suil 1 27O.OO Suil for pernanenl injuclion under lhe provisions of CiviI
Irocedure Code, 19O8 fiIed our Conpanv, our Ironolers &
olhers againsl Mr. Iranod Sharna & olhers for reslraining lhen
fron disposing off, aIienaling, lransferring, or crealing lhird
parlv inleresl in lhe shares of ßCIL IiIns & TechnoIogies
Liniled heId lv Ironoler, Ironoler Croup and olhers. The
parlies have enlered inlo conpronise and lhe Hon´lIe High
Courl has laken on record lhe sellIenenl.
LItIgatInn bv thc Prnmntcr
Consuner case

1 3O.OO ConpIainl under Consuner Iroleclion Acl, 1986 cIaining
conpensalion fron Slandard Charlered ßank for lIocking of
credil cards
Ior delaiIs, lhese IegaI proceedings, see lhe seclion lilIed ¨Oulslanding Liligalions and MaleriaI
DeveIopnenls¨ leginning on page no. 134 of lhe Drafl Red Herring Irospeclus.

2. Our Comµanµ has de|aµed µaµment of statutorµ dues of sertlce tax and dues to |enders ln
resµect of unsecured |oans. uhlch cou|d adterse|µ affect the flnancla| condltlons and buslness
oµeratlons.

Our Conpanv had deIaved pavnenl of service lax for lhe Iasl lhree financiaI vears and lhe cunuIalive
principIe anounl of service lax due vas C 96.22 Iakhs as on Seplenler 3O, 2O1O, vhich ve have paid nov
in lranches liII Novenler 4, 2O1O. We have nol vel paid anv inleresl on lhe overdue principIe anounl of
service lax. Ior faiIure lo pav service lax IialiIilv on line and non-pavnenl of inleresl IialiIilv on il, lhe
Direclorale of Service Tax, nav issue nolice and nav inpose penaIlv on us, vhich viII adverseIv affecl
our financiaI and lusiness operalions. We have aIso deIaved pavnenl of dues lovards olher Ienders
fron vhere ve have ollained differenl unsecured Ioans. Ior delaiIs of unsecured Ioans, pIease refer lo
page no. 72 of lhis Drafl Red Herring Irospeclus. We cannol assure lhal such deIavs in pavnenl of dues
lovards Ienders or anv slalulorv dues or occurrence of anv evenl of defauIl nav nol occur in fulure,
vhich couId adverseIv affecl lhe financiaI condilions and lusiness operalions.

3. Our Comµanµ and the names of three of our Promoter Grouµ Comµanles are aµµearlng on
uuu.uatchoutlntestors.com ln resµect of re]ectlon of aµµ|lcatlon for certlflcate of reglstratlon
as NB|C as on ju|µ 31. 2004.

The nanes of our Conpanv and lhree Ironoler Croup Conpanies viz. Nunler One Iinsec Irivale
Liniled, ßhhalia Inveslnenls & Iinance Irivale Liniled and CrindIav Iinnan Irivale Liniled are

v

appearing on vvv.valchoulinveslors.con in respecl of rejeclion of appIicalion for cerlificale of
regislralion as NßIC as on IuIv 31, 2OO4.

4. Our Statutorµ Audltor has qua|lfled thelr reµort for the µerlod ended june 30. 2010 and for
flnancla| µears 2009-10. 2008-09 and 2006-07.

Our Slalulorv Audilor has quaIified lheir Audilor Reporl for lhe period ended Iune 3O, 2O1O and
financiaI vear 2OO9-1O, 2OO8-O9 and 2OO6-O7 as under:

PcrInd AµrI! 1, 2010 tn Junc 30, 2010:
• Non provision of Ieave encashnenl and relirenenl lenefils, vhich are accounled for on pavnenl
lasis onIv. Hovever, our Conpanv has nov provided for such Ieave encashnenl and relirenenl
lenefils in lhe reslaled financiaIs.
• Inveslnenls in ßCIL IiIns and TechnoIogies Liniled nol leing in lhe nane of our Conpanv.
• IrreguIar pavnenls of lhe Ioans laken lv our Conpanv.
• Our Conpanv leing nol reguIar in deposiling vilh appropriale aulhorilies undispuled slalulorv
dues incIuding providenl fund, inveslor educalion and proleclion fund, enpIovees´ slale
insurance, incone lax, saIes lax, veaIlh lax, cuslon dulv, excise dulv, cess and anv olher
slalulorv dues appIicalIe lo us.
• An anounl of C 95.63 Iakhs lovards service lax IialiIilv vas overdue lv nore lhan 6 nonlhs as
on Iune 3O, 2O1O.
FY 2009-10:
• Non provision of Ieave encashnenl and relirenenl lenefils, vhich are accounled for on pavnenl
lasis onIv. Hovever, our Conpanv has nov provided for such Ieave encashnenl and relirenenl
lenefils in lhe reslaled financiaIs.
• Inveslnenls in ßCIL IiIns and TechnoIogies Liniled nol leing in lhe nane of our Conpanv.
• IrreguIar pavnenls of lhe Ioans laken lv our Conpanv.
• Our Conpanv leing nol reguIar in deposiling vilh appropriale aulhorilies undispuled slalulorv
dues incIuding providenl fund, inveslor educalion and proleclion fund, enpIovees´ slale
insurance, incone lax, saIes lax, veaIlh lax, cuslon dulv, excise dulv, cess and anv olher
slalulorv dues appIicalIe lo us.
• An anounl of C 89.55 Iakhs lovards service lax IialiIilv vas overdue lv nore lhan 6 nonlhs as
on March 31, 2O1O.

FY 2008-09
• An anounl of C 72.91 Iakhs lovards service lax IialiIilv vas overdue lv nore lhan 6 nonlhs as
on March 31, 2OO9.

FY 2006-07
• An anounl of C 2.16 Iakhs lovards fringe lenefil lax vas overdue lv nore lhan 6 nonlhs as on
March 31, 2OO7.

5. We had negatlte cash f|ous ln feu µears. Anµ negatlte cash f|ou from oµeratlons ln future cou|d
affect our oµeratlons and flnancla| condltlons.

We had negalive cash fIov, delaiIs of vhich are as under:
(C In !akhs)
PartIcu!ars Junc 30, 2010 2009-10 2008-09 2007-08

vi

Nel Cash fIov fron operaling aclivilies 399.95 2O.31 573.1O 225.1O
Nel Cash fIov fron invesling aclivilies (349.95) (15O.66) (793.2O) (4O1.26)
Nel Cash fIov fron financing aclivilies (47.18) 133.55 191.14 173.55
Tnta! Nct Cash f!nw 2.82 3.20 (28.96) (2.61)

The nel cash fIov of a conpanv is a kev indicalor lo shov lhe exlenl of lolaI cash generaled fron aII
aclivilies of lhe conpanv incIuding operalions, inveslnenl and financing for a parlicuIar vear. In lhe
pasl, ve had generaled posilive cash fIovs fron operaling aclivilies, lul negalive cash fIovs fron
invesling aclivilies and negalive cash fIov fron financing aclivilies. If ve are nol alIe lo generale
sufficienl nel cash fIovs in fulure, il nav adverseIv affecl our lusiness and financiaI operalions.

6. We hate certaln contlngent |labl|ltles not µrotlded for that maµ affect our flnancla| condltlon.

As per our audiled accounls for lhe period ended Iune 3O, 2O1O, ve have foIIoving conlingenl IialiIilies:
(C in Iakhs)
PartIcu!ars Amnunt
CIains againsl conpanv nol acknovIedged as dells 2.62
Irovision for saIaries and olher expenses for ex-enpIovees of lhe conpanv 2O.OO
Tnta! 22.62
In lhe evenl lhal anv of lhese conlingenl IialiIilies naleriaIize, our financiaI condilion nav le adverseIv
affecled.

7. We hate not µet µ|aced orders for 100% of our µ|ant and machlnerµ. equlµments etc. for our
µroµosed exµanslon as sµeclfled ln the Ob]ects of the lssue. Anµ de|aµ ln µrocurement of µ|ant S
machlnerµ. equlµments etc. maµ de|aµ the lmµ|ementatlon schedu|e uhlch maµ a|so |ead to
lncrease ln µrlces of these machlnerles or equlµments. further affectlng our cost. retenue and
µrofltabl|ltµ.

The delaiIs of lhe nel proceeds of lhe Issue proposed lo fund lhe pIanned expansion are expIained in lhe
seclion lilIed 'Oljecls of lhe Issue´ leginning on page no. 27 of lhis Drafl Red Herring Irospeclus. We are
vel lo enler inlo definilive agreenenls or are vel lo pIace orders for aII nachinerv and equipnenl
required for our proposed expansion. The lolaI cosl of pIanl and nachinerv and olher equipnenls
proposed lo le inslaIIed is eslinaled al C 2844.9O Iakhs. We are suljecl lo risks on accounl of infIalion in
lhe price of lhe nachinerv and olher equipnenls lhal ve require for lhe proposed expansion. Anv deIav
in pIacing lhe orders or procurenenl of pIanl & nachinerv, equipnenls, elc. nav deIav lhe
inpIenenlalion scheduIe. Such deIavs nav aIso Iead lo increase in prices of lhese equipnenls, furlher
affecling our cosl, revenue and profilaliIilv.

8. We hate not aµµolnted anµ lndeµendent agencµ for aµµralsa| of our µroµosed exµanslon µro]ect.
The cost of µro]ect ls based on our oun estlmates and tarlous quotatlons recelted bµ us from
dlfferent suµµ|lers. uhlch maµ tarµ deµendlng uµon factors |lke lncrease ln µrlces due to uhlch
the cost of µro]ect maµ be adterse|µ affected. ln turn affectlng our flnancla| oµeratlons.

Our funding requirenenls and lhe depIovnenl of lhe proceeds of lhe Issue are lased on nanagenenl
eslinales and various quolalions received lv us fron differenl suppIiers and have nol leen appraised lv
anv lank or financiaI inslilulion. The depIovnenl of funds is enlireIv al lhe discrelion of our ßoard of
Direclors vilhin lhe paranelers as nenlioned in lhe seclion lilIed ¨Oljecls of lhe Issue¨ leginning on
page no. 27 of lhis Drafl Red Herring Irospeclus and is nol suljecl lo anv noniloring lv anv

vii

independenl agencv. AII lhe figures incIuded under lhe seclion lilIed ¨Oljecls of lhe Issue¨ leginning
on page no. 27 of lhis Drafl Red Herring Irospeclus are lased on our ovn eslinales and lhe quolalions
received fron various suppIiers, vhich nav varv depending upon faclors Iike increase in prices due lo
vhich lhe cosl of projecl nav le adverseIv affecled. We cannol assure lhal ve viII le in a posilion lo sel
up our proposed expansion projecl in lhe slaled neans of finance. In case of anv increase in cosl of
projecl, our financiaI posilion nav le adverseIv affecled.

9. De|aµ ln ralslng funds from the lPO cou|d adterse|µ lmµact the lmµ|ementatlon schedu|e.

Our Conpanv´s proposed projecl is lo le funded fron lhe proceeds of lhis IIO and inlernaI accruaIs. We
have nol idenlified anv aIlernale source of funding and hence anv faiIure or deIav on our parl lo noliIize
lhe required resources or anv shorlfaII in lhe Issue proceeds nav deIav lhe inpIenenlalion scheduIe. We
lherefore, cannol assure lhal ve vouId le alIe lo execule lhe proposed projecl vilhin lhe given line
frane, or vilhin lhe cosls as originaIIv eslinaled lv us. Anv line overrun or cosl overrun nav adverseIv
affecl our grovlh pIans and profilaliIilv.

10. Our Comµanµ has not tled-uµ addltlona| uorklng caµlta| requlrements and anµ of our lnabl|ltµ
to arrange for addltlona| uorklng caµlta| requlrement on terms fatorab|e to us. cou|d adterse|µ
affect our oµeratlons and µrofltabl|ltµ.

We require vorking capilaI lo finance lhe purchase of equipnenls, hardvares, elc. and execulion of
orders lefore pavnenl is received fron our cusloners. Our vorking capilaI requirenenls nav increase
if, in cerlain orders, pavnenl lerns incIude reduced or advance pavnenls. There can le no assurance
lhal lhe pavnenls viII le renilled lv our cusloners lo us on a lineIv lasis.

Conlinued increase in vorking capilaI requirenenls and insufficienl cash fIovs fron our operalions lo
neel anv of lhe alove requirenenls nav have an adverse effecl on our financiaI condilion and resuIl of
operalions.

Our projecled IeveI of vorking capilaI lorrovings for lhe fiscaI vear 2O12 are of C 122O.72 Iakhs, oul of
vhich ve propose lo neel C 5O5.OO Iakhs fron IIO proceeds and lhe laIance fron lank finance lo lhe
exlenl of C 715.72 Iakhs. As on dale ve have nol lied up lhis addilionaI lorroving fron lhe lanks. Our
inaliIilv lo arrange for lhis addilionaI vorking capilaI requirenenl fron lanks on lerns favoralIe lo us,
couId adverseIv affecl our operalions and profilaliIilv.

11. We hate not µet ldentlfled anµ |ocatlon for re|ocatlng our Branch Offlce ln Mumbal. Anµ de|aµ
ln ldentlflcatlon and acqulsltlon of the requlslte area maµ de|aµ the lmµ|ementatlon schedu|e
adterse|µ affectlng the cost of µro]ect.

We al presenl have our Corporale Office al Noida, Ullar Iradesh for vhich ve have enlered inlo
nenorandun of underslanding and have aIreadv issued 1,OO,OOO equilv shares of C 1O each al a
preniun of C 9O per share of our Conpanv as a parl-consideralion oul of lolaI consideralion of C 596
Iakhs. We have our ßranch Office al Andheri (Wesl), Munlai, vhich is on Ieave and Iicense
arrangenenl. We nov propose lo reIocale ourseIves lv ovning our ßranch Office al Munlai,
Maharashlra. Hovever, ve have nol vel idenlified anv office Iocalion. We propose lo purchase 4,OOO lo
5,OOO sq. fl. area lelveen ViIe IarIe (Wesl) lo Iogeshvari (Wesl) in Munlai. We have eslinaled lolaI
expendilure of C 593.6O Iakhs incuding cosl of slanp dulv and lrokerage. There couId le unexpecled
price increase in reaI eslale or unavaiIaliIilv of lhe required area of office space. Anv deIav in acquiring

viii

lhe requisile area al our lerns couId adverseIv inpacl our proposed pIan, vhich in lurn couId adverseIv
inpacl our lusiness operalions.

12. Our Comµanµ has exµerlenced f|uctuatlons ln the µast. uhlch maµ not be sustalnab|e and ue
cannot assure the same grouth rate ln future.

Our lolaI revenue has decreased fron C 3419.49 Iakhs during 2OO7-O8 lo C 3359.72 Iakhs during 2OO8-O9
shoving decrease of 1.75°: and increased fron C 3359.72 Iakhs during 2OO8-O9 lo C 4634.1O Iakhs during
2OO9-1O shoving an increase of 37.93°. SiniIarIv, reslaled profil afler lax shoved a decrease of 97.88°
and an increase of 3867.93° during 2OO8-O9 and 2OO9-1O respecliveIv. We cannol assure lhal ve viII nol
have such alnornaI fIuclualions in lhe fulure or nainlain anv grovlh in revenues and profils. In
addilion, ve are nov inlending lo expand our operalions significanlIv and enlering inlo nev producls
and services. Such a grovlh slralegv viII pIace significanl denands on our nanagenenl as veII as our
financiaI, accounling and operaling svslens. Iurlher, as ve scaIe-up and expand our operalions, ve
nav nol le alIe lo focus on exisling operalions efficienlIv, vhich couId resuIl in deIavs, increased cosls
and dininished quaIilv and nav adverseIv affecl our repulalion. Anv inaliIilv lo nanage our grovlh
nav have an adverse effecl on our lusiness and resuIls of operalions.

13. Our Comµanµ lntendlng to exµand lts oµeratlons ln Medla S Entertalnment dltlslon. uhlch has
contrlbuted around 5% on|µ durlng |ast three µears. Anµ fal|ure on our µart to successfu||µ
lmµ|ement our uµgradatlon µ|an cou|d adterse|µ affect our buslness and flnancla| oµeratlons.

Oul of lolaI revenue of C 3419.49 Iakhs, C 3359.72 Iakhs, C 4634.1O Iakhs and C 23O1.86 Iakhs during 2OO7-
O8, 2OO8-O9, 2OO9-1O and period ended Iune 3O, 2O1O respecliveIv, Media & Lnlerlainnenl Division
earned revenue of C 344.33 Iakhs, C 167.21 Iakhs, C 272.23 Iakhs and C 49.57 Iakhs respecliveIv, vhich is
1O.1O°, 5.OO° and 5.9O° and 2.2O°. Media & Lnlerlainnenl Division reporled a Ioss lefore laxalion of
C 7.55 Iakhs during lhree nonlhs period ended Iune 3O, 2O1O. Oul of lolaI IIO proceeds (excIuding
generaI corporale purposes and issue expenses), ve pIan lo spend C 136O.48 Iakhs in upgradalion of
DigilaI Iosl Iroduclion Sludio vhich is 29.7O°. Anv faiIure on our parl lo successfuIIv inpIenenl our
upgradalion pIan couId adverseIv affecl our lusiness and financiaI operalions.

14. We derlte a slgnlflcant µortlon of our retenue from a feu customers. and a |oss of one or more
customers or a reductlon ln thelr demand for our µroducts and sertlces cou|d adterse|µ affect our
buslness. flnancla| condltlon and resu|ts of oµeratlons.

We are dependenl on a Iiniled nunler of cusloners for a significanl porlion of our revenues. Our lop
len and lop five cusloners conlriluled 7O.33° and 41.29° respecliveIv of our lolaI revenue during 2OO9-
1O. Anv Ioss of lusiness or significanl reduclion in lhe voIune of vork fron lhe lop cusloner(s) couId
adverseIv affecl our revenues and profilaliIilv.

We cannol assure lhal ve shaII generale lhe sane quanlun of lusiness, or anv lusiness al aII, fron lhese
cusloners, and Ioss of lusiness fron one or nore of lhen nav adverseIv affecl our revenues and
profilaliIilv.

15. Our buslness and µrofltabl|ltµ ul|| suffer lf ue fal| to antlclµate and dete|oµ neu µroducts and
sertlces and enhance exlstlng µroducts and sertlces ln order to keeµ µace ulth raµld changes ln
techno|ogµ and the lndustrles on uhlch ue focus.

ix

We operale in a lechnoIogicaIIv inlensive environnenl, vhere ve conpele on a gIolaI scaIe. TechnoIogv
lv ils verv nalure is dvnanic and ever changing and ve nav nol le alIe lo keep pace vilh lhe rapidIv
changing lechnoIogicaI environnenl. The IT producls and soIulion narkel is characlerized lv rapid
lechnoIogicaI change, evoIving induslrv slandards, changing cIienl preferences and nev producl and
service inlroduclions. Our fulure success viII depend on our aliIilv lo anlicipale lhese advances and
deveIop nev producl and service offerings lo neel cIienl needs. We nav nol le successfuI in
anlicipaling or adequaleIv responding lo lhese advances in a lineIv lasis, or, if ve do respond, lhe
services or lechnoIogies ve deveIop nav nol le successfuI in lhe narkelpIace. Anv such faiIure on our
parl couId adverseIv affecl our aliIilv lo conpele efficienlIv, our cosl-conpeliliveness, aliIilv lo deveIop
nev producls and lhe consequenliaI quaIilv of our producls, and couId aIso adverseIv affecl our saIes
and profilaliIilv.

16. lncreaslng lntense comµetltlon ln the market for lT µroducts and so|utlons cou|d affect our
marglns. and cou|d a|so reduce our share of buslness from c|lents and maµ adterse|µ lmµact our
retenues and µrofltabl|ltµ.

The IT producls and soIulion narkels are highIv conpelilive. Our conpelilors incIude, Iarge
nuIlinalionaI lechnoIogv firns, Indian IT services firns, soflvare firns elc. The IT induslrv is
experiencing rapid changes lhal are affecling lhe conpelilive Iandscape, incIuding acquisilions lhal have
resuIled in consoIidalion vilhin lhe induslrv. These changes nav resuIl in Iarger conpelilors vilh
significanl resources. We aIso expecl addilionaI conpelilion fron IT firns vilh currenl operalions in
olher counlries. WhiIe ve leIieve lhal ve have hisloricaIIv leen alIe lo provide our producls and
services in our principaI narkels in India al conpelilive prices and on a cosl-efficienl lasis, lhere can le
no assurance lhal ve viII le alIe lo do so in lhe fulure. We cannol le reasonalIv cerlain lhal ve viII le
alIe lo conpele successfuIIv againsl such conpelilors, or lhal ve viII nol Iose cIienls lo such
conpelilors. AddilionaIIv, ve leIieve lhal our aliIilv lo conpele aIso depends in parl on faclors oulside
our conlroI, such as lhe price al vhich our conpelilors offer conparalIe producls and services, and lhe
exlenl of our conpelilors´ responsiveness lo lheir cIienls´ needs. Croving conpelilion nav force us lo
reduce lhe prices of our producls and services, vhich nav reduce our revenues and nargins and/or
decrease our narkel share, anv of vhich couId have a naleriaI adverse effecl on our lusiness, financiaI
condilion and resuIls of operalions.

17. We cou|d become |lab|e to c|alms bµ customers. suffer adterse µub|lcltµ and lncur substantla|
costs as a resu|t of defects ln our µroducts or sertlces. uhlch ln turn cou|d adterse|µ affect our
resu|ts of oµeratlons.

Manv of our conlracls invoIve providing producls and services lhal are crilicaI lo lhe operalions of our
cusloners' lusiness. Anv faiIure or defecl or naIfunclioning in our soflvare or in our cusloners'
producls, nelvorks or conpuler svslens couId resuIl in a cIain againsl us for sulslanliaI danages, or
producl varranlies, regardIess of our responsiliIilv for such a faiIure or defecl. AIlhough ve allenpl lo
Iinil our conlracluaI IialiIilv for aII danages, incIuding consequenliaI danages, in rendering our
services, ve cannol le assured lhal lhe Iinilalions on IialiIilv ve provide for in our service conlracls viII
le enforcealIe in aII cases, or lhal lhev viII olhervise le sufficienl lo prolecl us fron IialiIilv for
danages. Hovever, ve cannol le assured lhal such coverage viII conlinue lo le avaiIalIe on reasonalIe
lerns or viII le avaiIalIe in sufficienl anounls lo cover one or nore Iarge cIains. Iurlher, ve do nol
have anv producl IialiIilv insurance coverage, lhere is no guaranlee lhal producl IialiIilv cIains viII nol
arise. Anv such cIains vouId serve lo erode our Conpanv´s inage and narkel perceplion, and nav
dininish our cIienleIe.

x


18. Our success deµends |arge|µ on our management and our abl|ltµ to attract and retaln our keµ
µersonne|.

Our success depends on lhe conlinued services and perfornance of lhe nenlers of our nanagenenl
lean and olher kev enpIovees. If one or nore nenlers of our nanagenenl lean are unalIe or
unviIIing lo conlinue in lheir presenl posilions, our lusiness couId le adverseIv affecled. Allracling and
relaining scarce lop quaIilv nanageriaI laIenl has lecone a serious chaIIenge for conpanies.
Conpelilion for senior nanagenenl in lhe induslrv in vhich ve operale is inlense, and ve nav nol le
alIe lo relain our exisling senior nanagenenl or allracl and relain nev senior nanagenenl in lhe fulure.
As such, anv Ioss of our exisling senior nanagenenl personneI or kev enpIovees couId adverseIv affecl
our lusiness, resuIls of operalions and financiaI condilion.

19. lncrease ln remuneratlons for lT µrofesslona|s cou|d reduce our cash f|ou and our µroflt marglns.

HisloricaIIv, renuneralions in lhe Indian IT services induslrv have leen significanlIv Iover lhan
renuneralions in lhe deveIoped counlries. Hovever, in recenl vears renuneralions in lhe Indian
Services induslrv have leen increasing al a fasler rale lhan lhose in cerlain deveIoped counlries. In lhe
Iong lern, renuneralions increases nav nake us Iess conpelilive unIess ve are alIe lo conlinue
increasing lhe efficiencv and produclivilv of our professionaIs. Increase in renuneralions, incIuding an
increase in lhe cash conponenl of our conpensalion expenses, nav reduce our cash fIov and our profil
nargins.

20. lf ue are unab|e to successfu||µ µrotect our comµuter sµstems from securltµ rlsks. our buslness
cou|d suffer µartlcu|ar|µ slnce our Comµanµ´s oµeratlons lnto|te transmlsslon of data through
lnternet. uhlch lnto|tes securltµ rlsks.

Iev of our producls and soIulions operale on vel lechnoIogies. Our cIienl conlracls require us lo
conpIv vilh cerlain securilv olIigalions, incIuding nainlenance of nelvork securilv, lack-up of dala,
ensuring our nelvork as virus-free and ensuring lhe credenliaIs of lhose enpIovees vho vork vilh our
cIienls. We cannol assure vou lhal ve viII le alIe lo conpIv vilh aII lhese olIigalions and nol incur anv
IialiIilv. Iurlher, vhiIe ve have inpIenenled induslrv-slandard securilv neasures, our nelvork nav
sliII le vuIneralIe lo unaulhorized access, conpuler viruses and olher disruplive prolIens. A parlv lhal
is alIe lo circunvenl securilv neasures couId nisappropriale proprielarv infornalion and cause
inlerruplions in our operalions. We nav le required lo expend significanl capilaI or olher resources lo
prolecl againsl lhe lhreal of securilv lreaches or lo aIIeviale prolIens caused lv such lreaches. There
can le no assurance lhal anv neasures inpIenenled viII nol le circunvenled in lhe fulure.

21. Our lnsurance coter maµ be lnadequate to fu||µ µrotect us from a|| |osses and maµ ln turn
adterse|µ affect our flnancla| condltlon.

We nainlain such insurance coverage as ve leIieve is cuslonarv in lhe IT and Media & Lnlerlainnenl
induslrv in India. Our insurance poIicies, hovever, nav nol provide adequale coverage in cerlain
circunslances and are suljecl lo cerlain deduclilIes, excIusions and Iinils on coverage. We nainlain
Slocks, VehicIe and LnpIovee Croup HeaIlh Insurance coverage. Hovever, ve cannol assure vou lhal
lhe lerns of our insurance poIicies viII le adequale lo cover anv danage or Ioss suffered lv us or lhal
such coverage viII conlinue lo le avaiIalIe on reasonalIe lerns or viII le avaiIalIe in sufficienl anounls
lo cover one or nore Iarge cIains, or lhal lhe insurer viII nol discIain coverage as lo anv fulure cIain.

xi

Iurlher, lhere can le no assurance lhal anv cIain under lhe insurance poIicies nainlained lv us viII le
honoured fuIIv, in parl or on line. To lhe exlenl lhal ve suffer Ioss or danage lhal is nol covered lv
insurance or vhich exceeds our insurance coverage, our resuIls of operalions or cash fIovs nav le
affecled.

22. Our c|lents´ µroµrletarµ rlghts maµ be mlsaµµroµrlated bµ our µeoµ|e ln tlo|atlon of aµµ|lcab|e
confldentla|ltµ and non-dlsc|osure agreements and as a resu|t. cause us to breach our contractua|
ob|lgatlons ln re|atlon to such µroµrletarµ rlghts. |urther. our emµ|oµees maµ lnfrlnge
lnte||ectua| µroµertµ rlghts of thlrd µartles. Thls cou|d cause us flnancla| and reµutatlon |oss.

In sone of our projecls/conlracls, ve enler inlo non-discIosure and assignnenl of righls arrangenenls
lo Iinil access lo and dislrilulion of our cIienls´ proprielarv and confidenliaI infornalion. We can give
no assurance lhal lhe sleps laken lv us viII le adequale lo enforce our cIienls inleIIecluaI properlv righls
or lo adequaleIv prevenl lhe discIosure of confidenliaI infornalion lv an enpIovee. If our cIienls´
proprielarv righls are nisapproprialed lv our peopIe in vioIalion of anv appIicalIe confidenliaIilv
agreenenls or olhervise, our cIienls nav consider us IialIe for lhal acl and seek danages and
conpensalion fron us. In addilion lo lhese confidenliaIilv agreenenls, our cIienl conlracls nav require
us lo conpIv vilh cerlain securilv olIigalions incIuding nainlenance of nelvork securilv, lack-up of
dala, ensuring our nelvork is virus free and ensuring lhe credenliaIs of our peopIe lhal vork vilh our
cIienls. We cannol assure vou lhal ve viII le alIe lo conpIv vilh aII such olIigalions and lhal ve viII
nol incur IialiIilv nor have a cIain for sulslanliaI danages againsl us. Anv such happening couId
adverseIv effecl our lusiness repulalion, lusiness operalions and financiaI condilions.

AIlhough ve leIieve lhal lhe inleIIecluaI properlv righls used lv us does nol infringe on lhe inleIIecluaI
properlv righls of anv olher person, infringenenl cIains nav le asserled againsl us in fulure. There are
currenlIv no pending or lhrealened inleIIecluaI properlv cIains againsl us. In lhe evenl, ve lecone
IialIe lo lhird parlies for infringing lheir inleIIecluaI properlv righls, ve couId le required lo pav
sulslanliaI danages and le forced lo deveIop non-infringing lechnoIogv or ollain a Iicense. In addilion,
our efforls lo prolecl our inleIIecluaI properlv (vhelher fornaIIv regislered or olhervise, incIuding
proprielarv infornalion) fron leing infringed upon or nisapproprialed nav le inadequale.

23. Our Reglstered and Corµorate Offlces from uhlch ue oµerate are not ouned bµ us. |urther. our
Branch offlce ln Mumbal. from uhere ue oµerate. ls a|so on |eate and |lcense. Dlscontlnuatlon of
agreement maµ requlre us to tacate such µremlses uhlch maµ hate an adterse lmµact on our
buslness contlnultµ and µrofltabl|ltµ.

We do nol ovn lhe prenises on vhich our Regislered and Corporale Offices are Iocaled. Our Regislered
Office in DeIhi is on Iease for a period uplo IuIv 31, 2O12 and for our Corporale Office, ve have enlered
inlo a Menorandun of Underslanding on Seplenler 1, 2OO9 and aIso SuppIenenlarv MoU on Iune 3,
2O1O for lakeover of parlnership firn viz. Cadeo LIeclronics vilh lhe nain oljeclive of acquiring conlroI
over lhe properlv Iocaled al Noida, lul lransfer fornaIilies have nol vel leen conpIeled. Olher lhan lhe
Regislered and Corporale Office, lhe Ieave and Iicense agreenenl enlered inlo lv our Conpanv for
ßranch office al Munlai are nol adequaleIv slanped and regislered. The polenliaI consequence of lhis
couId le lhal lhe said agreenenl nav le inpounded lv anv pulIic officer for lhe purpose of pavnenl of
slanp dulv and lhal lhe agreenenl nav nol le adnissilIe as evidence, unliI lhe reIevanl slanp dulies
aIongvilh appIicalIe penaIlies are paid and lhe reIevanl regislralion, if pernilled, is done. Anv cIain or
adverse order/ finding in conneclion vilh lhese properlies couId adverseIv affecl lhe operalions of our
Conpanv. If anv of lhe ovners of lhese prenises do nol renev lhe agreenenls under vhich ve occupv

xii

lhe prenises or renev such agreenenls on lerns and condilions lhal are unfavoralIe lo us, ve nav
suffer a disruplion in our operalions vhich couId have a naleriaI adverse effecl on our lusiness,
financiaI condilion and resuIls of operalions. Ior nore delaiIs, pIease refer lo seclion lilIed 'Our
Iroperlv´ on page no. 69 of lhis Drafl Red Herring Irospeclus.

24. Our notes of accounts are sub]ect to ba|ance conflrmatlons durlng |ast flte µears. Anµ urlte-offs
cou|d adterse|µ affect our resu|ts of oµeratlons to that extent.

Our Conpanv has nol ollained laIance confirnalions during Iasl five vears fron sundrv dellors,
sundrv credilors, deposils and lhe parlies lo vhon lhe advances vere given. Adjuslnenls lherelo,
having an inpacl of revenue nalure, if anv, viII le nade in lhe vear in vhich lhe sane are fuIIv
reconciIed. Anv vrile offs in lhese accounls al lhe line of reconciIialion, couId adverseIv affecl our
resuIls of operalions lo lhal exlenl.

25. The ta|uatlons of comµanles ln the lT lndustrµ are µresent|µ hlgh. uhlch maµ not be sustalned ln
the future and maµ a|so not be ref|ectlte of future ta|uatlons ln the lndustrµ. There ls no
standard ta|uatlon methodo|ogµ or accountlng µractlces as the sector ls domaln centrlc and
techno|ogµ drlten.

We are engaged in providing infornalion lechnoIogv services and soIulions in RIID. Iurlher, ve
provide services in nedia and enlerlainnenl induslrv. The vaIualions in lhe Soflvare/ IT induslrv have
leen varving sulslanliaIIv in lhe recenl pasl and hence currenl vaIualion nav nol le refIeclive of fulure
vaIualions in lhe induslrv. There is no slandard vaIualion nelhodoIogv or accounling praclices in lhe IT
reIaled induslries. Our financiaIs are nol slriclIv conparalIe vilh lhe pIavers in lhe induslrv. These
evaIualions in lhe soflvare/infornalion lechnoIogv induslrv nav nol le suslained in fulure and currenl
vaIualions nav nol le refIeclive of fulure vaIualions for lhe induslrv.

26. We maµ face dlfflcu|tles ln µrotldlng neu and exlstlng sertlce offerlngs. uhlch cou|d |ead to
c|lents dlscontlnulng or de|aµlng thelr uork ulth us.

We have leen expanding lhe nalure and scope of our engagenenls lv exlending lhe range of services
ve offer. We pIan lo add nev services in lhe area of noliIe appIicalion and Token-Iess Tvo Iaclor
Aulhenlicalion (TTIA). The success of lhese service offerings is dependenl, in parl, upon conlinued
denand for such services lv our exisling and nev cIienls and our aliIilv lo neel lhis denand in a cosl
conpelilive and effeclive nanner. We cannol le cerlain lhal ve viII le alIe lo allracl exisling and nev
cIienls for such nev services or effecliveIv neel our cIienls´ needs. The increased lreadlh of our service
offerings nav resuIl in Iarger and nore conpIex projecls for our cIienls. This viII require us lo eslalIish
cIoser reIalionships vilh our cIienls, vhich nav increase our saIes cosls, and aIso requires a lhorough
underslanding of lheir operalions. Our aliIilv lo eslalIish such reIalionships viII depend on a nunler of
faclors incIuding lhe proficiencv of our nanagenenl personneI and our soflvare professionaIs as veII as
our aliIilv lo conpele effecliveIv and vin Iarge engagenenls in conpelilion vilh Iarger or veII
eslalIished firns. Larger projecls nav invoIve nuIlipIe engagenenls or slages, and lhere is a risk lhal a
cIienl nav choose nol lo relain us for addilionaI slages or nav canceI or deIav addilionaI pIanned
engagenenls. These lerninalions, canceIIalions or deIavs nav resuIl fron lhe lusiness or financiaI
condilion of our cIienls or lhe generaI econonv, as opposed lo faclors reIaled lo lhe quaIilv of our
services. Such canceIIalions or deIavs nake il difficuIl lo pIan for projecl resource requirenenls, and
inaccuracies in such resource pIanning nav have a negalive inpacl on our profilaliIilv.

xiii

27. We are deµendent on the success of our RSD and anµ fal|ure to dete|oµ neu and lmµroted
µroducts/softuares cou|d adterse|µ affect our buslness.

Our success depends on our aliIilv lo conlinuousIv deveIop nev producls/soflvares. We cannol assure
vou lhal ve shaII nake enhanced R&D inveslnenls or conlinue lhe currenl IeveI of R&D inveslnenls in
our lusiness, or lhal lhe inveslnenl in R&D viII vieId salisfaclorv resuIls in lerns of nev and inproved
producls, or viII vieId anv resuIls al aII. Iurlher, ve cannol assure lhal even afler lhe successfuI
deveIopnenl of a producl/soflvare, il viII le accepled lv lhe users or lhere viII le anv narkel for lhe
sane. In addilion, research underlaken lv conpelilors nav Iead lo lhe Iaunch of conpeling or
inproved producls lhal nav affecl lhe saIe of our producls. If our R&D efforls do nol resuIl in a
pipeIine of producls lhal can le connerciaIIv expIoiled, our lusiness, resuIls of operalions and financiaI
condilion nav le adverseIv affecled.

28. De|aµs or defau|ts bµ our c|lents ln thelr µaµments cou|d resu|t ln reductlon of our µroflts.

We reguIarIv connil resources lo projecls prior lo receiving advances or olher pavnenls fron cIienls in
anounls sufficienl lo cover expendilures on projecls as lhev are incurred. We nav le suljecl lo vorking
capilaI shorlages due lo deIavs or defauIls in cIienl pavnenls. If cIienls defauIl in lheir pavnenls on a
projecl lo vhich ve have devoled significanl resources or if a projecl in vhich ve have invesled
significanl resources is deIaved, canceIIed or does nol proceed lo conpIelion, il couId have a naleriaI
adverse effecl on our lusiness, financiaI condilion and resuIls of operalions.

29. Our c|lent contracts/µurchase orders can tµµlca||µ be termlnated ulthout cause and ulth |ltt|e
or no notlce or µena|tµ. uhlch cou|d negatlte|µ lmµact our retenues and µrofltabl|ltµ.

Our cIienls lvpicaIIv relain us lhrough non-excIusive service agreenenls. Mosl of our cIienl projecl
conlracls can le lerninaled vilh or vilhoul cause, vilh O lo 3O davs nolice and vilhoul lerninalion
reIaled penaIlies. AddilionaIIv, our service agreenenls vilh cIienls are lvpicaIIv vilhoul anv
connilnenl lo a specific voIune of lusiness or fulure vork. Our lusiness is dependenl on lhe decisions
and aclions of our cIienls, and lhere are a nunler of faclors reIaling lo our cIienls lhal are oulside our
conlroI lhal nighl resuIl in lhe lerninalion of a projecl or lhe Ioss of a cIienl. Our cIienls nav denand
price reduclions, change lheir oulsourcing slralegv lv noving nore vork in-house or lo our conpelilors
or repIace lheir exisling soflvare vilh packaged soflvare supporled lv Iicensors. Anv of lhese faclors
couId adverseIv affecl our revenues and profilaliIilv.

30. Our retenues are deµendent uµon our Comµanµ´s meetlng c|lent sµeclflc requlrements and |arge|µ
on a case-to-case basls.

Our assignnenls for providing producls and services IargeIv invoIve providing cuslonized producls
/soIulions on a case-lo-case lasis, depending upon lhe needs of each cusloner. Our inaliIilv lo provide
cuslonized producls / soIulions couId dininish our narkel inage and lrand vaIue, vhich couId Iead lo
cIienls disconlinuing lheir conlracls vilh us and slagnalion/reduclion of our cIienl lase, vhich in lurn
couId harn our lusiness and profilaliIilv. Thus, our fulure grovlh viII depend on our conlinued
evoIulion of specific sels of cuslonized producls lo deaI vilh lhe rapidIv evoIving and diverse needs of
our cusloners in a cosl-conpelilive and effeclive nanner. Iurlher, anv rapid change in our cIienl´s
expeclalion on accounl of changes in lechnoIogv or inlroduclion of nev producls for anv olher reason
and faiIure on our parl lo neel lheir expeclalion couId adverseIv affecl our lusiness, resuIls of
operalions and financiaI condilion.

xiv


31. Our deµendence on short-term contracts/µurchase orders maµ adterse|µ affect our future
flnancla| condltlon and resu|ts of oµeratlons.

We currenlIv do nol have anv Iong lern conlracls vilh anv of our cusloners and inslead reIv on olher
shorl-lern conlracls nechanisn vherelv orders are laken on a shorl-lern lasis. As lhese conlracls reach
lhe end of lheir slaled lerns, our cusloners can seek lo renegoliale pricing or olher lerns vilh us or nol
renev lhe conlracls. AII of our cusloner conlracls are on a non-excIusive lasis and lhere is no guaranlee
lhal our presenl cusloners viII conlinue lo pIace orders vilh us. Anv deIav or defauIl in pavnenl lv our
5cusloners, reduclion in lhe voIune of lusiness vilh lhen or reslriclion in pricing lerns for lhen nav
adverseIv affecl our lusiness and profilaliIilv. Iurlher, if lhe prices of conponenls/soflvares used lv us
lo increase in lhe fulure and ve faiI lo deveIop Iong lern reIalionships vilh our cusloners in lhe narkel,
and increase lhe prices of our end producls in lhe sane ralio, il couId have an adverse inpacl on our
profils. IrolIens of lhis kind couId cause canceIIalions of conlracls, vhich vouId affecl our fulure
financiaI condilion and resuIls of operalions.

32. We do not oun the trademark ºBharatlµa" and |ogo of ºBharatlµa" and unauthorlted µartles
maµ lnfrlnge uµon or mlsaµµroµrlate our lnte||ectua| µroµertµ. Thls cou|d hate a materla|
adterse effect on our buslness uhlch ln turn adterse|µ affect resu|ts of oµeratlons.

The lradenark ¨ßharaliva¨ and Iogo of ¨ßharaliva¨ has nol leen regislered lv our Conpanv. We have
nade an appIicalion for regislralion of our Iogo under cIass 42 lo lhe Regislrar of Trade Marks, Nev
DeIhi lv an appIicalion daled IuIv 22, 2OO6. Hovever, ve have nol nade anv appIicalion for lhe
regislralion of our lradenark. There is no assurance lhal lhe appIicalion for lhe regislralion of our Iogo
viII le approved lv lhe Trade Marks Regislrv, Nev DeIhi. In addilion, our appIicalion nav le opposed
lv lhird parlies. If ve are unalIe lo ollain regislralion of our Iogo ve nav nol le alIe lo successfuIIv
enforce or prolecl our inleIIecluaI properlv righls and ollain slalulorv proleclions avaiIalIe under lhe
Trade Mark Acl, 1999, as olhervise avaiIalIe for regislered narks. This couId have a naleriaI adverse
effecl on our lusiness, vhich in lurn adverseIv affecl our resuIls of operalions.

33. There are restrlctlte S flnancla| cotenants under our |oan agreements. uhlch cou|d lnf|uence our
abl|ltµ to exµand. ln turn affectlng our buslness and resu|ts of oµeratlons.

We have enlered inlo agreenenls for ollaining vorking capilaI faciIilies vilh our lanker viz. The RovaI
ßank of ScolIand (erslvhiIe AßN Anro ßank) and lhese covenanls in lorroving fron lank, require us
lo seek lhe prior consenl of lhe lank for ollaining anv olher credil faciIilv fron olher lank and diIulion
of pronoler´s sharehoIding. These covenanls nav have an adverse effecl on lhe funclioning of our
Conpanv.

Iurlhernore, our Conpanv has crealed a charge in favour of our Iender againsl lhe novealIe fixed
assels of our Conpanv. In case of defauIl lv our Conpanv in repavnenl of lhe Ioans, our lanker nav
exercise ils righls over lhe securilv, vhich nav le delrinenlaI lo lhe inleresl of our Conpanv. Ior
reslriclive covenanls, pIease refer lo paragraph ¨Reslriclive covenanls¨ appearing on page no. 71 of lhis
Drafl Red Herring Irospeclus under lhe seclion lilIed ¨Our IinanciaI Indelledness¨.

34. Our oµeratlons are geograµhlca||µ |ocated ln three States and therefore. anµ |oca|lted socla|
unrest. natura| dlsaster or breakdoun of sertlces or anµ other natura| dlsaster ln and around
thelr resµectlte States cou|d hate materla| adterse effect on our buslness and flnancla|

xv

condltlon.

Our operalions are lased al Nev DeIhi, Noida(Ullar Iradesh) and Munlai (Maharashlra) in addilion lo
lhe off-sile Iocalions. As a resuIl, anv IocaIized sociaI unresl, naluraI disasler, adverse vealher
condilions, earlhquakes, fires, expIosives, pover Ioss, or lreakdovn of services and uliIilies in and
around lheir respeclive Slales couId have naleriaI adverse effecl on our lusiness, financiaI posilion and
resuIls of operalions. Iurlher, anv faiIure of our svslens or anv shuldovn lecause of operalionaI
disruplions, naluraI disasler or olher faclors, couId disrupl our services and adverseIv affecl our resuIl of
operalions and financiaI condilion.

35. Our Comµanµ´s retenue and µroflts are dlfflcu|t to µredlct and can tarµ slgnlflcant|µ from
quarter to quarter. Thls cou|d cause our share µrlce to f|uctuate.

Our operaling resuIls have varied in lhe pasl and nav conlinue lo varv significanlIv fron quarler lo
quarler due lo various reasons, incIuding:

• Svnchronizing avaiIaliIilv of equipnenls and lhe conpelilive pricing of equipnenls:
• Unanlicipaled changes in reguIalorv poIicies in lhe jurisdiclions in vhich ve operale:
• DeIavs in receipl of pavnenl fron cusloners or IeveI of lad dells:
• Our cusloner´s requirenenls, and lheir fulure pIans:
• Unanlicipaled canceIIalions or deferraIs of orders: and
• Changes in pricing poIicies of our conpelilors

Therefore, ve leIieve lhal period-lo-period conparisons of lhe resuIls of our operalions nav nol
necessariIv le neaningfuI and shouId nol le reIied upon as an indicalion of our fulure perfornance. Il is
possilIe lhal in fulure sone of our quarlerIv resuIls of operalions nav le leIov lhe expeclalions of
narkel anaIvsls and our inveslors, vhich couId Iead lo a corresponding decIine in lhe price of our Lquilv
Shares.

36. We hate entered lnto certaln re|ated µartµ transactlons and maµ contlnue to do so.

We have enlered inlo cerlain reIaled parlv lransaclions aggregaling lo C 8.O5 Iakhs and C 516.31 Iakhs for
lhe period ended Iune 3O, 2O1O and for lhe vear ended March 31, 2O1O respecliveIv. WhiIe ve leIieve lhal
aII such lransaclions have leen conducled on lhe arn´s Ienglh lasis, lhere can le no assurance lhal ve
couId nol have achieved nore favouralIe lerns had such lransaclions nol leen enlered inlo vilh reIaled
parlies. Iurlhernore, il is IikeIv lhal ve viII enler inlo reIaled parlv lransaclions in lhe fulure. There can
le no assurance lhal such lransaclions, individuaIIv or in lhe aggregale, viII nol have an adverse effecl
on our financiaI condilion and resuIls of operalion. Ior delaiIs, pIease refer lo seclion lilIed ¨ReIaled
Iarlv Transaclions¨ al page no. 12O of lhis Drafl Red Herring Irospeclus.

37. There maµ be µosslb|e re|ated lnterests betueen us. our Promoter Grouµ Comµanles. Dlrectors
and keµ managerla| µersonne|s.

ßCIL IiIns & TechnoIogies Liniled and Krili Connunicalions Irivale Liniled, our Ironoler Croup
Conpanies, having pernission lo slarl lhe sane lusiness aclivilv lv lheir Menorandun of Associalion,
as of our Conpanv, vhich nav creale a polenliaI confIicl of inleresl and vhich in lurn, nav have an
inpIicalion on our operalions and profils.

xvi

Iurlher, our Direclors and kev nanageriaI personneIs have inleresl lo lhe exlenl of lheir respeclive
sharehoIding in our Conpanv aparl fron lhe renuneralion or lenefils lo vhich lhev are enlilIed as per
lheir lerns of appoinlnenl during lhe ordinarv course of lusiness. Ior delaiIs of inleresl of Direclors
and kev nanageriaI personneI, pIease refer lo page no. 89 & 92 respecliveIv of lhis Drafl Red Herring
Irospeclus.

38. Unsecured |oans amountlng to C 101.13 |akhs taken bµ our Comµanµ maµ be reca||ed bµ our
|enders at anµ tlme affectlng our lmmedlate cash f|ous.

Our Conpanv has laken unsecured Ioans anounling lo C 259.63 as on Iune 3O, 2O1O, oul of vhich
unsecured Ioans lo lhe exlenl of C 1O1.13 Iakhs have no specific lerns vilh regard lo lhe repavnenl of
lhese Ioans as lhev are aIso nol secured lv a charge on anv of lhe assels of our Conpanv. Due lo lhe
alsence of anv specific lerns regarding lheir repavnenl, lhe said Ioans can le recaIIed lv lheir
respeclive Ienders al anv given poinl of line and our Conpanv viII le forced lo nake arrangenenls for
lheir repavnenl, vhich in lurn couId adverseIv affecl our innediale cash fIovs.

39. Our abl|ltµ to µaµ dltldends ln future ul|| deµend uµon future earnlngs. flnancla| condltlon.
cash f|ous. uorklng caµlta| requlrements and caµlta| exµendlture.

We have nol paid anv dividends in lhe pasl. The anounl of our fulure dividend pavnenls, if anv, viII
depend upon our fulure earnings, financiaI condilion, cash fIovs, vorking capilaI requirenenls and
capilaI expendilure. There can le no assurance lhal ve viII le alIe lo pav dividends. AddilionaIIv, ve
nav le reslricled in our aliIilv lo nake dividend pavnenls lv lhe lerns of anv dell financing ve nav
ollain in lhe fulure.

4O. Our Promoters and Promoter Grouµ ul|| contlnue to retaln substantla| contro| ln our Comµanµ
after the lssue. uhlch maµ enab|e them to lnf|uence the outcome of matters submltted to
shareho|ders for aµµrota|.

Afler conpIelion of lhe Issue, lhe Ironolers and Ironoler Croup viII conlinue lo hoId approxinaleIv
51.O6° of posl-issue paid up share capilaI. So Iong as lhe Ironolers and Ironoler Croup hoIds a
sulslanliaI conlroI of our Conpanv´s Lquilv Shares, lhev nav le alIe lo conlroI nosl nallers affecling
our Conpanv, incIuding lhe appoinlnenl and renovaI of our Direclors: our lusiness slralegv and
poIicies: anv delerninalions vilh respecl lo nergers, lusiness conlinalions and acquisilions: our
dividend pavoul and financing. Iurlher, lhe exlenl of Ironolers and Ironoler Croup sharehoIding nav
resuIl in deIav or prevenlion of a change of nanagenenl or conlroI of our Conpanv, even if such a
lransaclion nav le leneficiaI lo our olher sharehoIders.

41. The market µrlce of our Equltµ Shares maµ adterse|µ affect due to addltlona| lssuances of Equltµ
Shares or sa|e of Equltµ Shares bµ members of our Promoter Grouµ.

There is a risk lhal ve nav le required lo finance our grovlh or slrenglhen our laIance sheel lhrough
addilionaI equilv offerings. Anv fulure issuance of Lquilv Shares, vhelher lhrough lhe exercise of
oplions or olhervise, viII diIule lhe posilion of exisling sharehoIders and couId adverseIv affecl lhe
narkel price of lhe Lquilv Shares.

42. There ls no exlstlng market for the Equltµ Shares. and ue do not knou lf one ul|| dete|oµ. Our
stock µrlce maµ be hlgh|µ to|atl|e after the lssue. and as a resu|t. µou cou|d |ose a slgnlflcant

xvii

µortlon or a|| of µour lntestment.

Irior lo lhe Issue, lhere has nol leen a pulIic narkel for lhe Lquilv Shares. We cannol predicl lhe exlenl
lo vhich inveslor inleresl viII Iead lo lhe deveIopnenl of an aclive lrading narkel on lhe Slock
Lxchanges or hov Iiquid lhal narkel viII lecone. If an aclive narkel does nol deveIop, vou nav
experience difficuIlv in seIIing lhe Lquilv Shares lhal vou purchased. The IIO price is nol indicalive of
prices lhal viII prevaiI in lhe open narkel foIIoving lhe Issue. ConsequenlIv, vou nav nol le alIe lo seII
vour Lquilv Shares al prices equaI lo or grealer lhan lhe price vou paid in lhe Issue.

43. We hate not obtalned reglstratlon under Shoµs and Estab|lshment Act. 1948 for our Reglstered
Offlce at De|hl.

We presenlIv do nol have anv regislralion under lhe appIicalIe Shops and LslalIishnenl Acl for our
Regislered Office al DeIhi fron lhe concerned governnenl aulhorilv. In case anv proceedings or penaIlv
are inposed lv anv governnenl aulhorilv, our financiaI operalions couId le adverseIv effecled lo lhal
exlenl.
Extcrna! RIsk Factnrs

44. Po|ltlca| lnstabl|ltµ or changes ln the µo|lcles formu|ated bµ the Goternment of lndla from tlme
to tlme cou|d affect the |lbera|ltatlon of the lndlan economµ and adterse|µ affect our buslness.
resu|ts of oµeratlons and flnancla| condltlon.

Our lusiness, and lhe narkel price and Iiquidilv of lhe Lquilv Shares nav le adverseIv affecled lv
changes in foreign exchange rales and reguIalions, inleresl rales, governnenl poIicv, laxalion, sociaI and
civiI unresl and olher poIilicaI, econonic or olher deveIopnenls in or affecling India.

The rale of econonic IileraIisalion in India couId change in fulure, and slalulorv/reguIalorv
requirenenls and/or poIicies lhe generaI econonic environnenl in India, foreign inveslnenl, lhe
securilies narkel, currencv exchange and olher nallers affecling our lusiness and/or inveslnenl in our
securilies couId change as veII. Anv significanl change in IileraIisalion and dereguIalion of poIicies in
India couId adverseIv affecl lusiness and econonic condilions in India generaIIv and our lusiness,
operalions and profilaliIilv in parlicuIar.

45. Natura| ca|amltles cou|d hate a negatlte lmµact on the lndlan economµ and harm our buslness.

India has experienced naluraI caIanilies such as earlhquakes, fIoods, droughl and a lsunani in recenl
vears. The exlenl and severilv of lhese naluraI disaslers delernines lheir inpacl on lhe Indian econonv.
IroIonged speIIs of alnornaI rainfaII and olher naluraI caIanilies couId have an adverse inpacl on lhe
Indian econonv vhich couId adverseIv affecl our lusiness and lhe price of our Lquilv Shares.

46. A s|oudoun ln the economlc grouth ln lndla or ln the economµ g|oba||µ cou|d slgnlflcant|µ
affect our grouth rates.

Our operalions are prinariIv Iocaled in India and our lusiness operalions and perfornance are
dependenl on lhe overaII econonv, lhe gross doneslic producl (¨GDP¨) grovlh rale and lhe econonic
cvcIe in India. The Indian econonv couId le adverseIv affecled lv a nunler of faclors. Anv sIovdovn
in lhe Indian econonv or voIaliIilv in gIolaI connodilv prices, couId adverseIv affecl lhe Indian

xviii

econonv. The Indian econonv couId aIso le adverseIv affecled lv a generaI rise in inleresl rales and
unfavouralIe vealher condilions adverseIv affecling agricuIlure. A sIovdovn in lhe Indian econonv
couId adverseIv affecl our lusiness and resuIls of operalions.

47. Terrorlst attacks. cltl| dlsturbances. reglona| conf|lcts and other acts of tlo|ence ln lndla and
abroad maµ dlsruµt or otherulse adterse|µ affect our Comµanµ´s buslness and lts µrofltabl|ltµ.

Cerlain evenls lhal are levond lhe conlroI of our Conpanv, such as lerrorisl allacks and olher acls of
vioIence or var, incIuding lhose invoIving India, lhe Uniled Kingdon, lhe Uniled Slales or olher
counlries, nav adverseIv affecl vorIdvide financiaI narkels and couId polenliaIIv Iead lo a severe
econonic recession, vhich couId adverseIv affecl our Conpanv´s lusiness, resuIls of operalions,
financiaI condilion and cash fIovs, and nore generaIIv, anv of lhese evenls couId Iover confidence in
India´s econonv. Soulhern Asia has, fron line lo line, experienced inslances of civiI unresl and poIilicaI
lensions and hosliIilies anong neighlouring counlries. India recenlIv vilnessed a najor lerrorisl allack
in Munlai on Novenler 26, 2OO8, vhich Ied lo an escaIalion of poIilicaI lensions lelveen India and
Iakislan. IoIilicaI lensions couId creale a perceplion lhal lhere is a risk of disruplion of services
provided lv India-lased conpanies, vhich couId have an adverse effecl on our Conpanv´s lusiness,
fulure financiaI perfornance and price of our Lquilv Shares. Iurlhernore, if India vere lo lecone
engaged in arned hosliIilies, parlicuIarIv hosliIilies lhal are prolracled or invoIve lhe lhreal or use of
nucIear veapons, Our Conpanv´s operalions nighl le significanlIv affecled.

India has fron line lo line experienced sociaI and civiI unresl and hosliIilies, incIuding riols, regionaI
confIicls and olher acls of vioIence. Lvenls of lhis nalure in lhe fulure couId have a naleriaI adverse
effecl on our Conpanv´s aliIilv lo deveIop ils lusiness. As a resuIl, our Conpanv´s lusiness, resuIls of
operalions and financiaI condilion nav le adverseIv affecled.

48. Our Comµanµ´s buslness and actltltles ul|| be regu|ated bµ the Comµetltlon Act. 2002.

The Indian IarIianenl has enacled lhe Conpelilion Acl, 2OO2, as anended (lhe ¨Conpelilion Acl¨) for
lhe purpose of prevenling lusiness praclices lhal have an apprecialIe adverse effecl on conpelilion in
India under lhe auspices of lhe Conpelilion Connission of India, vhich (olher lhan for cerlain
provisions reIaling lo lhe reguIalion of conlinalions) has recenlIv lecone effeclive. Under lhe
Conpelilion Acl, anv arrangenenl, underslanding or aclion in concerl lelveen enlerprises or persons,
vhelher or nol fornaI or infornaI, vhich causes or is IikeIv lo cause an apprecialIe adverse effecl on
conpelilion in India is void and allracls sulslanliaI nonelarv penaIlies. Anv agreenenl vhich direclIv
or indireclIv delernines purchase or saIe prices, Iinils or conlroIs produclion, shares lhe narkel lv vav
of geographicaI area or narkel or nunler of cusloners in lhe narkel is presuned lo have an apprecialIe
adverse effecl on conpelilion. Our Conpanv nav aIso le reguIaled lv lhe Conpelilion Connission of
India for anv acl perceived lo le an aluse of ils doninanl posilion lhal causes an apprecialIe adverse
effecl on conpelilion. The effecl of lhe Conpelilion Acl and lhe Conpelilion Connission of India on
lhe lusiness environnenl in India is as vel uncIear. Anv appIicalion of lhe Conpelilion Acl lo our
Conpanv nav le unfavouralIe and nav have a naleriaI adverse effecl on ils lusiness, financiaI
condilion, cash fIovs and resuIls of operalions.

49. The market ta|ue of an lntestment ln our Equltµ Shares maµ f|uctuate due to the to|atl|ltµ of the
lndlan securltles markets.

xix

The Indian Slock Lxchanges have, in lhe pasl, experienced sulslanliaI fIuclualions in lhe prices of Iisled
securilies. Such fIuclualions and voIaliIilv couId affecl lhe narkel price and Iiquidilv of lhe securilies of
Indian conpanies, incIuding our Lquilv Shares. Moreover, lhere have leen occasions vhen secondarv
narkel operalions have leen inlerrupled and/or affecled due lo lenporarv exchange cIosures, lroker
defauIls, sellIenenl deIavs and slrikes lv lrokerage firn enpIovees. In addilion, lhe governing lodies of
lhe Indian Slock Lxchanges have fron line lo line inposed reslriclions on lrading in cerlain securilies,
Iinilalions on price novenenls and nargin requirenenls. Iurlhernore, fron line lo line, dispules
have occurred lelveen Iisled conpanies and slock exchanges and olher reguIalorv lodies, vhich in
sone cases nav have had a negalive effecl on narkel senlinenl. If siniIar prolIens occur in fulure, lhe
narkel price and Iiquidilv of lhe Lquilv Shares couId le adverseIv affecled. A cIosure of, or lrading
sloppage on lhe ßSL /NSL aIso couId adverseIv affecl lhe lrading price of Lquilv Shares.

50. Our Equltµ Shareho|ders bear the rlsk of f|uctuatlon ln the µrlce of our Equltµ Shares.

The prices of our Lquilv Shares nav fIucluale afler lhis Issue due lo a vide varielv of faclors, incIuding:

• voIaliIilv in lhe Indian and gIolaI securilies narkel or in lhe Rupee's vaIue reIalive lo lhe U.S.
doIIar, lhe Luro and olher foreign currencies:
• our profilaliIilv and perfornance:
• perceplions aloul our fulure perfornance or lhe perfornance of Indian conpanies in generaI:
• perfornance of our conpelilors and lhe perceplion in lhe narkel aloul inveslnenls in lhe lvre,
and aulonoliIe seclors:
• adverse nedia reporls on us or on lhe IT and/or Media & Lnlerlainnenl Induslrv:
• changes in lhe eslinales of our perfornance or reconnendalions lv financiaI anaIvsls:
• significanl deveIopnenls in India's econonic IileraIisalion and dereguIalion poIicies: and
• significanl deveIopnenls in India's fiscaI and environnenlaI reguIalions.

There can le no assurance lhal an aclive lrading narkel for our Lquilv Shares viII le suslained afler lhis
Issue, or lhal lhe price al vhich our Lquilv Shares have hisloricaIIv lraded viII correspond lo lhe price al
vhich lhe Lquilv Shares are offered in lhis Issue or lhe price al vhich our Lquilv Shares viII lrade in lhe
narkel sulsequenl lo lhis Issue. Our Share price nav le voIaliIe and nav decIine posl Iisling.

51. You ul|| not be ab|e to se|| lmmedlate|µ anµ of the Equltµ Shares µou µurchase ln thls lssue on
an lndlan stock Exchange

Under lhe SLßI (ICDR) ReguIalions, ve are pernilled lo Iisl lhe Lquilv Shares vilhin 12 vorking davs of
lhe ßid/Issue CIosing Dale. ConsequenlIv, lhe Lquilv shares vou purchase in lhe Issue nav nol le
crediled lo vour denal accounl vilh Deposilorv Iarlicipanls unliI 11 vorking davs afler lhe ßid/Issue
CIosing Dale. You can slarl lrading in lhe Lquilv Shares onIv afler lhev have leen crediled lo vour
denal accounl, finaI Iisling and lrading approvaIs are received fron lhe Slock Lxchanges and lrading
connences on lhe Slock Lxchanges. There can le no assurance lhal finaI Iisling and lrading approvaIs
viII le ollained fron lhe Slock Lxchanges on line or al aII. Iurlher, lhere can le no assurance lhal lhe
Lquilv Shares aIIocaled lo vou viII le crediled lo vour denal accounl, or lhal lrading in lhe Lquilv
Shares viII connence vilhin lhe specified periods.

52. After thls lssue. the µrlce of our Equltµ Shares maµ be to|atl|e. or an actlte tradlng market for
our Equltµ Shares maµ not sustaln

xx

The prices of our Lquilv shares nav fIucluale afler lhis issue due lo a vide varielv of faclors, incIuding
voIaliIilv in lhe Indian and gIolaI securilies narkel: our operalionaI perfornance, financiaI resuIls and
capacilv expansion, deveIopnenls in India´s econonic IileraIizalion and dereguIalion poIicies,
parlicuIarIv in lhe IT and Media & Lnlerlainnenl induslrv: and changes in India´s Iavs and reguIalions
inpacling our lusiness.

We cannol assure vou lhal an aclive lrading narkel for our equilv shares viII le suslained afler lhis
Issue or lhal lhe price al vhich our equilv shares vouId le lraded sulsequenl lo lhis issue viII
correspond lo lhe currenl prices for our aIreadv exisling equilv shares.
PrnmIncnt Nntcs
1. The Nel vorlh of our Conpanv as on Iune 3O, 2O1O is C 2876.O1 Iakhs as per our reslaled financiaI
slalenenls under Indian CAAI. The size of lhe Issue is C |-! Iakhs.

2. The average cosl of acquisilion of Lquilv shares of lhe Ironolers is as per lhe delaiIs given leIov:

Namc nf Prnmntcr
Tnta! numbcr nf
EquItv 5harcs
Avcragc Cnst nf AcquIsItInn - Pcr
EquItv 5harc (C)
Mr. Rakesh ßhhalia 28,17,521 3.71
Mrs. Arli ßhalia 19,24,544 4.63

The ßook vaIue per share as on Iune 3O, 2O1O is C 31.52 per Lquilv Share.

3. IulIic Issue of 67,2O,OOO Lquilv Shares of C 1O/- each for cash al a price of C |-! per Lquilv Share
aggregaling C |-! Iakhs (lhe ¨Issue¨). The Issue conslilules 43.42° of lhe fuIIv diIuled posl-Issue paid
up capilaI of our Conpanv.

4. This Issue is leing nade lhrough a 1OO° ßook ßuiIding Irocess vherein nol nore lhan 5O° of lhe
Issue lo IulIic shaII le avaiIalIe for aIIocalion on a proporlionale lasis lo OuaIified InslilulionaI
ßuvers (¨OIßs¨). 5° of lhe OIß Iorlion shaII le avaiIalIe for aIIocalion on a proporlionale lasis lo
MuluaI Iunds onIv and lhe renainder shaII le avaiIalIe for aIIolnenl on a proporlionale lasis lo
OIßs and MuluaI Iunds, suljecl lo vaIid lids leing received fron lhen al or alove lhe Issue Irice.
Iurlher, nol Iess lhan 15° of lhe Issue lo IulIic shaII le avaiIalIe for aIIocalion on a proporlionale
lasis lo Non InslilulionaI ßidders and nol Iess lhan 35° of lhe Issue lo IulIic shaII le avaiIalIe for
aIIocalion on a proporlionale lasis lo RelaiI IndividuaI ßidders, suljecl lo vaIid lids leing received
al or alove lhe Issue Irice.

5. We have enlered inlo various reIaled parlv lransaclions vilh reIaled parlies anounling lo C 516.31
Iakhs for lhe financiaI vear 2OO9-1O. Ior reIaled parlv lransaclion refer lo seclion lilIed ¨ReIaled Iarlv
Transaclions¨ leginning on page no. 12O of lhis Drafl Red Herring Irospeclus.

6. There are no lransaclions reIaling lo saIes or purchases lelveen our Conpanv and our Ironoler
Croup Conpanies / enlilies exceeding 1O° of lhe saIes or purchases of our Conpanv during lhe Iasl
3 vears excepl as under:
(C in Iakhs)

Namc nf
Prnmntcr Grnuµ
AµrI! 2010 tn Junc
2010
FY2009-10 FY2008-09 FY2007-08

xxi

Cnmµanv/ EntItv
Amnunt
% nf
sa!cs /
µurchasc
Amnunt
% nf
sa!cs/
µurchasc
Amnunt
% nf
sa!cs/
µurchasc
Amnunt
% nf
sa!cs/
µurchasc
5a!cs TransactInn
1.
ßCIL IiIns &
TechnoIogies
Liniled
- - 424.17 9.15° 1O3.39 3.O8° 779.15 22.79°
Purchasc TransactInns
2.
Krili
Connunicalions
Irivale Liniled
- - O.69 O.O2° 258.63 9.92° 675.33 25.57°

7. We have nol nade anv aIIolnenl of Lquilv Shares in lhe lveIve nonlhs lefore lhe dale of lhis Drafl
Red Herring Irospeclus vhere lhe price of such issuances vouId le Iover lhan lhe Issue Irice,
excepl for equilv shares issued lhrough lonus issue nade on Augusl 27, 2O1O.

8. No Ioans and advances have leen nade lo anv person(s)/Conpanies in vhich lhe Direclor(s) of our
Conpanv are inleresled excepl as slaled in lhe Audilor´s Reporl. Ior delaiIs of Ioans and advances,
pIease refer lo Annexure-X of Audilor´s Reporl under seclion lilIed ¨IinanciaI Slalenenls of lhe
Conpanv¨ appearing on page no. 1O5 of lhis Drafl Red Herring Irospeclus.

9. Our Ironolers/Ironoler Croup/Direclors and lheir innediale reIalives have nol
purchased/soId/financed/acquired anv equilv shares of our Conpanv during lhe pasl 6 nonlhs,
preceding lhe dale of lhis Drafl Red Herring Irospeclus excepl as under:

Namc nf Prnmntcr Grnuµ /
Transfcrnr
Namc/Catcgnrv nf Transfcrcc Numbcr nf
sharcs
Datc nf Transfcr
ßCIL IiIns & TechnoIogies
Lld.
LnpIovees 57,5OO Seplenler 25,
2O1O
ßCIL IiIns & TechnoIogies
Lld.
IulIic (Olher lhan Ironoler &
Ironoler Croup)
47,451 Seplenler 25,
2O1O
Nunler One Iinvesl Irivale
Liniled
Direclors (Mr. Harjil Singh Anand &
Ms. Iava Misra)
2,OOO Seplenler 25,
2O1O
Mr. KripaI Singh LnpIovees 8,783 Seplenler 25,
2O1O IulIic (Olher lhan Ironoler &
Ironoler Croup)
55O
Ms. Sneh Lala IulIic (Olher lhan Ironoler &
Ironoler Croup)
666 Seplenler 25,
2O1O
Ironoler Croup - Mr. I.K. ßhalia 11,OOO
Ironoler Croup - Ms. Alha Singh 667
Mr. AluI Singh IulIic (Olher lhan Ironoler &
Ironoler Croup)
333 Seplenler 25,
2O1O
DIrcctnr and thcIr rc!atIvcs
Mr. Sanjav Kapoor Direclor - Mr. Sanjeev Kunar MillaI 1O,OOO Seplenler 25,
2O1O LnpIovee - Mr. Rajeev Kunar AgarvaI 5,217
Ms. Shalhnan Kapoor LnpIovees 2O,OOO Seplenler 25,
2O1O
TOTAL 1,64,167

xxii


1O. Anv cIarificalion or infornalion reIaling lo lhe Issue shaII le nade avaiIalIe lv lhe ßRLM, our
Conpanv and our ConpIiance Officer lo lhe inveslors al Iarge and no seIeclive or addilionaI
infornalion vouId le avaiIalIe for a seclion of inveslors in anv naller vhalsoever. Inveslor nav
conlacl lhe ßRLM for anv conpIainl perlaining lo lhe Issue.

11. The Inveslors are advised lo refer lo lhe Iara on ¨ßasis for Issue Irice¨ on page no. 4O of lhis Drafl
Red Herring Irospeclus lefore naking anv inveslnenl in lhis Issue.

12. Trading in Lquilv Shares of our Conpanv for aII lhe inveslors shaII le in denaleriaIized forn onIv.

13. No parl of lhe Issue proceeds viII le paid as consideralion lo Ironolers, Direclors, kev nanageriaI
personneI, associale or Sulsidiarv.

14. Inveslors nav nole lhal in case of over-sulscriplion in lhe Issue, aIIolnenl lo OuaIified InslilulionaI
ßidders, Non-InslilulionaI ßidders and RelaiI IndividuaI ßidders shaII le on a proporlionale lasis.
Ior, nore infornalion, pIease refer seclion lilIed ¨ßasis of AIIocalion¨ on page no. 184 of lhis Drafl
Red Herring Irospeclus.

1

5ECTION III: INTRODUCTION

5UMMARY

This is onIv a sunnarv and does nol conlain aII lhe infornalion lhal vou shouId consider lefore
invesling in our Lquilv Shares. You shouId read lhe enlire Drafl Red Herring Irospeclus, incIuding lhe
infornalion conlained in lhe chapler lilIed ¨Risk Iaclors¨ and ¨IinanciaI Slalenenls¨ and reIaled noles
leginning on page nos. iii and 1O5 of lhis Drafl Red Herring Irospeclus lefore deciding lo invesl in our
Lquilv Shares.

5ummarv nf nur Industrv:
IndIan IT & BPO Industrv
Doneslic IT-ßIO revenues are expecled lo grov al aInosl 8.5 per cenl lo reach INR 1,O88 liIIion in
IY2O1O. Rise of Indian corporalions facing conpelilive narkel condilions lhrough an increasingIv
gIolaIised Indian narkel, increased spend lv lhe governnenl in severaI e-Covernance inilialives,
enhanced conneclivilv and increased IeveIs of IT spending are kev faclors, vhich nake lhe doneslic
narkel Iucralive lodav. CoupIed vilh lhe facl lhal conpanies are Iooking lo inprove conpeliliveness lv
adopling gIolaI lesl praclices, Ieverage cuslonised service offerings and nev deIiverv nodeIs such as
SaaS, vhich ensures grealer cosl savings. Doneslic IT services are expecled lo grov lv 12 per cenl in
IY2O1O. WhiIe hardvare spend is IargeIv expecled lo renain fIal in IY2O1O, an inninenl hardvare
refresh cvcIe viII posiliveIv inpacl revenues nexl vear. The doneslic ßIO segnenl has conlinued ils
slrong perfornances over lhe pasl fev vears, groving lv 22 per cenl over IY2OO9, lo reach INR 1O8
liIIion, driven lv Iarge deaIs in lhe leIecon and ßISI space.

Covernnenl IT spending conlinues lo rise across lhe vorId, focusing on infraslruclure, and securilv.
Olher areas of spending incIude ßIM, dala nanagenenl, on denand LRI, virluaIisalion, and efforls lo
increase and deIiver enlerprise nanaged services on II nelvorks.
(Scurcc. NASSCOM S|ra|cgic Rcticu. 2010)

McdIa & EntcrtaInmcnt Industrv
Our Conpanv calers lo lhe IiIns and Aninalion & VIX seclor of lhe M&L induslrv vilh lhe posl-
produclion vork. WhiIe lhe fiIned enlerlainnenl seclor had grovn lv over 15 percenl lelveen 2OO6 and
2OO8, vear 2OO9 vilnessed a significanl de-grovlh for lhe induslrv. In 2OO9 lhe induslrv is eslinaled lo
have decIined lv nearIv 14 percenl lo INR 89.3 liIIion fron INR 1O4.4 liIIion in 2OO8. This vas IargeIv on
accounl of Iover doneslic lhealricaI coIIeclions in 2OO9 conpared lo lhe previous vear. Though lhe
previous vear vilnessed a decIine for lhe fiIned enlerlainnenl induslrv, lhe lrend is IikeIv lo reverse in
2O1O lo grov al a CACR of 8.9 percenl lo reach INR 136.7 liIIion lv 2O14. In 2OO9, lhe Indian aninalion
induslrv conlinued lo reIv on oulsourced vork and co-produclion deaIs lhal Ied lo a grovlh rale of
approxinaleIv 9 percenl over 2OO8. The Aninalion and VIX induslrv has seen an overaII grovlh of 13.6
percenl over 2OO8 and is expecled lo grov al a CACR of 18.7 percenl in lhe coning vears lo reach INR
46.6 liIIion lv 2O14 driven lv increased consunplion of aninaled conlenl, crealion of gIolaI II fornals,
acceplance of 3D graphics and venluring inlo inlernalionaI narkels.
(Scurcc. ||CC|-KPMG |núian Mcúia c |n|cr|ainmcn| |núus|ru Rcpcr| - 2010)

Our Cnmµanv's OvcrvIcw
We are a lechnoIogv lased conpanv focussing on lhe seclors such as Infornalion TechnoIogv securilv
and conpIiance aulonalion soflvare soIulions and lechnoIogv reIaled lo nedia & enlerlainnenl
induslrv vilh focus on Research & DeveIopnenl.

2


Currenl lusiness operalions consisl of Infornalion TechnoIogv ßased SoIulions-RIID & Snarl Card and
DigilaI Iosl Iroduclion Sludio (DigilaI Iosl-Iroduclion Sludio al Andheri Wesl, Munlai naneIv ¨ßCIL
Sludio¨). We have in-house deveIoped soflvare LRI producl, cuslonized soflvare deveIopnenl,
lraining, consuIlancv, lrading, aninalion and RIID lased soIulion. We deveIop snaII aninaled capsuIes
for various projecls of lhe cIienls. We aIso design & deveIop WAI enalIed producls for cIienls and
nainIv focused on lhe luiIding RIID lechnoIogv.

Our strcngths:

I.T. DIvIsInn:
Product dete|oµment sertlces offerlng sertlces for a|| stages of the µroduct |lfe cµc|e
We provide range of soIulions lo our cusloners lhal suslain lhroughoul lhe fuII producl Iife-cvcIe. We
offer services designed lo address lhe cusloners´ specific needs as producls nove fron differenl slages
of nalurilv across earIv lo end-of-Iife. Our services range fron idenlifving, deveIoping, lesling,
consuIling services, supporl and nainlenance. We leIieve lhal our services focus on our aliIilv lo
nanage snaIIer producls, our aliIilv lo service cusloners and our deIiverv nodeI nakes our producl
offering conpelilive.

Cost-effectlte so|utlons
We leIieve lhal our soIulion eIininales nanuaI efforls and cosls lhal olhervise nav le required lo
lecone secure and conpIianl. We provide soIulions lhal idenlifies and heIps correcl securilv
vuIneraliIilies and non-conpIianl configuralions, speeds lhe invesligalion of securilv incidenls, and
reduces lhe cosls associaled vilh denonslraling conpIiance. We enalIe our cusloners lo use fever
soIulions and services lo achieve and nainlain conpIiance in a cosl-effeclive nanner.

Re|atlonshlµs ulth customers
We have reIalionships vilh cusloners luiIl on our successfuI execulion of prior engagenenls. We
leIieve lhe quaIilv of our producls and services is denonslraled lv lhe facl lhal cusloners have given us
repeal orders. Our lrack record of deIivering soIulions and our producl deveIopnenl experience has
heIped us in luiIding reIalionships vilh our cusloners.

Exµerlenced and qua|lfled µromoters and management team
Our Conpanv has execuled severaI conlracls during lhe Iasl 5 vears period and has deveIoped
experience in our Iine of operalions. Mr. Sanjeev Kunar MillaI, one of our Direclor, is having around 18
vears of experience in lhe fieId of conpuler hardvare and soflvare. Mr. Rakesh ßhhalia, our Chairnan
and Managing Direclor and one of our Ironolers, having nore lhan 2O vears of experience in corporale
Iav and finance. Mr. Arpan TaIvar, Chief Lxeculive Officer, a graduale in conpuler appIicalion and an
MßA fron Svnlosis, Iune, has aIso nine vears of experience.

Our stratcgIcs

Contlnue to exµand our µroduct and sertlces
Our producls are currenlIv cuslonized lo neel cIienl specific requirenenls. We viII conlinue lo invesl in
enhancing lhe funclionaIilv of our exisling range of producls and services. We inlend lo invesl in
lechnoIogv lhal viII aIIov lhe fealures of each producl offering lo le aggregaled, lhus decreasing lhe
IeveI of cuslonizalion needed lo neel a parlicuIar cIienl´s needs as fealures can le enalIed or disalIed as
required. We have aIreadv idenlified producls and services viz. MoliIe appIicalion, TokenIess Tvo

3

Iaclor Aulhenlicalion (TTIA), aulonalic nunler pIale recognilion svslen and lickel dispensing svslen
vhich viII le Iaunched lv us. We leIieve lhal lhis inveslnenl viII aIIov us lo enhance lhe conpelilive
posilioning of our producl offerings and expand lhe size of narkels lhal ve largel.

Creatlon of neu µroducts
We inlend lo conlinue invesling in our R&D capaliIilies, parlicuIarIv vilh a viev lo designing soflvare
engineering looIs lhal enhance our aliIilv lo execule Iarge, end-lo-end projecls and deveIop soflvare
soIulions lhal address cIienls in specific induslries. We leIieve lhal lhis inveslnenl in nev producl
deveIopnenl and in R&D lechnoIogv, faciIilales our grovlh lv expanding lhe size of lhe narkel space
lhal ve address, vhiIe niligaling lusiness risk lv reducing our dependence on lhe success of individuaI
producl Iines.

lncrease our customer base
We leIieve lhal increasing securilv lhreals and reguIalorv conpIiance requirenenls viII generale
denand for our soIulions fron nev cusloners. We pIan lo conlinue lo acquire nev cusloners lv
addressing lheir securilv and conpIiance needs vilh our exisling and nev soIulions. We pIan lo pursue
nev cusloners in induslrv verlicaIs vhere ve have recognilion, experlise and exisling cusloner lase, as
veII as in nev verlicaIs vhere groving reguIalorv requirenenls and securilv lhreals creale denand for
our soIulions. To largel nev cusloners vilh Iiniled IT resources and conpIiance experlise, ve aIso pIan
lo pronole our renole nanagenenl services and lo offer aIlernalive soIulion deIiverv nelhods.

Strengthenlng our brands
We inlend lo invesl in deveIoping and enhancing recognilion of our lrands, lhrough lrand luiIding
efforls, connunicalion and pronolionaI inilialives such as inleraclion vilh induslrv research
organizalions, parlicipalion in induslrv evenls, pulIic reIalions and inveslor reIalions efforls. We leIieve
lhal lhese inilialives, as veII as lhe Iisling of our Lquilv Shares, viII enhance lhe visiliIilv of our lrands
and slrenglhen our recognilion in lhe Indian IT soIulions induslrv.

|urther dete|oµlng our a||lances
We inlend lo grov and slrenglhen our lechnoIogv aIIiances vilh Ieading lechnoIogv conpanies, vhich
viII assisl us in saIes and deIiverv. These aIIiances lvpicaIIv invoIve svslens inlegralion, joinl producl
deveIopnenl and joinl "go lo narkel" slralegies. We aIso inlend lo deveIop olher aIIiances vilh IocaI
conpanies lhal have a slrong presence in energing narkels so as lo acquire lusiness deveIopnenl
capaliIilies and a credilIe IocaI presence in lhese narkels.

4


5UMMARY OF FINANCIAL DATA

5TATEMENT OF AUDITED PROFIT5 & LO55E5 A5 RE5TATED
(C in Iakhs)
Ycar/µcrInd cndcd
Junc 30,
2010
March 31,
2010
March 31,
2009
March 31,
2008
March 31,
2007
March 31,
2006
Operaling Incone
Incone fron IT Division 2,252.29 4,361.87 3,192.51 3,O75.16 2,593.96 1,9O8.17
Incone fron Media &
Lnlerlainnenl Division
49.57 272.23 167.21 344.33 359.23 125.O9
TolaI Revenue 2,3O1.86 4,634.1O 3,359.72 3,419.49 2,953.19 2,O33.26
Olher Incone - - O.1O O.O1 - O.28
Increase / (Decrease) in Slock (O.38) 2.62 O.85 (O.O9) (2.25) 2.51
TolaI Incone 2,3O1.48 4,636.72 3,36O.67 3,419.41 2,95O.94 2,O36.O5
Lxpendilure
Iurchases 1,935.27 3,612.56 2,6O8.25 2,641.55 2,141.86 1,695.35
LnpIovee Cosl 42.69 149.54 156.96 139.76 145.74 32.47
Adninislralion, SeIIing & Olher
Lxpenses
22.3O 1OO.68 111.31 154.3O 122.82 124.41
Cosl of fiIn produclion - - - - 154.81 -
Misc. expenses vrillen off - - - O.58 O.74 O.74
TolaI Lxpendilure 2,OOO.26 3,862.78 2,876.52 2,936.19 2,565.97 1,852.97
Irofil ßefore Iinance Cosl,
Taxalion & Deprecialion
3O1.22 773.94 484.15 483.22 384.97 183.O8
Deprecialion and anorlizalion 77.71 279.84 2O3.28 143.44 91.61 61.73
Irofil ßefore Iinance Cosl &
Taxalion
223.51 494.1O 28O.87 339.78 293.36 121.35
IinanciaI charges 29.76 91.41 83.6O 37.O8 3.64 5.53
Irofil ßefore Tax 193.75 4O2.69 197.27 3O2.7O 289.72 115.82
Irovision Ior Taxalion 33.2O 84.33 28.33 34.79 12.17 1O.1O
Iringe ßenefil Tax - - 1.4O 2.38 5.12 2.O4
Deferred Tax LialiIilv/(Assel) 41.65 46.16 16O.68 (58.3O) 22.13 68.O2
Irofil Afler Tax 118.9O 272.2O 6.86 323.83 25O.3O 35.66

5

Anncxurc -II

5TATEMENT OF AUDITED A55ET5 & LIABILITIE5 A5 RE5TATED
(C in Iakhs)
Ycar/µcrInd cndcd
Junc 30,
2010
March
31, 2010
March
31, 2009
March
31, 2008
March
31, 2007
March
31, 2006
Iixed Assels
Cross ßIock 2,1O4.28 2,O95.11 1,661.83 1,218.82 737.89 721.62
Less: Deprecialion &
Anorlizalion
73O.53 8O2.83 528.O1 324.73 181.29 89.68
Nel ßIock 1,373.75 1,292.28 1,133.82 894.O9 556.6O 631.94
CapilaI Work in Irogress 459.27 271.59 383.5O 133.21 144.94
TolaI Iixed Assels 1,833.O2 1,563.87 1,517.32 1,O27.3O 7O1.54 631.94
Inveslnenl 14.45 14.45 191.15 91.15 159.O8 299.68
Currenls Assels, Loans and
Advances

Invenlories 387.36 356.72 348.31 346.65 6O1.78 592.63
Cash and ßank ßaIance 14.79 11.97 8.77 37.73 4O.34 15.72
Loans and Advances 589.34 589.17 686.82 64O.38 129.92 111.59
Sundrv Dellors 2,415.5O 2,227.7O 1,O69.16 899.26 876.41 63O.4O
TolaI Currenls Assels, Loans
and Advances
3,4O6.99 3,185.56 2,113.O6 1,924.O2 1,648.45 1,35O.34
TolaI Assels 5,254.46 4,763.88 3,821.53 3,O42.47 2,5O9.O7 2,281.96
LialiIilies and Irovisions
Secured Ioans 465.78 468.15 476.59 227.4O 165.33 72.23
Unsecured Loans 178.O1 193.O6 151.66 135.92 - 3.97
Deferred Tax LialiIilies 299.77 258.12 211.96 51.28 1O9.58 87.45
Currenl LialiIilies &
Irovisions
1,434.89 1,O87.44 688.42 34O.O3 28O.53 244.72
TolaI LialiIilies and
Irovisions
2,378.45 2,OO6.77 1,528.63 754.63 555.44 4O8.37
Nel Worlh 2,876.O1 2,757.11 2,292.9O 2,287.84 1,953.63 1,873.59
Represenled lv:
Share CapilaI 684.23 684.23 664.23 664.23 664.23 664.23
Share AppIicalion Monev - - 8.OO 9.8O - 171.OO
Reserve and SurpIus 2,191.78 2,O72.88 1,62O.67 1,613.81 1,289.98 1,O39.68
Less: MisceIIaneous
Lxpendilure lo lhe exlend nol
vrillen off
- - - - (O.58) (1.32)
Nel Worlh 2,876.O1 2,757.11 2,292.9O 2,287.84 1,953.63 1,873.59

6



THE I55UE

EquItv 5harcs nffcrcd: 67,2O,OOO Lquilv Shares*
OIß Iorlion incIuding MuluaI
Iunds**
Nol nore lhan 33,6O,OOO Lquilv Shares consliluling 5O° of lhe
Issue lo lhe IulIic (aIIocalion on proporlionale lasis) oul of
vhich 5° i.e. 1,68,OOO Lquilv Shares viII le avaiIalIe for
aIIocalion lo MuluaI Iunds onIv and lhe renaining OIß porlion
viII le avaiIalIe for aIIocalion lo aII OIßs, incIuding MuluaI
Iunds
Non InslilulionaI Iorlion**
Nol Iess lhan 1O,O8,OOO Lquilv Shares consliluling 15° of lhe
Issue lo lhe IulIic (AIIocalion on proporlionale lasis)
RelaiI Iorlion**
Nol Iess lhan 23,52,OOO Lquilv Shares consliluling 35° of lhe
Issue lo lhe IulIic (AIIocalion on proporlionale lasis)
Lquilv Shares oulslanding prior
lo lhe Issue
91,23,11O Lquilv Shares
Lquilv Shares oulslanding afler
lhe Issue
1,58,43,11O Lquilv Shares
Oljecls of lhe Issue
IIease see lhe seclion enlilIed ¨Oljecls of lhe Issue¨ leginning on
Iage no. 27 of lhis Drafl Red Herring Irospeclus.
¯Our Ccmpanu is ccnsiúcring Prc-|PO P|accmcn| cf up|c 5.00.000 |uui|u Snarcs anú/cr aggrcga|ing up C 450
|a|ns ui|n taricus intcs|crs (´Prc-|PO p|accmcn|). Tnc Prc-|PO P|accmcn| is a| |nc úiscrc|icn cf cur Ccmpanu.
Our Ccmpanu ui|| ccmp|c|c |nc issuancc anú a||c|mcn| cf |uui|u Snarcs pursuan| |c |nc Prc-|PO P|accmcn| pricr
|c |nc fi|ing |nc Rcú Hcrring Prcspcc|us ui|n |nc RcC. |f |nc Prc-|PO P|accmcn| is ccmp|c|cú. |nc |ssuc sizc cffcrcú
|c |nc pu||ic ucu|ú |c rcúuccú |c |nc cx|cn| cf sucn Prc-|PO P|accmcn|. su|jcc| |c a minimum |ssuc sizc cf 25° cf
|nc pcs| |ssuc paiú-up capi|a| |cing cffcrcú |c |nc pu||ic.

** Under sulscriplion, if anv, in anv of lhe calegories vouId le aIIoved lo le nel vilh spiII over fron
anv of lhe olher calegories, al lhe discrelion of our Conpanv in consuIlalion vilh lhe ßRLM.

7

GENERAL INFORMATION

BharatIva G!nba! InfnmcdIa LImItcd
Our Conpanv vas originaIIv incorporaled as ßharliva CIolaI IinanciaI & AIIied Services Liniled vide
Cerlificale of Incorporalion daled Novenler 24, 1994 issued lv lhe Regislrar of Conpanies, NCT of
DeIhi & Harvana under lhe provisions of lhe Conpanies Acl, 1956 and ollained Cerlificale for
Connencenenl of ßusiness on Ianuarv 18, 1995. The nane of our Conpanv vas changed lo ßharliva
CIolaI Soflvare Iinlec Liniled vide fresh incorporalion cerlificale daled Mav 3, 1999 issued lv lhe
Regislrar of Conpanies, NCT of DeIhi & Harvana. Our Conpanv furlher changed ils nane lo ßharliva
CIolaI Soflvare Liniled vide fresh incorporalion cerlificale daled Iune 27, 2OO1 issued lv lhe Regislrar
of Conpanies, NCT of DeIhi & Harvana and finaIIv changed ils nane lo ßharaliva CIolaI Infonedia
Liniled vide fresh cerlificale of incorporalion daled Novenler 13, 2OO3 issued lv lhe Regislrar of
Conpanies, NCT of DeIhi & Harvana.

RcgIstcrcd OffIcc nf nur Cnmµanv
623, 6
lh
IIoor, Devika Tover,
6, Nehru IIace, Nev DeIhi- 11O O19
TeI No: +91-11- 4O765562
Iax No: +91-11-41377519
Welsile: vvv.lgiIinfo.con

Cnrµnratc OffIcc
ß-6O, Seclor-57,
Noida-2O13O1 (U.I.)
TeI.: +91-12O-4227792
Iax: +91-12O-4227791
Welsile: vvv.lgiIinfo.con

Changcs In thc RcgIstcrcd OffIcc nf nur Cnmµanv
Datc nf
changc
PartIcu!ars
Rcasnn fnr
changc
Augusl 28,
1995
The regislered office of our Conpanv vas shifled fron ß-56,
IhandevaIan I.I. ConpIex, Rani Ihansi Road, Nev DeIhi-11OO55 lo D-51,
Vivek Vihar Ihase-I DeIhi- 11OO95.
OperalionaI
convenience
Mav 29,
1996
The regislered office of our Conpanv vas shifled fron D-51 Vivek Vihar
Ihase-I DeIhi-11OO95 lo ¨Regencv House¨, ßM - 12 (Wesl) ShaIinar
ßagh, DeIhi - 11OO56.
OperalionaI
convenience
Augusl 16,
1999
The regislered office of our Conpanv vas shifled fron ¨Regencv
House¨ ßM-12 (Wesl) ShaIinar ßagh, DeIhi-11OO56 lo 21, NalionaI Iark
ßasenenl(Calin No. 5), Lajpal Nagar-IV, Nev DeIhi-11OO24.
OperalionaI
convenience
Augusl 25,
1999
The regislered office of our Conpanv vas shifled fron 21, NalionaI
Iark, Lajpal Nagar-IV, Nev DeIhi lo IIol No. L-133. DiIshad Carden,
DeIhi-11OO95.
OperalionaI
convenience
ApriI 2O,
2OOO
The regislered office of our Conpanv vas shifled fron L -133, DiIshad
Carden, DeIhi-11O O92 lo 13O6 Henkunl House, Rajendra IIace, Nev
DeIhi 11O OO8.
OperalionaI
convenience
Seplenler The regislered office of our Conpanv vas shifled fron 13O6 Henkunl OperalionaI

8

1, 2OO3 House, Rajendra IIace, Nev DeIhi 11O OO8 lo A-6/8, Krishna Nagar
DeIhi.
convenience
ApriI 19,
2OO4
The regislered office of our Conpanv vas shifled fron A-6/8, Krishna
Nagar, DeIhi lo 21, NalionaI Iark, Lajpal Nagar IV, Nev DeIhi.
OperalionaI
convenience
Augusl 11,
2OO5
The regislered office of our Conpanv vas shifled fron fron 21, NalionaI
Iark, Lajpal Nagar, Nev DeIhi-11OO24 lo 6O1, Devika Tovers, 6
lh
IIoor,
Nehru IIace, Nev DeIhi-11OO19
OperalionaI
convenience
Augusl 12,
2O1O
The regislered office of our Conpanv vas shifled fron 6O1, Devika
Tover, 6
lh
IIoor, Nehru IIace, Nev DeIhi - 11OO19 lo 623, Devika Tover,
6
lh
IIoor, 6, Nehru IIace, Nev DeIhi - 11OO19
OperalionaI
convenience

RcgIstratInn Numbcr nf nur Cnmµanv
O62967

Cnmµanv IdcntIfIcatInn Numbcr (CIN):
U74999DL1994ILCO62967

Addrcss nf thc RcgIstrar nf CnmµanIcs
Regislrar of Conpanies
NalionaI CapilaI Terrilorv of DeIhi and Harvana
4
lh
IIoor, IICI Tover,
61, Nehru IIace
Nev DeIhi 11O O19, India
TeI: +91 11 262357O4
Iax: +91 11 2623 57O2

Bnard nf DIrcctnrs
Namc nf DIrcctnr DcsIgnatInn Naturc nf DIrcctnrshIµ
Mr. Rakesh ßhhalia Chairnan & Managing
Direclor
Lxeculive Direclor
Mr. Sanjeev Kunar MillaI Lxeculive Direclor -
TechnicaI
Lxeculive Direclor
Mrs. Arli ßhalia Direclor Non Lxeculive Non Independenl Direclor
Mr. Harjil Singh Anand Direclor Non Lxeculive Independenl Direclor
Mrs. Iava Misra Direclor Non Lxeculive Independenl Direclor
Mr. Sanjav Kapoor Direclor Non Lxeculive Independenl Direclor
Mr. AniI Kunar Kapoor Direclor Non Lxeculive Independenl Direclor
Ior furlher delaiIs of our Conpanv´s Direclors, pIease refer lo chapler lilIed 'Our Managenenl´ on page
81 of lhis Drafl Red Herring Irospeclus.

Cnmµ!Iancc OffIccr & Cnmµanv 5ccrctarv
Mr. Kunar Iushkar
ß-6O, Seclor-57,
Noida-2O13O1 (U.I.)
TeI.: +91-12O-4227792
Iax: +91-12O-4227791
L naiI: kunar.pushkar©lgiIinfo.con

9


Inveslors can conlacl lhe ConpIiance Officer in case of anv pre-Issue or posl-Issue reIaled prolIens such
as non-receipl of Iellers of aIIolnenl and credil of aIIolled shares in lhe respeclive leneficiarv accounl or
refund orders.

Bankcrs tn nur Cnmµanv
The RovaI ßank of ScolIand
ßradv House, 14, Veer Narinan Road, Horninan CircIe, Iorl,
Munlai - 4OO O23
TeI: +91-22-66585858 / 66585926
Iax: +91-22-22O42673
Welsile: vvv.rls.in
LnaiI: dhanesh.lachhaval©rls.con / nanish.lhalia©rls.con
Conlacl Ierson: Mr. Dhanesh ßachhaval / Mr. Manish ßhalia

Bnnk RunnIng Lcad Managcr
A!mnndz G!nba! 5ccurItIcs LImItcd
3 Scindia House, Ianpalh, Nev DeIhi - 11OOO1
TeI: +91-11-41514666-69
Iax: +91-11-41514665
Welsile: vvv.aInondzgIolaI.con
Inveslor Crievance: conpIainl©aInondz.con
LnaiI: lgiI.ipo©aInondz.con
Conlacl Ierson: Ms. Shivani KohIi / Ms. AnjaIi Rajpul

5vndIcatc Mcmbcr
|ŏ!

RcgIstrar tn thc Issuc
Karvv Cnmµutcrsharc PrIvatc LImItcd
IIol No. 17-24, VilhaIrao Nagar Madhapur, Hvderalad - 5OO O86, Andhra Iradesh
TeI: +91 4O 2342O815-82O Iax: +91 4O 2342O814
LnaiI: lgiI.ipo©karvv.con
Welsile: vvv.karvv.con
Conlacl Ierson: Mr. MuraIi Krishna
SLßI Regislralion Nunler: INR OOOOOO221

Lcga! AdvIsnrs tn thc Issuc
VaIsh AssncIatcs Advncatcs
IIal # 5-7, 1O HaiIev Road,
Nev DeIhi 11OOO1 (India)
TeI: +91 11 42492713
Iax: +91 11 2332O484
LnaiI: deIhi©vaishIav.con
Conlacl Ierson: Mr. Salvinder Singh / Mr. Mohil Chaurasia / Ms. Divva Sunan

Bankcrs tn thc Issuc and Escrnw Cn!!cctInn Banks
|ŏ!

10



5c!f CcrtIfIcd 5vndIcatc Banks
The Iisl of lanks vho have leen nolified lv SLßI lo acl as SCSßs for ASßA process are provided al
hllp://vvv.seli.gov.in/pnd/scsl.pdf.

5tatutnrv AudItnrs
M/s SNMC & Co.,
Charlered Accounlanls
L-35, Lover Cround IIoor, Lajpal Nagar - II,
Nev DeIhi - 11O O24
TeI: +91-11-41O22495
Iax: +91-11-41O22495
Conlacl Ierson: Mr. Neeraj Cupla
LnaiI: ngconsuIlanls©gnaiI.con

Pccr RcvIcw AudItnr (vho has conducled reaudil as per ReguIalion IX of Iarl A of ScheduIe VIII of
SLßI (ICDR) ReguIalions, 2OO9)
M/s K. Irasad & Co.
C-31, Soulh Lxlension Iarl - I,
Nev DeIhi - 11O O49
TeI: +91-11-246216O7
Iax: +91-11-24632364
Conlacl Ierson: Mr. K.M. AgarvaI
LnaiI: agarvaIkn©rediffnaiI.con

5tatcmcnt nf Intcr-sc a!!ncatInn nf rcsµnnsIbI!ItIcs
Since AInondz CIolaI Securilies Liniled is lhe soIe ßRLM lo lhis issue, slalenenl of inler-se aIIocalion
of responsiliIilies anong ßook Running Lead Manager´s is nol appIicalIe.

IPO GradIng
The Issue has leen graded lv CARL, a SLßI regislered credil raling agencv, as |ŏ! indicaling |ŏ!
fundanenlaIs.

CrcdIt RatIng
This leing an Issue of Lquilv Shares, Credil raling is nol required.

Trustcc
This leing an Issue of Lquilv Shares, lhe appoinlnenl of lruslees is nol required.

MnnItnrIng Agcncv
The size of lhe issue is leing Iess lhan five hundred crore rupees: lhere is no requirenenl of noniloring
agencv in lerns of ReguIalion 16 of SLßI (ICDR) ReguIalions, 2OO9.

AµµraIsIng EntItv
The oljecls of lhis issue have nol leen appraised lv anv agencv. The oljecls of lhis issue and neans of
finance lhereof are lased on inlernaI eslinales of our Conpanv.

11

Bnnk BuI!dIng Prnccss
ßook ßuiIding refers lo lhe process of coIIeclion of ßids fron inveslors, on lhe lasis of lhe Drafl Red
Herring Irospeclus vilhin lhe Irice ßand. The Issue Irice is fixed afler lhe ßid / Issue CIosing Dale.
The principaI parlies invoIved in lhe ßook ßuiIding Irocess are:
• Our Conpanv:
• ßook Running Lead Manager:
• Svndicale Menlers vho are inlernediaries regislered vilh SLßI or regislered as lrokers vilh
ßSL/NSL and are eIigilIe lo acl as Undervrilers. Svndicale Menlers are appoinled lv lhe
ßRLM:
• Lscrov CoIIeclion ßank(s):
• SeIf Cerlified Svndicale ßanks: and
• Regislrar lo lhe Issue

This Issue is leing nade lhrough a 1OO° ßook ßuiIding Irocess vherein nol nore lhan 5O° of lhe Issue
lo IulIic shaII le avaiIalIe for aIIocalion on a proporlionale lasis lo OuaIified InslilulionaI ßuvers
(¨OIßs¨). 5° of lhe OIß Iorlion shaII le avaiIalIe for aIIocalion on a proporlionale lasis lo MuluaI
Iunds onIv and lhe renainder shaII le avaiIalIe for aIIolnenl on a proporlionale lasis lo OIßs and
MuluaI Iunds, suljecl lo vaIid lids leing received fron lhen al or alove lhe Issue Irice. Iurlher, nol
Iess lhan 15° of lhe Issue lo IulIic shaII le avaiIalIe for aIIocalion on a proporlionale lasis lo Non
InslilulionaI ßidders and nol Iess lhan 35° of lhe Issue lo IulIic shaII le avaiIalIe for aIIocalion on a
proporlionale lasis lo RelaiI IndividuaI ßidders, suljecl lo vaIid lids leing received al or alove lhe Issue
Irice.

Thnugh thc µrnccss nf Bnnk BuI!dIng undcr thc 5EBI Rcgu!atInns Is nnt ncw, Invcstnrs arc advIscd tn
makc thcIr nwn judgmcnt abnut Invcstmcnt thrnugh thIs µrnccss µrInr tn makIng a BId nr
Aµµ!IcatInn In thc Issuc.

Our Conpanv shaII conpIv vilh reguIalions issued lv SLßI for lhis Issue. In lhis regard, our Conpanv
has appoinled ßook Running Lead Manager lo nanage lhe Issue and lo procure sulscriplion lo lhe
Issue.

5tcµs tn bc takcn bv thc BIddcr fnr bIddIng:
• Check eIigiliIilv for naking a lid, see lhe seclion lilIed ¨Issue Irocedure-Who Can
ßid`¨leginning on page no. 156 of lhis Drafl Red Herring Irospeclus:
• Lnsure lhal vou have a denal accounl and lhe denal accounl delaiIs are correclIv nenlioned in
lhe ßid cun AppIicalion Iorn
• Lnsure lhal lhe ßid cun AppIicalion Iorn / ASßA Iorn is duIv conpIeled as per inslruclions
given in lhis Drafl Red Herring Irospeclus and in lhe ßid cun AppIicalion Iorn and
• Lnsure lhal lhe ßid - Cun - AppIicalion Iorn / ASßA Iorn is acconpanied lv lhe Iernanenl
Accounl Nunler. Ior delaiIs pIease refer lo lhe seclion lilIed ¨Issue Irocedure¨ leginning on
page no 155 of lhis Drafl Red Herring Irospeclus. ßidders are specificaIIv requesled nol lo
sulnil lheir CeneraI Index Regisler nunler inslead of Iernanenl Accounl Nunler as lhe ßid is
IialIe lo le rejecled on lhose grounds.

I!!ustratInn nf Bnnk BuI!dIng and PrIcc DIscnvcrv Prnccss
(Invcstnrs shnu!d nntc that thIs cxamµ!c Is sn!c!v fnr I!!ustratIvc µurµnscs and Is nnt sµccIfIc tn thIs
Issuc)

12

ßidders can lid al anv price vilhin lhe price land. Ior inslance, assune a price land of C 3O lo C 34 per
share, issue size of 3,OOO equilv shares and receipl of five lids fron ßidders, delaiIs of vhich are shovn
in lhe lalIe leIov. A graphicaI represenlalion of lhe consoIidaled denand and price vouId le nade
avaiIalIe al lhe lidding cenlres during lhe lidding period. The iIIuslralive look as shovn leIov shovs
lhe denand for lhe shares of lhe conpanv al various prices and is coIIaled fron lids fron various
inveslors.
BId QuantItv BId PrIcc (C) Cumu!atIvc QuantItv 5ubscrIµtInn
5OO 34 5OO 16.67°
1OOO 33 15OO 5O.OO°
15OO 32 3OOO 1OO.OO°
2OOO 31 5OOO 166.67°
25OO 3O 75OO 25O.OO°

The price discoverv is a funclion of denand al various prices. The highesl price al vhich lhe issuer is
alIe lo issue lhe desired nunler of shares is lhe price al vhich lhe look culs off, i.e., C 32 in lhe alove
exanpIe. The issuer, in consuIlalion vilh lhe ßook Running Lead Manager, viII finaIize lhe issue price al
or leIov such cul off price, i.e., al or leIov C 32. AII lids al or alove lhis issue price and cul-off lids are
vaIid lids and are considered for aIIocalion in lhe respeclive calegories.

BId/Issuc Prngrammc

BIddIng PcrInd/Issuc PcrInd
BID / I55UE OPEN5 ON |ŏ!
BID / I55UE CLO5E5 ON |ŏ]

ßids and anv revision in ßids viII le accepled nn!v bctwccn 10 a.m. and 5 µ.m. (Indian Slandard Tine)
during lhe ßid/Issue Ieriod as nenlioned alove al lhe lidding cenlers nenlioned in lhe ßid cun
AppIicalion Iorn or in case of ßids sulnilled lhrough ASßA, lhe Designaled ßranches of lhe SCSßs
excepl lhal on lhe ßid/Issue CIosing Dale, ßids shaII le accepled onIv lelveen 1O a.n. and 3 p.n.
(Indian Slandard Tine) and upIoaded unliI (i) 4.OO p.n. in case of ßids lv OIß ßidders and Non-
InslilulionaI ßidders vhere lhe ßid Anounl is in excess of C1,OO,OOO and (ii) A slandard cul-off line of
5.OO p.n. for upIoading of ßids received fron RelaiI IndividuaI ßidders vhere lhe ßid Anounl is up lo C
1OO,OOO vhich nav le exlended up lo such line as deened fil lv lhe ßSL and lhe NSL afler laking inlo
accounl lhe lolaI nunler of appIicalions received uplo lhe cIosure of linings and reporled lv ßRLM lo
lhe Slock Lxchanges vilhin haIf an hour of such cIosure. ßids viII le accepled onIv on Working Davs i.e.
Mondav lo Iridav (excIuding pulIic hoIidavs). Due lo Iinilalion of line avaiIalIe for upIoading lhe ßids
on lhe ßid/Issue CIosing Dale, lhe ßidders are advised lo sulnil lheir ßids one dav prior lo lhe
ßid/Issue CIosing Dale and, in anv case, no Ialer lhan 1.OO p. n.(Indian Slandard Tine) on lhe ßid/Issue
CIosing Dale. ßidders are caulioned lhal in lhe evenl a Iarge nunler of ßids are received on lhe
ßid/Issue CIosing Dale, as is lvpicaIIv experienced in pulIic offerings, vhich nav Iead lo sone ßids nol
leing upIoaded due lo Iack of sufficienl line lo upIoad, such ßids lhal cannol le upIoaded viII nol le
considered for aIIocalion under lhe Issue and lhe Issuer/ ßRLM and lhe Svndicale Menler viII nol le
responsilIe for such ßids nol leing upIoaded.

In case of discrepancv in lhe dala enlered in lhe eIeclronic look vis-a-vis lhe dala conlained in lhe
phvsicaI ßid forn, for a parlicuIar ßidder, lhe delaiIs as per phvsicaI appIicalion forn of lhal ßidder nav
le laken as lhe finaI dala for lhe purpose of aIIolnenl. In case of discrepancv in lhe dala enlered in lhe

13

eIeclronic look vis-a-vis lhe dala conlained in lhe phvsicaI or eIeclronic ßid-cun-ASßA Iorn, for a
parlicuIar ASßA ßidder, lhe Regislrar lo lhe Issue shaII ask lhe reIevanl SCSß for reclified dala.

On lhe ßid / Issue CIosing Dale, exlension of line viII le granled lv lhe Slock Lxchanges onIv for
upIoading lhe ßids received lv RelaiI IndividuaI ßidders afler laking inlo accounl lhe lolaI nunler of
ßids received up lo lhe cIosure of lhe lining for acceplance of ßid cun AppIicalion Iron and ASßA
Iorn as slaled herein and reporled lv lhe ßRLM lo lhe Slock Lxchanges vilhin haIf an hour of such
cIosure.

Our Conpanv reserves lhe righl lo revise lhe Irice ßand during lhe ßid/Issue Ieriod in accordance vilh
lhe SLßI (ICDR) ReguIalions provided lhal lhe Cap Irice is Iess lhan or equaI lo 12O° of lhe IIoor Irice.
The IIoor Irice can le revised up or dovn lo lhe exlenl of 2O° of lhe IIoor Irice adverlised al Ieasl one
dav lefore lhe ßid/Issue opening dale.

In casc nf rcvIsInn nf thc PrIcc Band, thc BId/Issuc PcrInd wI!! bc cxtcndcd fnr thrcc addItInna!
wnrkIng davs aftcr rcvIsInn nf thc PrIcc Band subjcct tn thc tnta! BId/Issuc PcrInd nnt cxcccdIng 10
wnrkIng davs. Anv rcvIsInn In thc PrIcc Band and thc rcvIscd BId/Issuc µcrInd, If aµµ!Icab!c, wI!! bc
wIdc!v dIsscmInatcd bv nntIfIcatInn tn thc B5E and thc N5E, bv IssuIng a µrcss rc!casc and a!sn bv
IndIcatIng thc changcs nn thc wcbsItcs nf thc BRLM and at thc tcrmIna!s nf thc 5vndIcatc Mcmbcr.

UndcrwrItIng Agrccmcnt
Afler lhe delerninalion of lhe Issue Irice and aIIocalion of our Lquilv Shares lul prior lo fiIing of lhe
Irospeclus vilh lhe RoC, our Conpanv viII enler inlo an Undervriling Agreenenl vilh lhe
Undervrilers for lhe Lquilv Shares proposed lo le issued lhrough lhis Issue. Il is proposed lhal
pursuanl lo lhe lerns of lhe Undervriling Agreenenl, lhe ßRLM shaII le responsilIe for lringing in lhe
anounl devoIved in lhe evenl lhal lheir respeclive Svndicale Menlers do nol fuIfiI lheir undervriling
olIigalions.

Thc UndcrwrItcrs havc IndIcatcd thcIr IntcntInn tn undcrwrItc thc fn!!nwIng numbcr nf EquItv
5harcs:
(This porlion has leen inlenlionaIIv Iefl lIank and viII le fiIIed in lefore fiIing of lhe Irospeclus vilh lhe
Regislrar of Conpanies):
Namc and Addrcss nf thc UndcrwrItcrs
IndIcatIvc Numbcr nf EquItv
5harcs tn bc UndcrwrIttcn
Amnunt UndcrwrIttcn
(C Lakhs)
|ŏ! |ŏ! |ŏ!
TOTAL |ŏ] |ŏ]

The alove-nenlioned anounl is indicalive undervriling and lhis vouId le finaIized afler pricing and
acluaI aIIocalion. The alove Undervriling Agreenenl is daled |ŏ!.

In lhe opinion of lhe ßoard of Direclors & lhe ßRLM (lased on cerlificales given lo lhen lv lhe
Undervrilers), lhe resources of aII lhe alove nenlioned Undervrilers are sufficienl lo enalIe lhen lo
discharge lheir respeclive undervriling olIigalions in fuII. The alove-nenlioned Undervrilers are
regislered vilh SLßI under Seclion 12(1) of lhe Securilies and Lxchange ßoard of India Acl, 1992 or
regislered as lrokers vilh lhe Slock Lxchange(s). The alove Undervriling Agreenenl has leen accepled
lv lhe ßoard of Direclors al lhe neeling heId on |ŏ! and lhe Conpanv has issued Iellers of acceplance lo
lhe Undervriler.

14

Nolvilhslanding lhe alove lalIe, lhe Undervrilers shaII le responsilIe for ensuring pavnenl vilh
respecl lo Lquilv Shares aIIocaled lo inveslors procured lv lhen. In lhe evenl of anv defauIl, lhe
respeclive Undervriler in addilion lo olher olIigalions lo le defined in lhe Undervriling Agreenenl
viII aIso le required lo procure / sulscrile lo lhe exlenl of lhe defauIled anounl.

15


CAPITAL 5TRUCTURE

The share capilaI of our Conpanv, lefore lhe Issue and afler giving effecl lo lhe Issue, as on lhe dale of
lhis Drafl Red Herring Irospeclus is sel forlh leIov:
(C in Iakhs)
5.
Nn.
PartIcu!ars
Aggrcgatc
va!uc at
nnmIna! va!uc
Aggrcgatc
va!uc at Issuc
µrIcc
A AuthnrIzcd CaµIta!
1,65,OO,OOO Lquilv Shares of C 1O/- each 1,65O.OO
B Issucd, 5ubscrIbcd and PaId-uµ CaµIta!
91,23,11O Lquilv Shares of C 1O/- each 912.31
C
Prcscnt Issuc tn thc Pub!Ic In tcrms nf thIs Draft Rcd
HcrrIng Prnsµcctus

67,2O,OOO* Lquilv Shares of C 1O/- each fuIIv paid up 672.OO |ŏ!
D PaId uµ CaµIta! aftcr thc Issuc
1,58,43,11O Lquilv Shares of C 1O/- each 1,584.31
E 5harc PrcmIum Accnunt
ßefore lhe Issue 911.86
Afler lhe Issue |ŏ!
¯Our Ccmpanu is ccnsiúcring Prc-|PO P|accmcn| cf up|c 5.00.000 |uui|u Snarcs anú/cr aggrcga|ing up C 450
|a|ns ui|n taricus intcs|crs (´Prc-|PO p|accmcn|). Tnc Prc-|PO P|accmcn| is a| |nc úiscrc|icn cf cur Ccmpanu.
Our Ccmpanu ui|| ccmp|c|c |nc issuancc anú a||c|mcn| cf |uui|u Snarcs pursuan| |c |nc Prc-|PO P|accmcn| pricr
|c |nc fi|ing |nc Rcú Hcrring Prcspcc|us ui|n |nc RcC. |f |nc Prc-|PO P|accmcn| is ccmp|c|cú. |nc |ssuc sizc cffcrcú
|c |nc pu||ic ucu|ú |c rcúuccú |c |nc cx|cn| cf sucn Prc-|PO P|accmcn|. su|jcc| |c a minimum |ssuc sizc cf 25° cf
|nc pcs| |ssuc paiú-up capi|a| |cing cffcrcú |c |nc pu||ic.

DctaI!s nf changcs In authnrIzcd sharc caµIta! nf nur Cnmµanv:
5.
Nn.
Datc
Incrcascd
frnm (C In
!akhs)
Incrcascd
tn (C In
!akhs)
Rcmarks

1.
Novenler
24, 1994
- 1OO.OO
On Incorporalion 1O,OO,OOO Lquilv Shares of C 1O/-
each.
2.
March 15,
2OO1
1OO.OO 14O.OO
Increased fron C 1OO.OO Iakhs divided inlo 1O,OO,OOO
equilv shares of C 1O/- each lo C 14O.OO Iakhs divided
inlo 14,OO,OOO equilv shares of C 1O/- each.
3
Seplenler
25, 2OO1
14O.OO 46O.OO
Increased fron C 14O.OO Iakhs divided inlo 14,OO,OOO
equilv shares of C 1O/- each lo C 46O.OO Iakhs divided
inlo 46,OO,OOO equilv shares of C 1O/- each.
4.
March 28,
2OO5
46O.OO 618.OO
Increased fron C 46O.OO Iakhs divided inlo 46,OO,OOO
equilv shares of C 1O/- each lo C 618.OO Iakhs divided
inlo 61,8O,OOO equilv shares of C 1O/- each.
5.
Iune 28,
2OO5
618.OO 7OO.OO
Increased fron C 618.OO Iakhs divided inlo 61,8O,OOO
equilv shares of C 1O/- each lo C 7OO.OO Iakhs divided
inlo 7O,OO,OOO equilv shares of C 1O/- each.

16

6
Augusl 27,
2O1O
7OO.OO 1,65O.OO
Increased fron C 7OO.OO Iakhs divided inlo 7O,OO,OOO
equilv shares of C 1O/- each lo C 1,65O.OO Iakhs
divided inlo 1,65,OO,OOO equilv shares of C 1O/- each.

Nntcs tn CaµIta! 5tructurc:
1. CaµIta! BuI!d uµ (EquItv 5harc CaµIta! hIstnrv nf nur Cnmµanv):
Datc nf
A!!ntmcnt /
Fu!!v PaId-

Nn. nf
EquItv
5harcs
a!!nttcd
Facc
Va!uc
(C)
Issuc
PrIcc
(C)
Cumu!atIvc
5ccurItIcs
PrcmIum
Accnunt
(C In
!akhs)
Cumu!atI
vc Nn. nf
EquItv
5harcs
Cumu!atIvc
PaId-uµ
EquItv
CaµIta!
(C In !akhs)
CnnsIdcr
-atInn
Naturc nf A!!ntmcnt
Novenler
24, 1994
7O 1O 1O - 7O O.O1 Cash
Sulscriplion lo
Menorandun of
Associalion
March 13,
1995
65,OOO 1O 1O - 65,O7O 6.51 Cash
IreferenliaI aIIolnenl lo
erslvhiIe Ironolers &
olhers
March 31,
2OOO
5,OO,OOO 1O 2O 5O.OO 5,65,O7O 56.51 Cash
IreferenliaI aIIolnenl lo
Ironolers & Olhers
March 3O,
2OO1
9,OOO 1O 5O 53.6O 5,74,O7O 57.41 Cash
IreferenliaI aIIolnenl lo
SRC Infolech Lld.
March 31,
2OO1
812,43O 1O 2O 134.84 13,86,5OO 138.65 Cash
IreferenliaI aIIolnenl lo
Three-D
Connunicalions Lld.,
VTV Nelvork Lld.,
Midas Nelcon Lld.,
ßhalia Inveslnenls &
Iinance (I) Lld.
Seplenler
29, 2OO1
9,24,333 1O - 42.41 23,1O,833 231.O8 ßonus
ßonus Issue in lhe ralio
of 2:3
Seplenler
29, 2OO1
22,5O,OOO 1O 1O 42.41 45,6O,833 456.O8
Olher
lhan cash
IreferenliaI aIIolnenl
under svap
arrangenenl vilh Visesh
Infosvslens Liniled in
lhe ralio of 3:1
March 31,
2OO5
13,4O,OOO 1O 45 511.41 59,OO,833 59O.O8
Olher
lhan
Cash
IreferenliaI aIIolnenl lo
VTV Nelvork Liniled
Mav 3O,
2OO5
2,O1,5OO 1O 45 581.93 61,O2,333 61O.23 Cash
IreferenliaI aIIolnenl lo
VTV Nelvork Liniled
Iune 3O,
2OO5
5,4O,OOO 1O 8O 959.93 66,42,333 664.23
Olher
lhan cash
IreferenliaI aIIolnenl
under svap
arrangenenl vilh Three-
D Connunicalions
Liniled in lhe ralio of
1:2
Seplenler
1, 2OO9
2,OO,OOO 1O 1OO 1,139.93 68,42,333 684.23
Olher
lhan cash
IreferenliaI aIIolnenl lo
Mrs. Richa MillaI

17

Augusl 27,
2O1O
22,8O,777 1O - 911.86 91,23,11O 912.31 ßonus ßonus Issue in lhe ralio
1:3
The aIIolnenl of Lquilv shares of our Conpanv is in conpIiance vilh lhe provisions of seclion 67 (3) of
lhe Conpanies Acl 1956.

2. DelaiIs of lhe issue of Lquilv Shares in lhe Iasl one vear al a price Iover lhan lhe issue price are as
under:
Datc nf
A!!ntmcnt
Numbcr
nf EquItv
5harcs
Issuc PrIcc
µcr sharc
(C)
Namc nf a!!nttccs Prnmntcr & Prnmntcr
Grnuµ/Nnn Prnmntcr
Rcasnn
fnr Issuc
Augusl 27,
2O1O
22,8O,777 - Mr. Rakesh ßhhalia SharehoIders as on
Augusl 27, 2O1O
ßonus
Issue in
lhe ralio
of 1:3
Mrs. Arli ßhalia
Rakesh ßhhalia (HUI)
Mr. Sanjav Kapoor
Mrs. Richa MillaI
Mrs. Sanloshi Devi
Mr. I.K. ßhalia
Mr. ß.K. ßhalia
Mrs. ßharli Singh
Mrs. Tanuja Singh
Mrs. Shalnan Kapoor
Mr. Rajeev Kunar AgarvaI
Mr. Caurav ßhalia
Mr. Sanjeev Kunar MillaI
Mr. Arpan TaIvar
Mr. KripaI Singh
Mrs. Sneh Lala
Mr. AluI Tonar
Mrs. Alha Singh
Mr. Kunar Iushkar
Iupiler Infraenergv Liniled
Nunler one Iinsec Irivale
Liniled
CrindIav Iinnan Irivale
Liniled
ßhhalia Inveslnenl &
Iinance Irivale Liniled
Nunler one Iinvesl Irivale
Liniled
ßCIL IiIns & TechnoIogies
Liniled
M I Connodilies Irivale
Liniled
Mr. Iivush AgarvaI

3. The Iisl of SharehoIders of our Conpanv leIonging lo lhe calegorv ¨Ironoler and Ironoler
Croup¨ as on lhe dale of lhis Drafl Red Herring Irospeclus is delaiIed in lhe lalIe given leIov:

18

5.
Nn.
Catcgnrv
Tnta! 5harcs hc!d
5harcs µ!cdgcd nr nthcrwIsc
cncumbcrcd
Numbcr
As a % nf
tnta! µrc-
Issuc µaId
uµ cquItv
caµIta!
Numbcr
As a % nf
tnta!
5harcs
hc!d bv
thc
Prnmntcr/
Prnmntcr
grnuµ
As a %
nf tnta!
µrc-Issuc
µaId uµ
cquItv
caµIta!
(A) Prnmntcrs
1. Mr. Rakesh ßhhalia 2,817,276 3O.88 - - -
2. Mrs. Arli ßhalia 1,924,544 21.1O - - -
Tnta! (A) 4,741,820 51.98 - - -
(B) Prnmntcr Grnuµ
1. Nunler One Iinvesl Irivale Liniled* 6,86,OOO 7.52 5,OO,OOO 6.18 5.48
2. Rakesh ßhhalia (HUI) 54O,OOO 5.92 - - -
3. ßCIL IiIns & TechnoIogies Liniled 5,14,295 5.64 - - -
4. CrindIav Iinnan Irivale Liniled 5,OO,O67 5.48 - - -
5. Nunler One Iinsec Irivale Liniled** 4,99,554 5.48 1,OO,OOO 1.24 1.1O
6.
ßhhalia Inveslnenl & Iinance Irivale
Liniled
4,92,223 5.4O
- - -
7. Mr. Caurav ßhalia 36,OOO O.39 - - -
8. Mrs. Sanloshi Devi 33,333 O.37 - - -
9. Mr. I.K. ßhalia 24,333 O.27 - - -
1O. Mr. ß.K. ßhalia 13,333 O.15 - - -
11. Mr. KripaI Singh 4,OOO O.O4 - - -
12. Ms. Alha Singh 2,OOO O.O2 - - -
13. Mrs. Sneh Lala 1,OOO O.O1 - - -
14. Mr. AluI Singh 1,OOO O.O1 - - -
Tnta! (B) 33,47,138 36.69 6,00,000 7.42 6.58
Tnta! (A + B) 80,88,958 88.66% 6,00,000 7.42% 6.58%
*Nunler One Iinvesl Irivale Liniled has pIedged 5,OO,OOO equilv shares on Ocloler 1, 2O1O heId lv
lhen as under:
5r.Nn. Namc nf µ!cdgc Numbcr nf sharcs
µ!cdgcd
Lnan amnunt
(C In !akhs)
1. SunIighl IinanciaI Advisorv (I) Liniled 2,OO,OOO 6O.OO
2. Tora Markeling (I) Liniled 2,OO,OOO 6O.OO
3. KanIesh ßeheli 1,OO,OOO 3O.OO
TOTAL 5,00,000 150.00
**Nunler One Iinsec Irivale Liniled has pIedged 1,OO,OOO equilv shares on Novenler 2, 2O1O lo Mrs.
Renu Iain for Ioan anounl of C 3O Iakhs.

The alove shares are kepl as coIIaleraI securilv againsl advance for a period of six nonlhs and rale of
inleresl viII le decided fron line lo line lelveen lhe parlies. In lhe evenl of defauIl of pavnenl of

19

dell, lhe pIedge shaII have fuII righls lo forecIose on lhe pIedged shares and exercise ils righls as a
secured parlv pursuanl lo Iav requirenenls.

4. DctaI!s nf µrnmntcrs' cnntrIbutInn and !nck In
(a) BuI!d uµ nf Prnmntcrs

Namc
Datc nf
A!!ntmcnt /
Transfcr /
AcquIsItInn
Datc whcn
madc fu!!v
µaId-uµ
Naturc nf a!!ntmcnt /
CnnsIdcratInn (cash /
bnnus / kInd, ctc)
Nn. nf
EquItv
5harcs
Facc
Va!uc
(C)
Issuc /
AcquIsIt
Inn µrIcc
%agc
nf µnst-
Issucd
sharc
caµIta!
%agc
nf µrc-
Issuc
sharc
caµIta!
Lnck-
In
µcrInd
(vcars)
Mr.
Rakcsh
BhhatIa
Sep 3O, 2OO3 Sep 3O, 2OO3
Transfer in cash fron
VTV Nelvork Liniled
1,5O,OOO 1O 3.5O
1 vear*
Sep 3O, 2OO4 Sep 3O, 2OO4
Transfer in cash lo
Karlik Share Traders
Irivale Liniled
(1,OO,217) 1O (6.25)
Sep 3O, 2OO4 Sep 3O, 2OO4
Transfer in cash fron
Visesh Infolecnics
Liniled
1,77,667 1O 2.25
3 vears
Sep 3O, 2OO5 Sep 3O, 2OO5
Transfer in cash fron
VTV Nelvork Liniled
6,OO,OOO 1O 3.53
3 vears
Sep 3O, 2OO5 Sep 3O, 2OO5
Transfer in cash fron
Three-D
Connunicalions
Liniled
1,O1,524 1O 9.55
1 vear
Sep 3O, 2OO5 Sep 3O, 2OO5
Transfer in cash fron
Karlik Share Traders
Irivale Liniled
5,OO,OOO 1O 6.25
3 vears
Sep 3O, 2OO5 Sep 3O, 2OO5
Transfer in cash fron
Shulh Iinsec Irivale
Liniled
3,22,333 1O 6.95
3 vears
Sep 29, 2OO7 Sep 29, 2OO7
Transfer in cash fron
VTV Nelvork Liniled
3,OO,OOO 1O 5.32 3 vears
1,5OO 1O 5.32 1 vear
Sep 29, 2OO8 Sep 29, 2OO8
Transfer in cash fron
IeevaI IinanciaI
Services Irivale
Liniled
5O,15O 1O 2.OO
1 vear
Sep 3O, 2OO9 Sep 3O, 2OO9
Transfer in cash fron
Mr. IK ßhalia
1O,OOO 1O 1.OO
1 vear
Aug 27,
2O1O
Aug 27, 2O1O
ßonus Issue in lhe ralio
of 1:3
7,O4,319 1O -
1 vear
Tnta! (A) 28,17,276 17.78% 30.88%
Mrs. ArtI
BhatIa
Sep 3O, 2OO3 Sep 3O, 2OO3
Transfer in cash fron
VTV Nelvork Liniled
1,4O,OOO 1O 3.57
1 vear*
Sep 3O, 2OO4 Sep 3O, 2OO4
Transfer in cash lo
Karlik Share Traders
Irivale Liniled
(734) 1O (6.81)
-
Sep 3O, 2OO5 Sep 3O, 2OO5
Transfer in cash fron
Ms. Monica Iain
39,75O 1O 3.52
3 vears
Sep 3O, 2OO5 Sep 3O, 2OO5
Transfer in cash fron
Three-D
Connunicalions
1,69,676 1O 3.O8
3 vears

20

Liniled
Sep 3O, 2OO5 Sep 3O, 2OO5
Transfer in cash fron
Midas Nelcon Liniled
8,58,383 1O 7.22
3 vears
Sep 29, 2OO7 Sep 29, 2OO7
Transfer in cash fron
VTV Nelvork Liniled
2,OO,OOO 1O 6.7O
3 vears
Sep 3O, 2OO9 Sep 3O, 2OO9
Transfer in cash fron
Ms. Tanuja Singh
8,333 1O 1.OO
3 vears
Sep 3O, 2OO9 Sep 3O, 2OO9
Transfer in cash fron
Ms. ßharali Singh
2O,OOO 1O 6.OO
3 vears
Sep 3O, 2OO9 Sep 3O, 2OO9
Transfer in cash fron
Mr. AluI Singh
1,858 1O 1O.OO 3 vears
4,142 1O 1O.OO 1 vear
Sep 3O, 2OO9 Sep 3O, 2OO9
Transfer in cash fron
Ms. Alha Singh
2,OOO 1O 16.OO
3 vears
Aug 27,
2O1O
Aug 27, 2O1O
ßonus Issue in lhe ralio
of 1:3
4,81,136 1O -
1 vear
Tnta! (B) 19,24,544 12.15% 21.10%
Tnta! (A + B) 47,41,820
29.93% 51.98%
* lhe laIance shares Iefl afler lransfer are Iocked in for a period of one vear.

(b) Lnck-In nf MInImum Prnmntcrs' CnntrIbutInn
Iursuanl lo lhe SLßI (ICDR) ReguIalions, an aggregale of 2O.2O° of lhe posl-Issue equilv share capilaI i.e.
32,OO,OOO Lquilv Shares of our Conpanv heId lv lhe Ironolers shaII le Iocked in for a period of lhree (3)
vears fron lhe dale of aIIolnenl. The delaiIs of lhe sane are as foIIovs:
Namc nf Prnmntcr Nn. nf sharcs !nckcd-In
Facc Va!uc
(C)
% nf Prc-Issuc
µaId uµ caµIta!
% nf Pnst-Issuc
µaId uµ caµIta!
Mr. Rakesh ßhhalia 19,OO,OOO 1O 2O.83° 11.99°
Mrs. Arli ßhalia 13,OO,OOO 1O 14.25° 8.21°
Tnta! 32,00,000 35.08% 20.20%

i. The Lquilv Shares lo le Iocked-in for a period of lhree vears have leen conpuled as 2O.2O° of Lquilv
Share CapilaI afler lhe Issue. Il is confirned lhal lhe Lquilv Shares offered lv lhe Ironolers for lhree
vears Iock-in are nol pIedged lo anv credilor. Iurlher aII lhe Lquilv Shares, vhich are leing Iocked in
for 3 vears, are nol ineIigilIe for conpulalion of nininun pronolers´ conlrilulion and Iock-in as per
ReguIalion 33(1) of SLßI (ICDR) ReguIalions.

ii. The Ironolers have vide lheir Ieller daled Novenler 3, 2O1O given lheir consenl for Iock-in of shares
as slaled alove. The Iock-in shaII slarl fron lhe dale of aIIolnenl in lhe pulIic issue and lhe Iasl dale
of lhe Iock-in shaII le reckoned as lhree vears fron lhe dale of aIIolnenl in lhe issue.

iii. In addilion lo alove pronolers´ conlrilulion vhich is Iocked in for a period of lhree vears, lhe enlire
renaining pre-issue equilv capilaI of our Conpanv i.e. 59,23,11O equilv shares viII le Iocked in for a
period of one vear fron lhe dale of aIIolnenl of equilv shares in lhis Issue consliluling 37.39° of lhe
posl issue equilv share capilaI of our Conpanv.

iv. In lerns of ReguIalion 39 of SLßI (ICDR) ReguIalions, Iocked-in Lquilv Shares heId lv lhe Ironolers
can le pIedged vilh lanks or financiaI inslilulions as coIIaleraI securilv for Ioans granled lv such
lanks or financiaI inslilulions, suljecl lo lhe condilion lhal (i) if lhe equilv shares are Iocked-in in
lerns of cIause (a) of ReguIalion 36, lhe Ioan has leen granled lv such lank or inslilulion for lhe
purpose of financing one or nore of lhe oljecls of lhe issue and pIedge of equilv shares is one of lhe

21

lerns of sanclion of Ioan: and (ii) if lhe equilv shares are Iocked-in in lerns of cIause (l) of ReguIalion
36 and lhe pIedge of equilv shares is one of lhe lerns of sanclion of lhe Ioan.

v. In lerns of ReguIalion 4O of SLßI (ICDR) ReguIalions, 2OO9, Lquilv Shares heId lv lhe Ironoler nav
le lransferred lo and anongsl lhe Ironolers / Ironoler group or lo a nev pronoler or persons in
conlroI of lhe Conpanv suljecl lo conlinualion of lhe Iock-in in lhe hands of lhe lransferees for lhe
renaining period and conpIiance vilh SLßI (SulslanliaI Acquisilion of Shares and Takeover
ReguIalions), 1997 as appIicalIe. Iurlher, in lerns of ReguIalion 4O of SLßI (Issue of CapilaI and
DiscIosure Requirenenls) ReguIalions, 2OO9 and in conpIiance vilh SLßI (SulslanliaI Acquisilion of
Shares and Takeover) ReguIalions, 1997, Iocked in Lquilv Shares heId lv persons olher lhan lhe
Ironolers nav le lransferred lo anv olher person hoIding shares vhich are Iocked-in as per
ReguIalion 37 of SLßI (Issue of CapilaI and DiscIosure Requirenenls) ReguIalions, 2OO9, suljecl lo
conlinualion of lhe Iock-in in lhe hands of lhe lransferees for lhe renaining period and such
lransferee shaII nol le eIigilIe lo lransfer lhen liII lhe Iock-in period slipuIaled under lhe ReguIalions
has expired.

Iurlher, in lhe preceding lhree vears, shares considered for nininun pronoler´s conlrilulion have nol
leen acquired for consideralion olher lhan cash and revaIualion of assels or resuIling fron lonus
issue oul of revaIualion reserves or reserves crealed vilhoul accruaI of cash resources or againsl
shares vhich are olhervise ineIigilIe for nininun pronoler´s conlrilulion. AIso, nininun
pronoler´s conlrilulion does nol incIude anv shares acquired during Iasl one vear al a price Iover
lhan lhe Issue price.

5. There is no ¨luvlack¨ or ¨slandlv¨ arrangenenl for purchase of Lquilv Shares lv our Conpanv, ils
Direclors, ils Ironolers, or lhe ßRLM for lhe Lquilv Shares offered lhrough lhis Drafl Red Herring
Irospeclus.

6. Lxcepl as slaled leIov our Conpanv has nol issued anv equilv shares for consideralion olher lhan
cash.
Datc nf
A!!ntmcnt
Rcasnns fnr thc Issuc Namc nf a!!nttccs
Numbcr nf
cquItv
sharcs
Issuc
PrIcc
BcncfIts accrucd
tn nur cnmµanv
Seplenler
29, 2OO1
ßonus Issue
SharehoIders of our
Conpanv as on
Seplenler 29, 2OO1 in
lhe ralio of 2:3
9,24,333 -
Increase in
capilaI lase of
our Conpanv
Seplenler
29, 2OO1
Under svap
arrangenenl vilh Visesh
Infosvslens Liniled in
lhe ralio of 3:1
Visesh Infosvslens
Liniled
22,5O,OOO 1O
Inveslnenl in
Visesh
Infosvslens
Liniled
March 31,
2OO5
IreferenliaI aIIolnenl lo
VTV Nelvork Lld.
VTV Nelvork Lld. 13,4O,OOO 45
ßusiness
lakeover of VTV
Nelvork Lld.
Iune 3O,
2OO5
Under svap
arrangenenl vilh Three-
D Connunicalions
Liniled in lhe ralio of
Three-D
Connunicalions
Liniled
5,4O,OOO 8O
Inveslnenl in
Three-D
Connunicalions
Liniled

22

1:2
Seplenler 1,
2OO9
IreferenliaI aIIolnenl
for enlering inlo MOU
for lakeover of M/s
Cadeo LIeclronics
Mrs. Richa MillaI 2,OO,OOO 1OO
Takeover of
properlv lv
laking over M/s
Cadeo LIeclronics
Augusl 27,
2O1O
ßonus Issue
SharehoIders of our
Conpanv as on
Augusl 27, 2O1O in
lhe ralio of 1:3
22,8O,777 -
Increase in
capilaI lase of
our Conpanv

7. An over-sulscriplion lo lhe exlenl of 1O° of Issue lo lhe IulIic can le relained for lhe purpose of
rounding off lo lhe nearer nuIlipIe of 1, vhiIe finaIizing lhe ßasis of AIIolnenl.

8. As on dale of fiIing of lhis Drafl Red Herring Irospeclus vilh SLßI, lhe enlire issued share capilaI
of our Conpanv is fuIIv paid-up.

9. The Lquilv Shares offered lhrough lhis Issue shaII le nade fuIIv paid up.

1O. Under sulscriplion, if anv, in anv calegorv vouId le nel vilh spiII over fron olher calegories al
lhe soIe discrelion of our Conpanv, in consuIlalion vilh lhe ßRLM.

11. (a) DctaI!s nf tnµ tcn sharchn!dcrs nf nur Cnmµanv as nn thc datc nf fI!Ing nf thIs Draft Rcd
HcrrIng Prnsµcctus wIth 5EBI arc as fn!!nws: -

5r. Nn. Namc Nn. nf 5harcs % nf sharchn!dIng
1. Mr. Rakesh ßhhalia 28,17,276 3O.88°
2. Mrs. Arli ßhalia 19,24,544 21.1O°
3. Nunler One Iinvesl Irivale Liniled 686,OOO 7.52°
4. Rakesh ßhhalia (HUI) 5,4O,OOO 5.92°
5. ßCIL IiIns & TechnoIogies Liniled 5,14,295 5.64°
6. CrindIav Iinnan Irivale Liniled 5,OO,O67 5.48°
7. Nunler One Iinsec Irivale Liniled 4,99,554 5.48°
8. ßhhalia Inveslnenl & Iinance Irivale Liniled 4,92,223 5.4O°
9. Mrs. Richa MillaI 2,66,667 2.92°
1O. M I Connodilies (I) Liniled 2,66,667 2.92°
Tnta! 85,07,293 93.25%

(b) DctaI!s nf tnµ tcn sharchn!dcrs nf nur Cnmµanv as nn tcn davs µrInr tn fI!Ing nf thIs Draft Rcd
HcrrIng Prnsµcctus wIth 5EBI arc as fn!!nws:
5r. Nn. Namc Nn. nf 5harcs % nf sharchn!dIng
1. Mr. Rakesh ßhhalia 28,17,276 3O.88°
2. Mrs. Arli ßhalia 19,24,544 21.1O°
3. Nunler One Iinvesl Irivale Liniled 686,OOO 7.52°
4. Rakesh ßhhalia (HUI) 5,4O,OOO 5.92°
5. ßCIL IiIns & TechnoIogies Liniled 5,14,295 5.64°
6. CrindIav Iinnan Irivale Liniled 5,OO,O67 5.48°

23

7. Nunler One Iinsec Irivale Liniled 4,99,554 5.48°
8. ßhalia Inveslnenl & Iinance Irivale Liniled 4,92,223 5.4O°
9. Mrs. Richa MillaI 2,66,667 2.92°
1O. M I Connodilies (I) Liniled 2,66,667 2.92°
Tnta! 85,07,293 93.25%

(c) DelaiIs of lop len sharehoIders of our Conpanv as on lvo vears prior lo fiIing of lhis Drafl Red
Herring Irospeclus vilh SLßI are as foIIovs:
5r. Nn. Namc Nn. nf 5harcs % nf sharchn!dIng
1. Mr. Rakesh ßhhalia 21,O2,957 31.66°
2. Mrs. Arli ßhalia 14,O7,O75 21.18°
3. Nunler One Iinvesl Irivale Liniled 8,5O,OOO 12.8O°
4. ßCIL IiIns & TechnoIogies Liniled 4,89,434 7.37°
5. Rakesh ßhhalia(HUI) 4,O5,OOO 6.1O°
6. CrindIav Iinnan Irivale Liniled 3,75,O5O 5.65°
7. ßhhalia Inveslnenl & Iinance Irivale Liniled 3,69,167 5.56°
8. Nunler One Iinsec Irivale Liniled 3,74,665 5.64°
9. Mr. Sanjav Kapoor 45,652 O.69°
1O. Snl. Sanloshi Devi 25,OOO O.38°
Tnta! 64,44,000 97.01%
The alove sharehoIders do nol hoId anv shares, vhich lhev vouId le enlilIed lo upon exercise of
varranl, oplion, righls lo converl a delenlure, Ioan or olher inslrunenl.

12. Prc-Issuc & Pnst-Issuc sharchn!dIng µattcrn nf nur Cnmµanv:

Catcgnrv nf sharchn!dcr
Nn. nf
sharchn!
dcrs
Tnta! nn.
nf sharcs
Tnta! sharchn!dIng
as a µcrccntagc nf
tnta! numbcr nf
sharcs
Tnta! µnst-Issuc
sharchn!dIngª
5harcs µ!cdgcd fnr
nthcrwIsc
cncumbcrcd
As a
%agc nf
(A+B)
As a
%agc nf
(A+B+C)
Tnta!
numbcr
nf sharcs
As a
%agc nf
(A+B+C
)
Tnta!
numbcr
As a
µcrccnta
gc nf
µnst-
Issucd
(A+B+C)
(A) Prnmntcrs' hn!dIng
(1) IndIan Prnmntcrs
IndividuaIs / HUIs 2 47,41,82O 51.98 51.98 47,41,820 29.93 - -
Trusls - - - - - - - -
ßodies Corporale - - - - - - - -
Prnmntcr Grnuµ




IndividuaIs/HUIs/Trusls
9 6,54,999
7.18 7.18
6,54,999 4.13
- -
ßodies Corporale
5 26,92,139
29.51 29.51
26,92,139 16.99
6,OO,OOO 3.79
5ub-tnta! (A) (1)
16
80,88,958 88.66 88.66 80,88,958
51.06
6,00,000 3.79
(2) FnrcIgn




IndividuaIs/HUIs
- -
- - -
-
- -

24

ßodies Corproale
- -
- - -
-
- -
Inslilulions
- -
- - -
-
- -
Anv olher (pIease specifv)
- -
- - -
-
- -
5ub-Tnta! (A)(2)
- -
- - -
-
- -
Tnta! sharchn!dIng nf
Prnmntcr & Prnmntcr
Grnuµ (A) = (A)(1) + (A)(2)
16 80,88,958 88.66 88.66 80,88,958 51.06 6,00,000 3.79
(B) Pub!Ic sharchn!dIng
(Nnn-Prnmntcrs')



IndividuaIs 63 3,53,857 3.88 3.88 |ŏ! |ŏ! NA NA
ßodies Corporale 3 6,8O,295 7.46 7.46 |ŏ! |ŏ! NA NA
Inslilulions (IIs, ßanks,
MIs, elc.)
- - - - |ŏ! |ŏ! NA NA
5ub-tnta! (B) (Nnn-
Prnmntcrs' hn!dIng)
66 1O,34,152 11.34 11.34 |ŏ! |ŏ! NA NA
(C) 5harcs hc!d bv
CustndIans and agaInst
whIch DcµnsItnrv
RcccIµts havc bccn
Issucd
- - - - |ŏ! |ŏ! NA NA
Grand Tnta! (A + B + C) 82 91,23,110 100.00% 100.00% |ŏ! |ŏ! 6,00,000 3.79

13. In conpIiance vilh ReguIalion 26(5) of lhe SLßI (ICDR) ReguIalions, 2OO9 our Conpanv has no
oulslanding converlilIe securilies and has nol provided anv righl vhich vouId enlilIe anv person
anv oplion lo receive Lquilv Shares afler lhe iniliaI pulIic offer, vhich nav reslricl il fron issuing
securilies.

14. Our Ironolers/ Ironoler Croup/Direclors and lheir innediale reIalives have nol purchased /
soId / financed / acquired anv equilv shares of our Conpanv during lhe pasl 6 nonlhs,
innedialeIv preceding lhe dale of lhis Drafl Red Herring Irospeclus, excepl for lhe foIIoving:


Namc nf Prnmntcr Grnuµ /
Transfcrnr
Namc/Catcgnrv nf Transfcrcc Numbcr nf
sharcs
Datc nf Transfcr
ßCIL IiIns & TechnoIogies Lld. LnpIovees 57,5OO Seplenler 25,
2O1O
ßCIL IiIns & TechnoIogies Lld. IulIic (Olher lhan Ironoler &
Ironoler Croup)
47,451 Seplenler 25,
2O1O
Nunler One Iinvesl Irivale
Liniled
Direclors (Mr. Harjil Singh Anand &
Ms. Iava Misra)
2,OOO Seplenler 25,
2O1O
Mr. KripaI Singh LnpIovees 8,783 Seplenler 25,
2O1O IulIic (Olher lhan Ironoler &
Ironoler Croup)
55O
Ms. Sneh Lala IulIic (Olher lhan Ironoler &
Ironoler Croup)
666 Seplenler 25,
2O1O
Ironoler Croup - Mr. I.K. ßhalia 11,OOO
Ironoler Croup - Ms. Alha Singh 667
Mr. AluI Singh IulIic (Olher lhan Ironoler & 333 Seplenler 25,

25

Ironoler Croup) 2O1O
DIrcctnr and thcIr rc!atIvcs
Mr. Sanjav Kapoor Direclor - Mr. Sanjeev Kunar MillaI 1O,OOO Seplenler 25,
2O1O LnpIovee - Mr. Rajeev Kunar AgarvaI 5,217
Ms. Shalhnan Kapoor LnpIovees 2O,OOO Seplenler 25,
2O1O
TOTAL 1,64,167

15. Our Conpanv has nol raised anv lridge Ioan againsl lhe proceeds of lhe presenl issue.

16. We presenlIv do nol inlend or propose anv furlher issue of Lquilv Shares (excepl Ire-IIO
IIacenenl), vhelher lv vav of issue of lonus shares, preferenliaI aIIolnenl, righls issue, pulIic
issue or in anv nanner during lhe period connencing fron sulnission of lhis Drafl Red Herring
Irospeclus vilh SLßI liII lhe Lquilv Shares offered lhrough lhis Drafl Red Herring Irospeclus/Red
Herring Irospeclus/Irospeclus have leen Iisled on lhe Slock Lxchanges.

17. Al presenl, our Conpanv does nol have anv inlenlion or proposaI lo aIler ils capilaI slruclure for a
period of six nonlhs fron lhe dale of opening of lhe Issue, lv vav of spIil/consoIidalion of lhe
denoninalion of Lquilv Shares or issue of specified securilies on a preferenliaI lasis or issue of
lonus or righls or furlher pulIic issue of specified securilies or quaIified inslilulionaI pIacenenl.

18. Our Conpanv does nol have anv LnpIovee Slock Oplion Schene (LSOS) / LnpIovee Slock
Iurchase Schene (LSIS) for our enpIovees and ve do nol inlend lo aIIol anv shares lo our
enpIovees under LSOS/LSIS schene fron lhe proposed issue. As and vhen, oplions are granled lo
our enpIovees under lhe LSOS schene, our Conpanv shaII conpIv vilh lhe SLßI (LnpIovee Slock
Oplion Schene and LnpIovees Slock Iurchase IIan) CuideIines 1999.

19. Our Conpanv has nol issued anv shares oul of revaIualion reserves.

2O. We shaII ensure lhal lransaclion in lhe Lquilv Shares lv lhe Ironolers and Ironoler Croup
lelveen lhe dale of regislering lhe Red Herring Irospeclus vilh lhe Regislrar of Conpanies and lhe
ßid CIosing Dale shaII le reporled lo lhe Slock Lxchanges vilhin 24 hours of such lransaclion.

21. Al anv given poinl of line, lhere shaII le onIv one denoninalion for lhe Lquilv Shares of our
Conpanv, unIess olhervise pernilled lv Iav. We shaII conpIv vilh such discIosure and
accounling norns specified lv SLßI fron line lo line.

22. Our Conpanv has 82 sharehoIders as on lhe dale of fiIing of lhis Drafl Red Herring Irospeclus vilh
SLßI.

23. Our Conpanv has nol revaIued ils assels since ils incorporalion.

24. Neilher lhe ßRLM nor lheir associales hoId anv Lquilv Shares in lhe Conpanv.

25. This Issue is leing nade lhrough a 1OO° ßook ßuiIding Irocess vherein nol nore lhan 5O° of lhe
Issue lo IulIic shaII le avaiIalIe for aIIocalion on a proporlionale lasis lo OuaIified InslilulionaI
ßuvers (¨OIßs¨). 5° of lhe OIß Iorlion shaII le avaiIalIe for aIIocalion on a proporlionale lasis lo

26

MuluaI Iunds onIv and lhe renainder shaII le avaiIalIe for aIIolnenl on a proporlionale lasis lo
OIßs and MuluaI Iunds, suljecl lo vaIid lids leing received fron lhen al or alove lhe Issue Irice.
Iurlher, nol Iess lhan 15° of lhe Issue lo IulIic shaII le avaiIalIe for aIIocalion on a proporlionale
lasis lo Non InslilulionaI ßidders and nol Iess lhan 35° of lhe Issue lo IulIic shaII le avaiIalIe for
aIIocalion on a proporlionale lasis lo RelaiI IndividuaI ßidders, suljecl lo vaIid lids leing received
al or alove lhe Issue Irice. Under sulscriplion, if anv, in anv calegorv vouId le nel vilh spiII over
fron olher calegories al our soIe discrelion, in consuIlalion vilh lhe ßRLM.

26. An appIicanl in pulIic calegorv cannol nake an appIicalion for lhe nunler of Lquilv Shares
exceeding lhe nunler of Lquilv Shares offered lo lhe pulIic.

27. Inveslors nav nole lhal in case of over-sulscriplion, aIIolnenl viII le on proporlionale lasis as
delaiIed in Iara on ¨ßasis of AIIocalion¨ appearing on page no. 184 of lhis Drafl Red Herring
Irospeclus.


27

OBJECT5 OF THE I55UE

Thc µrncccds frnm thc µrnµnscd Issuc nf sharcs arc Intcndcd tn bc dcµ!nvcd fnr:

1. Selling up of our Corporale office al Noida & ßranch Office al Munlai:
a. Iurchase of ovned Corporale office al Noida & reIocalion of ßranch Office al Munlai
l. Upgradalion of DigilaI Iosl Iroduclion Sludio and Inveslnenl in IT division
2. Lxpansion of R&D lechnoIogv cenlre:
3. Repavnenl of lank lorrovings:
4. Meeling Iong lern vorking capilaI requirenenls:
5. Meeling generaI corporale purposes: and
6. Meeling Issue Lxpenses

The nain oljecls and lhe oljecls incidenlaI or anciIIarv lo lhe nain oljecls of lhe Menorandun of
Associalion of our Conpanv enalIe us lo underlake lhe exisling aclivilies and lhe aclivilies for vhich lhe
funds are leing raised lhrough lhis Issue.

Fund rcquIrcmcnts
The delaiIs of fund requirenenl for oljecls nenlioned alove are given in lhe foIIoving lalIe:
(C in Iakhs)
5. Nn. PartIcu!ars Amnunt
1.
Selling up of our Corporale Office al Noida & ßranch Office al Munlai -
(a) Iurchase of ovned Corporale Office & reIocalion of ßranch Office
(l) Upgradalion of DigilaI Iosl Iroduclion Sludio and Inveslnenl in IT
division

989.6O

2193.86
2. Lxpansion of R&D lechnoIogv cenlre 651.O4
3.
Repavnenl of lank lorrovings
24O.76
4.
Meeling Iong lern vorking capilaI requirenenls
5O5.OO
5.
CeneraI Corporale Iurpose*
|ŏ!
6.
Issue Lxpenses*
|ŏ!
Tnta! |ŏ]
¯ ui|| |c inccrpcra|cú af|cr fina|iza|icn cf |ssuc Pricc

Mcans nf FInanccª
(C In Iakhs)
5. Nn. PartIcu!ars Amnunt
1. Iroceeds of lhe Issue |ŏ!
2. InlernaI AccruaIs |ŏ!
Tnta! |ŏ!
¯ ui|| |c inccrpcra|cú af|cr fina|iza|icn cf |ssuc Pricc
As on Iune 3O, 2O1O our Conpanv has cash & lank laIance of C 14.79 Iakhs and lolaI reserves and
surpIus of C2191.78 Iakhs vhich viII forn parl of inlernaI accruaIs.

28

The aforesaid requirenenl of funds is proposed lo le financed lv lhe Issue proceeds and inlernaI
accruaIs as nenlioned in lhe alove lalIe. Thus provisions of ReguIalions (VII)(C)(1) of ScheduIe VIII of
Securilies and Lxchange ßoard of India (Issue of CapilaI and DiscIosure Requirenenls) ReguIalions, 2OO9
in conneclion vilh firn arrangenenls of finance lhrough verifialIe neans lovards 75° of lhe slaled
neans of finance, excIuding lhe anounl lo le raised lhrough proposed pulIic issue and inlernaI accruaIs
does nol appIv lo our Conpanv as ve do nol propose lo avaiI anv lorroved funds for parl financing lhe
Oljecls of lhe Issue.

The fund requirenenls and lhe inlended use of lhe issue proceeds as descriled herein are lased on
nanagenenl eslinales and various quolalions received lv us fron differenl suppIiers. Our projecl has
nol leen appraised lv anv lank or financiaI inslilulion or anv independenl organisalion. We nav have
lo revise our expendilure and fund requirenenls as a resuIl of varialions in lhe cosl slruclure, changes in
eslinales and exlernaI faclors, vhich nav nol le vilhin lhe conlroI of our nanagenenl. This nav enlaiI
rescheduIing or revising lhe pIanned expendilure and increasing or decreasing lhe expendilure for a
parlicuIar purpose fron ils pIanned expendilure al lhe discrelion of our nanagenenl. In addilion, lhe
eslinaled dales of conpIelion of lhe expansion projecl as descriled herein are lased on nanagenenl´s
currenl expeclalions and are suljecl lo change due lo various faclors, sone of vhich nav nol le in our
conlroI.

The fund requirenenl is proposed lo le nel lhrough inlernaI accruaIs and lhe Issue proceeds. Anv
shorlfaII in neeling lhe oljecls of lhe issues vouId le nel fron inlernaI accruaIs. Iurlher, lhe anounl
lhal is in excess of lhe funds required for lhe oljecls proposed and Issue expenses viII le uliIized for
generaI corporale purposes, vhich vouId le in accordance vilh lhe poIicies of our ßoard nade fron
line lo line.

AµµraIsa!
The fund requirenenls and lhe funding pIans are as per our nanagenenl´s eslinales, and have nol leen
appraised lv anv lank / financiaI inslilulion.

DctaI!s nf utI!IsatInn nf Issuc µrncccds

• 5cttIng uµ nf nur Cnrµnratc OffIcc at NnIda & Rc!ncatInn nf Branch OffIcc at MumbaI

(a) Purchasc nf Cnrµnratc OffIcc & Rc!ncatInn nf Branch OffIcc at MumbaI:
In order lo caler lo lhe increase in enpIovee´s slrenglh and lo save on increasing renlaIs, our
Conpanv propose lo sel up ils ovned Corporale office al Noida (Ullar Iradesh) and ßranch
Office al Munlai (Maharashlra). We have enlered inlo a Menorandun of Underslanding on
Seplenler 1, 2OO9 and SuppIenenlarv MoU daled Iune 3, 2O1O vilh M/s Cadeo LIeclronics for
laking over lhe said firn having innovealIe properlv al ß-6O Seclor-57 Noida for lhe lolaI
consideralion of C 596.OO Iakhs for purchase of Office. We have aIreadv issued 1,OO,OOO equilv
shares of C 1O each al a preniun of C 9O per equilv share of our Conpanv as parl-consideralion
oul of lolaI consideralion of C 596 Iakhs. The laIance consideralion of C 396 Iakhs vouId le paid
oul of IIO proceeds. The delaiIs of MoU/SuppIenenlarv MoU are discIosed in lhe seclion lilIed
¨Hislorv and cerlain corporale nallers¨ appearing on page no. 8O of lhe Drafl Red Herring
Irospeclus. In respecl of our ovned lranch office al Munlai for reIocaling ourseIves, ve have
nol vel idenlified anv Iocalion, hovever, ve propose lo purchase 4,OOO lo 5,OOO sq.fl. area near
ViIe IarIe (Wesl) lo Iogeshvari (Wesl) al an eslinaled cosl of C 593.6O Iakhs, incIuding cosl of
slanp dulv and lrokerage. Our eslinale is lased on an eslinale received fron Hone Linkers,

29

Iroperlv ConsuIlanl & DeveIopers vide lheir quolalion daled Augusl 3O, 2O1O. We propose lo
aIIocale haIf of lhe area for Media & Lnlerlainnenl division and haIf for lhe purpose of IT
division. The lolaI cosl of purchase of lhe said offices vorks oul lo C 989.6O Iakhs.

(b) UµgradatInn nf DIgIta! Pnst PrnductInn 5tudIn and Invcstmcnt In IT dIvIsInn

We propose lo invesl a lolaI of C 2193.86 Iakhs as under:
(C In Iakhs)
5. Nn. PartIcu!ars Amnunt
1. Upgradalion of DigilaI Iosl Iroduclion Sludio 136O.48
2. Inveslnenl in IT Division 833.38
Tnta! 2193.86

(a) MachIncrIcs fnr DIgIta! Pnst PrnductInn 5tudIn

We propose lo upgrade DigilaI Iosl Iroduclion Sludio in Munlai al an eslinaled cosl of C 136O.48
Iakhs, delaiIs of vhich are as under:

5.Nn. EquIµmcnt
EstImatcd
Cnst
(C In !akhs)
Namc nf thc
suµµ!Icr
Datc nf
quntatInn
1.
Irojecl vork for pIanning, vorkfIov,
Designing, Lquipnenl suppIv, inslaIIalion,
connissioning and lechnicaI lraining. The
faciIilies incIude dala scanning vilh scanilv,
off Iine suile on snoke on Linux, Dala
conforn/DI grading, DigilaI fiIn recording
vilh ARRI recorder, Audio for Video,
DigilaI IiIn resloralion vilh revivaIs and
CenlraI SAN slorage vilh ßrighl SAN
1O75.OO* Cineon
ßroadcasl
India Irivale
Liniled
Augusl 3O,
2O1O
2.
Soflvares viz. Aulo Cad LT 2OO9, CoraI
Drarv 12, OracIe, Microsofl office
(IrofessionaI), Windovs, VisuaI Sludio
2OO5, Windovs 2OO3, Mava UnIiniled 2OO9
singIe user CD and 3D Sludio Max 2OO9 CD
152.14 Soflnarl
SoIulions
Augusl 3O,
2O1O
3.
Hardvare viz. Conpuler Laplops, Servers
and Desklops
41.O6 DeII India
Irivale Liniled
Seplenler 3,
2O1O
4.
Office equipnenls viz. Nelvorking
rouler/svilches, UIS, prinlers, & faxes
31.18 Conlec
Svslens
Seplenler 1,
2O1O
5.
Office equipnenls viz. Securilv &
surveiIIance equipnenls, projeclors, air
condilioning and lack-up conlroI svslens
21.2O NirnaI
Lnlerprises
Seplenler 2,
2O1O &
Seplenler
2O, 2O1O
6.
Iurnilure & fixlures 4O.OO K.V. Arls Seplenler
27, 2O1O
Tnta! 1360.48

30

* ve have received quolalion fron Cineon ßroadcasl India Irivale Liniled, for an eslinaled vaIue of C
1545.OO Iakhs incIuding cosl lovards svslen desiging, inpIenenlalion, lraining and handover. The VAT
and olher charges vouId le exlra. We are aIreadv having an exisling faciIilv of posl-produclion sludio
al Munlai and expecl lhal ve vouId le in a posilion lo negoliale lhis cosl of C 1545.OO Iakhs al an
eslinaled lolaI cosl of C 1O75.OO Iakhs afler disposaI/exchange of exisling equipnenls.

(b) EquIµmcnts fnr IT dIvIsInn

We propose lo expand our exisling faciIilies al our Munlai and Noida offices, al an eslinaled cosl of C
833.38 Iakhs, delaiIs of vhich are as under:

5.Nn. EquIµmcnt
EstImatcd Cnst
(C In !akhs)
Namc nf thc
suµµ!Icr
Datc nf
quntatInn
Cnmµutcr Hardwarcs Noida Munlai
1.
Laplops, servers & desklops 165.OO 8O.5O DeII India
Irivale Liniled
Seplenler
3, 2O1O
2.
Soflvare: Aulo Cad LT 2OO9, CoraI
Drarv 12, OracIe, Microsofl office
(IrofessionaI), Windovs, VisuaI
Sludio 2OO5, Windovs 2OO3
78.48 54.16 Soflnarl
SoIulions
Augusl
3O, 2O1O
3.
Hardvare Lquipnenls: RIID
readers, Hand heId RIID readers
22.25 19.1O Orizin
TechnoIogies
Irivale Liniled
Seplenler
22, 2O1O
4.
Rouler CISCO and IirelaII CISCO 4.OO 8.OO Conlec Svslens Seplenler
1, 2O1O
5.
UVSS and AVCC 18.OO 4.5O AIS ScaIe
InlernalionaI
Augusl
26, 2O1O
6.
ßoon ßarriers, fIap larriers, lire
kiIIers and ßoIIards
15.9O 19.95 IAAC India
Irivale Liniled
Augusl
21, 2O1O
7.
Loop deleclors 1.OO 1.34 NirnaI
Lnlerprises
Seplenler
2, 2O1O
8.
Kiosk O.6O O.6O Irokrafl India Augusl
26, 2O1O
9.
Tickel dispenser and louch screens 3.1O 2.8O Adaplek
Aulonalion
TechnoIogv
Seplenler
21, 2O1O
1O.
ThernaI prinler 1.15 1.65 IaIas Soflvare
Irivale Liniled
Augusl
13, 2O1O
11. TooIs & fixlures* 2.OO 2.OO
OffIcc EquIµmcnts & MIscc!!ancnus hardwarcs
12.
Nelvorking Roulers & Rouler
svilches, UIS, Irinler & Iax
24.55 14.2O Conlec Svslens Seplenler
1, 2O1O
13.
Securilv & surveiIIance equipnenls,
projeclors, air condilioning and
lack-up conlroI svslens
127.41 41.1O NirnaI
Lnlerprises
Seplenler
2, 2O1O &
Seplenler
2O, 2O1O
14. Iurnilure & fixlures 8O.O3 4O.O1 V. Kunar & Co. Seplenler

31

2O, 2O1O
TOTAL 543.47 289.91
*nanagenenl eslinales

We confirn lhal none of lhe nachinerv or equipnenl lhal ve propose lo purchase oul of lhe IulIic Issue
proceeds are second hand in nalure.

• ExµansInn nf R&D tcchnn!ngv ccntrc

The nain oljeclive of lhe R&D lechnoIogv cenler viII le lo undersland energing lechnoIogies in various
donains, in vhich our Conpanv is operaling and lhe aclivilies lhal are proposed lo le carried oul. We
shaII le procuring differenl lechnoIogv producls and viII le luiIding appIicalions around lhen in RIID.
We aIso pIan lo venlure inlo noliIe appIicalion and Token-Iess Tvo Iaclor Aulhenlicalion (TTIA)
services. We leIieve lhal one of lhe inporlanl focus areas vouId le a conslanl deveIopnenl nodeI lo
reduce inpul cosls resuIling in reduced producl cosl vhich is crilicaI for ensuring lhe producl acquisilion
cosl lo consuners, a core area in lhe conpelilive narkel pIace.

The lolaI expendilure eslinaled for expansion of R&D lechnoIogv cenler is C 651.O4 Iakhs, delaiIs of
vhich are as under:

5.Nn. EquIµmcnt
EstImatcd
Cnst
(C In !akhs)
Namc nf thc
suµµ!Icr
Datc nf
quntatInn
1.
ßMS Conponenls and Iunp-sun
engineering (incIudes energv noniloring,
HVAC noniloring & conlroI, fire
proleclion svslen, DC noniloring, conlroI
& svnchronizalion, valer punp
noniloring & conlroI, Iighling conlroIs,
access conlroIs, AC lreakers & coupIe
noniloring, securilv & surveiIIance, DC
fueI nanagenenl & piIferage check, vehicIe
guidance and assel lracking.
53O.OO IrolocoI
Aulonalion
TechnoIogies
Irivale Liniled
Seplenler
27, 2O1O
2.
4 & 2 porl RIID reader 6.94 Weslcon India (I)
Lld.
Seplenler
27, 2O1O
3.
IropaIn Soflvare lased SSL-VIN, Arrav
Nelvorks hardvare SSL-VIN, SonicvaII
hardvare SSL-VIN
45.25 NelIal SoIulions
(India) Ivl. Lld.
Seplenler
27, 2O1O
4.
I5 firepass hardvare lased SSL-VIN,
Iuniper SSL-VIN hardvare & checkpoinl
connecclra hardvare lased SSL-VIN
68.85 Svncosis
TechnoIogicaI
Services (I) Lld.
Seplenler
27, 2O1O
TOTAL 651.04

We confirn lhal none of lhe alove vendors / suppIiers is reIaled lo us in anv nanner.

Our Conpanv pIans lo neel lhe alove expendilure oul of lhe proceeds of lhis Issue. Hovever, pending
receipl of lhe Issue proceeds, ve nighl le required lo nake cerlain iniliaI pavnenls/ deposils vilh lhe

32

vendors / suppIiers in order lo avaiI lhe conpelilive rales quoled lv lhen in lheir quolalions. We pIan
lo depIov lhe sane oul of our exisling cash & lank laIance/inlernaI accruaIs and vouId recoup lhe
anounls depIoved fron lhe issue proceeds

• McctIng !nng tcrm wnrkIng caµIta! rcquIrcmcnts

We leIieve lhal in order lo furlher enhance our financiaI capaliIilies lo ensure lineIv execulion and
conpIelion of lhe conlracls procured lv our Conpanv, il vouId le necessarv lo suppIenenl our exisling
vorking capilaI requirenenls. Considering lhe exisling grovlh rale of our lusiness, lhe vorking capilaI
needs of our Conpanv is expecled al approxinaleIv C 122O.72 Iakhs for IY 2O11-12.

The Iong lern vorking capilaI requirenenl has leen caIcuIaled on lhe lasis of vorking capilaI vhich
viII le required for IY 2O11-12 lased on expansion pIans of our Conpanv. These expansions are
expecled lo increase lhe operalions of our Conpanv and lhe requirenenl of vorking capilaI.

We have eslinaled our lolaI vorking capilaI requirenenls for IY 2O11-12 as foIIovs:
(C in Iakhs)
PartIcu!ars
FY 2011-12
(EstImatcd)
FY 2009-10
(AudItcd)
Amnunt Amnunt
Invenlorv 478.16 356.72
ReceivalIes 2O15.15 1442.53
5ub-tnta! (A) 2493.31 1799.25
Lcss:
Credilors 1272.59 821.37
5ub-tnta! (B) 1272.59 821.37
Nct Currcnt Asscts (A - B) 1220.72 977.88
FundIng Pattcrn:
Lslinaled ßank Iinance avaiIalIe - 4OO.OO
Iroposed lo le funded lhrough Issue
Iroceeds
5O5.OO
Working capilaI proposed fron lanks 715.72 -
InlernaI AccruaIs - 577.88
Tnta! 1220.72 977.88

Hn!dIng !cvc! (davs)
Invenlories 36 davs
ReceivalIes 12O davs
Credilors 3O davs

On lhe lasis of hoIding period for lhe IY 2OO9-1O, ve have projecled lhe lolaI vorking capilaI
requirenenls for lhe IY 2O11-12 and on lhis lasis, our lolaI requirenenl vorks oul lo C 122O.72 Iakhs,

33

vhich ve propose lo neel lhrough lank finance lo lhe exlenl of C 715.72 Iakhs and lhe laIance of C
5O5.OO Iakhs fron IIO proceeds.

• Rcµavmcnt nf Bank bnrrnwIng

We are currenlIv avaiIing cash credil Iinil of C 3OO Iakhs fron The RovaI ßank of ScolIand N.V. (RßS)
(erslvhiIe AßN Anro ßank). The currenl ILR of RßS is 15.75° and our appIicalIe inleresl rale is aIso
15.75° p.a. In order lo reduce lhe Ieverage and aIIov fIexiliIilv in financiaI nanagenenl of our
operalions, ve inlend lo repav lhe enlire oulslanding cash credil faciIilies of C 24O.76 Iakhs. The
repavnenl of dell lhrough equilv infusion viII reduce inleresl oulfIov on lhe Ioans and inprove
financiaIs of lhe Conpanv. The lrief delaiIs of lhe faciIilies enjoved lv us are as under:

Namc nf thc
Lcndcr
Datc nf
sanctInn
Amnunt
sanctInncd
(C In !akhs)
Amnunt
nutstandIng as
nn 5cµtcmbcr
30, 2010 (C In
!akhs)
Ratc nf Intcrcst
(% µcr annum)
Purµnsc nf
avaI!Ing cash
CrcdIt !ImIt
The RovaI ßank
of ScolIand
(RßS)
IuIv 15, 2OO8 3OO.OO 24O.76 ßank´s lase
rale pIus 9.25°
p.a. The currenl
appIicalIe rale
is 15.75°p.a.
Working CapilaI
Requirenenl
M/s SNMC & Co., Charlered Accounlanls, lhe Slalulorv Audilors of our Conpanv, vide lheir cerlificale
daled Ocloler 18, 2O1O, have confirned lhal lhe alove credil faciIilies vere uliIized for lhe purpose for
vhich lhev vere avaiIed.

• Gcncra! cnrµnratc µurµnscs

We, in accordance vilh lhe poIicies sel up lv lhe ßoard viII have fIexiliIilv in appIving lhe nel proceeds
of lhe Issue, afler lhe aforesaid oljecls are nel, for generaI corporale purposes incIuding, lul nol
reslricled lo neeling conlingencies for anv cosl overrun in lhe expansion projecl, slralegic inilialives,
acquisilions, expanding inlo nev geographies, lrand luiIding exercise, slrenglhening of narkel
capaliIilies, fulure projecls and neeling exigencies vhich ve in lhe ordinarv course nav nol foresee. As
on lhe dale of lhis Drafl Red Herring Irospeclus, ve have nol enlered inlo anv connilnenl for anv
slralegic inilialives. Our nanagenenl, in accordance vilh lhe poIicies of our ßoard, viII have fIexiliIilv
in uliIizing lhe proceeds earnarked for generaI corporale purposes.

• McctIng thc Issuc cxµcnscsª

The expenses for lhis issue incIude issue nanagenenl fees, undervriling and seIIing connission,
(incIuding connission lo SCSß/Svndicale/sul-svndicale for ASßA appIicalions) & lrokerage,
regislrar´s fees, grading fee, IegaI advisor´s fees, advisors & lanker´s fees, slalulorv audilor´s fees,
prinling and dislrilulion expenses, adverlisenenl expenses, deposilorv charges and Iisling fees lo lhe
Slock Lxchange anong olhers. The lolaI expenses for lhis issue are eslinaled lo le C |ŏ! Iakhs, delaiIs of
vhich are as under:
(C in Iakhs)
ActIvItv
Amnunt
(C In !akhs)
% nf tnta!
Issuc sIzc
% nf Issuc
cxµcnscs

34

Issue nanagenenl fees, undervriling and seIIing
connission (incIuding connission lo
SCSß/Svnidcale/sul-svndicale for ASßA
appIicalions) and lrokerage
|ŏ! |ŏ! |ŏ!
Regislrars fees |ŏ! |ŏ! |ŏ!
Iees for IegaI counseIs |ŏ! |ŏ! |ŏ!
Iee pavalIe lo lhe grading agencv |ŏ! |ŏ! |ŏ!
Irinling and slalionerv expenses |ŏ! |ŏ! |ŏ!
Adverlising and narkeling expenses |ŏ! |ŏ! |ŏ!
Olher expenses (slanp dulv, iniliaI Iisling fees,
deposilorv fees, charges for using lhe look luiIding
soflvare of lhe exchanges and olher reIaled expenses)
|ŏ! |ŏ! |ŏ!
Tnta! |ŏ! |ŏ! |ŏ!
¯ ui|| |c inccrpcra|cú af|cr fina|iza|icn cf issuc pricc.

Funds dcµ!nvcd tI!! datc
The delaiIs of lhe anounl spenl lv our Conpanv as of Ocloler 15, 2O1O as parl of lhe 'Oljecls of lhe
Issue´ and as cerlified lv M/s SNMC & Co., Charlered Accounlanls, vide cerlificale daled Ocloler 18,
2O1O are provided in lhe lalIe leIov:
(C in Iakhs)
5.
Nn
ActIvItv Amnunt
1. Inveslnenl in IT division al Noida 35.OO
2. Lxpansion of R&D lechnoIogv cenlre 3O.OO
3. Issue Lxpenses 1O.62
Tnta! 75.62


5nurccs nf Funds Amnunt
InlernaI AccruaIs 75.62
Tnta! 75.62

5chcdu!c nf Imµ!cmcntatInn

5.
Nn
ActIvItv
Exµcctcd mnnth nf
cnmmcnccmcnt
Exµcctcd mnnth nf
cnmµ!ctInn
1.
Selling up of our Corporale office al Noida &
ßranch Office al Munlai -
(a) Iurchase of Corporale office al Noida &
ReIocalion of ßranch Office al Munlai
- Mav 2O11

(l) Upgradalion of DigilaI Iosl Iroduclion
Sludio & Inveslnenl in IT division
Ianuarv 2O11 Mav 2O11
2. Lxpansion of R&D lechnoIogv Cenlre Ianuarv 2O11 Seplenler 2O11

35

3. Repavnenl of lank lorrovings Ianuarv 2O11 Ianuarv 2O11

The lreak-up of proposed depIovnenl of funds is nenlioned leIov:
(C in Iakhs)
PartIcu!ars
A!rcadv
Incurrcd tI!!
datc
FIsca!
vcar
2010-11
FIsca! vcar
2011-12
Tnta!
Octnbcr 15,
2010
H2 H1 H2
Iurchase of Corporale Office &
ReIocalion of ßranch Office
- 951.68 166.54 71.38

|*!

Upgradalion of DigilaI Iosl
Iroduclion Sludio and Inveslnenl
in IT division
35.OO 824.OO 962.O3 412.3O
Lxpansion of R&D lechnoIogv
Cenlre
3O.OO 5O3.OO 599.9O 257.1O
Repavnenl of lank lorrovings - 24O.76 - - 24O.76
CeneraI corporale purposes - |ŏ! |ŏ! |ŏ! |ŏ!
Issue expenses 1O.62 |ŏ! - - |ŏ!
TolaI 75.62 |ŏ! |ŏ! |ŏ! |ŏ!

IntcrIm usc nf µrncccds

Our Conpanv´s nanagenenl, in accordance vilh lhe poIicies eslalIished lv lhe ßoard, viII have fIexiliIilv
in depIoving lhe proceeds received fron lhe Issue. Iending uliIizalion of lhe proceeds oul of lhe Issue for
lhe purposes descriled alove, ve inlend lo lenporariIv invesl lhe funds in high quaIilv inleresl learing
Iiquid inslrunenls incIuding nonev narkel nuluaI funds and deposils vilh lanks. Such inveslnenls vouId
le in accordance vilh lhe inveslnenl poIicies approved lv lhe ßoard fron line lo line. We confirn lhal
pending uliIizalion of Issue proceeds: ve shaII nol use lhe funds for anv inveslnenls in lhe Lquilv narkels.

MnnItnrIng nf utI!IsatInn nf funds

The appoinlnenl of noniloring agencv is nol required in accordance vilh CIause 16 of SLßI (ICDR)
ReguIalions, 2OO9. We have lherefore nol appoinled anv Moniloring Agencv for lhe purpose of noniloring
lhe uliIizalion of issue proceeds. We viII discIose lhe uliIizalion of lhe proceeds under a separale head in our
Conpanv´s laIance sheel for lhe IY 2O1O-11 and IY 2O11-12 cIearIv specifving lhe purpose for vhich such
proceeds have leen uliIised. We, in our laIance sheel for lhe IY 2O1O-11 and IY 2O11-12, provide delaiIs, if
anv, in reIalion lo aII such proceeds of lhe Issue lhal have nol leen uliIized lherelv aIso indicaling
inveslnenls, if anv of such unuliIized proceeds of lhe Issue.



Iursuanl lo CIause 49 of lhe Lisling Agreenenl, our Conpanv shaII on quarlerIv lasis discIose lo lhe Audil
Connillee lhe uses and appIicalions of lhe proceeds of lhe Issue. On an annuaI lasis, our Conpanv shaII
prepare a slalenenl of fund uliIized for purposes olher lhan slaled in lhis Drafl Red Herring Irospeclus and

36

pIace il lefore lhe Audil Connillee. Such discIosures shaII le nade onIv unliI such line lhal aII lhe
proceeds of lhe Issue have leen uliIized in fuII. The slalenenl viII le cerlified lv lhe Slalulorv Audilors of
our Conpanv.

Our Conpanv shaII le required lo inforn lhe naleriaI devialions in lhe uliIizalion of lhe issue proceeds lo
lhe Slock Lxchanges and shaII aIso le required lo sinuIlaneousIv nake lhe naleriaI devialion / adverse
connenls of lhe Audil Connillee pulIic lhrough adverlisenenl in nevspaper.

No parl of lhe issue proceeds, viII le paid lv our Conpanv, as consideralion lo Ironolers, Direclors,
Ironoler Croup Lnlilies, and Kev ManageriaI IersonneI.

37

BA5IC TERM5 OF I55UE

PUBLIC I55UE OF 67,20,000 EQUITY 5HARE5 OF R5 10/- EACH FOR CA5H AT A PRICE OF C |ŏ]
PER EQUITY 5HARE, AGGREGATING C |ŏ] LAKH5 (THE "I55UE"). THE I55UE WOULD
CON5TITUTE 42.42% OF THE FULLY DILUTED PO5T I55UE PAID-UP CAPITAL OF OUR
COMPANY
Our Ccmpanu is ccnsiúcring Prc-|PO P|accmcn| cf up|c 5.00.000 |uui|u Snarcs anú/cr aggrcga|ing up C CC C 450
|a|ns ui|n taricus intcs|crs (´Prc-|PO p|accmcn|). Tnc Prc-|PO P|accmcn| is a| |nc úiscrc|icn cf cur Ccmpanu.
Our Ccmpanu ui|| ccmp|c|c |nc issuancc anú a||c|mcn| cf |uui|u Snarcs pursuan| |c |nc Prc-|PO P|accmcn| pricr
|c |nc fi|ing |nc Rcú Hcrring Prcspcc|us ui|n |nc RcC. |f |nc Prc-|PO P|accmcn| is ccmp|c|cú. |nc |ssuc sizc cffcrcú
|c |nc pu||ic ucu|ú |c rcúuccú |c |nc cx|cn| cf sucn Prc-|PO P|accmcn|. su|jcc| |c a minimum |ssuc sizc cf 25° cf
|nc pcs| |ssuc paiú-up capi|a| |cing cffcrcú |c |nc pu||ic.

PrIcc band: C |ŏ] tn |ŏ] µcr EquItv 5harc nf facc va!uc nf C 10/- cach.

Thc Issuc µrIcc Is |ŏ] tImcs thc facc va!uc at thc !nwcr cnd nf thc µrIcc band and |ŏ] tImcs thc facc
va!uc at thc hIghcr cnd nf thc µrIcc band.
QIBs
Nnn-InstItutInna!
BIddcrs
RctaI! IndIvIdua!
BIddcrs
Nunler of Lquilv
Shares avaiIalIe
for AIIocalion*
Nol nore lhan 33,6O,OOO Lquilv
Shares
Nol Iess lhan
1O,O8,OOO Lquilv
Shares
Nol Iess lhan
23,52,OOO Lquilv
Shares
Iercenlage of
Issue Size
AvaiIalIe for
aIIocalion
Nol nore lhan 5O° of lhe Issue of
vhich 5° viII le avaiIalIe for
proporlionale aIIocalion lo MuluaI
Iunds onIv. MuluaI funds
parlicipaliong in lhe 5° reservalion
in lhe OIß porlion viII aIso le
eIigilIe for aIIocalion in lhe
renaining OIß porlion. The
unsulscriled porlion in lhe MuluaI
Iund resesarvalion viII le
avaiIalIe lo OIßs
Nol Iess lhan 15° of
Issue
Nol Iess lhan 35° of
Issue
ßasis of AIIocalion
if respeclive
calegorv is
oversulscriled
Iroporlionale as foIIovs:
a. Lquilv Shares shaII le aIIocaled
on proporlionale lasis lo
MuluaI Iunds in lhe MuluaI
Iunds Iorlion:
l. Lquilv Shares shaII le aIIocaled
on proporlionale lasis lo aII
OIßs incIuding MuluaI Iunds
receiving aIIocalion as per (a)
alove.
Iroporlionale Iroporlionale

38

Mininun ßid
Such nunler of Lquilv Shares in
nuIlipIes of |ŏ! Lquilv Shares so
lhal lhe ßid Anounl exceeds C
1,OO,OOO.
Such nunler of
Lquilv Shares in
nuIlipIes of |ŏ!
Lquilv Shares so lhal
lhe ßid Anounl
exceeds C 1,OO,OOO.
|ŏ! Lquilv Shares
Maxinun ßid
Such nunler of Lquilv Shares in
nuIlipIes of |ŏ! Lquilv Shares so
lhal lhe ßid anounl does nol
exceed lhe Issue, suljecl lo
appIicalIe Iinils.
Such nunler of
Lquilv Shares in
nuIlipIes of |ŏ!
Lquilv Shares so lhal
lhe ßid anounl does
nol exceed lhe Issue,
suljecl lo appIicalIe
Iinils.
Such nunler of
Lquilv in nuIlipIes
of |ŏ! Lquilv Shares
so lhal lhe ßid
anounl does nol
exceed C 1,OO,OOO
Mode of
AIIolnenl
ConpuIsoriIv in denaleriaIised
node
ConpuIsoriIv in
denaleriaIised node
ConpuIsoriIv in
denaleriaIised
node
AIIolnenl Lol
|ŏ! Lquilv Shares and in nuIlipIes
of one Lquilv Share lhereafler
|ŏ! Lquilv Shares and
in nuIlipIes of one
Lquilv Share
lhereafler
|ŏ! Lquilv Shares
and in nuIlipIes of
one Lquilv Share
lhereafler
Trading Lol One One One
Who can appIv**
IulIic financiaI inslilulions, as
specified in Seclion 4A of lhe
Conpanies Acl, scheduIed
connerciaI lanks, nuluaI funds
regislered vilh SLßI, foreign
inslilulionaI inveslors and sul-
accounl regislered vilh SLßI, olher
lhan a sul-accounl vhich is a
foreign corporale or foreign
individuaI, nuIliIaleraI and
liIaleraI deveIopnenl financiaI
inslilulions, venlure capilaI funds
regislered vilh SLßI, foreign
venlure capilaI inveslors regislered
vilh SLßI, Slale InduslriaI
DeveIopnenl Corporalions,
pernilled insurance conpanies
regislered vilh lhe Insurance
ReguIalorv and DeveIopnenl
Aulhorilv, providenl funds vilh
nininun corpus of C 25OO Iakhs,
pension funds vilh nininun
corpus of C 25OO Iakhs, NalionaI
Inveslnenl Iund and Insurance
funds sel up and nanaged lv
Residenl Indian
individuaIs, HUI (in
lhe nane of Karla),
conpanies, corporale
lodies, LIigilIe NRIs,
scienlific inslilulions,
socielies and lrusls.
IndividuaIs
incIuding NRIs and
HUIs (in lhe nane
of lhe Karla)
appIving for Lquilv
Shares such lhal lhe
ßid anounl does
nol exceed C 1OO,OOO
in vaIue.

39

arnv, navv or air force of lhe Union
of India in accordance vilh
appIicalIe Iavs.
Terns of
Iavnenl***
The enlire lid anounl shaII le
pavalIe al lhe line of sulnission
of lhe ßid-cun-AppIicalion Iorn lo
lhe Svndicale Menlers
The enlire lid
anounl shaII le
pavalIe al lhe line of
sulnission of lhe
ßid-cun-AppIicalion
Iorn lo lhe
Svndicale Menlers
The enlire lid
anounl shaII le
pavalIe al lhe line
of sulnission of lhe
ßid-cun-
AppIicalion Iorn lo
lhe Svndicale
Menlers
Margin Anounl 1OO° of lhe lid anounl
1OO° of lhe lid
anounl
1OO° of lhe lid
anounl
* Suljecl lo vaIid ßids leing received al or alove lhe Issue Irice.

This Issue is leing nade lhrough a 1OO° ßook ßuiIding Irocess vherein nol nore lhan 5O° of lhe Issue
lo IulIic shaII le avaiIalIe for aIIocalion on a proporlionale lasis lo OuaIified InslilulionaI ßuvers
(¨OIßs¨). 5° of lhe OIß Iorlion shaII le avaiIalIe for aIIocalion on a proporlionale lasis lo MuluaI
Iunds onIv and lhe renainder shaII le avaiIalIe for aIIolnenl on a proporlionale lasis lo OIßs and
MuluaI Iunds, suljecl lo vaIid lids leing received fron lhen al or alove lhe Issue Irice. Iurlher, nol
Iess lhan 15° of lhe Issue lo IulIic shaII le avaiIalIe for aIIocalion on a proporlionale lasis lo Non
InslilulionaI ßidders and nol Iess lhan 35° of lhe Issue lo IulIic shaII le avaiIalIe for aIIocalion on a
proporlionale lasis lo RelaiI IndividuaI ßidders, suljecl lo vaIid lids leing received al or alove lhe Issue
Irice.

Under sulscriplion, if anv, in anv calegorv vouId le nel vilh spiII over fron anv of lhe olher calegorv
or conlinalion of calegories, al lhe discrelion of our Conpanv in consuIlalion vilh lhe ßRLM.

** In case lhe ßid-cun-AppIicalion forn/ASßA Iorn is sulnilled in joinl nanes, lhe inveslors shouId
ensure lhal lhe denal accounl is aIso heId in lhe sane joinl nanes and are in lhe sane sequence in vhich
lhev appear in lhe lid cun appIicalion forn/ASßA Iorn.

*** In case of ASßA ßidders, SCSß shaII le aulhorized lo lIock such funds in lhe lank accounl of lhe
ASßA ßidders lhal are specified in lhe ßid-cun-ASßA Iorns.

40

BA5I5 FOR I55UE PRICE

The Issue Irice viII le delernined lv our Conpanv in consuIlalion vilh lhe ßRLM on lhe lasis of
assessnenl of narkel denand for lhe offered Lquilv Shares lv lhe ßook ßuiIding Irocess. The face
vaIue of lhe Lquilv Shares is C 1O/- and Issue Irice is C |ŏ! per Lquilv Share and is |ŏ! lines lhe face
vaIue.

Inveslors shouId read lhe foIIoving sunnarv vilh lhe Risk Iaclors appearing on page no. iii of lhis
Drafl Red Herring Irospeclus and lhe delaiIs aloul our Conpanv and ils financiaI slalenenls incIuded
in lhis Drafl Red Herring Irospeclus. The lrading price of lhe Lquilv Shares of our Conpanv couId
decIine due lo lhese risk faclors and vou nav Iose aII or parl of vour inveslnenls.

Qua!ItatIvc Factnrs
Ior delaiIs in respecl of our quaIilalive faclors, pIease refer lo lhe seclion ¨Our Slrenglhs¨ appearing on
page no. 64 of lhis Drafl Red Herring Irospeclus.

QuantItatIvc Factnrs

1. Adjustcd EarnIng µcr EquItv 5harc
PcrInd (FInancIa! Ycar) EarnIngs µcr EquItv 5harc (C CC C) WcIght
2OO7-O8 3.66 1
2OO8-O9 O.O8 2
2OO9-1O 3.O2 3
ApriI 1, 2O1O lo Iune 3O, 2O1O (UnannuaIized) 1.3O
WcIghtcd Avcragc 2.15

2. PrIcc / EarnIng RatIn (P/E)
PartIcu!ars At thc !nwcr band nf C CC C |-] µcr
EquItv 5harc
At thc uµµcr band nf C CC C |-]
µcr EquItv 5harc
ßased on lhe Adjusled LIS for lhe vear
ended March 31, 2O1O
|-! |-!
ßased on lhe veighled average LIS |-! |-!

Industrv P/E

5r. Nn. PartIcu!ars Industrv P/E
Induslrv - Conpulers - Soflvares - Mediun/SnaII
(i) Highesl 132.2
(ii) Lovesl 4.2
(iii) Average 14.5
Induslrv - Lnlerlainnenl / LIeclronic Media Soflvare
(i) Highesl 2O6.O
(ii) Lovesl 1O.2
(iii) Average 25.7
(Scurcc. Capi|a| Mar|c| úa|cú Nctcm|cr 1 - 14. 2010)



41

3. Return on Networth (RONW)
Period (Financial Year) RONW% Weight
2007-08 14.20% 1
2008-09 0.30% 2
2009-10 9.90% 3
April 1, 2010 to June 30, 2010 (Unannualized) 4.10%
Weighted Average 7.40%

4. Minimum Return on increased Net Worth required to maintain pre-issue EPS.
Particulars At the Lower Band of ` [•]
per Equity Share
At the Upper Band of ` [•]
per Equity Share
Minimum required RONW for maintaining
EPS
[•] [•]

5. Net Asset Value per share (NAV)
Particulars Adjusted NAV
a. As on June 30, 2010 (`) 31.52
b. As on March 31, 2010 (`) 30.22
c. After Issue [•]
NAV per share = Paid up share capital + Reserves and surplus – Miscellaneous expenditure not yet
written off / Number of Equity Shares outstanding as on the last date of reported period and after
considering issue of bonus shares in August, 2010.

6. Comparison with Industry Peers
The comparable ratios of companies, who are in similar line of business and similar size of operations in
terms of total income, are given below:
Name of the Company Face Value
(`)
E.P.S. (`)

P/E Book
Value (`)
RONW
(%)
Industry – Computers – Softwares – Medium/Small
Bartronics India 10 19.3 7.0 117.2 17.5
Industry – Entertainment / Electronic Media Software
Prime Focus Ltd. 10 9.8 63.0 165.3 6.2
Bharatiya Global Infomedia
Limited
10 3.02 - 30.22 9.90%
(Source: Capital Market dated November 1 – 14, 2010)

Note: The restated financial information of the industry peers is not ascertainable, the ratios disclosed in
the Draft Red Herring Prospectus for the purpose of comparison with the accounting ratios of our
Company are not based on restated financial statements of the industry peers.

The face value of the shares of our Company is ` 10/- per share and the Issue Price of ` [•] per share is
[•] times of the face value of the Shares of our Company.

The BRLM believes that the Issue price of ` [●] is justified in view of the above qualitative and
quantitative factors. See the section titled “Risk Factors” and “Financial Statements of the Company”
beginning on page no. iii and 105 of this Draft Red Herring Prospectus, including important profitability
and return ratios, as set out in the Auditor’s Report beginning on page no. 105 for further information.

42

5TATEMENT OF TAX BENEFIT5

ßoard of Direclors,
BharatIva G!nba! InfnmcdIa LImItcd
623, 6
lh
IIoor, Devika Tover,
6, Nehru IIace, Nev DeIhi - 11OO19

We herelv reporl lhal lhe encIosed annexure slales lhe possilIe lax lenefils avaiIalIe lo BharatIva
G!nba! InfnmcdIa LImItcd, (lhe ¨Conpanv) and ils sharehoIders under lhe currenl lax Iavs presenlIv in
force in India as anended lv lhe Iinance Acl, 2O1O / Direcl Tax Iavs reIevanl lo lhe Assessnenl Year
2O1O-11. SeveraI of lhese lenefils are dependenl on lhe Conpanv or ils sharehoIders fuIfiIIing lhe
condilions prescriled under lhe reIevanl lax Iavs. Hence, lhe aliIilv of lhe Conpanv or ils sharehoIders
lo derive lhe lax lenefils is dependenl upon fuIfiIIing such condilions, vhich lased on lusiness
inperalives lhe Conpanv faces in lhe fulure, lhe conpanv nav or nav nol choose lo fuIfiI.

The lenefils discussed leIov are nol exhauslive. This slalenenl is onIv inlended lo provide generaI
infornalion lo lhe inveslors and is neilher designed nor inlended lo le a sulslilule for professionaI lax
advice. In viev of lhe individuaI nalure of lhe lax consequences and lhe changing lax Iavs, each inveslor
is advised lo consuIl his or her ovn lax consuIlanl vilh respecl lo lhe specific lax inpIicalions arising
oul of lheir parlicipalion in lhe issue. We do nol express anv opinion or provide anv assurance as lo
vhelher:

i. The conpanv or ils sharehoIders viII conlinue lo ollain lhese lenefils in fulure: or
ii. The condilions prescriled for avaiIing lhe lenefils have leen / vouId le nel vilh.

The conlenls of lhis annexure are lased on infornalion, expIanalions and represenlalions ollained fron
lhe conpanv and on lhe lasis of our underslanding of lhe lusiness aclivilies and operalions of lhe
Conpanv.

Fnr M/s 5NMG & Cn.,
Charlered Accounlanls
Iirn Regislralion No. OO4921N



CA NLLRAI CUITA
Menlership No: 87OO4
IIace: Nev DeIhi
Dale: Ocloler 18, 2O1O

43

5TATEMENT OF PO55IBLE DIRECT TAX BENEFIT5 AVAILABLE TO BHARTIYA GLOBAL
INFOMEDIA LIMITED (THE "COMPANY") AND IT5 5HAREHOLDER5

The foIIoving lenefils shaII le avaiIalIe lo lhe Conpanv.

5PECIAL TAX BENEFIT5

(1) There are no speciaI lax lenefils avaiIalIe lo lhe SharehoIders.
(2) There are no speciaI lax lenefils avaiIalIe lo lhe Conpanv.

GENERAL TAX BENEFIT5:

A. BENEFIT5 AVAILABLE UNDER THE INCOME - TAX ACT - 1961 ( THE "ACT")

I. TO THE COMPANY
1) DcµrccIatInn undcr 5cctInn 32
In accordance vilh and suljecl lo lhe provisions of seclion 32 of lhe Incone Tax Acl, lhe conpanv viII
le aIIoved lo cIain deprecialion on specified langilIe and inlangilIe assels as per lhe rales specified
2) Incnmc frnm unIts nf Mutua! Funds cxcmµt undcr 5cctInn 10(35)
The Conpanv viII le eIigilIe for exenplion of incone received fron unils of nuluaI funds specified
under Seclion 1O(23D) of lhe Acl, incone received in respecl of unils fron lhe Adninislralor of specified
underlaking and incone received in respecl of unils fron lhe specified conpanv in accordance vilh and
suljecl lo lhe provisions of Seclion 1O(35) of lhe Acl.

3) Prc!ImInarv Exµcnscs Undcr 5cctInn 35D
In accordance vilh and suljecl lo lhe provisions of Seclion 35D of lhe Incone Tax Acl, lhe conpanv viII
le enlilIed lo anorlize, over a period of five vears, aII expendilure in conneclion vilh lhe proposed
pulIic issue suljecl lo lhe overaII Iinil specified in lhe said seclion.

4) DIvIdcnds cxcmµt undcr 5cctInn 10(34)
Dividends (Whelher inlerin or finaI) decIared, dislriluled or paid lv anv Indian conpanv are exenpl in
lhe hands of conpanv as per lhe provisions of Seclion 1O(34) read vilh Seclion 115-O of lhe Acl.

5) Lnwcr Tax Ratc undcr 5cctInn 112 nn Lnng tcrm CaµIta! gaIns
As per lhe provisions of Seclion 112 of lhe Acl, Iong lern gains lhal are nol exenpl under Seclion 1O(38)
of lhe Acl vouId le suljecl lo lax al a rale of 2O percenl (IIus appIicalIe surcharge and educalion cess).
Hovever, as per lhe proviso lo Seclion 112(1), if lhe lax on Iong lern capilaI gains resuIling on lransfer
of Iisled securilies or unils, caIcuIaled al lhe rale of 2O percenl vilh indexalion lenefil exceeds lhe lax on
Iong lern gains conpuled al lhe rale of 1O percenl vilhoul indexalion lenefil, lhen such gains are
chargealIe lo lax al a concessionaI rale of 1O percenl (IIus appIicalIe surcharge and educalion cess).

6) Lnwcr Tax ratc Undcr 5cctInn 111A nn shnrt tcrm CaµIta! gaIns
As per lhe provisions of seclion 111A of lhe Acl, shorl-lern capilaI gains on saIe of equilv shares or unils
of an equilv orienled fund vhere lhe lransaclion of saIe is chargealIe lo Securilies Transaclion lax
(¨STT¨) shaII le suljecl lo lax al a rale of 1O percenl (IIus appIicalIe surcharge and educalion cess).

7) ExcmµtInn nf Lnng tcrm caµIta! gaIn undcr 5cctInn 10(38)

44

According lo Seclion 1O(38) of lhe Acl, Iong-lern capilaI gains on saIe of equilv shares or unils of an
equilv orienled fund vhere lhe lransaclion of saIe is chargealIe lo STT shaII le exenpl fron lax.

8) ExcmµtInn nf Lnng tcrm caµIta! gaIn undcr 5cctInn 54EC
Under seclion 54LC of lhe Acl and suljecl lo lhe condilions and lo lhe exlenl specified lherein, Iong-lern
capilaI gains (olher lhan lhose exenpl under seclion 1O(38) of lhe Acl) arising on lhe lransfer of shares of
lhe Conpanv vouId le exenpl fron lax if such capilaI gain is invesled vilhin 6 nonlhs afler lhe dale of
such lransfer in lhe londs (Iong lern specified assels) issued lv:

a. NalionaI Highvav Aulhorilv of India consliluled under seclion 3 of The NalionaI Highvav
Aulhorilv of India Acl, 1988:

l. RuraI LIeclrificalion Corporalion Liniled, lhe conpanv forned and regislered under lhe
Conpanies Acl, 1956.

If onIv parl of lhe capilaI gain is so reinvesled, lhe exenplion avaiIalIe shaII le in lhe sane proporlion as
lhe cosl of Iong lern specified assels lears lo lhe vhoIe of lhe capilaI gain. Hovever, in case lhe Iong
lern specified assel is lransferred or converled inlo nonev vilhin lhree vears fron lhe dale of ils
acquisilion, lhe anounl so exenpled shaII le chargealIe lo lax during lhe vear such lransfer or
conversion. The cosl of lhe Iong lern specified assels, vhich has leen considered under lhis Seclion for
caIcuIaling capilaI gain, shaII nol le aIIoved as a deduclion fron lhe incone-lax under Seclion 8OC of
lhe Acl for anv assessnenl vear leginning on or afler ApriI 1, 2OO6. Iurlher, lhe inveslnenl nade on or
afler 1
sl
dav of ApriI, 2OO7 in lhe alove specified assels lv an assessee during anv financiaI vear cannol
exceed C 5O Iakhs

9) BcncfIt undcr 5cctInn 115JAA (1A)
Under Seclion 115IAA (1A) of lhe Acl, lax credil shaII le aIIoved of anv lax paid (MAT) under Seclion
115Iß of lhe Acl. Credil eIigilIe for carrv forvard is lhe difference lelveen MAT paid and lhe lax
conpuled as per lhe nornaI provisions of lhe Acl. Such MAT credil shaII nol le avaiIalIe for sel-off
levond 5 vears succeeding lhe vear in vhich lhe MAT lecones aIIovalIe.

II. TO RE5IDENT 5HAREHOLDER5

1) DIvIdcnds cxcmµt undcr 5cctInn 10 (34)
Dividends (vhelher inlerin or finaI) decIared, dislriluled or paid lv lhe conpanv are exenpl in lhe
hands of sharehoIders as per lhe provisions of seclion 1O(34) read vilh Seclion 115-O of lhe Acl.

2) ExcmµtInn nf Lnng tcrm caµIta! gaIn undcr 5cctInn 10(38)
According lo seclion 1O(38) of lhe Acl, Iong-lern capilaI gains on saIe of equilv shares or unils of an
equilv orienled fund vhere lhe lransaclion of saIe is chargealIe lo STT shaII le exenpl fron lax.

3) Lnwcr Tax ratc undcr 5cctInn 112 nn !nng tcrm caµIta! gaIns
As per lhe provisions of seclion 112 of lhe Acl, Iong lern gains as conpuled alove lhal are nol exenpl
under seclion 1O(38) of lhe Acl vouId le suljecl lo lax al a rale of 2O percenl (pIus appIicalIe surcharge
and educalion cess). Hovever, as per lhe proviso lo Seclion112 (1), if lhe lax on Iong lern capilaI gains
resuIling on lransfer of Iisled securilies or unils, caIcuIaled al lhe rale of 2O percenl vilh indexalion
lenefil exceeds lhe lax on Iong lern gains conpuled al lhe rale of 1O percenl vilhoul indexalion lenefil,

45

lhen such gains are chargealIe lo lax al a concessionaI rale of 1O percenl (pIus appIicalIe surcharge and
educalion cess.)

4) Lnwcr Tax ratc undcr 5cctInn 111A nn !nng tcrm caµIta! gaIns
As per lhe provisions of seclion 111A of lhe Acl, shorl-lern capilaI gains on saIe of equilv shares vhere
lhe lransaclion of saIe is chargealIe lo STT shaII le suljecl lo lax al a rale of 1O per cenl (pIus appIicalIe
surcharge and educalion cess).

5) ExcmµtInn nf Lnng tcrm caµIta! gaIn undcr 5cctInn 54EC
Under seclion 54LC of lhe Acl and suljecl lo lhe condilions and lo lhe exlenl specified lherein, Iong-lern
capilaI gains (olher lhan lhose exenpl under seclion 1O(38) of lhe Acl) arising on lhe lransfer of shares of
lhe Conpanv vouId le exenpl fron lax if such capilaI gain is invesled vilhin 6 nonlhs afler lhe dale of
such lransfer in lhe londs (Iong lern specified assels) issued lv:

a. NalionaI Highvav Aulhorilv of India consliluled under seclion 3 of The NalionaI Highvav
Aulhorilv of India Acl, 1988:
l. RuraI LIeclrificalion Corporalion Liniled, lhe conpanv forned and regislered under lhe
Conpanies Acl, 1956.

If onIv parl of lhe capilaI gain is so reinvesled, lhe exenplion avaiIalIe shaII le in lhe sane proporlion as
lhe cosl of Iong lern specified assels lears lo lhe vhoIe of lhe capilaI gain. Hovever, in case lhe Iong
lern specified assel is lransferred or converled inlo nonev vilhin lhree vears fron lhe dale of ils
acquisilion, lhe anounl so exenpled shaII le chargealIe lo lax during lhe vear such lransfer or
conversion. The cosl of lhe Iong lern specified assels, vhich has leen considered under lhis Seclion for
caIcuIaling capilaI gain, shaII nol le aIIoved as a deduclion fron lhe incone-lax under Seclion 8OC of
lhe Acl for anv assessnenl vear leginning on or afler ApriI 1, 2OO6. Iurlher, lhe inveslnenl nade on or
afler 1
sl
dav of ApriI, 2OO7 in lhe alove specified assels lv an assessee during anv financiaI vear cannol
exceed C 5O Iakhs.

6) ExcmµtInn nf Lnng tcrm caµIta! gaIn undcr 5cctInn 54F
According lo lhe provisions of seclion 54I of lhe Acl and suljecl lo lhe condilions specified lherein, in
lhe case of an individuaI or a Hindu Undivided IaniIv(HUI), gains arising on lransfer of a Iong lern
capilaI assel (nol leing a residenliaI house), olher lhan gains exenpl under seclion 1O(38), are nol
chargealIe lo lax if lhe enlire nel consideralion received on such lransfer is invesled vilhin lhe
prescriled period in residenliaI house, lhen such gains vouId nol le chargealIe lo lax on a
proporlionale lasis. Ior lhis purpose, nel consideralion neans fuII vaIue of lhe consideralion received or
accruing as a resuIl of lhe lransfer of lhe capilaI assel as reduced lv anv expendilure incurred vhoIIv
and excIusiveIv in conneclion vilh such lransfer.

III. TO NON- RE5IDENT INDIAN 5HAREHOLDER5

1) DIvIdcnds cxcmµt undcr 5cctInn 10(34)
Dividends (Whelher inlerin or finaI) decIared: dislriluled or paid lv lhe conpanv are exenpl in lhe
hands of sharehoIders as per lhe provisions of seclion 1O(34) read vilh Seclion 115-O of lhe Acl.

2) Lnwcr Tax ratc undcr 5cctInn 112 nn !nng tcrm caµIta! gaIns
In case inveslnenl is nade in Indian rupees, lhe Iong lern capilaI gain is lo le conpuled afler indexing
lhe cosl. According lo lhe provision of seclion 112 of lhe Acl, Iong lern gains as conpuled alove lhal are

46

nol exenpl under seclion 1O(38) of lhe Acl vouId le suljecl lo lax al a rale of 2O percenl (pIus appIicalIe
surcharge and educalion cess). Hovever, as per lhe proviso lo seclion 112(1), if lhe lax on Iong lern
capilaI gains resuIling on lransfer of Iisled securilies or unils, caIcuIaled al lhe a rale of 2O percenl vilh
indexalion lenefil exceeds lhe lax on Iong lern gains conpuled al lhe rale of 1O percenl vilhoul
indexalion lenefil, lhen such gains are chargealIe lo lax al a concessionaI rale of 1O percenl (pIus
appIicalIe surcharge and educalion cess)

3) Lnwcr Tax ratc undcr 5cctInn 111A nn !nng tcrm caµIta! gaIns
As per lhe provisions of seclion 111A of lhe Acl, shorl lern capilaI gains on saIe of equilv shares vhere
lhe lransaclion of saIe is chargealIe lo STT shaII le suljecl lo lax al a rale of 1O percenl (pIus appIicalIe
surcharge and educalion cess).

4) OµtInns avaI!ab!c undcr thc Act
Incrc snarcs natc |ccn su|scri|cú |c in ccntcr|i||c fcrcign cxcnangc - Op|icn cf |axa|icn unúcr Cnap|cr X|| A cf
|nc Ac|.
Non-Residenl Indians (as defined in seclion 115C (e) of lhe Acl), leing sharehoIders of an Indian
Conpanv, have lhe oplion of leing governed lv lhe provisions of Chapler XII A, vhich inler aIia enlilIes
lhen lo lhe foIIoving lenefils in respecl of incone fron shares of an Indian conpanv acquired,
purchased or sulscriled lo in converlilIe foreign exchange:

i) According lo lhe provision of seclion 115D read vilh Seclion 115L of lhe Acl and suljecl lo lhe
condilions specified lherein, Iong lern capilaI gains arising on lransfer of an Indian conpanv´s
shares, viII le suljecl lo lax al lhe rale of 1O percenl (IIus appIicalIe surcharge and educalion cess),
vilhoul indexalion lenefil.
ii) According lo lhe provisions of seclion 115I of lhe Acl and suljecl lo lhe condilions specified lherein,
gains arising on lransfer of a Iong lern capilaI assel leing shares in an Indian conpanv shaII nol le
chargealIe lo lax if lhe enlire nel consideralion received on such lransfer is invesled vilhin lhe
prescriled period of six nonlhs in anv specified assel or savings cerlificales referred lo in seclion
1O(4ß) of lhe Acl. If parl of such nel consideralion is invesled vilhin lhe prescriled period of six
nonlh in anv specified assel or savings cerlificales referred lo in seclion 1O (4ß) of lhe Acl lhen such
gains vouId nol le chargealIe lo lax on a proporlionale lasis. Ior lhis purpose, nel consideralion
neans fuII vaIue of lhe consideralion received or accruing as a resuIl of lhe lransfer of lhe capilaI
assel as reduced lv anv expendilure incurred vhoIIv and excIusiveIv in conneclion vilh such
lransfer. Iurlher, if lhe specified assel or savings cerlificale in vhich lhe inveslnenl has leen nade
is lransferred vilhin a period of lhree vears fron lhe dale of inveslnenl, lhe anounl of capilaI gains
lax exenpled earIier vouId lecone chargealIe lo lax as Iong lern capilaI gains in lhe vear in vhich
such specified assel or savings cerlificales are lransferred.
iii) As per lhe provisions of Seclion 115C of lhe Acl, Non-Residenl Indians are nol olIiged lo fiIe a
relurn of incone under seclion 139 (1) of lhe Acl, if lheir onIv source of incone is incone fron
inveslnenls or Iong lern capilaI gains earned on lransfer of such inveslnenls or lolh, provided lax
has leen deducled al source fron such incone as per lhe provisions of Chapler XVII-ß of lhe Acl.
iv) Under seclion 115H of lhe Acl, Where Non-Residenl Indian lecones assessalIe as a residenl in
India, he nav furnish a decIaralion in vriling lo lhe Assessing Officer, aIong vilh his relurn of
incone for lhal vear under Seclion 139 of lhe Acl lo lhe effecl lhal lhe provisions of lhe Chapler XII-
A shaII conlinue lo appIv lo hin in reIalion lo such inveslnenl incone derived fron lhe specified
assels for lhe vear and sulsequenl assessnenl vears unliI such assels are converled inlo nonev.
v) As per lhe provisions of Seclion 115I of lhe Acl, Non-Residenl Indian nav eIecl nol lo le governed
lv lhe provisions of Chapler XII-A for anv assessnenl vear lv furnishing his relurn of incone for

47

lhal assessnenl vear under Seclion 139 of lhe Acl, decIaring lherein lhal lhe provisions of Chapler
XII-A shaII nol appIv lo hin for lhal assessnenl vear and accordingIv his lolaI incone for lhal
assessnenl vear viII le conpuled in accordance vilh lhe olher provisions of lhe Acl.

5) ExcmµtInn nf Lnng tcrm caµIta! gaIn undcr 5cctInn 10(38)
According lo seclion1O (38) of lhe Acl, Iong lern capilaI gains on saIe of equilv shares, vhere lhe
lransaclion of saIe is chargealIe lo STT, shaII le exenpl fron lax.

6) ExcmµtInn nf Lnng tcrm caµIta! gaIn undcr 5cctInn 54EC
Under seclion 54LC of lhe Acl and suljecl lo lhe condilions and lo lhe exlenl specified lherein, Iong-lern
capilaI gains (olher lhan lhose exenpl under seclion 1O(38) of lhe Acl) arising on lhe lransfer of shares of
lhe Conpanv vouId le exenpl fron lax if such capilaI gain is invesled vilhin 6 nonlhs afler lhe dale of
such lransfer in lhe londs (Iong lern specified assels) issued lv:

a. NalionaI Highvav Aulhorilv of India consliluled under seclion 3 of The NalionaI Highvav
Aulhorilv of India Acl, 1988:
l. RuraI LIeclrificalion Corporalion Liniled, lhe conpanv forned and regislered under lhe
Conpanies Acl, 1956. If onIv parl of lhe capilaI gain is so reinvesled, lhe exenplion avaiIalIe
shaII le in lhe sane proporlion as lhe cosl of Iong lern specified assels lears lo lhe vhoIe of lhe
capilaI gain. Hovever, in case lhe Iong lern specified assel is lransferred or converled inlo
nonev vilhin lhree vears fron lhe dale of ils acquisilion, lhe anounl so exenpled shaII le
chargealIe lo lax during lhe vear such lransfer or conversion. The cosl of lhe Iong lern specified
assels, vhich has leen considered under lhis Seclion for caIcuIaling capilaI gain, shaII nol le
aIIoved as a deduclion fron lhe incone-lax under Seclion 8OC of lhe Acl for anv assessnenl vear
leginning on or afler ApriI 1, 2OO6. Iurlher, lhe inveslnenl nade on or afler 1sl dav of ApriI,
2OO7 in lhe alove specified assels lv an assessee during anv financiaI vear cannol exceed C 5O
Iakhs.

7) ExcmµtInn nf Lnng tcrm caµIta! gaIn undcr 5cctInn 54F
According lo lhe provisions of seclion 54I of lhe Acl and suljecl lo lhe condilions specified lherein, in
lhe case of an individuaI or a HUI, gains arising on lransfer of a Iong lern capilaI assel (nol leing a
residenliaI house), olher lhan gains exenpl under seclion 1O(38), are nol chargealIe lo lax lhe enlire nel
consideralion received on such lransfer is invesled vilhin lhe prescriled period in a residenliaI house. If
parl of such nel consideralion is invesled vilhin lhe prescriled period in a residenliaI house, lhen such
gains vouId nol le chargealIe lo lax on a proporlionale lasis. Ior lhis purpose, nel consideralion neans
fuII vaIue of lhe consideralion received or accruing as a resuIl of lhe lransfer of lhe capilaI assel as
reduced lv anv expendilure incurred vhoIIv and excIusiveIv in conneclion vilh such lransfer.

8) Tax Trcatv bcncfIts
A non-residenl inveslor has an oplion lo le governed lv lhe provisions of lhe Acl or lhe provisions of
Tax Trealv lhal India has enlered inlo vilh anolher counlrv of vhich lhe inveslor is a lax residenl,
vhichever is nore leneficiaI.

IV. TO OTHER NON-RE5IDENT5

1) DIvIdcnds cxcmµt undcr 5cctInn 10(34)
Dividends (vhelher inlerin or finaI) decIared, dislriluled or paid lv lhe Conpanv are exenpl in lhe
hands of sharehoIders as per lhe provisions of seclion 1O(34) read vilh Seclion 115-O of lhe Acl.

48


2) Lnwcr Tax ratc undcr 5cctInn 112 nn !nng tcrm caµIta! gaIns
In case inveslnenl is nade in Indian rupees, lhe Iong-lern capilaI gain is lo le conpuled afler indexing
lhe cosl, As per lhe provisions of Seclion 112 of lhe Acl, Iong lern gains lhal are nol exenpl under
seclion 1O(38) of lhe Acl vouId le suljecl lo lax al a rale of 2O percenl (pIus appIicalIe surcharge and
educalion cess). Hovever, as per lhe proviso lo seclion 112(1), if lhe lax on Iong lern capilaI gains
resuIling on lransfer of Iisled securilies or unils caIcuIaled al lhe rale of 2O percenl vilh indexalion
lenefil exceeds lhe lax on Iong-lern gains conpuled al lhe rale of 1O percenl vilhoul indexalion lenefil,
lhen such gains are chargealIe lo lax al a concessionaI rale of 1O percenl (pIus appIicalIe surcharge and
educalion cess).

3) Lnwcr Tax ratc undcr 5cctInn 111A nn !nng tcrm caµIta! gaIns
As per provisions of seclion 111A of lhe Acl, shorl-lern capilaI gains on saIe of equilv shares, vhere lhe
lransaclion of saIe is chargealIe lo STT, shaII le suljecl lo lax al a rale of 1O per cenl (pIus appIicalIe
surcharge and educalion cess)

4) ExcmµtInn nf !nng tcrm caµIta! gaIn undcr 5cctInn 10(38)
According lo seclion 1O(38) of lhe Acl, Iong-lern, capilaI gains on saIe of equilv shares vhere lhe
lransaclion of saIe is chargealIe lo STT shaII le exenpl fron Tax.

5) ExcmµtInn nf !nng tcrm caµIta! gaIn undcr 5cctInn 54EC
Under seclion 54LC of lhe Acl and suljecl lo lhe condilions and lo lhe exlenl specified lherein, Iong-lern
capilaI gains (olher lhan lhose exenpl under seclion 1O(38) of lhe Acl) arising on lhe lransfer of shares of
lhe Conpanv vouId le exenpl fron lax if such capilaI gain is invesled vilhin 6 nonlhs afler lhe dale of
such lransfer in lhe londs (Iong lern specified assels) issued lv:

a. NalionaI Highvav Aulhorilv of India consliluled under seclion 3 of lhe NalionaI Highvav
Aulhorilv of India Acl, 1988:
l. RuraI LIeclrificalion Corporalion Liniled, lhe conpanv forned and regislered under lhe
Conpanies Acl, 1956.

If onIv parl of lhe capilaI gain is so reinvesled, lhe exenplion avaiIalIe shaII le in lhe sane proporlion as
lhe cosl of Iong lern specified assels lears lo lhe vhoIe of lhe capilaI gain. Hovever, in case lhe Iong
lern specified assel is lransferred or converled inlo nonev vilhin lhree vears fron lhe dale of ils
acquisilion, lhe anounl so exenpled shaII le chargealIe lo lax during lhe vear such lransfer or
conversion. The cosl of lhe Iong lern specified assels, vhich has leen considered under lhis Seclion for
caIcuIaling capilaI gain, shaII nol le aIIoved as a deduclion fron lhe incone-lax under Seclion 8OC of
lhe Acl for anv assessnenl vear leginning on or afler ApriI 1, 2OO6. Iurlher, lhe inveslnenl nade on or
afler 1
sl
dav of ApriI, 2OO7 in lhe alove specified assels lv an assessee during anv financiaI vear cannol
exceed C 5O Iakhs.

6) ExcmµtInn nf Lnng tcrm caµIta! gaIn undcr 5cctInn 54D
According lo lhe provisions of seclion 54LD of lhe Acl and suljecl lo lhe condilions specified lherein,
capilaI gains nol exenpl under seclion 1O(38) and arising fron lransfer of Iong lern assels, leing Iisled
securilies or unils shaII nol le chargealIe lo lax lo lhe exlenl such gains are invesled in acquiring equilv
shares forning parl of an ¨eIigilIe issue of share capilaI¨ vilhin six nonlhs fron lhe dale of lransfer of
lhe Iong lern assels (provided lhev are nol lransferred vilhin one vear of acquisilion). LIigilIe issue of
share capilaI has leen defined as an issue of equilv shares vhich salisfies lhe foIIoving condilions:

49


i. lhe issue is nade lv a pulIic conpanv forned and regislered in India: and
ii. lhe shares forning parl of lhe issue are offered for sulscriplion of lhe pulIic
iii. Hovever, if lhe alove specified shares are soId or olhervise lransferred vilhin a period of one
vear fron dale of ils acquisilion, lhe anounl of capilaI gains exenpled earIier vouId lecone
chargealIe lo lax as Iong lern capilaI gains in lhe vear in vhich lhe shares are soId or
olhervise lransferred.
iv. Where lhe lenefil of seclion 54LD has leen avaiIed of on inveslnenls in lhe equilv shares
forning parl of an eIigilIe issue of share capilaI, a deduclion fron lhe incone vilh reference
lo such cosl shaII nol le aIIoved under seclion 8OC of lhe Acl.

7) ExcmµtInn nf Lnng tcrm caµIta! gaIn undcr 5cctInn 54F
According lo lhe provisions of seclion 54I of lhe Acl and suljecl lo lhe condilions specified lherein, in
lhe case of an individuaI or HUI, gains arising on lransfer of a Iong lern capilaI assel (nol leing a
residenliaI house), olher lhan gains exenpl under seclion 1O(38), are nol chargealIe lo lax if lhe enlire
nel consideralion received on such lransfer is invesled vilhin lhe prescriled period in a residenliaI
house. If parl of such nel consideralion is invesled vilhin lhe prescriled period in a residenliaI house,
lhen such gains vouId nol le chargealIe lo lax on a proporlionale lasis. Ior lhis purpose, nel
consideralion neans fuII vaIue of lhe consideralion received or accrued as a resuIl of lransfer of lhe
capilaI assel as reduced lv anv expendilure incurred vhoIIv and excIusiveIv in conneclion vilh such
lransfer.

8) Tax Trcatv bcncfIts
A non-residenl inveslor has an oplion lo le governed lv lhe provisions of lhe Acl or lhe provisions of a
Tax Trealv lhal India has enlered inlo vilh anolher counlrv of vhich lhe inveslor is a lax residenl,
vhichever is nore leneficiaI.

V. TO FOREIGN IN5TITUTIONAL INVE5TOR5 ('FIIs')

1) DIvIdcnds cxcmµt undcr scctInn 10(34)
Dividends (vhelher inlerin or finaI) decIared, dislriluled or paid lv lhe Conpanv are exenpl in lhe
hand of sharehoIders as per lhe provisions of seclion 1O(34) read vilh Seclion 115-O of lhe Acl.

2) BcncfIts nn taxabI!Itv nf caµIta! gaIns
As per lhe provisions of seclion 115 AD of lhe Acl, IIIs viII le laxed on lhe capilaI gains lhal are nol
exenpl under seclion 1O(38) of lhe Acl al lhe foIIoving rales:

Naturc nf Incnmc Ratc nf Tax (%)
Long lern capilaI gains 1O
Shorl lern capilaI gains 3O

The alove lax rales vouId le increased lv lhe appIicalIe surcharge and educalion cess. The lenefils of
indexalion and foreign currencv fIuclualion proleclion as provided lv Seclion 48 of lhe Acl are nol
avaiIalIe lo IIIs. According lo Seclion 111A of lhe Acl, shorl-lern capilaI gains on saIe of equilv shares
vhere lhe lransaclion of saIe is chargealIe lo STT shaII le suljecl lo lax al a rale of 1O per cenl (pIus
appIicalIe surcharge and educalion cess).

3) ExcmµtInn nf Lnng tcrm caµIta! gaIn undcr 5cctInn 10(38)

50

According lo seclion 1O(38) of lhe Acl, Iong-lern capilaI gains on saIe of shares vhere lhe lransaclion of
saIe of shares is chargealIe lo STT shaII le exenpl fron lax.

4) ExcmµtInn nf Lnng tcrm caµIta! gaIn undcr 5cctInn 54EC
Under seclion 54LC of lhe Acl and suljecl lo lhe condilions and lo lhe exlenl specified lherein, Iong-lern
capilaI gains (olher lhan lhose exenpl under seclion 1O(38) of lhe Acl) arising on lhe lransfer of shares of
lhe Conpanv vouId le exenpl fron lax if such capilaI gain is invesled vilhin 6 nonlhs afler lhe dale of
such lransfer in lhe londs (Iong lern specified assels) issued lv:

a. NalionaI Highvav Aulhorilv of India consliluled under seclion 3 of The NalionaI Highvav
Aulhorilv of India Acl, 1988:
l. RuraI LIeclrificalion Corporalion Liniled, lhe conpanv forned and regislered under lhe
Conpanies Acl, 1956.

If onIv parl of lhe capilaI gain is so reinvesled, lhe exenplion avaiIalIe shaII le in lhe sane proporlion as
lhe cosl of Iong lern specified assels lears lo lhe vhoIe of lhe capilaI gain. Hovever, in case lhe Iong
lern specified assel is lransferred or converled inlo nonev vilhin lhree vears fron lhe dale of ils
acquisilion, lhe anounl so exenpled shaII le chargealIe lo lax during lhe vear such lransfer or
conversion. The cosl of lhe Iong lern specified assels, vhich has leen considered under lhis Seclion for
caIcuIaling capilaI gain, shaII nol le aIIoved as a deduclion fron lhe incone-lax under Seclion 8OC of
lhe Acl for anv assessnenl vear leginning on or afler ApriI 1, 2OO6. Iurlher, lhe inveslnenl nade on or
afler 1
sl
dav of ApriI, 2OO7 in lhe alove specified assels lv an assessee during anv financiaI vear can nol
exceed C 5O Iakhs.

5) As per seclion 9O(2) of lhe Acl, provisions of lhe DoulIe Taxalion Avoidance Agreenenl lelveen
India and lhe counlrv of residence of lhe III vouId prevaiI over lhe provisions of lhe Acl lo lhe
exlenl lhev are nore leneficiaI lo lhe III.

6) Tax Trcatv bcncfIts
A non-residenl inveslor has an oplion lo le governed lv lhe provisions of lhe Acl or lhe provisions of a
Tax Trealv lhal India has enlered inlo vilh lhe counlv in vhich lhe inveslor is a lax residenl, vhichever
is nore leneficiaI.

VI. TO APPROVED INFRA5TRUCTURE CAPITAL FUND5/ COMPANIE5/ CO-OPERATIVE
BANK5

1) DIvIdcnds cxcmµt undcr 5cctInn 10(34)
Dividends (vhelher inlerin or finaI) decIared, dislriluled or paid lv lhe Conpanv are exenpl in lhe
hands of sharehoIders as per lhe provisions of seclion 1O(34) read vilh Seclion 115-O of lhe Acl.

2) ExcmµtInn nf !nng tcrm caµIta! gaIn undcr 5cctInn 10(38)
According lo seclion 1O(38) of lhe Acl, Iong-lern capilaI gains on saIe of shares vhere lhe lransaclion of
saIe is chargealIe lo STT shaII le exenpl fron Tax.

VII. TO MUTUAL FUND5

1) DIvIdcnds cxcmµt undcr 5cctInn 10(34)

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Dividends (vhelher inlerin or finaI) decIared, dislriluled or paid lv lhe Conpanv are exenpl in lhe
hands of sharehoIders as per lhe provisions of seclion 1O(34) read vilh Seclion 115-O of lhe Acl.

2) ExcmµtInn nf Incnmc undcr 5cctInn 10(23D)
As per lhe provisions of Seclion 1O(23D) of lhe Acl, anv incone of MuluaI Iunds regislered under lhe
Securilies and Lxchange ßoard of India Acl, 1992 or ReguIalions nade lhere under, MuluaI funds sel up
lv pulIic seclor lanks or pulIic financiaI inslilulions and MuluaI Iunds aulhorised lv lhe Reserve ßank
of India vouId le exenpl fron incone lax, suljecl lo lhe condilions as lhe CenlraI Covernnenl nav lv
nolificalion in lhe OfficiaI Cazelle specifv in lhis lehaIf.

VIII. TO VENTURE CAPITAL COMPANIE5 / FUND5

1) DIvIdcnds cxcmµt undcr 5cctInn 10(34)
Dividends (vhelher inlerin or finaI) decIared, dislriluled or paid lv lhe Conpanv are exenpl in lhe
hands of sharehoIders as per lhe provisions of seclion 1O(34) read vilh Seclion 115-O of lhe Acl.

2) In lerns of seclion 1O(23Iß) of lhe Acl, aII Venlure capilaI conpanies/funds regislered vilh
Securilies and Lxchange ßoard of India, suljecl lo lhe condilions specified, are eIigilIe for exenplion
fron incone lax on aII lheir incone, incIuding profil on saIe of shares of lhe Conpanv.

A. BENEFIT5 AVAILABLE UNDER THE WEALTH-TAX ACT, 1957

ExcmµtInn frnm Wca!th Tax
Assel as defined under Seclion 2(ea) of lhe WeaIlh lax Acl, 1957 does nol incIude shares in conpanies
and hence, shares are nol IialIe lo veaIlh Tax.

B. BENEFIT5 AVAILABLE UNDER THE GIFT-TAX ACT, 1958

ExcmµtInn frnm GIft Tax
Cifl lax is nol IialIe in respecl of anv gifls nade on or afler Ocloler 1, 1998. Therefore, anv gifl of shares
viII nol allracl gifl lax. Hovever in lhe hands of Donee lhe sane viII le lrealed as lhe incone unIess lhe
Cifl is fron reIalive as defined under LxpIanalion lo seclion 56(vi) of lhe Incone Tax Acl.

Thc abnvc 5tatcmcnt nf µnssIb!c dIrcct tax bcncfIts scts nut thc µrnvIsInns nf !aw In a summarv
manncr nn!v and Is nnt a cnmµ!ctc ana!vsIs nr !IstIng nf a!! µntcntIa! tax cnnscqucnccs nf thc
µurchasc, nwncrshIµ and dIsµnsa! nf cquItv sharcs. Thc statcmcnts madc abnvc arc bascd nn thc tax
!aws In fnrcc and as Intcrµrctcd bv thc rc!cvant taxatInn authnrItIcs as nf datc. Invcstnrs arc advIscd tn
cnnsu!t thcIr tax advIsnrs wIth rcsµcct tn thc tax cnnscqucnccs nf thc µurchasc, nwncrshIµ and
dIsµnsa! nf cquItv sharcs.


52

5ECTION IV - ABOUT THE COMPANY

INDU5TRY OVERVIEW

Tnc infcrma|icn in |nis scc|icn a|cu| |T Ditisicn is úcritcú frcm ´NASSCOM S|ra|cgic Rcticu 2010´ anú a|cu|
Mcúia c |n|cr|ainmcn| Ditisicn frcm ||CC|-KPMG |núian Mcúia c |n|cr|ainmcn| |núus|ru Rcpcr| - 2010. Ic
natc nc| tcrificú cr a||cmp|cú |c tcrifu |nis infcrma|icn. |núus|ru scurccs anú pu||ica|icns gcncra||u s|a|c |na| |nc
infcrma|icn ccn|aincú |ncrcin nas |ccn c||aincú frcm scurccs gcncra||u |c|ictcú |c |c rc|ia||c. |u| |ncir accuracu.
ccmp|c|cncss anú unúcr|uing assump|icns arc nc| guaran|ccú anú |ncir rc|ia|i|i|u cannc| |c assurcú. Acccrúing|u.
intcs|mcn| úccisicns sncu|ú nc| |c |ascú |c an unúuc cx|cn| cn sucn infcrma|icn. |núus|ru scurccs anú
pu||ica|icns arc a|sc prcparcú |ascú cn infcrma|icn anú cs|ima|cs as cf spccific úa|cs anú mau nc |cngcr |c currcn|.
Tnc úa|a mau natc |ccn rc-c|assificú |u us fcr |nc purpcsc cf prcscn|a|icn.

Thc InfnrmatInn Tcchnn!ngv - BusIncss Prnccss OutsnurcIng 5cctnr (IT-BPO)
Over lhe pasl decade, lhe Indian IT-ßIO seclor has lecone lhe counlrv´s prenier grovlh engine,
crossing significanl niIeslones in lerns of revenue grovlh, enpIovnenl generalion and vaIue crealion,
in addilion lo leconing lhe gIolaI lrand anlassador for India. Hovever, lhe induslrv perfornance vas
affecled lv lhe recessionarv headvinds as lhe cIienls cul lheir IT ludgels, canceIIed deaIs, deIaved
pavnenls and deaIs, venl lankrupl vhiIe olhers renegolialed pricing, Iooking for severe pricing culs
and slrelching lhe doIIar. Year 2OO9 vas inslrunenlaI for nore vavs lhan one for lhe induslrv. WhiIe lhe
induslrv dispIaved lenacilv and resiIience, il aIso connenced ils journev lo achieve ils aspiralions in
viev of lhe aIlered Iandscape. Il connenced vorking on ils agenda lo diversifv levond core offerings
and narkels lhrough nev lusiness and pricing nodeIs, speciaIise lo provide end-lo-end service
offerings vilh deeper penelralion across verlicaIs, lransforn lhe process deIiverv lhrough re-engineering
and enalIing lechnoIogv, innovale lhrough research and deveIopnenl and drive incIusive grovlh in
India lv deveIoping largeled soIulions for lhe doneslic narkel. AII lhese neasures, aIong vilh India´s
gane changing vaIue proposilion has heIped India viden ils Ieadership posilion in lhe gIolaI sourcing
narkel.

G!nba! 5nurcIng Trcnds
WorIdvide lechnoIogv producls and services reIaled spend is eslinaled lo reach USD 1.5 lriIIion in 2OO9,
a decIine of 2.9 per cenl over 2OO8. WorIdvide hardvare narkels vere hil vorse lhan soflvare or service
narkels as a resuIl of lhe changing econonic oulIook, vilh aInosl 8 per cenl decIine in 2OO9 versus 2OO8.
Corporalions exlended lheir hardvare IifecvcIe and deIaved pIans for nev hardvare acquisilions, aIso
curlaiIing lheir discrelionarv spend. Hovever gIolaI corporalions Ieveraged IT lo drive organisalion
vide efficiencies, lransfornalion and nev lusiness nodeIs. WhiIe ßIO grovlh noderaled on accounl of
Iover lransaclion voIunes, overaII IT spend vas IargeIv driven lv a revivaI in Norlh Anerica and ßISI,
aIong vilh increased adoplion in energing narkels such as AIAC and relaiI/heaIlhcare. A dvnanic
second haIf of lhe vear nade up for lhe lepid firsl haIf for oulsourcing conlracls.

IndIan IT-BPO Pcrfnrmancc
The induslrv is eslinaled lo aggregale revenues of USD 73.1 liIIion in IY2O1O, vilh lhe IT soflvare and
services induslrv accounling for USD 63.7 liIIion of revenues. During lhis period, direcl enpIovnenl is
expecled lo reach nearIv 2.3 niIIion, an addilion of 9O,OOO enpIovees, vhiIe indirecl jol crealion is
eslinaled al 8.2 niIIion. As a proporlion of nalionaI CDI, lhe seclor revenues have grovn fron 1.2 per
cenl in IY1998 lo an eslinaled 6.1 per cenl in IY2O1O. Ils share of lolaI Indian exporls (nerchandise pIus
services) increased fron Iess lhan 4 per cenl in IY1998 lo aInosl 26 per cenl in IY2O1O.

53

Exµnrts markct: Lxporl revenues are eslinaled lo gross USD 5O.1 liIIion in IY2O1O, groving lv 5.4 per
cenl over IY2OO9, and conlriluling 69 per cenl of lhe lolaI IT-ßIO revenues. Soflvare and services
exporls (incIuding ßIO) are expecled lo accounl for over 99 per cenl of lolaI exporls, enpIoving around
1.8 niIIion enpIovees.

• GcngraµhIc fncus: The vear vas characlerised lv a slrong revivaI in lhe US, vhich increased ils
share lo 61 per cenl. Lnerging narkels of Asia Iacific aIso conlriluled significanlIv lo overaII
grovlh.
• VcrtIca! markcts: The induslrv´s verlicaI narkel nix is veII laIanced across severaI nalure and
energing seclors. Year 2OO9 sav increased adoplion of oulsourcing fron nol onIv lhe liggesl
segnenl i.e., lhe ßanking, IinanciaI Services and Insurance (ßISI), lul aIso nev energing verlicaIs
of relaiI, heaIlhcare and uliIilies.
• 5crvIcc !Incs: The IT Services segnenl aggregaled exporl revenues of USD 27.3 liIIion, accounling
for 55 per cenl of lolaI exporls. Indian IT service offerings have evoIved fron appIicalion
deveIopnenl and nainlenance, lo energe as fuII service pIavers providing lesling services,
infraslruclure services, consuIling and svslen inlegralion. Wilhin lhal, IT oulsourcing exhililed a
slrong grovlh, in Iine vilh lhe gIolaI lrend, driven lv increased spend in lhe renole infraslruclure
nanagenenl, appIicalion nanagenenl, lesling and SOA segnenls. Iurlher, cIoud conpuling look
cenlre slage lhis vear, as il offered cIienls access lo lesl-in-cIass process nanagenenl al reduced
capilaI expendilure IeveIs.

DnmcstIc markct: Doneslic IT-ßIO revenues are expecled lo grov al aInosl 8.5 per cenl lo reach INR
1,O88 liIIion in IY2O1O. Rise of Indian corporalions facing conpelilive narkel condilions lhrough an
increasingIv gIolaIised Indian narkel, increased spend lv lhe governnenl in severaI e-Covernance
inilialives, enhanced conneclivilv and increased IeveIs of IT spending are kev faclors, vhich nake lhe
doneslic narkel Iucralive lodav. CoupIed vilh lhe facl lhal conpanies are Iooking lo inprove
conpeliliveness lv adopling gIolaI lesl praclices, Ieverage cuslonised service offerings and nev
deIiverv nodeIs such as SaaS, vhich ensures grealer cosl savings. Doneslic IT services is expecled lo
grov lv 12 per cenl in IY2O1O. WhiIe hardvare spend is IargeIv expecled lo renain fIal in IY2O1O, an
inninenl hardvare refresh cvcIe viII posiliveIv inpacl revenues nexl vear. The doneslic ßIO segnenl
has conlinued ils slrong perfornances over lhe pasl fev vears, groving lv 22 per cenl over IY2OO9, lo
reach INR 1O8 liIIion, driven lv Iarge deaIs in lhe leIecon and ßISI space.

IT-BPO Va!uc PrnµnsItInn
AvaiIaliIilv of quaIilv laIenl al cosl effeclive rales, rapidIv deveIoping infraslruclure, an enalIing
innovalion environnenl, supporlive reguIalorv poIicies, and a posilive overaII lusiness environnenl are
aII cenlraI piIIars of India´s vaIue proposilion.
• Lnw cnst nf dc!Ivcrv - India offers lhe Iovesl cosl of deIiverv as conpared lo olher off shore
Iocalions, vilh Tier-I Iocalions offering savings of ~7O per cenl over source Iocalions, Tier-II/III
cilies in India offer a sliII Iarger lenefil.
• HIgh ca!Ibrc ta!cnt µnn! - AvaiIaliIilv of skiIIed laIenl has leen India´s forenosl allraclion as a
gIolaI sourcing counlrv. India´s graduale oullurn has nore lhan doulIed in lhe pasl decade, vilh
addilion of 3.7 niIIion graduales in IY2O1O, a scaIe unnalched lv anv olher counlrv. WhiIe sone
gaps in laIenl suilaliIilv exisl, lhev are leing addressed lhrough slrong provider-IeveI inilialives
and induslrv-Ied progrannes.
• Rnbust µrnccss dc!Ivcrv - The induslrv has leen exlreneIv quaIilv focused, vilh India lased
cenlres accounling for lhe Iargesl nunler of quaIilv cerlificalions achieved lv anv counlrv. The

54

induslrv has aIso sel slandards in lhe eslalIishnenl and nainlenance of lesl praclices in corporale
governance, and Ieads in cusloner salisfaclion.
• BusIncss cnvIrnnmcnt and Infrastructurc - TineIv governnenl poIicies and increased pulIic
privale parlicipalion have pIaved a kev roIe in deveIoping an enalIing lusiness environnenl for lhe
Indian IT-ßIO seclor. India´s slrong educalion franevork ensured anpIe suppIv of lechnicaI and
non lechnicaI laIenl, vhiIe lhe eslalIishnenl of Soflvare TechnoIogv Iarks of India (STII), and Ialer
SLZs provided an enalIing ecosvslen for lhe induslrv lo fIourish. Infraslruclure deveIopnenl has
leen addressed lv lolh pulIic and privale seclor, Ieading lo lhe deveIopnenl of vorId cIass
faciIilies in seIecl cilies.
• GrnwIng IndIan markct - India has lecone, in purchasing pover parilv lerns, lhe fourlh Iargesl
econonv in lhe vorId. India´s econonic grovlh since 198O has leen rapid. ReaI average househoId
incone has roughIv doulIed since 1985. Wilh rising incones, househoId consunplion has soared
and a nev niddIe cIass has energed. Il is expecled lhal India viII go lhrough a najor
lransfornalion over lhe nexl decade and energe as lhe fiflh Iargesl consuner narkel provided il
conlinues ils high grovlh palh.
• TransfnrmatInna! caµabI!ItIcs - The induslrv has leen enhancing ils aliIilies lo lransforn cIienl
lusinesses lhrough increased R&D spend, focus on II crealion, deveIopnenl of nev lechnoIogies
incorporaling process and lusiness nodeI innovalion and increased donain experlise.
• G!nba! fnntµrInt - Increased focus on gIolaI deIiverv has required lhe induslrv lo enhance ils gIolaI
foolprinl, vhich has in lurn heIped lhe induslrv reach oul lo nev cusloner segnenls and offer nev
services. Over lhe Iasl lvo vears, lhere has leen a 32 per cenl increase in lhe nunler of gIolaI
deIiverv cenlres vilh oulreach expanding lo 12 nev counlries.
• Fncus nn sustaInab!c grnwth - Coing green has lecone lhe nollo of lhe induslrv as il seeks lo
deveIop a lusiness nodeI lhal is nol onIv conpelilive lul suslainalIe vilh nininun ecoIogicaI
inpacl.

Imµact nf IT-BPO 5cctnr nn IndIa
The inpacl of lhe IT-ßIO seclor is nuIli-pronged as eIucidaled leIov:
• CnntrIbutInn tn IndIa's ccnnnmv - In addilion lo a high conlrilulion lo lhe counlrv´s CDI and
share of exporls, lhe induslrv and enpIovees conlrilule aloul USD 4.2 liIIion lo lhe exchequer.
AddilionaIIv, lhe dovnslrean effecl of lhe induslrv´s operaling and capilaI expendilure vas
eslinaled lo le around USD 3O liIIion, vhiIe consuner spending effecl fron ils enpIovees
anounled lo USD 21 liIIion in IY2OO9.
• Enab!Ing rcgInna! dcvc!nµmcnt - AIso, lhe induslrv has pIaved a kev roIe in regionaI deveIopnenl
vilh IT-ßIO inlensive slales accounling for over 14 per cenl of respeclive slale CDIs, vilh 58 per
cenl of engineering graduales, and 62 per cenl of engineering coIIeges. IT-ßIO inlensive slales have
1OO per cenl higher lroadland penelralion and 5O per cenl higher leIe-densilv lhan lhe India
average, and aIso accounl for 75 per cenl of SLZs.
• EmµnwcrIng dIvcrsc human asscts - The induslrv has pIaved ils parl in enpovering a diverse sel
of hunan assels - 3O per cenl of enpIovnenl in lhe age group 18-25 vrs, 4 per cenl of enpIovnenl
for econonicaIIv lackvard peopIe, over 3O per cenl of lolaI enpIovee lase are vonen, 6O per cenl
of conpanies offer enpIovnenl lo differenlIv-alIed peopIe, vhiIe 58 per cenl of lolaI enpIovnenl
are originaIIv fron Tier-II/III cilies.
• Enab!Ing cnvIrnnmcnt fnr InnnvatInn - The induslrv has leen al lhe forefronl of crealing an
enalIing environnenl for innovalion, vilh a 29 foId increase in palenls over IY2OO5-IY2OO8, and
average R&D spend of ~1 per cenl of revenues.

55

• EnhancIng thc brand Imagc nf IndIa - The induslrv has pIaved a kev roIe in enhancing lhe lrand
inage of India, lv accounling for over 1O per cenl of lolaI IDI in lhe Iasl decade, over 2OO cross
lorder acquisilions lelveen IY2OO5-IY2OO9, and eslalIishnenl of over 9OO MNC caplives in lhe Iasl
decade.
• FacI!ItatIng sncIa! dcvc!nµmcnt - The induslrv has inliled a slrong sense of sociaI responsiliIilv
vilh over USD 5O niIIion spenl in IY2OO9 lovards CSR aclivilies nainIv focused on educalion,
heaIlh avareness and ecoIogicaI deveIopnenl.

Futurc Out!nnk
The leginning of lhe nev decade heraIds lhe sIov, lul sleadv end of lhe vorsl recession in lhe pasl 6O
vears. CIolaI CDI, afler decIining lv 1.1 per cenl in 2OO9, is expecled lo increase lv 3.1 per cenl in 2O1O,
and 4.2 per cenl in 2O11, vilh deveIoping econonies groving lhrice as fasl as lhe deveIoped econonies.
Inproving econonic condilions signifving relurn of consuner confidence and renevaI of lusiness
grovlh, is expecled lo drive IT spending going forvard.

IT services is expecled lo grov lv 2.4 per cenl in 2O1O, and 4.2 per cenl in 2O11 as conpanies coning oul
of recession harness lhe need for infornalion lechnoIogv lo creale conpelilive advanlage. Organisalions
nov recognise IT´s conlrilulion lo econonic perfornance exlending levond nanaging expendilures.
Thev expecl IT lo pIav a roIe in reducing enlerprise cosls, nol nereIv vilh cosl culling lul lv changing
lusiness processes, vorkforce praclices and infornalion use. Movenenl lovard SaaS and cIoud
conpuling, shared services, and nore seIeclive oulsourcing viII lake firner shape as near-lern priorilies
lo address conslrained IT ludgels.

Covernnenl IT spending conlinues lo rise across lhe vorId, focusing on infraslruclure, and securilv.
Olher areas of spending incIude ßIM, dala nanagenenl, on denand LRI, virluaIisalion, and efforls lo
increase and deIiver enlerprise nanaged services on II nelvorks. ßusiness process oulsourcing
spending in 2O1O is expecled lo le increasingIv driven lv I&A segnenl and procurenenl, foIIoved lv
HR oulsourcing. Iroviders viII increase lheir focus on deveIoping pIalforn ßIO soIulions across
verlicaIs and services. Crovlh in oulsourcing is expecled lo supersede overaII IT spend reaffirning ils
polenliaI lo nol onIv supporl shorl lern, laclicaI goaIs of cosl savings, lul aIso Iong lern advanlages of
increased conpeliliveness, efficiencies and access lo energing narkels. Wilhin oulsourcing, off shoring
viII see increased acceplance as off shore lased providers grov and lradilionaI service providers ranp
up off shore deIiverv capaliIilies.

Lven lhough India has a 51 per cenl narkel share of lhe off shoring narkel, lhere is lrenendous
headroon for grovlh as currenl off shoring narkel is sliII a snaII parl of lhe oulsourcing induslrv.
Significanl opporlunilies exisl in core verlicaI and geographic segnenls of ßISI and US, and energing
geographies and verlicaI narkels such as Asia Iacific, relaiI, heaIlhcare and governnenl respecliveIv.

DeveIopnenl of lhese nev opporlunilies can lripIe lhe currenl addressalIe narkel, and can Iead lo
Indian IT-ßIO revenues of USD 225 liIIion lv 2O2O. The induslrv aIso has lhe polenliaI lo lransforn
India lv harnessing lechnoIogv for incIusive grovlh.

Hovever, reaIisalion of lhis polenliaI viII invoIve niligalion of severaI chaIIenges lhal India faces
currenlIv. Cosls are expecled lo rise vilh vage infIalion and increased allrilion. WhiIe India has anpIe
suppIv of laIenl, il is IargeIv lrainalIe in nalure, nol enpIovalIe. This Ieads lo increnenlaI lraining cosls
and increased dovnline for lhe induslrv, vhich is chaIIenging keeping in nind quaIilv laIenl
avaiIaliIilv in conpeling counlries. CurrenlIv, over 9O per cenl of lolaI revenues are generaled fron lhe

56

seven Tier-I Iocalions, vhich are nearing peak capacilies in lerns of infraslruclure supporl. India has lo
quickIv deveIop olher deIiverv Iocalions lo achieve ils 2O2O vision. There are concerns around securilv -
lolh phvsicaI and dala reIaled, in service deIiverv, vhich vouId need lo le addressed. Currencv
fIuclualions have aIso denled India´s conpeliliveness, and sleps need lo le laken lo address India´s
increased risk perceplion. A kev inpacl of lhe recession has leen lhe rise of proleclionisl senlinenls in
najor narkels for lhe induslrv. The inpending disconlinualion of fiscaI incenlives and frequenl changes
in fiscaI reguIalions are naking lhe lusiness environnenl nore chaIIenging. Lasl lul nol lhe Ieasl, a
nunler of nev oulsourcing deslinalions seeking lo enuIale India´s success have energed, offering
nuIlipIe fiscaI and lraining incenlives, naking lhen cosl conpelilive.

Concerled aclion lv aII slakehoIders around leIov paranelers is required lo caplure lhe opporlunilies
and niligale fulure risks. In doing so, slakehoIders (induslrv, NASSCOM and lhe governnenl) viII need
lo acl logelher in an unprecedenled nanner:

• Cata!vsIng grnwth bcvnnd tndav's cnrc markcts: ßreaking ground in nev narkels (verlicaIs,
geographies, segnenls) lhrough reinvenled offerings and lusiness nodeIs.
• Estab!IshIng IndIa as a trustcd g!nba! hub fnr µrnfcssInna! scrvIccs: ßuiIding a conducive lusiness
environnenl (inproved infraslruclure, pulIic services, corporale governance, and securilv) and a
slrong gIolaI inage. This viII require lhe slakehoIders lo address risk issues associaled vilh India,
and nake serious eff orls lo luiId a slrong gIolaI lrand.
• HarncssIng ICT fnr Inc!usIvc grnwth: SlinuIaling incIusion of cilizens lv enalIing lechnoIogv Ied
soIulions in heaIlhcare, financiaI services, educalion and pulIic services, Ieading lo increased
conneclivilv, inproved sofl infraslruclure, and a laIanced regionaI deveIopnenl.
• Dcvc!nµIng a hIgh ca!Ibrc ta!cnt µnn!: ßridging a cruciaI laIenl gap lv addressing gaps in lerliarv
educalion, al lhe sane line fueIIing efforls lo upgrade curricuIun, facuIlv and lraining
nelhodoIogies.
• BuI!dIng a µrc-cmIncnt InnnvatInn hub In IndIa: Lncouraging inleIIecluaI properlv, eslalIishing
dislinclive capaliIilies and fueIIing enlrepreneurship.

India´s lechnoIogv and lusiness services induslrv has fIourished in lhe Iasl decade. A lrighl fulure Iies
ahead and lhe induslrv has nuch lo Iook forvard lo, vilh lhe polenliaI lo quadrupIe ils revenues over
lhe nexl decade. SeveraI nacro-econonic and sociaI lrends viII supporl lhe rise of lhe IT-ßIO seclor in
lhe fulure, in core and energing narkels.

Hovever, il is inperalive for induslrv slakehoIders lo lreak oul of lhe lradilionaI nouId lhal resuIled in
pasl successes and slep up lo lhe aspiralions of lhe fulure. This vouId need nev lusiness nodeIs,
reinvenled service offerings and an enalIing environnenl supporled lv adequale IeveIs of infraslruclure
and laIenl. India faces serious conpelilion fron olher gIolaI sourcing Iocalions, and lo relain ils
advanlage, concerled efforl is needed lv aII slakehoIders. DeveIopnenl of Tier-II/III cilies lo supporl
najor deIiverv Iocalions is an inperalive, aIong vilh upgrading lhe overaII quaIilv of laIenl pooI.

The governnenl needs lo conlinue nurluring lhis induslrv vilh incenlives and a sinpIified lax slruclure
lhal viII pronole inveslnenls, and aIso viII need lo drive lhe doneslic induslrv lv spending on e-
Covernance projecls.

McdIa & EntcrtaInmcnt Industrv (M&E)
The overaII M&L induslrv size grev fron INR 579 liIIion in 2OO8 lo INR 587 liIIion al a rale of 1.4
percenl. The grovlh rale is expecled lo increase lo ~11.2 percenl in 2O1O, as lhe induslrv vilnesses a

57

recoverv. The CACR fron 2OO6 lo 2OO9 has renained al 1O percenl and lhe induslrv is expecled lo grov
al a rale of 13 percenl in nexl five vears.

M&E Industrv
(INR bI!!Inn)
2006 2007 2008 2009 CAGR
(2006-09)
2010
P
2011
P
2012
P
2013
P
2014
P
CAGR
(2009-14)
FI!ms 78 93 1O4 89 5° 96 1O5 115 125 137 9°
Tc!cvIsInn 183 211 241 257 12° 289 337 382 448 521 15°
PrInt 139 16O 172 175 8° 19O 2O6 225 246 269 9°
RadIn 6 7 8 8 9° 9 1O 12 14 16 16°
MusIc 8 7 7 8 2° 9 1O 12 14 17 16°
AnImatInn & VFX 12 14 17 2O 18° 23 28 33 39 47 19°
GamIng 3 4 7 8 38° 1O 14 2O 26 32 32°
Intcrnct 2 4 6 8 56° 11 15 18 23 29 3O°
Outdnnr 12 14 16 14 5° 15 17 19 21 24 12°
Tnta! 5Izc 443 516 579 587 10% 652 742 835 956 1091 13%
´P´ s|anús fcr prcjcc|cú.

Our Conpanv caler lo lhe IiIns and Aninalion & VIX seclor of lhe M&L induslrv vilh lhe posl-
produclion vork. WhiIe lhe fiIned enlerlainnenl seclor had grovn lv over 15 percenl lelveen 2OO6 and
2OO8, vear 2OO9 vilnessed a significanl de-grovlh for lhe induslrv. In 2OO9 lhe induslrv is eslinaled lo
have decIined lv nearIv 14 percenl lo INR 89.3 liIIion fron INR 1O4.4 liIIion in 2OO8. This vas IargeIv on
accounl of Iover doneslic lhealricaI coIIeclions in 2OO9 conpared lo lhe previous vear. Though lhe
previous vear vilnessed a decIine for lhe fiIned enlerlainnenl induslrv, lhe lrend is IikeIv lo reverse in
2O1O lo grov al a CACR of 8.9 percenl lo reach INR 136.7 liIIion lv 2O14. In 2OO9, lhe Indian aninalion
induslrv conlinued lo reIv on oulsourced vork and co-produclion deaIs lhal Ied lo a grovlh rale of
approxinaleIv 9 percenl over 2OO8. The Aninalion and VIX induslrv has seen an overaII grovlh of 13.6
percenl over 2OO8 and is expecled lo grov al a CACR of 18.7 percenl in lhe coning vears lo reach INR
46.6 liIIion lv 2O14 driven lv increased consunplion of aninaled conlenl, crealion of gIolaI II fornals,
acceplance of 3D graphics and venluring inlo inlernalionaI narkels.

(Scurcc. ||CC|-KPMG |núian Mcúia c |n|cr|ainmcn| |núus|ru Rcpcr| - 2010)

58


OUR BU5INE55

We are a lechnoIogv lased conpanv focussing on lhe seclors such as Infornalion TechnoIogv securilv
and conpIiance aulonalion soflvare soIulions and lechnoIogv reIaled lo nedia & enlerlainnenl
induslrv vilh focus on Research & DeveIopnenl.

Currenl lusiness operalions consisl of Infornalion TechnoIogv ßased SoIulions-RIID & Snarl Card and
DigilaI Iosl Iroduclion Sludio (DigilaI Iosl-Iroduclion Sludio al Andheri Wesl, Munlai naneIv ¨ßCIL
Sludio¨). We have in-house deveIoped soflvare LRI producl, cuslonized soflvare deveIopnenl,
lraining, consuIlancv, lrading, aninalion and RIID lased soIulion. We deveIop snaII aninaled capsuIes
for various projecls of lhe cIienls. We aIso design & deveIop WAI enalIed producls for cIienls and
nainIv focus on luiIding RIID lechnoIogv. We have received ISO9OO1:2OO8 cerlificale of conpIiance in
respecl of IT lased safelv securilv and aulonalion producls/soIulions.

Our Cnmµanv currcnt!v fncuscs nn thc fn!!nwIng busIncss arcas:

A. InfnrmatInn Tcchnn!ngv bascd sn!utInns:
We have designed our producls and services lo provide aulonaled soIulion lhal heIps enlerprises lo
neel lhe chaIIenges of naking IT infraslruclure secure and conpIianl. Our soIulion provides visiliIilv
across lhe IT infraslruclure, inleIIigenlIv idenlifies securilv lhreals and conpIiance lreaches, and
aulonales securilv and conpIiance processes lo reduce risk. We have lolaI of 32 Radio Irequencv
Idenlificalion soIulions, oul of vhich ve gol regislralion for 8 soIulions fron Covernnenl of India,
Copvrighl office and six appIicalions are pending vilh lhe concerned aulhorilv.

Safelv, Securilv & Aulonalion svslen ensures undislurled and safe operalions. Il enconpasses securilv
of assels and prenises fron dala Ioss, lerrorisn, or salolage lv providing lhe inlegraled phvsicaI &
IogicaI securilv soIulions. Il faciIilales in noniloring lhe novenenl of peopIe and assels of an
organizalion.

In Safelv, Securilv & Aulonalion, ve anaIvse, evaIuale, design, inpIenenl and nainlain a coherenl sel
of processes and svslens for effecliveIv nanaging infraslruclure safelv and securilv. As vilh aII
nanagenenl processes, safelv and securilv nanagenenl renains effeclive and efficienl in lhe Iong lern,
adapling lo change in lhe inlernaI organizalion and exlernaI environnenl. We sland for proleclion
againsl unaulhorized access fron lolh inside and oulside lhe conpanv.

Our !ncatInn
Our exisling IT division operales fron ß-6O, Seclor-57 Noida, Ullar Iradesh and C-Wing, AnaIlas
Aparlnenls, Iuhu Versova Link Road, Andheri (Wesl), Munlai. Our DigilaI Iosl Iroduclion Sludio is
aIso Iocaled al C-Wing, AnaIlas Aparlnenls, Iuhu-Versova Link Road, Andheri (Wesl), Munlai. Our
Regislered Office is Iocaled al 623, 6
lh
fIoor, Devika Tover, 6, Nehru IIace, Nev DeIhi.

Tcchnn!ngv
The IT division of our Conpanv has deveIoped producls in house in ils R&D cenlre in Noida using
Radio Irequencv Idenlificalion (RIID) lechnoIogv. RIID is our kev lechnoIogv and used for
idenlificalion and lracking of lhe idenlilv, Iocalion and condilions of assels, looIs, invenlorv, peopIe
using radio vaves.

59

Radio Irequencv Idenlificalion (RIID) uses speciaI dala carriers, or lags, lo hoId dala. Readers use RI
signaIs lo connunicale vilh lhe lags. CeneraIIv, range, Dala Transfer Rale (DTR), and lhe danpening
effecls of overIving naleriaIs increase vilh frequencv.

RFID svstcms arc currcnt!v bcIng uscd fnr:

• LIeclronic arlicIe surveiIIance (LAS):
• InlernodaI conlainer idenlificalion:
• RaiI and lruck roIIing slock idenlificalion:
• AninaI (Iiveslock and doneslic) idenlificalion:
• Aulonaled Iiveslock feeding slalions:
• IIexilIe nanufacluring (lracking and conlroI):
• Culling looI idenlificalion:
• Assel idenlificalion:
• Laundrv lracking:
• VehicIe idenlificalion / access conlroI:
• Aulonaled delil or credil cards (gasoIine):
• Aulonaled loII coIIeclion:
• IersonneI idenlificalion / access conlroI.

The advanlages of RIID lechnoIogv are reading/vriling capaliIilies or pernanenl (non-erasalIe) ID:
Non-conlacl, non-Iine-of-sighl reading: VirluaI innunilv fron olscuring painl, dirl, grease, elc.,
(depending on frequencv): Aulonalic operalion: Lov cosl-per-use: Wide range of lag oplions: Range lo
1OO feel: Reading speeds lo 6O nph: high dala inlegrilv: and difficuIl lo counlerfeil.

We provide differenl kind of cIienl lased soIulions vhich are as under:
• Trafflc Englneerlng incIudes Iarking Managenenl Svslen, Iarking Cuidance Svslen, ToII
Managenenl Svslen, Aulonalic VehicIe Counler-cun-CIassifier Svslen, License IIale
recognilion Svslen, VehicIe SurveiIIance Svslen elc.
• |acl|ltµ Management incIudes Snarl Canpus Svslen, Visilor Managenenl Svslen, Canleen
Managenenl Svslen, Assel Tracking Svslen, Laplop Tracking Svslen, IiIe Tracking Svslen,
Lighling Managenenl Svslen, CCTV (Access ConlroI, Ierineler Iencing) elc.
• Personne| Management incIudes LnpIovee Tracking Svslen, Tine-Allendance Svslen, Lilrarv
Aulonalion & Managenenl Svslen, and Sludenl Infornalion Svslen elc.
• Custom so|utlons incIudes Aulonaled ßinning Svslen, ßCIL´s InleIIigenl Converlers, CSM
lased Masl or I/O ConlroIIers, CSM Logic ConlroIIer, ßoon ßarriers, Loop Deleclors, LLD
IaneIs (singIe/nuIli Iine), olher cuslonizalIe Converlers, Counlers and Tickel Dispenser elc.

Our maln Product Comµonents lnc|ude ßoon ßarrier, RIID Svslen (Readers, Anlennas, Tags), Spike
ßuslers, ßoon ßarriers, ConlroIIers (in house deveIoped), Loop Deleclors, UIlra Sonic Sensors, Tickel
Dispensers, LLD SignaI Lighls, LLD DispIavs, Under VehicIe SurveiIIance Svslen, Tickel Irinlers,
ßarcode Readers, Iace Tracking Canera, AVCC (Aulonalic VehicIe Counler Cun CIassifier), ßCIL
Iarking Managenenl Soflvare, Conpuler Server and CIienls Machine, Kiosk calinels/Mini Lnledded
IC, Microsofl & Open Source Irogranning IIalforn, HandheId Devices elc.

60


lmµ|ementatlon Process:

Ior cosl-effeclive inpIenenlalion of our producls and soIulions, ve undergo:
• Slte Surteµ: IniliaI Sile survev needs lo le conpIeled lo suppIv enough infornalion lo delernine
lhe nunler, pIacenenl and lhe area of inslaIIalion of everv conponenl lhal provides adequale
coverage vhich varv depending on lhe faciIilv.
• Wlrlng Laµout S Conductlng is lo le acconpIished:
• Harduare lnsta||atlon:
• Harduare Connectlon vilh our cIienl soflvare:
• Serter lnsta||atlon vilh IMS & ICS appIicalion.

Some of our keµ µroducts are:

R|lD Based Parklng Management Sµstem
ßCIL´s IMS is a svslen and nelhod for nanaging a pernil-lased parking environnenl governed lv a
parking progran. The pernil-lased parking environnenl incIudes a nunler of parking pernils each
incIuding a unique lag and lag nunler. One or nore readers are used lo scan lhe vehicIes parked in lhe
parking environnenl lo delernine if a lag is associaled vilh lhe parked vehicIe. The resuIls of lhe scan
aIong vilh infornalion reIaled lo lhe parked vehicIe are provided lo a pernil nanagenenl svslen lo
delernine if lhe vehicIe is parked vilhin lhe scope of priviIeges pre-defined for lhal vehicIe, pursuanl lo
lhe parking progran governing lhe parking environnenl. The pernil nanagenenl svslen slores,
nanages, and nonilors dala reIaled lo lhe pernils conlroIIed under lhe parking progran.



Non slop parking access conlroI svslens eIininale enpIovees need lo funlIe for change, svipe cards or
punch nunlers in a kevpad. VehicIes can nove snoolhIv lhrough conlroIIed enlrances. There are no
cards lo read, lickels lo read and sorl, and lhe vhoIe svslen is a convenienl, hands-free vav lo ensure
easv vehicIe parking.

RFID bascd Assct TrackIng 5vstcm
Assel Tracking Svslen nav le defined as lhe Moniloring of Laplops of an organizalion lo avoid a Ioss of
profils, due lo, nisuse of infornalion, lhefl of lolh hardvare and soflvare, lreakdovns elc.

61



VIsItnrs Managcmcnt 5vstcm
Visilor Managenenl Svslen is designed lo pronole lhe securilv of a connunilv. This svslen nav le
used for galed connunilies and connunilies vho pIace reslriclions on visilors, vehicIes, or parking.
ßCIL´s VMS slreanIines lhe fIov of aulhorized visilors vhiIe keeping unaulhorized inlruders fron
gaining enlrv lo a faciIilv.



This svslen record visilor vilh pholo idenlilv: nonilor novenenl of visilors in lhe organizalion: access
conlroI for visilors: securilv aIerl in case visilor is hanging around afler neeling.

Cantccn Managcmcnt 5vstcm
The oljeclive of lhe svslen is lo aulonale aII lhe aclivilies of lhe canleen righl fron purchases lo
deIiverv of food/leverage ilens. The svslen nainlains a delaiIed accounl of aII provisions loughl and
food served al lhe canleen. In addilion lo lhis, il nainlains lhe daiIv expenses incurred lv lhe slaff. The
svslen provides an inlerface lo pavroII for deduclions. SeveraI inquirv faciIilies provided lo viev lhe
expenses incurred/ pIanned nenus/cash pavnenl elc.

THIS RFID CHIP IS
EMBEDDED IN THE
LAPTOP WITH THE
SERIAL NUMBER
(EG: MK23908)
SAVED IN THE
SAME.

62



Tn!! Managcmcnt 5vstcm
ToII nanagenenl svslen is lhe use of various lechnoIogies lo aIIov lhe nanuaI in-Iane loII coIIeclion
process lo le aulonaled in such a vav lhal cusloners do nol have lo slop and pav cash al a loII loolh.
Wilh ToII nanagenenl svslen, an acluaI loII pIaza is nol even a requirenenl lo coIIecl loIIs. The ToII
nanagenenl svslen equipnenl can le nounled on overhead ganlries and/or in lhe pavenenl vhich
aIIovs vehicIes lo le charged vhiIe lhev proceed al highvav speeds.


Research S Dete|oµment. RSD
Our research and deveIopnenl (R&D) efforls are focused prinariIv on inproving and enhancing our
exisling producls and deveIoping nev fealures and funclions for our soflvare division. We vork cIoseIv
vilh our cusloners lo undersland lheir currenl and fulure needs and have designed a producl
deveIopnenl process in vhich ve lake lheir feedlack inlo accounl. The lreadlh of our lechnoIogv, ils
polenliaI appIicalion and lhe nunler of open issues on lheir vav lo inpIenenlalion and narkel
acceplance sliII require sulslanliaI R&D supporl in nanv donains for our lusiness.


Entrance
Changeable Entry Massage
Display
Security
Booth
Traffic Sign (Stop/Go)

EMP

PROCEED












Automatic Barrier
Transponder, or
RFID Reader
Canopy Sign
(Closed/Open Lane)
Exit Loop
ENTRANCE

63

In lhe course of our research and deveIopnenl aclivilies, ve creale a range of inleIIecluaI properlv righls
in vhich ve allenpl lo prolecl lhrough copvrighl proleclion, confidenliaIilv procedures and conlracluaI
provisions.

Our lop 1O cIienls on lhe lasis of saIes nade during 2OO9-1O are as under:

5.Nn. PartIcu!ars
Amnunt
(C In !akhs)
% nf 5a!cs
fnr FY 2009-10
1. Top cIienl 421.35 9.O9°
2. Top 5 cIienls 1914.57 41.29°
3. Top 1O cIienls 3261.22 7O.33°

B. McdIa and EntcrtaInmcnt DIvIsInn:

In lhis Media and Lnlerlainnenl Division, ve have a DigilaI Iosl Iroduclion Sludio, knovn as 8G||
S|uúic al Andheri (Wesl), Munlai. Il is an inlegraled end lo end IiIn´s Iosl Iroduclion and VisuaI
Lffecls Services House. ßCIL´s Sludio offers services ranging fron visuaI effecls, digilaI fiIn Ial (digilaI
inlernediale, high-resoIulion fiIn scanning and fiIn recording) and ediling and nolion conlroI lo High
Definilion produclion. Il heIps ils cIienls lo define lheir slvIe and design lhrough an ongoing inleraclion
and cIose reIalionship coupIed vilh lhe experienced inpuls during each and everv projecl vhich
uIlinaleIv lransIales inlo a speciaI cuslonized producl leing deIivered lo our cIienls.

DigilaI Iosl Iroduclion Irocess of fiIn Irocess:-






















Irocess: Iosl Iroduclion sludio cones inlo effecl once lhe shooling of lhe fiIn is conpIeled. The Sludio
gels lhe negalive of novie fron lhe fiIn processing Ial vhich is in an exposed forn. The exposed
Rav Slock
Ldiling
Negalive Sorling &
culling
CC & Iirsl Irinl
Dulling
ßC & SIXx
DigilaI Lffecls
Negalive Scanning
CC & VisuaI LIx
Film Recording
DoIlv Ire MLX
DoIlv MIX

64

negalive is lhen lransferred lo 2 lela lapes or copies. One lape is used for fiIn ediling and lhe olher is
used for sound dulling and recording. The ediling copv goes inlo lhe ICI deparlnenl vhere lhe firsl
ediling is done using ICI nachine or Mac Iro. Once lhe vork is conpIeled on lhe ICI nachine lhe
copv lhen goes lo lhe D.I. ( DigilaI Inlernediale ) deparlnenl for lhe purpose of scanning, coIor
correclion and visuaI & speciaI effecls vhich is done using snoke, Iusler, and differenl speciaI effecls
using ADOßL AITLR LIILCTS, MAYA & 3D MAX. Afler lhe D.I. process lhe finaI copv of novie is
readv in visuaI fornaI. The sound deparlnenl vorks on dulling and doIlv sound al lhe sane line.
ßolh lhe finaI oulpul of D.I. negalive and lhe sound negalive are lhen nerged inlo one finaI copv vhich
is knovn as narried copv.

Tvpes of pIanl & nachineries require for digilaI posl produclion of fiIn are ICI & MAC IRO is used for
offIine ediling, Snoke (Aulodesk) is used for adding effecls lo lhe fiIn, IiIn Scanner (CinleI) is used lo
enhance lhe quaIilv of fiIn and lhen lransfer lo DigilaI Media, Aulodesk Lusle is used for coIour grading
and enhancenenl of Inage, ARRI is used for fiIn recording as finaI oulpul lo lhe DigilaI Negalive,
Adole afler effecls and MAYA & 3D MAX Irocess are used on vindovs lased vorkslalions for
graphics and aninalion vork.

Our lolaI revenue fron lolh lhe segnenls during lhe Iasl lhree vears and for 3 nonlhs period ended
Iune 3O, 2O1O is as under: (C in Iakhs)
5.
Nn.
DIvIsInns Junc 30,
2010
2009-2010

2008- 2009 2007 -2008
1 IT Division 2,252.29 4,361.87 3,192.51 3,O75.16
2 Media & Lnlerlainnenl Division 49.57 272.23 167.21 344.33
Tnta! Rcvcnuc 2,301.86 4,634.10 3,359.72 3,419.49

Our Memebershlµs ulth lndustrla| Assoclatlons
Our Conpanv has sone nenlerships of induslriaI associalions such as Associalion of Molion Iiclures
& T.V. Irogranne Iroducers (AMITII), Asian IrofessionaI Securilv Associalion, Indian Molion Iiclure
Iroducers Associalion (IMIIA), and Associalion of Molion Iiclure Sludios for our ßCIL Sludio.

Our strcngths:

I.T. DIvIsInn:
Product dete|oµment sertlces offerlng sertlces for a|| stages of the µroduct |lfe cµc|e
We provide range of soIulions lo our cusloners lhal suslain lhroughoul lhe fuII producl Iife-cvcIe. We
offer services designed lo address lhe cusloners´ specific needs as producls nove fron differenl slages
of nalurilv across earIv lo end-of-Iife. Our services range fron idenlifving, deveIoping, lesling,
consuIling services, supporl and nainlenance. We leIieve lhal our services focus on our aliIilv lo
nanage snaIIer producls, our aliIilv lo service cusloners and our deIiverv nodeI nakes our producl
offering conpelilive. Iurlher, our IT lased safelv securilv and aulonalion producls / soIulions are ISO
9OO1:2OO8 conpIianl.

Cost-effectlte so|utlons
We leIieve lhal our soIulion eIininales nanuaI efforls and cosls lhal olhervise nav le required lo
lecone secure and conpIianl. We provide soIulions lhal idenlifv and heIp correcl securilv
vuIneraliIilies and non-conpIianl configuralions, speeds lhe invesligalion of securilv incidenls, and
reduces lhe cosls associaled vilh denonslraling conpIiance. We enalIe our cusloners lo use fever
soIulions and services lo achieve and nainlain conpIiance in a cosl-effeclive nanner.

65


Re|atlonshlµs ulth customers
We have reIalionships vilh cusloners luiIl on our successfuI execulion of prior engagenenls. We
leIieve lhe quaIilv of our producls and services is denonslraled lv lhe facl lhal cusloners have given us
repeal orders. Our lrack record of deIivering soIulions and our producl deveIopnenl experience has
heIped us in luiIding reIalionships vilh our cusloners.

Exµerlenced and qua|lfled µromoters and management team
Our Conpanv has execuled severaI conlracls during lhe Iasl 5 vears period and has deveIoped
experience in our Iine of operalions. Mr. Sanjeev Kunar MillaI, one of our Direclor, is having around 18
vears of experience in lhe fieId of conpuler hardvare and soflvare. Mr. Rakesh ßhhalia, our Chairnan
and Managing Direclor and one of our Ironolers, having nore lhan 2O vears of experience in corporale
Iav and finance. Mr. Arpan TaIvar, Chief Lxeculive Officer, a graduale in conpuler appIicalion and an
MßA fron Svnlosis, Iune, has aIso nine vears of experience.

Our stratcgIcs

Contlnue to exµand our µroduct and sertlces
Our producls are currenlIv cuslonized lo neel cIienl specific requirenenls. We viII conlinue lo invesl in
enhancing lhe funclionaIilv of our exisling range of producls and services. We inlend lo invesl in
lechnoIogv lhal viII aIIov lhe fealures of each producl offering lo le aggregaled, lhus decreasing lhe
IeveI of cuslonizalion needed lo neel a parlicuIar cIienl´s needs as fealures can le enalIed or disalIed as
required. We have aIreadv idenlified producls and services viz. MoliIe appIicalion, TokenIess Tvo
Iaclor Aulhenlicalion (TTIA), aulonalic nunler pIale recognilion svslen and lickel dispensing svslen
vhich viII le Iaunched lv us. We leIieve lhal lhis inveslnenl viII aIIov us lo enhance lhe conpelilive
posilioning of our producl offerings and expand lhe size of narkels lhal ve largel.

Creatlon of neu µroducts
We inlend lo conlinue invesling in our R&D capaliIilies, parlicuIarIv vilh a viev lo designing soflvare
engineering looIs lhal enhance our aliIilv lo execule Iarge, end-lo-end projecls and deveIop soflvare
soIulions lhal address cIienls in specific induslries. We leIieve lhal lhis inveslnenl in nev producl
deveIopnenl and in R&D lechnoIogv, faciIilales our grovlh lv expanding lhe size of lhe narkel space
lhal ve address, vhiIe niligaling lusiness risk lv reducing our dependence on lhe success of individuaI
producl Iines.

lncrease our customer base
We leIieve lhal increasing securilv lhreals and reguIalorv conpIiance requirenenls viII generale
denand for our soIulions fron nev cusloners. We pIan lo conlinue lo acquire nev cusloners lv
addressing lheir securilv and conpIiance needs vilh our exisling and nev soIulions. We pIan lo pursue
nev cusloners in induslrv verlicaIs vhere ve have recognilion, experlise and exisling cusloner lase, as
veII as in nev verlicaIs vhere groving reguIalorv requirenenls and securilv lhreals creale denand for
our soIulions. To largel nev cusloners vilh Iiniled IT resources and conpIiance experlise, ve aIso pIan
lo pronole our renole nanagenenl services and lo offer aIlernalive soIulion deIiverv nelhods.

Strengthenlng our brands
We inlend lo invesl in deveIoping and enhancing recognilion of our lrands, lhrough lrand luiIding
efforls, connunicalion and pronolionaI inilialives such as inleraclion vilh induslrv research
organizalions, parlicipalion in induslrv evenls, pulIic reIalions and inveslor reIalions efforls. We leIieve

66

lhal lhese inilialives, as veII as lhe Iisling of our Lquilv Shares, viII enhance lhe visiliIilv of our lrands
and slrenglhen our recognilion in lhe Indian IT soIulions induslrv.

|urther dete|oµlng our a||lances
We inlend lo grov and slrenglhen our lechnoIogv aIIiances vilh Ieading lechnoIogv conpanies, vhich
viII assisl us in saIes and deIiverv. These aIIiances lvpicaIIv invoIve svslens inlegralion, joinl producl
deveIopnenl and joinl "go lo narkel" slralegies. We aIso inlend lo deveIop olher aIIiances vilh IocaI
conpanies lhal have a slrong presence in energing narkels so as lo acquire lusiness deveIopnenl
capaliIilies and a credilIe IocaI presence in lhese narkels.

CnmµctItInn
The narkel for IT producls and services is lolh highIv conpelilive and rapidIv evoIving. We prinariIv
face conpelilion fron Indian IT services conpanies as veII as inlernalionaI lechnoIogv services
conpanies vhich offer lroad-lased services. We anlicipale lhis conpelilion lo grov as lhe denand for
lhese producls and services increases and ve aIso expecl addilionaI conpanies lo enler lhe Indian
narkel. We expecl lhal furlher conpelilion viII increase and polenliaIIv incIude firns in counlries vilh
Iover personneI cosls lhan lhose prevaiIing in India. Hovever, ve recognize lhal price aIone cannol
conslilule suslainalIe conpelilive advanlage. We conpele vilh lhe olher IT producls and services
conpanies such as ßarlronics India Liniled, Radianl Info Svslens Lld., ßarcode India. In our Media &
Lnlerlainnenl seclor, ve conpele vilh Irine Iocus Liniled and UTV Liniled. Sone of our conpelilors
nav have grealer financiaI, research & deveIopnenl and narkeling resources lhan us.

Aµµrnach tn markctIng and µrnµnscd markctIng sct-uµ
Our grovlh in recenl vears has leen driven lv nev cIienl acquisilions as veII an increase in revenues
fron our exisling cIienls. Our senior nanagenenl are acliveIv invoIved in nanaging cIienl reIalionships
and lusiness deveIopnenl lhrough largeled inleraclion vilh nuIlipIe conlacls al differenl IeveIs in lhe
cIienl organizalion. We have narkeling office al Noida and Munlai. Our narkeling inilialives incIude
parlicipaling in najor induslrv evenls, sponsoring user group evenls, anaIvsl lriefings and proacliveIv
using lhe nedia and press lo increase avareness of our aclivilies. In addilion, ve have severaI
lechnoIogv aIIiances vilh Ieading IT vendors, vhich lvpicaIIv invoIve svslens inlegralion and in cerlain
cases joinl narkeling efforls.

ExIstIng caµacItv & CaµacItv UtI!IzatInn
Capacilv and Capacilv UliIizalion is nol appIicalIe lo our Conpanv.

Exµnrt µnssIbI!ItIcs and Exµnrt nb!IgatInns
CurrenlIv, ve do nol have anv exporl olIigalions.

Emµ!nvccs
As on Seplenler 3O, 2O1O, our Conpanv had 74 enpIovees, delaiIs of vhich are as under:
Dcµartmcnt Nn. nf cmµ!nvccs
Corporale Affairs 4
Iinance & Accounls 6
Markeling 12
IT - Hardvare 7
IT - Soflvare 27
Adninislralion 18

67

Tnta! 74

Insurancc
We have insured our assels and slocks lhrough various insurance poIicies, delaiIs of vhich are as under:
(C in Iakhs)
5.
Nn.
Naturc nf
thc Pn!Icv
PartIcu!ars/RIsk DcscrIµtInn/
Addrcss
5um
Insurcd
PrcmIum
Amnunt
Datc nf
ExµIrv

1
Croup
IersonaI
Accidenl
Croup personaI poIicv lo cover
74 enpIovees vilh nedicaI
lenefils.
89.OO O.18
Seplenler
12, 2O11
2
Kevnan
Insurance
IoIicv
Life of kev nanageriaI
personneI
25.OO 1.12 Iune 26, 2O22
3
ßurgIarv
IoIicv
AII lvpes of IIanl & Machinerv,
Spares, TooIs al C - Wing, -
AnaIlas Aparlnenls, Iuhu-
Versova Link Road, Munlai,
Maharashlra, 4OO O49
225.OO O.23
ApriI 21,
2O11
4
Slandard Iire
& SpeciaI
IoIicv
Cinenapholographv IiIe
Ldiling, Lalrolarv and sound
recording roons vhere fiIes
processing are carried oul
(IIanl/ Machinerv and
Accessories) C - Wing,
AnaIlas, Iuhu-Versova Link
Road, Munlai, Maharashlra,
4OO O49.
225.OO O.34
ApriI 21,
2O11.
5
ßurgIarv
IoIicv
Inlerior vork, vood vork
fillings, Aircondilioners elc.
ß- 6O, Seclor 57, Noida -2O13O1
77.25 O.O5
ApriI O9,
2O11
6
Slandard Iire
& SpeciaI
IoIicv
LIeclronic Soflvare
DeveIopnenl
ß- 6O, Seclor 57, Noida -2O13O1
77.25 O.11
ApriI O9,
2O11

Intc!!cctua! Prnµcrtv RIghts

Our Conpanv has foIIoving regislered lradenarks:
Tradcmark (Lngn) PartIcu!ars C!ass AuthnrItv



Tradenark No. 1472174.
Regislered on IuIv 21, 2O1O
35
All types of services in
relation to advertising
Trade Marks Regislrv,
DeIhi


Tradenark No. 1472175.
Regislered on IuIv 21, 2O1O
41
All types of services in
relation to entertainment
Trade Marks Regislrv,
DeIhi

68




Tradenark No. 1472176.
Regislered on IuIv 21, 2O1O
42
AII lvpes of services in
reIalion lo conpuler,
hardvare, soflvare
progranning
Trade Marks Regislrv,
DeIhi

Tradenark No. 1472177.
Regislered on IuIv 21, 2O1O
42
AII lvpes of services in
reIalion lo conpuler,
hardvare, soflvare
progranning,
Trade Marks Regislrv,
DeIhi

Tradenark No. 1472178.
Regislered on IuIv 21, 2O1O
CIass 42
AII lvpes of services in
reIalion lo conpuler,
hardvare, soflvare
progranning.
Trade Marks Regislrv,
DeIhi

Our Conpanv has foIIoving regislered copvrighls:

RcgIstratInn Nn./ Datc
C!ass &
DcscrIµtInn
TIt!c AuthnrItv
SW-4466/2O1O
Regislered on ApriI 8, 2O1O.
Soflvare
ßCIL ToII Managenenl
Svslens
Copvrighl Office
SW-4467/2O1O
Regislered on ApriI 8, 2O1O.
Soflvare
ßCIL Canleen
Managenenl Svslen
Copvrighl Office
SW- 4468/2O1O
Regislered on ApriI 8, 2O1O.
Soflvare
ßCIL Tickel Dispensing
Svslen
Copvrighl Office
SW- 4469/2O1O
Regislered on ApriI 8, 2O1O.
Soflvare ßCIL TokenIess Tvo
Iaclor Aulhenlicalion
Svslen
Copvrighl Office
SW- 447O/2O1O
Regislered on ApriI 8, 2O1O.
Soflvare ßCIL Assel Tracking
Svslen
Copvrighl Office
SW- 4471/2O1O
Regislered on ApriI 8, 2O1O.
Soflvare
ßCIL LnpIovee
Tracking Svslen
Copvrighl Office
SW- 4472/2O1O
Regislered on ApriI 8, 2O1O.
Soflvare
ßCIL Aulonalic
Nunler IIale
Recognilion Svslen
Copvrighl Office
SW- 4473/2O1O
Regislered on ApriI 8, 2O1O.
Soflvare
ßCIL Iarking
Managenenl Svslen
Copvrighl Office

In addilion lo lhe alove, ve have appIied lo Regislrar of Trade Marks, DeIhi for lhe regislralion of
foIIoving Tradenarks:

Tradcmark(!ngn) Datc nf aµµ!IcatInn C!ass Nn. & DcscrIµtInn 5tatus

Seplenler 28, 2O1O 35
All types of services in relation to
advertising
Iending

69



Seplenler 28, 2O1O 42
AII lvpes of services in reIalion lo
conpuler, hardvare, soflvare
progranning,
Iending

Iurlher, ve have appIied lo Copvrighl Office, DeIhi for lhe regislralion of foIIoving InleIIecluaI
Iroperlies Righls:

Aµµ!IcatInn Datc C!ass & DcscrIµtInn TIt!c 5tatus
Augusl 25, 2O1O Conpuler Irogranning ßCIL Snarl Canpus
Svslen
Iending
Augusl 25, 2O1O Conpuler Irogranning ßCIL Iarking Cuidance
Svslen
Iending
Augusl 25, 2O1O Conpuler Irogranning ßCIL Laplop Tracking
Svslen
Iending
Augusl 25, 2O1O Conpuler Irogranning ßCIL InleIIigenl Masl
ConlroIIer
Iending
Augusl 25, 2O1O Conpuler Irogranning ßCIL IiIe Tracking
Svslen
Iending
Augusl 25, 2O1O Conpuler Irogranning ßCIL Visilor
Managenenl Svslen
Iending
Seplenler 23, 2O1O Lilerarv Work ßCIL velsile Iending

Our Prnµcrtv
The lrief delaiIs of our exisling properlies are as under:-

Leased Proµertµ
5.
Nn.
DctaI!s nf Agrccmcnt DcscrIµtInn nf thc
Prnµcrtv
CnnsIdcratInn
(In !akhs)
Purµnsc
1. Lease Agreenenl vilh Mr.
Naveen Kunar Cupla and ßCIL
IiIns & TechnoIogies Liniled
joinlIv vilh ßharaliva CIolaI
Infonedia Iiniled daled IuIv 29,
2O1O.

Tern: 2 vears fron Augusl 1,
2O1O lo IuIv 31, 2O12.
623, 6
lh
IIoor, Devika
Tover, 6, Nehru IIace,
Nev DeIhi- 11O O19.


O.35 pIus service
lax per nonlh
Regislered
office
2. Lease and License Agreenenl
lelveen AnaIlas Co-operalive
Housing Socielv Liniled and
ßharaliva CIolaI Infonedia
Iiniled and ils associaled
conpanies daled Ianuarv 1, 2OO8.

Tern: 3 vears fron Ianuarv 1,
2OO8 lo Decenler 31, 2O1O
C-Wing, AnaIlas
Aparlnenls, Iuhu
Versova Link Road,
Andheri (W), Munlai-
4OO O53.


2.18 per nonlh ßranch office
(Sludio)

70


Other Proµertles

5.
Nn.
DctaI!s nf Agrccmcnt DcscrIµtInn nf thc
Prnµcrtv
Tnta!
CnnsIdcratInn

Purµnsc
1. Menorandun of Underslanding
daled Seplenler 1, 2OO9 and
SuppIinenlarv Menorandun of
underslanding daled Iune 3, 2O1O
lelveen M/s. Cadeo LIeclronics,
a parlnership firn and
ßhharaliva CIolaI Infonedia
Iiniled lo acquire and purchase
lhe properlv lv laking over lhe
said firn.

Tern: on or lefore Mav 31, 2O11.
ß-6O, Seclor-57, Noida-
2O1 3O1, Ullar Iradesh
C 596.OO Iakhs

Iaid C 2OO.OO
Iakhs lv vav of
issuing equilv
shares of our
Conpanv
Corporale
office
Since lhe alove Iand / properlv are nol ovned lv us, lherefore no charge has leen crealed in favour of
anv properlv lv us.

Purchasc nf µrnµcrtv
Lxcepl as slaled in seclion lilIed ¨Oljecls of lhe Issue¨ appearing on page no. 27 of lhis Drafl Red
Herring Irospeclus, lhere is no properlv vhich our Conpanv has purchased or acquired or propose lo
purchase or acquire vhich is lo le paid vhoIIv, or in parl, fron lhe nel proceeds of lhe Issue or lhe
purchase or acquisilion of vhich has nol leen conpIeled as on lhe dale of fiIing of lhis Drafl Red
Herring Irospeclus vilh SLßI, olher lhan properlv:

• lhe conlracl for lhe purchase or acquisilion vhereof vas enlered inlo in lhe ordinarv course of lhe
lusiness, lhe conlracl nol leing nade in conlenpIalion of lhis Issue, nor lhis Issue in
conlenpIalion of lhe conlracl: or
• In respecl of vhich lhe purchase nonev is nol naleriaI.

Our Conpanv has nol purchased anv properlv in vhich anv Direclors, have anv direcl or indirecl
inleresl in anv pavnenl nade lhereof.

71

OUR FINANCIAL INDEBTEDNE55

The foIIoving is lhe delaiIs of our fund lased Iinils:
Namc nf
thc Bank
Tvµc nf thc
Lnan FacI!Itv
Amnunt
(In C
Lakhs)
Intcrcst Rcµavmcnt 5ccurItv
The RovaI
ßank of
ScolIand
Overdrafl
Linil


3OO.OO

Anounl
oulslanding
as on
3O/O9/2O1O
- C 24O.76
Iakhs








ßank´s
lase rale
pIus
9.25° p.a.
The
currenl
appIicalIe
rale is
15.75°p.a.
On denand Iirsl and excIusive charge lv vav
of hvpolhecalion on lhe enlire
currenl assels of lhe Conpanv lolh
presenl and fulure.

Iirsl and excIusive charge lv vav
of hvpolhecalion on lhe novealIe
fixed assels of lhe conpanv lolh
presenl and fulure.

Iirsl and excIusive charge lv vav
of equilalIe norlgage on lhe
properlv silualed al House
Nunler 93: ßIock A, Seclor 26,
Noida slanding in lhe nane of Mr.
Rakesh ßhhalia and Mrs. Arli
ßhalia.

Iirsl and excIusive charge lv vav
of equilalIe norlgage on lhe
properlv silualed al ß - 14/16, 3
rd

IIoor, Hingiri Aparlnenls, Seclor -
34, Noida in lhe nane of Mrs. Arl
ßhalia.

Persona| guarantee of Mr. Rakesh
ßhhalia and Mrs. Arli ßhalia.

FInancIa! cnvcnants

i) Currrenl Ralio nol lo le Iess lhan 1.5O during lhe lenor of lhe faciIilies.
ii) Cearing Ralio nol lo exceed 1 during lhe lenor of lhe faciIilies.

RcstrIctIvc cnvcnants In sccurcd !nan agrccmcnts
Il shaII nol in anv vav pIedge, charge, norlgage, encunler or hvpolhecale or creale a Iien upon / in
respecl of lhe hvpolhecaled assels or anv parl lhereof specificaIIv or olhervise in favour of anv olher
parlv nor creale anv securilv ranking pari passu vilh and / or suljecl lo lhe securilv herelv crealed
vilhoul ollaining lhe ßank´s prior vrillen consenl for lhe sane. Iurlher, lhe Conpanv shaII nol,
vilhoul lhe prior vrillen pernission of lhe ßank, carrv oul sulslanliaI change in lhe sharehoIding
pallern of lhe Conpanv or ils nanagenenl/conlroI and aIler lhe ovnership slruclure of lhe Conpanv
or diIule lhe sharehoIding of Mr. Rakesh ßhhalia and Mrs. Arli ßhalia and ßCIL IiIns and TechnoIogies

72

Irivale Liniled or issue lhe capilaI. No fresh lorroving lo le nade vilhoul prior vrillen pernission of
ßank.

Iursuanl lo lhe aforesaid ve have received no oljeclion cerlificale fron The RovaI ßank of ScolIand
ßank vide Ieller Ocloler 26, 2O1O suljecl lo lhe condilion lhal alIeasl 51° of lhe posl-issued capilaI viII
le heId lv lhe Ironoler/Ironoler Croup.

Unsccurcd !nans:

We have avaiIed foIIoving unsecured Ioans fron privale corporale lodies/lanks and fron Ironoler
Croup:
Namc nf Lcndcr Amnunt nf !nan
dIsburscd (C In !akhs)
Amnunt
nutstandIng as nn
Octnbcr 30, 2010 (C
In !akhs)
Amnunt
nvcrduc as nn
Octnbcr 30,
2010
1 India ßuIIs IinanciaI Services
Liniled
35.OO 13.87 -
2 Monev Line Credil Liniled 3O.OO 15.14 1.81
3 AßN Anro ßank 16.OO 2.87 1.14
4 ßarcIavs ßank pIc 2O.OO 8.76 -
5 ChoIanandaIan Inveslnenl &
Iinance Conpanv Liniled
15.OO 2.2O -
6 HDIC ßank 15.OO O.52 O.52
7 ReIiance CapilaI Liniled 3O.OO 12.93 4.41
8 Avisha Credil CapilaI Liniled 1O.OO 1O.OO -
9 Onkan Iinvesl Irivale Liniled 11.OO 11.OO -
1O Mass Services Liniled 7.38 7.38 -
11 Ironoler & Ironoler Croup 7O.25 69.7O -
TOTAL 259.63 154.37 7.88

Our Conpanv has laken unsecured Ioans anounling lo C 259.63 Iakhs as on Iune 3O, 2O1O, oul of vhich
unsecured Ioans lo lhe exlenl of C 1O1.13 Iakhs have no specific lerns vilh regard lo lhe repavnenl of
lhese Ioans as lhev are aIso nol secured lv a charge on anv of lhe assels of our Conpanv. Due lo lhe
alsence of anv specific lerns regarding lheir repavnenl, lhe said Ioans can le recaIIed lv lheir
respeclive Ienders al anv given poinl of line. We have deIaved pavnenl of inleresl in sone of lhe alove
unsecured Ioans. The lolaI overdue anounl as on Ocloler 3O, 2O1O is C 7.88 Iakhs in case of Monev Line
Credil Liniled, AßN Anro ßank, HDIC ßank and ReIiance CapilaI Liniled.



73

REGULATION5 AND POLICIE5

The following description is a summary of the relevant regulations and policies applicable to the Company as
prescribed by the central and state governments in India. The regulations set out below are not exhaustive, are only
intended to provide general information only.

1. Incnmc Tax Act, 1961
The Conpanv is required lo ollained lhe IAN and TAN as per lhe requirenenl of lhe Incone Tax Acl,
1961. Iernanenl Accounl Nunler (¨PAN¨) is a len-digil aIphanuneric nunler issued lv lhe Incone
Tax Deparlnenl, Covernnenl of India. AII assesses or laxpavers or persons vho are required lo furnish
a relurn of incone, nusl ollain IAN. Il is nandalorv lo quole IAN on relurn of incone.
TAN or Tax Deduclion and CoIIeclion Accounl Nunler is a 1O digil aIphanuneric nunler required lo
le ollained lv aII persons vho are responsilIe for deducling or coIIecling lax. Il is conpuIsorv lo quole
TAN in vilhhoIding lax relurn, pavnenl chaIIans and vilhhoIding lax cerlificales.

2. Imµnrt Exµnrt CcrtIfIcatc
Inporl Lxporl Code (¨IEC¨) Cerlificale is issued lv lhe Direclor CeneraI of Ioreign Trade regislering an
individuaI, firn, organizalion, enlilv, elc lo acl as an exporler or inporler. An ILC once issued is
pernanenl in nalure liII lhe sane is surrendered lv lhe ILC hoIder or canceIIed lv lhe Licensing
Aulhorilv upon anv defauIl nade le lhe ILC hoIder.

3. RcgIstratInn undcr Ccntra! 5a!cs Tax and Va!uc Addcd Tax Laws

(a) Va!uc Addcd Tax:
Lverv Slale/Union Terrilorv in India has ils ovn VaIue Added Tax ('VAT') Acl. The laxalIe evenl vhich
allracls lhe Ievv of VAT is lhe saIe of goods vilhin a parlicuIar Slale lv a deaIer.

Regislralion under lhe VAT Acl is of lvo lvpes - nandalorv and voIunlarv. Mandalorv regislralion is
required vhen lhe lurnover of lhe deaIer exceeds lhe lhreshoId Iinil prescriled in lhe parlicuIar VAT
Acl of lhe concerned Slale.

The olher lvpe of regislralion vhich is envisaged is voIunlarv regislralion. In such a silualion, lhe deaIer
can gel hinseIf regislered al anv line under lhe provisions of lhe VAT Acl irrespeclive of ils lurnover.

(b) Ccntra! 5a!cs Tax:
As slaled alove, VAT is chargealIe vhen a IocaI saIe is effecled lv a deaIer. Hovever, in cases vhere lhe
deaIer effecls an inler-slale saIe i.e. a saIe vhere lhe novenenl of goods connences in one Slale and
deIiverv of lhe goods is nade in anolher Slale, lhe deaIer effecling such saIe is required lo charge CenlraI
SaIes Tax ('C5T') on lhe price of lhe goods leing soId.

Regislralion under lhe CST Acl is required in case an inler-Slale saIe (even one saIe is enough lo allracl
lhe provisions of CST) is effecled lv a deaIer irrespeclive of lhe price al vhich lhe sane is effecled.

4. 5crvIcc Tax
Service Tax vas inlroduced in India in 1994 lv Chapler V of lhe Iinance Acl, 1994. The CenlraI ßoard of
Lxcise & Cuslons, Deparlnenl (¨CEBC¨) of Revenue, Minislrv of Iinance, deaIs vilh lhe lask of
fornuIalion of poIicv concerning Ievv and coIIeclion of Service Tax. OnIv lhose services vhich have
leen expressIv nade laxalIe under lhe provisions of lhe Iinance Acl, 1994 are charged lo service lax.

74

The IialiIilv of paving service lax lo lhe governnenl resls upon lhe service provider, lul leing an
indirecl lax, lhe service provider is aIIoved lo recover lhe sane fron lhe recipienl of lhe laxalIe service.
Lverv person vhose gross receipls on accounl of rendering laxalIe service exceeds lhe Iinils prescriled
in a financiaI vear is required lo gel hinseIf regislered under lhe provisions of lhe Iinance Acl, 1994 vilh
lhe Covernnenl. Hovever, IialiIilv lo deposil service lax arises onIv vhen gross receipls exceed Iiniled
prescriled in a financiaI vear.

5. Emµ!nvccs' PrnvIdcnt Fund and MIscc!!ancnus PrnvIsInns Act, 1952
The LnpIovees´ Irovidenl Iund and MisceIIaneous Irovisions Acl, 1952 (hereinafler referred lo as ¨EPF
Act¨) provides for sociaI securilv lv vav of providenl fund, faniIv pension fund and deposil Iinked
insurance for enpIovees vorking in faclories and olher eslalIishnenls for lhe lenefil of lhe enpIovees.
The LII Acl is appIicalIe lo (i) everv eslalIishnenl vhich is a faclorv engaged in anv induslrv specified
in ScheduIe I in vhich lvenlv or nore persons are enpIoved, and (l) lo anv olher eslalIishnenl
enpIoving lvenlv or nore persons or cIass of such eslalIishnenls vhich lhe CenlraI Covernnenl nav
specifv. IresenlIv, an eslalIishnenl covered under LII Acl is required lo nandaloriIv conlrilule under
lhe LII Acl for an enpIovee gelling vages up lo C6,5OO/-. Iurlher lhe conlrilulion lo le nade lv lhe
enpIovee and enpIover is 12° of lhe lasic pav, DA, relaining aIIovance and cash vaIue of food
concessions. If anv of lhe eslalIishnenl is nol salisfving lhe condilions for coverage of LII Acl and if lhe
enpIover and najorilv of lhe enpIovees are viIIing, lhe Acl nav le appIicalIe lo such eslalIishnenl
lhrough voIunlarv coverage. Iurlher, lhe enpIovees of an eslalIishnenl gelling nore lhan C 6,5OO p.n.
faII under lhe calegorv of lhe excIuded enpIovees for lhe purposes of lhe LII Acl. Hovever, if lh
eslalIishnenl and excIuded enpIovees so decide, LII Acl can le nade voIunlariIv appIicalIe on such
excIuded enpIovees as veII.

6. Thc Emµ!nvccs' 5tatc Insurancc Act, 1948
The LnpIovees Slale Insurance Acl (¨E5I Act¨) is a sociaI securilv IegisIalion vhich provides for nedicaI
care lenefils in case of sickness, nalernilv, enpIovnenl injurv and pension for dependanls in lhe evenl
of lhe dealh lhrough accidenls al lhe vorkpIace. The LSI Acl specifies a deposil of 6.5° of lhe saIarv, of
vhich 1.75° is lo le conlriluled lv lhe enpIovee, lhe resl lv lhe enpIover, and appIies lo aII enpIovees
vilh saIaries leIov C 15,OOO per nonlh under lhis Acl.

8. Thc Pavmcnt nf GratuItv Act, 1972
The Iavnenl of Craluilv Acl, 1972 (¨GratuItv Act¨) provides for pavnenl of graluilv lo an enpIovee
engaged in faclories, shops, olher eslalIishnenls on lhe lerninalion of his enpIovnenl or on his
superannualion, relirenenl/resignalion, or dealh or disalIenenl due lo accidenl or disease provided he
has rendered conlinuous service of al Ieasl five vears. IresenlIv, lhe anounl of naxinun graluilv
pavalIe lv an enpIover under lhe Craluilv Acl lo an enpIovee is C 1O,OO,OOO/-.

9. Thc Pavmcnt nf Bnnus Act, 1965
The Iavnenl of ßonus Acl, 1965 (¨Bnnus Act¨) provides for pavnenl of lonus lo persons enpIoved in
cerlain eslalIishnenls on lhe lasis of profils or on lhe lasis of produclion or produclivilv and for
nallers connecled lherevilh.

The ßonus Acl appIies lo everv faclorv, everv olher eslalIishnenl enpIoving 2O or nore persons
(incIuding parl line enpIovees) on anv dav during an accounling vear and anv eslalIishnenl specified
lv lhe CenlraI Covernnenl, vhich enpIovs Iess lhan 2O persons lul nore lhan 1O persons. The ßonus
Acl covers aII enpIovees doing anv skiIIed or unskiIIed nanuaI, supervisorv, nanageriaI,
adninislralive, lechnicaI and cIericaI vork for hire or revard and vhose saIarv does nol exceed

75

C1O,OOO/- per nonlh. The nininun lonus lo le paid lo each enpIovee is eilher 8.33° of lhe saIarv or
vage or rupees one hundred, vhichever is higher, and nusl le paid irrespeclive of lhe exislence of anv
aIIocalIe surpIus or profils. As per lhe provisions of lhe ßonus Acl, lhe lonus shaII le paid in cash
vilhin a period of eighl nonlhs fron lhe cIosure of lhe accounling vear.

10. Cnntract Labnur (Rcgu!atInn & Abn!ItInn) Act, 1970
The Conlracl Lalour (ReguIalion and AloIilion) Acl, 197O (¨CLA Act¨) is appIicalIe lo (i) everv
eslalIishnenl in vhich lvenlv or nore vorknen are enpIoved direclIv or indireclIv, on anv dav in lhe
preceding lveIve nonlhs as conlracl Ialour and (ii) lo everv conlraclor vho enpIovs or vho enpIovs
on anv dav of lhe preceding lveIve nonlhs lvenlv or nore vorknen. The CLA Acl ains lo reguIale lhe
enpIovnenl of conlracl Ialour in cerlain eslalIishnenls and lo provide for ils aloIilion in cerlain
circunslances so as lo ensure lhe veIfare and heaIlh of conlracl Ialour and lo ensure lineIv pavnenl of
vages. To ensure lhe veIfare and heaIlh of lhe conlracl Ialour, lhe CLA Acl inposes cerlain olIigalions
on lhe conlraclor in reIalion lo eslalIishnenl of canleens, resl roons, drinking valer, vashing faciIilies,
firsl aid and olher faciIilies.

Lverv eslalIishnenl covered lv CLA Acl is nandaloriIv required lo ollain regislralion in accordance
vilh lhe provisions of CLA Acl. Iurlher, everv conlraclor, lo vhon lhe CLA Acl appIies, is required lo
ollain a Iicense in accordance vilh lhe provisions of CLA Acl lo underlake or execule anv vork lhrough
conlracl Ialour and lo conpIv vilh aII lhe lerns and condilions prescriled in lhe Iicense so ollained
under CLA Acl. Hovever, in lhe evenl lhe conlraclor faiIs lo provide lhese anenilies, lhe principaI
enpIover is under an olIigalion lo provide lhese faciIilies vilhin a prescriled line period. IenaIlies,
incIuding lolh fine and inprisonnenl, nav le Ievied for conlravenlion of lhe provisions of lhe CLA Acl.
Il is aIso inporlanl lo nole lhal in case lhe conlraclor faiIs lo pav slalulorv dues lo ils conlracl Ialour, lhe
conpanv nav le heId responsilIe lo cIear such dues in lhe capacilv as principaI enpIover.

11. 5hnµs and Estab!Ishmcnt Laws
The Slale Covernnenls have cone up vilh lheir respeclive IegisIalion lo reguIale lhe condilions of vork
and enpIovnenl in shops and connerciaI eslalIishnenls. The IegisIalion on shops and eslalIishnenls
lroadIv provides lhe guideIines for reguIaling lhe hours of vork, pavnenl of vages, Ieave, hoIidavs,
lerns of service, overline and olher condilions for enpIovnenl of a person in a shop or eslalIishnenl
covered vilhin lhe anlil of such IegisIalion.

Lverv shop and eslalIishnenl in a parlicuIar Slale is required lo ollain regislralion under lhe respeclive
Slale IegisIalion on shops and eslalIishnenl.

76

HI5TORY AND CERTAIN CORPORATE MATTER5

OvcrvIcw
Our Conpanv vas originaIIv incorporaled as ßharliva CIolaI IinanciaI & AIIied Services Liniled vide
Cerlificale of Incorporalion daled Novenler 24, 1994 issued lv lhe Regislrar of Conpanies, NCT of
DeIhi & Harvana under lhe provisions of lhe Conpanies Acl, 1956 and ollained Cerlificale for
Connencenenl of ßusiness on Ianuarv 18, 1995. The nane of lhe Conpanv vas changed lo ßharliva
CIolaI Soflvare Iinlec Liniled vide fresh incorporalion cerlificale daled Mav 3, 1999 issued lv lhe
Regislrar of Conpanies, NCT of DeIhi & Harvana. The Conpanv furlher changed ils nane lo ßharliva
CIolaI Soflvare Liniled vide fresh incorporalion cerlificale daled Iune 27, 2OO1 issued lv lhe Regislrar
of Conpanies, NCT of DeIhi & Harvana and finaIIv changed ils nane lo ßharaliva CIolaI Infonedia
Liniled vide fresh cerlificale of incorporalion daled Novenler 13, 2OO3 issued lv lhe Regislrar of
Conpanies, NCT of DeIhi & Harvana. Mr. Rakesh ßhhalia vas appoinled as Managing Direclor of lhe
Conpanv v.e.f. ApriI 1, 2OO4, and lhereafler lv acquisilion of shares of lhe conpanv in lranches, he
acquired conlroI over nanagenenl as veII as sharehoIding of lhe Conpanv.

We are a lechnoIogv lased conpanv focussing on lhe seclors such as Infornalion TechnoIogv securilv
and conpIiance aulonalion soflvare soIulions and lechnoIogv reIaled lo nedia & enlerlainnenl
induslrv vilh focus on Research & DeveIopnenl.

Currenl lusiness operalions consisl of Infornalion TechnoIogv ßased SoIulions-RIID & Snarl Card and
DigilaI Iosl Iroduclion Sludio (DigilaI Iosl-Iroduclion Sludio al Andheri Wesl, Munlai naneIv ¨ßCIL
Sludio¨). We have in-house deveIoped soflvare LRI producl, cuslonized soflvare deveIopnenl,
lraining, consuIlancv, lrading, aninalion and RIID lased soIulion. We deveIop snaII aninaled capsuIes
for various projecls of lhe cIienls. We aIso design & deveIop WAI enalIed producls for cIienls and
nainIv focused on lhe luiIding RIID lechnoIogv.

Ior furlher delaiIs in reIalion lo our lusiness, see lhe seclion lilIed ¨Our ßusiness¨ leginning on page 58
of lhis Drafl Red Herring Irospeclus.

MI!cstnncs achIcvcd bv nur Cnmµanv:
Ycar MI!cstnnc
2OO4-O5
Change in nanagenenl lv acquisilion of shares lv exisling Ironolers.
2OO5 -2OO6 Iurchasing of conpIele lusiness sel up consisling of fiIn sludio for posl-
produclion faciIilv Iocaled al Andheri (Wesl), Munlai
2OO9 -2O1O CenlraI IulIic Work Deparlnenl has enroIIed our Conpanv nane in lhe Iisl of
Approved Marks Conpanies for execulion of RIID Soflvare, VehicIe AppIicalion
Soflvare, and LnpIovee Tracking Soflvare for lheir ßuiIding Managenenl and
ConlroI Svslen.
2OO9 -2O1O Avarded conlracl for Iarking Managenenl svslen for ICICI Hvderalad for
nanaging 2O,OOO vehicIes sinuIlaneousIv liII fIoor six of lhe luiIding.
2O1O-11 • Menlership cerlificale fron Asian IrofessionaI Securilv Associalion
• Received ISO9OO1:2OO8 cerlificale of conpIiance in respecl of IT lased safelv
securilv and aulonalion producls/soIulions.

77

Changcs In thc rcgIstcrcd nffIcc nf nur Cnmµanv
Datc nf
changc
PartIcu!ars
Rcasnn fnr
changc
Augusl 28,
1995
The regislered office of our Conpanv vas shifled fron ß-56,
IhandevaIan I.I. ConpIex, Rani Ihansi Road, Nev DeIhi-11OO55 lo D-51,
Vivek Vihar Ihase-I DeIhi- 11OO95.
OperalionaI
convenience
Mav 29,
1996
The regislered office of our Conpanv vas shifled fron D-51 Vivek Vihar
Ihase-I DeIhi-95 lo Regencv House, ßM - 12 (Wesl) ShaIinar ßagh, DeIhi
- 11OO56.
OperalionaI
convenience
Augusl 16,
1999
The regislered office of our Conpanv vas shifled fron ¨Regencv
House¨ ßM-12 (Wesl) ShaIinar ßagh, DeIhi-11OO56 lo 21, NalionaI Iark
ßasenenl(Calin No. 5), Lajpal Nagar-IV, Nev DeIhi-11OO24.
OperalionaI
convenience
Augusl 25,
1999
The regislered office of our Conpanv vas shifled fron 21, NalionaI
Iark, Lajpal Nagar-IV, Nev DeIhi lo IIol No. L-133. DiIshad Carden,
DeIhi-11OO95.
OperalionaI
convenience
ApriI 2O,
2OOO
The regislered office of our Conpanv vas shifled fron IIol No. L-133,
DiIshad Carden, DeIhi-11O O92 lo 13O6 Henkunl House, Rajender IIace,
Nev DeIhi 11O OO8.
OperalionaI
convenience
Seplenler
1, 2OO3
The regislered office of our Conpanv vas shifled fron 13O6 Henkunl
House, Rajender IIace, Nev DeIhi 11O OO8 lo A-6/8, Krishna Nagar
DeIhi.
OperalionaI
convenience
ApriI 19,
2OO4
The regislered office of our Conpanv vas shifled fron A-6/8, Krishna
Nagar DeIhi lo 21, NalionaI Iark, Lajpal Nagar IV, Nev DeIhi.
OperalionaI
convenience
Augusl 11,
2OO5
The regislered office of our Conpanv vas shifled fron fron 21, NalionaI
Iark, Lajpal Nagar, Nev DeIhi-11OO24 lo 6O1, Devika Tovers, 6
lh
IIoor,
Nehru IIace, Nev DeIhi-11OO19
OperalionaI
convenience
Augusl 12,
2O1O
The regislered office of our Conpanv vas shifled fron 6O1, Devika
Tover, 6
lh
IIoor, 6, Nehru IIace, Nev DeIhi - 11OO19 lo 623, Devika
Tover, 6
lh
IIoor, Nehru IIace, Nev DeIhi - 11OO19
OperalionaI
convenience

Changcs In Mcmnrandum nf AssncIatInn nf nur Cnmµanv
Datc nf 5harchn!dcrs'
aµµrnva!
Changcs

Decenler 3O, 1998 AIleralion in Main Oljecl CIause and Connencenenl of nev lusiness.
Ielruarv 2, 1999 AIleralion in Main Oljecl CIause and Connencenenl of nev lusiness.
March 5, 1999
Change of nane fron ßharliva CIolaI IinanciaI & AIIied Services Liniled lo
ßharliva CIolaI Soflvare Iinlec Liniled.
IuIv 5, 1999 AIleralion in Main Oljecl CIause
March 15, 2OO1
Change of nane fron ßharliva CIolaI Soflvare Iinlec Liniled lo ßharliva
CIolaI Soflvare Liniled.
March 15, 2OO1
Increase in Aulhorised Share CapilaI fron C 1OO.OO Iakhs divided inlo
1O,OO,OOO equilv shares of C 1O/- each lo C 14O.OO Iakhs divided inlo 14,OO,OOO
equilv shares of C 1O/- each.
Seplenler 25, 2OO1
Increase in Aulhorised Share CapilaI fron C 14O.OO Iakhs divided inlo
14,OO,OOO equilv shares of C 1O/- each lo C 46O.OO Iakhs divided inlo 46,OO,OOO

78

equilv shares of C 1O/- each.
Ocloler 9, 2OO3
Change of nane fron ßharliva CIolaI Soflvare Liniled lo ßharaliva CIolaI
Infonedia Liniled.
Ocloler 9, 2OO3
AIleralion in Main Oljecl CIause lv incIusion of fiIn dislrilulion, produclion,
ediling and reIaled aclivilies.
March 28, 2OO5
Increase in Aulhorised Share CapilaI fron C 46O.OO Iakhs divided inlo
46,OO,OOO equilv shares of C 1O/- each lo C 618.OO Iakhs divided inlo 61,8O,OOO
equilv shares of C 1O/- each.
Iune 28, 2OO5
Increase in Aulhorised Share CapilaI fron C 618.OO Iakhs divided inlo
61,8O,OOO equilv shares of C 1O/- each lo C 7OO.OO Iakhs divided inlo 7O,OO,OOO
equilv shares of C 1O/- each.
Augusl 27, 2O1O
Increase in Aulhorised Share CapilaI fron C 7OO.OO Iakhs divided inlo
7O,OO,OOO equilv shares of C 1O/- each lo C 1,65O.OO Iakhs divided inlo
1,65,OO,OOO equilv shares of C 1O/- each.

MaIn Objccts nf Cnmµanv

The nain oljecls of lhe Conpanv as slaled in lhe Menorandun of Associalion are:

1. To carrv on lhe lusiness of Conpuler Hardvare/Soflvare covering aII ils lusiness aspecls viz ils
Manufacluring, DeveIopnenl, Inporl- Lxporl. InpIenenlalion, Iroviding Hunan
resource/ßodv sopping/Conpuler consuIlancv, Conpuler Irocessing, Renling of conpuler
Harvares/Soflvares and Seninars/Delales elc. and aIso lo carrv on lhe lusiness of inlernel, L-
naiI, L-connerce, and velsile, incIuding Soflvares reIaling lo leIeconnunicalions elc.

2. To nanufaclure/deaI in conpuler and connunicalion soflvare/soflvare deveIopnenl/inporl
of soflvare/exporl of soflvare and nanufaclure of conpuler peripheraIs and lo carrv on lhe
lusiness as nanufaclure, assenlIers, luvers, seIIers, indenlers, hiers, repaires, inporlers,
exporlers, pronolers, agenls, represenlalives, designers, svslen engineers , svslens anaIvsl and
consuIlanl of aII lvpes of conpuler incIuding nini conpulers and nicro processor lased svslen
inleIIigenl lerninaIs, nain frane svslen, inleIIigenl conlroIIers personaI conpulers, vord
processors, conpulerized aulonalion svslen svslens, peripheraI svslens, conpulerized pover
svslens and olher conpulerized and nicro processor lased svslens for connunicalion, nedicaI
lusiness, connerciaI induslriaI , environnenlaI, process conlroI, chenicaI and scienlific
appIicalions or in lhe nainlenance repair and vorking lhereof.

3. (a) To Carrv on lhe lusiness of producers and processors of aII lvpe of, fealure fiIns, docunenlarv
fiIns and dislrilulors of cinenalographv fiIns and lo do aII lhe lhings necessarv and expedienl
in conneclion vilh lhe lusiness of lhe fiIns, and lo carrv on lhe lusiness of ediling, pholograph,
recording, re-recording and aII olher vork reIaled vilh lhe produclion and lransnission of TV
seriaIs, Nevs ReeIs, olher progrannes on leIevision, radio, on seIf ovned or privale channeIs.

(l) To carrv on in India or eIsevhere lhe lusiness lo produce , pronole , projecl , parlicipale,
nanufaclure, nanipuIale, lreal , process, prepare, aIler, deveIop, expose, edil, exhilil, nake, re-
nake , dispIav , prinl, re-prinl, converl, dupIicale finish, luv, seII , run, inporl, exporl and lo acl
as lroker, agenl, dislrilulor, proprielor, copv righl ovners, video righl ovners, cinena sludio
ovner, dance nusic and olher sludio ovners, jol ovners elc of aII kinds of video fiIns, leIefiIns,

79

nevs reeIs, sIides in aII Ianguages prevaiIing in lhe vorId and lo do aII olher lusiness reIaled lo
TeIevision Induslrv in CeneraI.

4. To carrv on lusiness as designers, engineers, nanufaclurers, luvers, seIIers, indenlers, hiers,
inporlers, exporlers, agenls and deaIers of aII lvpes of conpuler soflvare incIuding operaling
svslens, higher IeveI Ianguages, nev Ianguages, conpiIers, Ioaders, soflvare delugging
lechniques and packages, inpul-oulpul conlroI svslens, jol conlroI Ianguages, fiIe nanagers,
peripheraIs and inslrunenl conlroIIers , nev svslen luses, dalavavs, highvavs, peripheraIs
equipnenl drivers, conlroIIers and olher aspecls of svslens soflvare incIuding svslen
ConsuIlancv.

BusIncss acquIsItInns
(a) Our Conpanv had enlered inlo a ßusiness saIe agreenenl on March 2, 2OO5 (effeclive fron March 31,
2OO5) vilh M/s VTV Nelvork Liniled vhich vas approved lv our SharehoIders in lhe Lxlra
Ordinarv CeneraI Meeling heId on March 29, 2OO5, lv vhich VTV Nelvork Liniled agreed lo seII
vhoIe of lhe fixed assels, inveslnenls & olher assels slanding in ils ßaIance sheel as on March 31,
2OO5 for lolaI consideralion of C 6O7.O7 Iakhs, vhich is parlIv paid lv aIIolling 13,4O,OOO equilv
shares of C 1O each al a preniun of C 35/- per share of lhe Conpanv and lhe laIance in cash of C 4.O7
Iakhs.
(l) In 2OO5, Mr. Rakesh ßhhalia, Mrs. Arli ßhalia and our Conpanv, had acquired 16,87,3OO (36.29°)
equilv shares of ¨Nan Credil & Invelsnenl ConsuIlanls Liniled (Targel Conpanv, nov knovn as
ßCIL IiIns & TechnoIogies Liniled)¨ fron Mr. Rajinder IauI IindaI, Ms. Kiran IindaI and Mr. Shiv
Miller IindaI, lv enlering inlo a Share Iurchase Agreenenl daled IuIv 12, 2OO5 for a lolaI
consideralion of C 42.18 Iakhs. Iursuanl lo SLßI Takeover ReguIalions, an open offer vas nade lo
acquire 9,3O,OOO (2O.OO°) equilv shares of lhe Targel Conpanv. Our Conpanv had acquired lolaI
5,72,134 equilv shares, oul of vhich 5,62,434 equilv shares vere acquired under Share Iurchase
Agreenenl and 9,7OO equilv shares vere acquired under open offer vhich vas nade aIongvilh Mr.
Rakesh ßhhalia and Mrs. Arli ßhalia in Ocloler, 2OO5.
(c) Our Conpanv enlered inlo an agreenenl daled Novenler 1, 2OO5 vilh M/s STV Lnlerprises Lld. for
purchasing lhe conpIele lusiness sel up consisling of fiIn sludio for posl produclion faciIilv
aIongvilh lhe nachineries, furnilure & fixlures, looIs, accessories, gadgels and olher equipnenls,
vhelher langilIe or inlangilIe Iocaled al Andheri, Munlai, as on Ocloler 31, 2OO5. The lolaI
consideralion for lhe said purchase vas C 235 Iakhs (incIuding C 2O Iakhs for securilv deposil - paid
lo AnaIlas Croup Housing Socielv for lhe use of prenises), vhich vas paid in cash.

Rcva!uatInn nf Asscts
Our Conpanv has nol revaIued ils assels since ils incorporalion.

5ubsIdIarIcs nf nur Cnmµanv
Our Conpanv has no sulsidiaries.

5harchn!dcrs
As on lhe dale of lhis Drafl Red Herring Irospeclus, lhe lolaI nunler of sharehoIders are 82 (eighlv
lvo).

5harchn!dcrs Agrccmcnt
Our Conpanv has nol enlered inlo a sharehoIders´ agreenenl.

80

Othcr Agrccmcnts
Our Conpanv has execuled foIIoving agreenenls:-

1. Mcmnrandum nf UndcrstandIng wIth M/s. Gadcn E!cctrnnIcs, PartncrshIµ fIrm

1. Dale of Menorandun
of underslanding
SuppIenenlarv Menorandun of Underslanding enlered on Iune 3,
2O1O in addilion lo lhe Menorandun of Underslanding enlered on
Seplenler 1, 2OO9.
2. Iarlies lo lhe
Agreenenl
M/s. Cadeo LIeclronics, Iarlnership firn lhrough ils principaI
Managing Iarlner Mrs. Richa MillaI ("Transfcrnr"). She is hoIding
95° righls of lhe firn.
3. ßase of lhe Agreenenl i) Transferor is lhe originaI aIIollee and ovner of lhe innovalIe
properlv silualed al ß-6O, Seclor 57, Noida.
ii) Transferor agreed lo seII and lransfer and our Conpanv i.e
¨Transfcrcc¨ agreed lo acquire and purchase lhe properlv lv
laking over lhe said firn.
4. VaIidilv of lhe
Agreenenl
The lransaclion is inlended lo le conpIeled on or lefore Mav 31,
2O11 or anv exlended period as nav le nuluaIIv agreed.
5. Terns of lhe
Agreenenl
i) The lolaI purchase consideralion of lhe properlv is C 596.OO
Iakhs, oul of vhich C 2OO.OO Iakhs has leen paid lv vav of
issuing 2,OO,OOO equilv shares of C 1O each al a preniun of C 9O
per equilv share of our Conpanv lo Mrs. Richa MillaI,
Transferee as per lhe SuppIenenlarv MoU.
ii) The said Menorandun of underslanding shaII le convereled
inlo a suilalIe IegaIIv enforcealIe linding docunenl upon
conpIelion of lhe fornaIilies and olIigalions underlaken lv lhe
Transfereor and Transferee.
iii) As per Menorandun of Underslanding daled Seplenler 1,
2OO9, lhe Transferor can pul lhe possession of lhe parl of lhe
properlv (2
nd
and 3
rd
IIoor).
iv) The Transferee shaII lake lhe enlire conlroI over lhe firn/
properlv onIv afler receipl of lhe lolaI consideralion.

5tratcgIc Partncrs
Our Conpanv does nol have anv slralegic parlners.

FInancIa! Partncrs
Our Conpanv does nol have anv financiaI parlners.

81

OUR MANAGEMENT

As per ArlicIe 129 of ArlicIes of Associalion, our Conpanv nusl have a nininun of lhree and a
naxinun of lveIve Direclors. As on lhe dale of lhis Drafl Red Herring Irospeclus, our Conpanv has
seven Direclors oul of vhich four are Independenl Direclors.

The foIIoving lalIe sels forlh delaiIs regarding our ßoard of Direclors as on lhe dale of fiIing of lhis
Drafl Red Herring Irospeclus.

Namc, dcsIgnatInn, fathcr's
namc, tcnurc, DIN and
nccuµatInn
Agc Addrcss Othcr DIrcctnrshIµs, PrnµrIctnrshIµ,
PartncrshIµ, assncIatInn ctc.
Mr. Rakcsh BhhatIa
Cnairman c Managing Dircc|cr

S/o Lale Mr. On Irakash Singh
ßhalia

DIN: OOO46983

Tenure: 5 vears effeclive fron
ApriI 1, 2OO9 lo March 31, 2O14
and IialIe lo relire lv rolalion

Occupalion: ßusiness
49 A-93, Seclor-26,
Noida -2O13O1, U.I.
1. ßCIL IiIns & TechnoIogies Lld.
2. ßhhalia Inveslnenl & Iinance
Irivale Liniled
3. CrindIav Iinnan Irivale Liniled
4. Nunler One Iinsec Irivale
Liniled
5. Nunler One Iinvesl Irivale
Liniled
6. Krili Connunicalions Irivale
Liniled
7. Rakesh ßhhalia (HUI) - Karla
Mrs. ArtI BhatIa
Dircc|cr

D/o Mr. KripaI Singh

DIN: OOO47O4O

Tenure: LialIe lo relire lv
rolalion
Occupalion: ßusiness
43 A-93, Seclor-26,
Noida -2O13O1, U.I.
1. ßhhalia Inveslnenl & Iinance (I)
Lld.
2. CrindIav Iinnan Irivale Liniled.
3. Nunler One Iinsec Irivale
Liniled
4. Nunler One Iinvesl Irivale
Liniled

Mr. 5anjccv Kumar MItta!
|xccu|itc Dircc|cr- Tccnnica|

S/c Mr. Ran Kishan MillaI

DIN: OOO4728O

Tenure: 5 vears effeclive fron
ApriI 1, 2OO9 lo March 31, 2O14
and IialIe lo relire lv rolalion

Occupalion: Service
48 D-51/ß, Seclor-26
Noida-2O1 3O1, U.I.

NIL

82

Mr. 5anjav Kaµnnr
|núcpcnúcn| Dircc|cr

S/c Mr. ßaI Kishan Kapoor

DIN: OOO47651

Tenure: LialIe lo relire lv
rolalion

Occupalion: IrofessionaI
5O 18, Savila Vihar,
DeIhi - 11O O92
ßCIL IiIns & TechnoIogies Liniled

PrnµrIctnr:
M/s Kapoor & Kapoor,
Charlered Accounlanls

Partncr:
M/s CIacier Conlraclion
Mr. HarjIt 5Ingh Anand
|núcpcnúcn| Dircc|cr

S/c Mr. Hardil Singh Anand

DIN: O3168663

Tenure: LialIe lo relire lv
rolalion

Occupalion: Service
45 3
rd
IIoor, Naaz
Cinena Conpound,
397-A
Dr ßhadkankar
Marg, Cranl Road
(L), Munlai -4OO OO4

HR Lxin Irivale Liniled
Mrs. Java MIsra
|núcpcnúcn| Dircc|cr

D/c Mr. Avinash Chandra
Chalurvedi

DIN: O3224759

Tenure: LialIe lo relire lv
rolalion

Occupalion: ßusiness
48 364, Seclor-29
Caulan ßudh Nagar,
Noida -2O1 3O1

PrnµrIctnr:
M/s Credence CIolaI
Mr. AnI! Kumar Kaµnnr
|núcpcnúcn| Dircc|cr

S/c Mr. On Irakash Kapoor

DIN: OO218434

Tenure: LialIe lo relire lv
rolalion

Occupalion: Service
58 56 Osgood slreel,
Andover, MA O181,
Uniled Slales
Anerica
NiI
None of our direclors excepl, Mr. Rakesh ßhhalia vho is husland of Mrs. Arli ßhalia, are reIaled lo each
olher.

83

Our Conpanv has nol enlered inlo anv service conlracls vilh anv Direclors vhich provide for anv
lenefils lo lhe said Direclors upon lerninalion of enpIovnenl. Our Conpanv has nol enlered inlo anv
arrangenenl or underslanding vilh ils najor sharehoIders, cusloners, suppIiers or olhers pursuanl lo
vhich anv of lhe direclors vere seIecled as a direclor or nenler of senior nanagenenl. Iurlher, excepl
for slalulorv lenefils upon lerninalion of lheir enpIovnenl in our Conpanv or upon relirenenl, no
officer of our Conpanv, incIuding our Direclors and our kev nanageriaI persons, are enlilIed lo anv
lenefils upon lerninalion of enpIovnenl vilh our Conpanv.

BrIcf PrnfI!c nf thc DIrcctnrs:

Mr. Rakcsh BhhatIa
Mr. Rakesh ßhhalia, aged 49 vears, is a Iosl Cradule in connerce fron Iivaji Universilv, CvaIior,
IeIIov nenler of The Inslilule of Conpanies Secrelaries of India and Associale Menler of AII India
Managenenl Associalion. He has nore lhan 2O vears experience in Corporale Lav & Iinance,
Infornalion TechnoIogv, Inveslnenl ßanking and aclivilies reIaling lo Media & Lnlerlainnenl.

Mrs. ArtI BhatIa
Mrs. Arli ßhalia, aged 43 vears is a ßacheIor in Arls & SocioIogv fron Kola Open Universilv, Rajaslhan.
She is a Ironoler Direclor (Non-Lxeculive) of our Conpanv. She has overaII experience of 17 vears in
lhe fieId of HR nanagenenl and adninislralion.

Mr. 5anjccv Kumar MItta!
Mr. Sanjeev Kunar MillaI, aged 48 vears has done ß.Tech fron AIigarh MusIin Universilv and has 18
vears of experience in lhe fieIds of svslen design, fronlIine saIes, deaIers´ lraining, inslaIIalion,
connissioning and cusloner supporl in various seclor viz. IT, leIecon, eIeclronic safelv, securilv and
luiIding aulonalion induslrv. He had experience of vorking vilh NALCO, Codrej & ßovce, India TeIe-
Con Lld., Inlecon India Liniled, RßH India Irivale Liniled lefore joining our Conpanv al various
posilions. IresenlIv he is invoved in our Conpanv and Iooking afler Infornalion TechnoIogv (IT) reIaled
aclivilies.

Mr. 5anjav Kaµnnr
Mr. Sanjav Kapoor, aged 5O vears is a Craduale fron DeIhi Universilv and a feIIov nenler of lhe
Inslilule of Charlered Accounlanls of India and possesses over 2O vears of experience in corporale
accounling, finance, Inveslnenl lanking and laxalion. He is a praclicing Charlered Accounlanl vilh
M/s Kapoor & Kapoor, Charlered Accounlanls.

Mr. HarjIt 5Ingh Anand
Mr. Harjil Singh Anand, aged 45 vears is IHD in InlernalionaI ßusiness Managenenl fron Canlerlurv
UK. He is Chairnan of MRCC Hunans Righls Deparlnenls, Direclor in Alhinav Sahakari Corporalive
ßank, Vice Iresidenl of Trans Asia Chanler of Connerce & Induslrv, Menler of Indian Merchanl
Chanler of Connerce & Induslrv, and Ovner & Chief Ldilor of Hunan Righls, Munlai and Das
Tines.

Ms. Java MIsra
Ms. Iava Misra, aged 48 vears has done posl-graduale dipIona course fron lhe Inslilule of Iroduclivilv
and Managenenl, Lucknov, India and has aIso done advanced lraining in IersonneI Managenenl fron
CarI Duislerg CeseIIschafl, Cernanv. She has nore lhan 25 vears of vorking experience, oul of vhich 1O
vears of experience in lhe fieId of narkeling, hunan resources, lraining & consuIling. During her

84

professionaI lenure, she vorked vilh conpanies Iike NIS Sparla Lld and aIso associaled vilh Hevill
Associales, a Norlh Anerican HR ConsuIling Iirn. She is lhe Head of Credence CIolaI an HR
consuIling firn and lraining firn. In addilion, she is aIso lhe Managing Direclor of Soulh Asia of CIolaI
Lxec Logislic ConsuIling Croup (firn).

Mr. AnI! Kumar Kaµnnr
Mr. AniI Kunar Kapoor, aged 58 vears, an NRI, is Masler in ßusiness Adninislralion fron Norlheaslern
Universilv, ßoslon: Masler of Science in Lngineering fron Universilv of LoveII and Cradule Science in
Lngineering fron Universilv of Roorkee. He has nore lhan 25 vears of lechnicaI nanagenenl
experience. He has knovIedge in lechnoIogv and soflvare deveIopnenl lo coIIalorale vilh aII IeveIs of
nanagenenl lo address slralegic lusiness chaIIenges incIuding shaping lusiness slralegv, acquisilions,
diveslilures, change nanagenenl, recruilnenl, lraining and slralegic lusiness pIanning.

DctaI!s nf bnrrnwIng µnwcrs
As per lhe provisions of Seclion 292 of lhe Conpanies Acl, 1956, lhe ßoard of Direclors are aulhorised lo
lorrov fron line lo line, anv sun of nonevs, on such lerns and condilions and vilh or vilhoul
securilv as lhe ßoard of Direclors nav lhink fil under lhe provisions of Seclion 292 of lhe Conpanies
Acl, 1956 i.e. vilhin lhe Iinil of lhe paid-up share capilaI of lhe Conpanv and ils free reserves.

DctaI!s nf CnmµcnsatInn nf ChaIrman & ManagIng DIrcctnr and Whn!c TImc DIrcctnrs

Mr. Rakcsh BhhatIa
1. SaIarv up lo C 1.25 Iakhs per nonlh
2. Ierquisiles such as house renl aIIovance, house nainlenance aIIovances/expenses,
reinlursenenl of acluaI nedicaI expense, lraveI concession / assislance (doneslic & overseas),
reinlursenenl of nenlership fee for lhe cIuls, personaI accidenl insurance poIicv, graluilv,
Ieave vilh fuII pav or encashnenl lhereof, convevance faciIilies, leIephone, leIefax & olher
connunicalion faciIilies al residence, conlrilulion lo providenl fund and superannualion fund
and olher persquisiles suljecl lo overaII ceiIing on renuneralion.

Mr. 5anjccv Kumar MItta!
1. SaIarv up lo C 1 Iakh per nonlh
2. Ierquisiles such as house renl aIIovance, house nainlenance aIIovances/expenses,
reinlursenenl of acluaI nedicaI expense, lraveI concession / assislance (doneslic & overseas),
reinlursenenl of nenlership fee for lhe cIuls, personaI accidenl insurance poIicv, graluilv,
Ieave vilh fuII pav or encashnenl lhereof, convevance faciIilies, leIephone, leIefax & olher
connunicalion faciIilies al residence, conlrilulion lo providenl fund and superannualion fund
and olher persquisiles suljecl lo overaII ceiIing on renuneralion.

The foIIoving lalIes sel forlh lolaI conpensalion paid lv lhe Conpanv lo lhe execulive direclors for lhe
financiaI vear 2OO9-2O1O:
(C in Iakhs)
Namc nf DIrcctnr Amnunt
Mr. Rakesh ßhhalia
14.4O
Mr. Sanjeev Kunar MillaI
9.OO

85

RcmuncratInn tn Indcµcndcnt and Nnn-ExccutIvc DIrcctnrs
Our Independenl and Non-Lxeculive Direclors are leing paid a silling fee of C 1OOO/- (Rupees one
lhousand onIv) for everv neeling of lhe ßoard of Direclors allended lv lhen vilh effecl fron Seplenler
1, 2O1O.

There has leen no conpensalion paid lv lhe Conpanv lo lhe Independenl /non-execulive Direclors for
lhe financiaI vear 2OO9-2O1O.

Cnrµnratc Gnvcrnancc
The provisions of lhe Lisling Agreenenl lo le enlered inlo vilh lhe Slock Lxchanges vilh respecl lo
corporale governance shaII le appIicalIe lo us innedialeIv upon Iisling of our Conpanv´s Lquilv Shares
on lhe Slock Lxchanges. Our Conpanv has conpIied vilh lhe requirenenls of Corporale Covernance,
parlicuIarIv lhose reIaling lo conposilion of loard of direclors, consliluling lhe connillees such as
Audil Connillee, SharehoIding/Inveslor Crievance Connillee, Renuneralion Connillee and IIO
Connillee elc.

AudIt CnmmIttcc
The Audil Connillee vas originaIIv consliluled on ApriI 1, 2OO4 and reconsliluled on Seplenler 1,
2O1O. The presenl conposilion of lhe audil connillee is as under:
Namc nf DIrcctnr 5tatus In CnmmIttcc Naturc nf DIrcctnrshIµ
Mr. Sanjav Kapoor
Chairnan Independenl Direclor
Ms. Iava Mishra
Menler Independenl Direclor
Mr. Harjil Singh Anand
Menler Independenl Direclor
Mr. Sanjeev Kunar MillaI
Menler Lxeculive Direclor
Mr. Rakesh ßhhalia
Menler Lxeculive Direclor

The responsiliIilies and povers of lhe Audil Connillee are:
• Meelings periodicaIIv as il nav deen necessarv and, one neeling lefore finaIizalion of annuaI
accounls.
• overseeing lhe Conpanv´s financiaI reporling process,
• reconnending lo lhe ßoard, lhe appoinlnenl re- appoinlnenl, if required lhe repIacenenl or
renovaI of lhe slalulorv audilor, exlernaI audilors and lhe fixalion of audil fee(s),
• approvaI of pavnenl of slalulorv audilors and exlernaI audilors for anv olher services rendered
lv lhe slalulorv audilors
• revieving lhe annuaI financiaI slalenenls lefore sulnission lo lhe ßoard for approvaI, vilh lhe
parlicuIar reference lo:
a) Mallers require lo le incIuded in lhe Direclor´s ResponsiliIilv Slalenenl lo le incIuded in
lhe ßoard´s reporl in lerns of CIause No. (2AA) of Seclion 217 of lhe Conpanies Acl,
1956.
l) Changes, if anv, in accounling poIicies and praclices and reasons for lhe sane.
c) Major accounling enlries invoIving eslinales lased on lhe exercise of judgnenl lv
nanagenenl.
d) Significanl adjuslnenls nade in lhe financiaI slalenenls arising oul of audil findings.
e) ConpIiance vilh Iisling and olher IegaI requirenenls reIaling lo financiaI slalenenls.
f) DiscIosure of anv reIaled parlv lransaclions.
g) OuaIificalions in lhe drafl audil reporl.

86

h) The going concern assunplion.
i) ConpIiance vilh accounling slandards.

• Revieving, vilh lhe Managenenl, lhe slalenenl of uses/appIicalion of funds raised lhrough an
issue (pulIic issue, righls issue, preferenliaI issue elc.), lhe slalenenl of funds ulIiIised for
purposes olher lhan lhose slaled in lhe offer docunenls/prospeclus/nolice and lhe reporl, if
anv, sulnilled lv lhe noniloring agencv noniloring lhe uliIizalion of proceeds of a pulIic or
righls issue and naking appropriale reconnendalions lo lhe ßoard lo lake up sleps in lhis
naller.
• Revieving vilh lhe nanagenenl, lhe quarlerIv financiaI slalenenls lefore sulnission lo lhe
ßoard for approvaI.
• Revieving, vilh lhe nanagenenl, perfornance of slalulorv and inlernaI audilors, adequacv of
lhe inlernaI conlroI svslens.
• Revieving lhe adequacv of inlernaI audil funclion, if anv, incIuding lhe slruclure of lhe inlernaI
audil deparlnenl, slaffing and seniorilv of lhe officiaI heading lhe deparlnenl, reporling
slruclure coverage and frequencv of inlernaI audil.
• Discussion vilh inlernaI audilors anv significanl findings and foIIov up lhereon.
• Revieving lhe findings of anv inlernaI invesligalions lv lhe inlernaI audilors inlo nallers vhere
lhere is suspecled fraud or irreguIarilv or a faiIure of inlernaI conlroI svslens of a naleriaI
nalure and reporling lhe naller lo lhe ßoard.
• Discussion vilh slalulorv audilors lefore lhe audil connences, aloul lhe nalure and scope of
audil as veII as posl-audil discussion lo ascerlain anv area of concern.
• To Iook inlo lhe reasons for sulslanliaI defauIls in lhe pavnenls lo lhe deposilors, delenlure
hoIders, sharehoIders (in case of non pavnenl of decIared dividends) and credilors.
• To reviev lhe funclioning of lhe WhislIe ßIover Mechanisn, in case lhe sane is exisling.
• Carrving oul anv olher funclion as is nenlioned in lhe lerns of reference of lhe Audil Connillee.

5harchn!dcr / Invcstnr GrIcvancc CnmmIttcc
The SharehoIder / Inveslor Crievance Connillee vere consliluled on Seplenler 1, 2O1O. The presenl
conposilion of lhe SharehoIder / Inveslor Crievance connillee is as under:

Namc nf DIrcctnr 5tatus In cnmmIttcc Naturc nf dIrcctnrshIµ
Ms. Iava Mishra
Chairnan Independenl Direclor
Mr. Sanjeev Kunar MillaI
Menler Lxeculive Direclor
Mr. Rakesh ßhhalia
Menler Lxeculive Direclor

The Iover of lhe SharehoIder / Inveslor Crievance connillee is:
• revieving of lhe sharehoIders´ / delenlure hoIders´ conpIainls reIaling lo lransfer of shares /
delenlures, non-receipl of laIance sheels, decIared dividend, inleresl, redenplion pavnenl elc.,
• noniloring and revieving of svslens, procedures reIaling lo processing of lransfer of shares,
delenlures elc.,
• invesligaling anv aclivilv and seek infornalion fron anv enpIovee of lhe Conpanv, in
discharging ils dulies,
• fixing record dale for lhe purposes as required under lhe Conpanies Acl, 1956, and/or Lisling
Agreenenl,

87

• considering and approving issue of dupIicale share cerlificales in Iieu of reporled Iosl, nispIaced,
lorn, nuliIaled cerlificales: and olher reIaled nallers elc.,
• noniloring lhe nallers of Iiligalion reIaled lo sharehoIders and lake decisions reIaling lherelo,
• considering, revieving and noniloring lhe nallers reIaled lo lhe sharehoIders grievances,
• considering, and finaIizing lhe reporl on Corporale Covernance lo le annexed vilh lhe AnnuaI
Reporl of lhe conpanv,
• deaIing vilh nallers such as non-receipl of laIance sheel, non-receipl of decIared dividend, elc,
• To perforn lhe lasks of Share lransfer Connillee reIevanl under lhe Conpanies (Issue of Share
Cerlificale) RuIes, 196O.
• deaIing vilh anv olher nallers reIaled and/or incidenlaI lo lhe sharehoIders.

RcmuncratInn CnmmIttcc
The Renuneralion Connillee vas originaIIv consliluled on Seplenler 1, 2O1O. Ils conslilulion is as
foIIovs:
Namc nf DIrcctnr 5tatus In cnmmIttcc Naturc nf dIrcctnrshIµ
Ms. Iava Mishra
Chairnan Independenl Direclor
Mr. Sanjav Kapoor
Menler Independenl Direclor
Mr. Harjil Singh Anand
Menler Independenl Direclor

The scope and lerns of reference of lhe Renuneralion Connillee shaII le as foIIovs:
• finaIize lhe appoinlnenl, lerns of engagenenls, renuneralion pavalIe lv our Conpanv lo ils
chairnan, chief financiaI officer, nanaging direclor, chief execulive officer, chief operalion officer
or anv olher Direclor incIuding lhe funclionaI Direclors fron line lo line keeping in viev lhe
provisions of lhe Conpanies Acl, 1956 read vilh reIalive ScheduIes lherelo and lhal such
connillee le and is herelv aulhorized lo reconnend lo lhe ßoard such enlilIenenls of
renuneralion: and

• ensure proper conpIiance of lhe condilions precedenl lo appoinlnenl(s) and lo generaIIv lo
allend lo aII olher fornaIilies incidenlaI lo or connecled vilh lhe pavnenl of renuneralion lo
Direclors and or nanageriaI person, lo decide lhe revision in renuneralion and pavnenl of
connission lo lhen vilhin lhe sanclion of lhe sharehoIders.

IPO CnmmIttcc
The IIO Connillee vas originaIIv consliluled on Augusl 21, 2O1O and reconsliluled on Seplenler 1,
2O1O. The presenl nenlers of lhe connillee are as under:
Namc nf DIrcctnr 5tatus In cnmmIttcc Naturc nf dIrcctnrshIµ
Mr. Rakesh ßhhalia
Chairnan Lxeculive Direclor
Mr. Sanjav Kapoor
Menler Independenl Direclor
Ms. Iava Misra
Menler Independenl Direclor

The scope and lerns of reference of lhe IIO Connillee shaII le as foIIovs:
• Taking decision lo open lhe issue, decide opening and cIosing dale:
• Deciding on lhe lerns of lhe IIO vhich inler-aIia incIude lhe issue price, lhe nunler of securilies
lo le offered for aIIolnenl, anounl pavalIe on appIicalion, aIIolnenl, caIIs, preniun pavalIe,
lhe lasis of aIIolnenl and aIIolnenl of securilies:

88

• Appoinlnenl of various inlernediaries, vhich inleraIia incIude ßook Running Lead Manager
(ßRLM), Lscrov ßankers lo lhe Issue, LegaI CounseI lo lhe Issue, Regislrar lo lhe Issue,
Adverlisenenl Agencv, Irinlers, undervrilers, svndicale nenlers or anv olher agencv, as nav
le required for lhe conpIelion of lhe proposed IIO:
• Arranging lhe deIiverv and execulion of aII conlracls, agreenenls and aII olher docunenls, deeds
and inslrunenls as nav le required or desiralIe in conneclion vilh lhe issue of securilies lv lhe
Conpanv:
• Opening separale speciaI accounl(s) vilh Lscrov lank(s) lo receive nonies in respecl of lhe issue
of lhe Securilies and lo enler inlo anv agreenenl, if required, vilh such lanks:
• Making appIicalions for Iisling of lhe Securilies of lhe Conpanv on one or nore slock
exchange(s) and lo execule and lo deIiver or arrange lhe deIiverv of lhe Iisling agreenenl(s) or
equivaIenl docunenlalion lo lhe concerned slock exchange(s) incIuding pavnenl of necessarv fee
lo such slock exchange(s) and laking aII aclions lhal nav le necessarv in conneclion vilh
ollaining such Iisling:
• Approving lhe aIIolnenl of securilies in consuIlalion vilh lhe Designaled Slock Lxchange and
lhe ßRLM. :
• ApprovaI of lhe Drafl Red Herring Irospeclus, Red Herring Irospeclus and Irospeclus
(incIuding anending, varving or nodifving lhe sane, as nav le considered desiralIe or
expedienl) as finaIized in consuIlalion vilh lhe ßook Running Lead Manager in accordance vilh
appIicalIe Iavs, ruIes, reguIalions and guideIines:
• Aulhorisalion of anv direclor or direclors of lhe Conpanv or olher officers or officers of lhe
Conpanv, incIuding lv lhe granl of pover of allornevs, lo do such acls, deeds and lhings as
aulhorized persons in ils alsoIule discrelion nav deen necessarv or desiralIe in conneclion vilh
lhe issue and aIIolnenl of lhe Securilies:
• Civing or aulhorising lhe giving lv concerned persons of such decIaralions, affidavils,
cerlificales, consenls and aulhorilies as nav le required fron line lo line: and
• Doing aII lhose aclivilies vhich are required lo successfuIIv conpIele lhe process of IIO.

5harchn!dIng nf DIrcctnrs In thc Cnmµanv
The ArlicIes of Associalion of lhe Conpanv do nol require lhe Direclors lo hoId anv equilv shares in lhe
Conpanv as quaIificalion shares. The foIIoving lalIe sels oul lhe sharehoIding of lhe Direclors vho hoId
shares eilher in lheir personaI capacilv or as joinl hoIder, as on lhe dale of lhis Drafl Red Herring
Irospeclus.

5r.
Nn.
Namc nf thc DIrcctnrs
Numbcr nf EquItv
5harcs
% tn µrc-Issuc µaId uµ
cquItv sharc caµIta!
1. Mr. Rakesh ßhhalia 28,17,276 3O.88
2. Mrs. Arli ßhalia 19,24,544 21.1O
3. Mr. Sanjeev Kunar MillaI 3O,OOO O.33
4. Mr. Harjil Singh Anand 1,OOO O.O1
5. Ms. Iava Misra 1,OOO O.O1
6. Mr. Sanjav Kapoor 45, 652 O.5O
7. Mr. AniI Kunar Kapoor NiI NiI
Tnta! 48,17,472 52.81


89

Intcrcst nf DIrcctnrs
AII lhe Direclors nav le deened lo le inleresled lo lhe exlenl of lhe silling fees pavalIe lo lhen for
allending neelings of lhe ßoard or anv connillee lhereof as veII as lo lhe exlenl of renuneralion and
reinlursenenl of expenses pavalIe lo lhen. Iurlher, direclors nav aIso le deened lo le inleresled lo
lhe exlenl of Lquilv Shares heId lv lhen or lhal nav le sulscriled for and aIIolled lo lhen oul of lhe
presenl issue, if anv. Direclors nav aIso le deened lo le inleresled lo lhe exlenl of anv dividend pavalIe
lo lhen and olher dislrilulions in respecl of lhe said equilv shares.

Iurlher, excepl as slaled in ¨ReIaled Iarlv Transaclions¨ leginning on page no. 12O of lhis Drafl Red
Herring Irospeclus, lo lhe exlenl of sharehoIding in our Conpanv eilher lv lhenseIves or sharehoIding
of conpanies in vhich lhev are inleresled, our Direclors do nol have anv olher inleresl in our Conpanv.
Our Direclors do nol have anv inleresl in anv properlv acquired lv our Conpanv in a period of lvo
vears lefore fiIing lhis Drafl Red Herring Irospeclus vilh SLßI or proposed lo le acquired lv us as on
dale of fiIing lhis Drafl Red Herring Irospeclus vilh SLßI.

Changcs In thc DIrcctnrs In thc !ast thrcc vcars
The foIIoving changes have laken pIace in lhe ßoard of Direclors of lhe Conpanv during lhe Iasl lhree
vears:
5.
Nn.
Namc nf DIrcctnr Datc nf AµµnIntmcnt
Datc nf RcsIgnatInn
/ CcssatInn
Rcasnn fnr changc
1. Mr. Sanjav Kapoor Decenler 11, 2OO7 - Appoinlnenl
2. Mr. I. K. ßhalia - Iune 21, 2OO8 Resignalion
3. Mr. Sanjav Kapoor - Ielruarv 28, 2OO9 Resignalion
4. Mr. Sanjeev Kunar MillaI Ielruarv 28, 2OO9 Appoinlnenl
5. Mr. Sanjav Kapoor Seplenler 1, 2O1O - Appoinlnenl
6. Mr. AniI Kunar Kapoor Seplenler 1, 2O1O - Appoinlnenl
7. Ms. Iava Misra Seplenler 1, 2O1O - Appoinlnenl

OrganIsatInn Chart
Chairnan & Managing
Direclor
Lxeculive Direclor -
TechnicaI
ßusiness Head - IT
Division
Chief Lxeculive Officer -
Markeling
Chief Operaling Officer -
Sludio
Manager - Iinance
Conpanv Secrelarv
ßusiness Head TechnicaI -
Sludio

90


Kcv Managcmcnt Pcrsnnnc!

The delaiIs of lhe kev nanageriaI personneI of lhe Conpanv are as foIIovs:

5. Nn Namc
Agc
(Yrs)
Datc nf
JnInIng
DcsIgnatInn
Ovcra!!
cxµcrIcncc
(In Yrs)
PrcvInus
Emµ!nvmcnt
1. Mr. Arpan
TaIvar

28 Decenler
1, 2OO7
Chief
Lxeculive
Officer
9 Macro Soflvare
Svslens LLC, Muscal,
SuIlanale of Onan
2. Mr. Anarjeel
Dahiva
43 ApriI 1,
2O1O
Chief
Operaling
Officer -
Media &
Lnlerlainnenl
17 One2One Lnlerlainnenl
3. Mr. Adilva
Tvagi
31 Novenler
5, 2OO6
ßusiness
Head- IT
Division
7 Nalure TechnoIogies
Ivl. Lld
4. Mr. Rajeev
Kunar AgarvaI
38 ApriI 1,
1997
Manager-
Iinance
14 -
5. Mr. Kunar
Iushkar
34 Augusl
21, 2O1O
Conpanv
Secrelarv
1O ßCIL IiIns &
TechnoIogies Lld.
6. Mr. Deepak
Kunar Singh
28 Ielruarv
24, 2OO5
ßusiness
Head-
TechnicaI
DigilaI Iosl
Iroduclion
Sludio
1O M/s Iasl Iorvard

1. AII lhe persons naned as our Kev ManageriaI IersonneI are lhe pernanenl enpIovees of our
Conpanv.
2. There is no underslanding vilh najor sharehoIders, cusloners, suppIiers or anv olhers pursuanl lo
vhich anv of lhe alove nenlioned personneI have leen recruiled.
3. None of lhe alove nenlioned Kev ManageriaI IersonneI are reIaled lo each olher.

BrIcf µrnfI!cs nf Kcv ManagcrIa! Pcrsnnnc!

Mr. Arµan Ta!war, ChIcf ExccutIvc OffIccr
Mr. Arpan TaIvar is a graduale in Conpuler AppIicalion fron ßhinrao Anledkar Universilv and
Maslers in ßusiness Adninislralion fron Svnlosis, Iune. He has overaII experience of 9 vears in
lusiness deveIopnenl. Irior lo joining our Conpanv, he vorked for Macro Soflvare Svslens LLC,
Muscal, SuIlanale of Onan vhere he vas responsilIe for lusiness deveIopnenl. In our Conpanv, he is
in charge of lusiness deveIopnenl in Infornalion TechnoIogv division. Ior IinanciaI Year 2OO9-1O, he
vas paid a gross renuneralion of C 8.97 Iakhs.

91

Mr. Amarjcct DahIva, ChIcf OµcratIng OffIccr -McdIa & EntcrtaInmcnt DIvIsInn
Mr. Anarjeel Dahiva is a graduale in Science fron AIIahalad Universilv. He has nore lhan 17 vears of
experience of saIes & narkeling. LarIier he vas vorking vilh One2One Lnlerlainnenl, vhere he vorked
al lhe posilion of Chief Lxeculive Officer and vorked in lhe division of saIes and narkeling, execulion of
projecls, dav lo dav operalions of evenls and cIienls reIalions. In our Conpanv, he is Iooking afler saIes
& narkeling, nuIli siles operalions and fieId saIes. He is overaII incharge of Media & Lnlerlainnenl
Division. He vas nol paid anv renuneralion during 2OO9-1O.

Mr. AdItva TvagI, BusIncss Hcad- IT DIvIsInn
Mr. Adilva Tvagi, he is a Iosl Craduale in Conpuler AppIicalion fron Ullar Iradesh TechnoIogies
Universilv. He has nore lhan 7 vears of experience, oul of vhich around five vears of experience of
vorking in Infornalion TechnoIogv reIaled operalions and projecl deveIopnenl. ßefore joining our
Conpanv, he vas vorking vilh Nalure TechnoIogies Irivale Liniled. He is responsilIe for Infornalion
TechnoIogv reIaled operalions and projecl deveIopnenl. Ior IinanciaI Year 2OO9-1O, he vas paid a gross
renuneralion of C 4.O8 Iakhs.

Mr. Rajccv Kumar Agarwa!, Managcr- FInancc
Mr. Rajeev Kunar AgarvaI is a Craduale in Connerce fron RohiIkhand Universilv. He has nore lhan
14 vears of experience in financiaI nanagenenl, accounls and connerciaI operalions. Ior IinanciaI Year
2OO9-1O, he vas paid a gross renuneralion of C 4.8O Iakhs.

Mr. Kumar Pushkar, Cnmµanv 5ccrctarv
Mr. Kunar Iushkar is a Craduale in Arls fron AIIahalad Universilv and has aIso lecone an associale
nenler of Inslilule of Conpanv Secrealries of India in 2O1O. He vas earIier vorking vilh M/s.
Narinder Khanna & Associales, a praclising firn of Conpanv Secrelaries lefore joining our Ironoler
Croup Conpanv viz. ßCIL IiIns & TechnoIogies Liniled, fron vhere he shifled lo our Conpanv. He
vas nol paid anv renuneralion during IY 2OO9-1O since he has joined our Conpanv in Augusl, 2O1O.

Mr. Dccµak Kumar 5Ingh, BusIncss Hcad TcchnIca! - DIgIta! Pnst PrnductInn 5tudIn
Mr. Deepak Kunar Singh is a graduale in Arls fron Ranchi Universilv. He is having 1O vears of
experience in lhe fieId of ediling of Music Videos, Docunenlarv and Corporale fiIns, IiIns Ironos,
TraiIor elc. ßefore joining our Conpanv he vorked vilh M/s Iasl Iorvard and M/s Ldil Zone and had
experience of calering lo ediling & leIecasling, perforning on digi lela & lela can calering lo nusic
video, evenls, docunenlarv & seriaIs for differenl channeIs. In our conpanv, he is Iooking afler cIienl
reIalionship aIong vilh narkeling of DII division. Ior 2OO9-1O, he vas paid a gross renuneralion of C
3.9O Iakhs.

5harchn!dIng nf Kcv ManagcrIa! Pcrsnnnc!

The sharehoIdings of lhe kev nanageriaI personneI are as under:
5.Nn. Namc nf thc Emµ!nvcc Nn. nf 5harcs
1 Mr. Arpan TaIvar 3O,OOO
2 Mr. Rajeev Kunar AgarvaI 3O,OOO
3 Mr. Kunar Iushkar 1O,OOO
4 Mr. Adilva Tvagi 8,OOO
5 Mr. Anarjeel Dahiva 2,OOO
6 Mr. Deepak Kunar Singh 3,OOO

92


Changcs In thc kcv managcrIa! µcrsnnnc! durIng thc !ast thrcc vcars

There have leen no changes in lhe Kev ManageriaI IersonneI in our Conpanv during lhe Iasl lhree
vears excepl as slaled leIov:

Namc nf thc Kcv
ManagcrIa! Pcrsnnnc!
Currcnt DcsIgnatInn
Datc nf
AµµnIntmcnt
Datc nf
RcsIgnatInn /
CcssatInn
Rcasnn
Mr. Arpan TaIvar
Chief Lxeculive
Officer
Decenler 1,
2OO7
- Appoinlnenl
Mr. Sunil Iain
Chief Lxeculive
Officer
-
Ianuarv 21,
2OO9

Resignalion
Mr. Anarjeel Dahiva
Chief Operaling
Officer
ApriI O1, 2O1O - Appoinlnenl
Mr. Kunar Iushkar Conpanv Secrelarv Augusl 21, 2O1O - Appoinlnenl

Intcrcst nf kcv managcrIa! µcrsnnnc!
The kev nanageriaI personneI of our Conpanv do nol have anv inleresl in our Conpanv olher lhan
lheir sharehoIding in our Conpanv and lo lhe exlenl of lhe renuneralion or lenefils lo vhich lhev are
enlilIed lo as per lheir lerns of appoinlnenl and reinlursenenl of expenses incurred lv lhen during
lhe ordinarv course of lusiness. Iurlher, Mr. Rajeev Kunar AgarvaI hoId 1,OOO equilv shares in ßhhalia
Inveslnenl and Iinance Irivale Liniled, one of lhe Ironoler Croup Conpanies. Moreover, Mr. Kunar
Iushkar is one of lhe Direclors in Krili Connunicalions Irivale Liniled, one of lhe Ironoler Croup
Conpanies.

Lxcepl as slaled olhervise in lhis Drafl Red Herring Irospeclus, ve have nol enlered inlo anv conlracl,
agreenenl or arrangenenl during lhe preceding lvo vears fron lhe dale of lhis Drafl Red Herring
Irospeclus in vhich lhe kev nanageriaI personneI are inleresled direclIv or indireclIv and no pavnenls
have leen nade lo lhen in respecl of lhese conlracls, agreenenls or arrangenenls or are proposed lo le
nade lo lhen.

Bnnus nr µrnfIt sharIng µ!an fnr thc kcv managcrIa! µcrsnnnc!
Our Conpanv does nol have anv lonus/profil sharing pIan for anv of lhe Kev ManageriaI IersonneI.

Emµ!nvccs 5harc Purchasc 5chcmc / Emµ!nvccs 5tnck OµtInn 5chcmc tn Emµ!nvccs
IresenlIv, ve do nol have LSOI/LSIS schene for our enpIovees.

Othcr bcncfIts tn nur kcv managcrIa! µcrsnnnc!
There is no olher lenefil pavalIe lo our Kev ManageriaI IersonneI olher lhan Iisled alove.

93

OUR PROMOTER5

Mr. Rakcsh BhhatIa


Ior delaiIs of Mr. Rakesh ßhhalia, pIease refer lo seclion lilIed ¨Our Managenenl¨ leginning on page
no. 81 of lhis Drafl Red Herring Irospeclus.

Mrs. ArtI BhatIa


Ior delaiIs of Mrs. Arli ßhalia, pIease refer lo seclion lilIed ¨Our Managenenl¨ leginning on page no. 81
of lhis Drafl Red Herring Irospeclus.

We confirn lhal Iernanenl Accounl Nunler, ßank Accounl Nunler and Iassporl Nunler of lhe
Ironolers have leen sulnilled lo ßonlav Slock Lxchange Liniled and NalionaI Slock Lxchange of
India Liniled al lhe line of fiIing lhe Drafl Red Herring Irospeclus vilh lhen.

Intcrcst nf Prnmntcrs

Our aforenenlioned Ironolers viz. Mr. Rakesh ßhhalia and Mrs. Arli ßhalia are inleresled lo lhe exlenl
of lheir sharehoIding in our Conpanv. Iurlher, Mr. Rakesh ßhhalia and Mrs. Arli ßhalia, our
Ironolers, are aIso lhe Direclor of our Conpanv, nav le deened lo le inleresled lo lhe exlenl of
renuneralion and reinlursenenl of expenses pavalIe lo lhen.

Moreover, Mr. Rakesh ßhhalia and Mrs. Arli ßhalia are aIso lhe nenlers on lhe ßoard of our cerlain
Ironoler Croup enlilies and lhev nav le deened lo le inleresled lo lhe exlenl of pavnenls nade lv
our Conpanv, if anv, lo lhen.

Lxcepl as nenlioned hereinalove, our Ironolers do nol have anv olher inleresl in anv properlv
acquired lv our Conpanv in a period of lvo vears lefore fiIing of lhis Drafl Red Herring Irospeclus or
proposed lo le acquired lv us as on dale of fiIing lhe Drafl Red Herring Irospeclus.
Driving License Nunler IO3O62OO33662O9
Voler Idenlificalion Card Nunler XYHOO91124
Driving License Nunler IO3O72OO337O584
Voler Idenlificalion Card Nunler ZYHOO91132

94


Lxcepl as slaled in "ReIaled Iarlv Transaclions" leginning on page no. 12O of Drafl Red Herring
Irospeclus, and as slaled herein, our Ironolers or anv of lhe Ironoler Croup Lnlilies do nol have anv
olher inleresl in our lusiness.

Pavmcnt nr bcncfIt tn Prnmntcrs nf nur Cnmµanv
Lxcepl as slaled in Drafl Red Herring Irospeclus under reIaled parlv lransaclions, no anounl or lenefil
has leen paid or given vilhin lvo vears or is inlended lo le paid or given lo anv of lhe pronolers or
officers of lhe Conpanv excepl lhe nornaI renuneralion for services rendered as direclors, officers or
enpIovees.

DctaI!s nf cnmµanIcs / fIrms frnm whIch Prnmntcrs havc dIsassncIatcd
None of our Ironolers have dissocialed lhenseIves fron anv of lhe conpanies / firns / enlilies excepl
for lhe foIIoving:

• Our Ironoler viz. Mr. Rakesh ßhhalia lecane pronoler of Visesh Infolecnics Liniled in 1995.
Visesh Infolecnics Liniled vas incorporaled on Ianuarv 2O, 1989 vilh lhe nain aclivilies of IT
SoIulions Iroducl Supporl, Lnlerprise Soflvare, IT LnalIed Services. On accounl of sone
personaI reasons, Mr. Rakesh ßhhalia resigned fron lhe conpanv as Chairnan and Managing
Direclor on Augusl 12, 1999 and sulsequenlIv on March 25, 2OO4 disassocialed conpIeleIv.

• Mr. Rakesh ßhhalia aIso pronoled Shulh Iinsec Irivale Liniled on Decenler 16, 1994 and ils
nane vas changed lo Nexgen CapilaI Services Liniled, a Calegorv-I nerchanl lanking
conpanv. Hovever, on accounl of his increased focus in IT seclor, Mr. Rakesh ßhhalia
disassocialed hinseIf on Ocloler 17, 2OO6.


95

OUR PROMOTER GROUP
In addilion lo lhe Ironolers naned alove, lhe foIIoving naluraI persons are parl of our Ironoler
Croup:
As pcr Rcgu|a|icn 2 (1)(z|)(ii) cf |nc S|8| (|ssuc cf Capi|a| anú Disc|csurc Rcuuircmcn|s) Rcgu|a|icns. 2009. |nc
fc||cuing na|ura| pcrscns fcrm par| cf cur Prcmc|cr Grcup.

Namc Rc!atInnshIµ
Mrs. Arli ßhalia
Wife of Mr. Rakesh ßhhalia
Mr. Caurav ßhalia
Son of Mr. Rakesh ßhhalia
Ms. Carina ßhalia
Daughler of Mr. Rakesh ßhhalia
Mrs. Sanloshi Devi
Molher of Mr. Rakesh ßhhalia
Mr. I.K. ßhalia and Mr. ß.K. ßhalia
ßrolhers of Mr. Rakesh ßhhalia
Mr. KripaI Singh
Ialher of Mrs. Arli ßhalia
Mrs. Sneh Lala
Molher of Mrs. Arli ßhalia
Mr. AluI Singh
ßrolher of Mrs. Arli ßhalia
Mrs. Alha Singh
Sisler of Mrs. Arli ßhalia

EntItIcs fnrmIng µart nf nur Prnmntcr Grnuµ
The delaiIs of lhe enlilies vhich are parl of our Ironoler Croup are as foIIovs:

A. LIstcd Prnmntcr Grnuµ CnmµanIcs

1. BGIL FI!ms & Tcchnn!ngIcs LImItcd :
Naturc nf ActIvItv To carrv on lhe lusiness reIaling lo produclion/dislrilulion of
Cinenalographv IiIns, VIX effecls, Lvenl Managenenl, SaleIIile
and Infornalion TechnoIogv.
Datc nf IncnrµnratInn March 27, 1989
RcgIstcrcd OffIcc addrcss 623, 6
lh
fIoor, Devika Tover, Nehru IIace, Nev DeIhi-11OO19
Namc nf thc DIrcctnrs Mr. Rakesh ßhhalia, Mr. Sanjav Kapoor and Mr. Ashok Kunar
Iuneja
AudItcd FInancIa! InfnrmatInn 2009-2010 2008- 2009 2007- 2008
(C In !akhs)
Turnover/Incone fron
operalions
2,659.O2 2,62O.37 2,O6O.9O
Olher Incone O.OO O.OO O.O16
Irofil afler Tax 55.22 124.22 71.84
Iaid up Lquilv CapilaI (Iace
vaIue - C 1O/- each)
64O.68 64O.68 64O.68
Reserve & SurpIus 848.97 793.75 669.7O
ßasic and DiIuled Larning per
Shares (LIS) (C)
1.O7 2.42 1.41
Nel Assel VaIue (NAV) (C)* 23.18 22.29 2O.32

96

* NAV is caIcuIaled as NAV = ¦(share capilaI + reserves & surpIus + Share appIicalion nonev) -
MisceIIaneous expendilure¦/ Nunler of equilv shares

As on Seplenler 3O, 2O1O, lhe sharehoIding of Ironoler & Ironoler Croup in ßCIL IiIns &
TechnoIogies Liniled is 49.24°. Our Conpanv hoIds 5,62,934 equilv shares consliluling 8.79° of ßCIL
IiIns & TechnoIogies Liniled. There vas one case fiIed in lhe High Courl of DeIhi in respecl of dispuled
16,12,434 equilv shares of ßCIT heId lv Ironolers, Ironoler Croup and olhers as lhese shares vere
kepl as securilv againsl anounl Ienl lv Mr. Iranod Sharna & olhers (Defendanls). These dispuled
shares vere lransferred in lhe nane of Mr. Iranod Sharna & olhers (Defendanls). Mr. Rakesh ßhhalia
& olhers (IIainliffs), approached lhe High Courl of DeIhi for ollaining a pernanenl as veII as ad-inlerin
ex-parle injunclion againsl lhe Defendanls fron disposing off, aIienlaing, lransferring, or crealing anv
lhird parlv inleresl in lhe shares of ßCIT. On Ocloler 7, 2O1O nuluaI sellIenenl vas arrived lelveen
lolh lhe parlies, vhich has leen laken on record lv lhe DeIhi High Courl vide ils order daled Ocloler
25, 2O1O. Ior delaiIs, pIease refer lo seclion lilIed ¨Oulslanding Iiligalions & naleriaI deveIopnenls¨
appearing on page no. 134 of lhis Drafl Red Herring Irospeclus.

DctaI!s nf !IstIng

Lquilv shares of ßCIL IiIns & TechnoIogies Liniled are Iisled on ßonlav Slock Lxchange Liniled. Il
has nol received anv cause nolice or suspension order fron lhe ßSL or SLßI in lhe pasl.

Il has nol lecone a sick conpanv vilhin lhe neaning of SICA and is nol under vinding up.

5harc µrIcc InfnrmatInn
The equilv shares of ßCIL IiIns & TechnoIogies Liniled are presenlIv Iisled on ßonlav Slock Lxchange
Liniled. The nonlhIv high and Iov of lhe cIosing narkel price of lhe equilv shares of ßCIL IiIns &
TechnoIogies Liniled on ßSL for lhe Iasl six nonlhs are as foIIovs:

Mnnth
B5E
HIgh Lnw
Ocloler, 2O1O 12.94 1O.5O
Seplenler, 2O1O 13.14 11.88
Augusl, 2O1O 15.27 12.4O
IuIv, 2O1O 16.38 12.99
Iune, 2O1O 13.94 12.95
Mav, 2O1O 19.OO 13.O5
(Scurcc. uuu.|scinúia.ccm)

The narkel capilaIisalion of ßCIL IiIns & TechnoIogies Liniled lased on lhe cIosing price of C 11.17 per
equilv share on lhe ßSL as on Novenler 3, 2O1O, vas C 715.64 Iakhs.

DctaI!s nf µast µub!Ic / rIghts Issucs
ßCIL IiIns & TechnoIogies Liniled has nol cone oul vilh anv pulIic or righls issue in lhe preceding len
vears.

97

McchanIsm fnr rcdrcssa! nf Invcstnr grIcvancc
The ßoard of Direclors of ßCIL IiIns & TechnoIogies Liniled have consliluled a Share Transfer &
SharehoIders/Inveslors Crievance Connillee lo provide assislance lo lhe ßoard of Direclors in ensuring
lhal lhe lransfer of shares lakes pIace vilhin lhe slipuIaled period. The Share Transfer Connillee vas
consliluled and il is nov headed lv Mr. Sanjav Kapoor, Direclor lo Iook afler aII nallers perlaining lo
share lransfers, lransnissions, issuance of dupIicale shares, lransposilions & aIso lo provide lhe
sharehoIders of lhe conpanv vilh addilionaI assurance lhal sufficienl infornalion is leing provided lo
enalIe lhen lo forn a reasoned opinion on lhe vorking of lhe conpanv & lo ensure speedv redressaI of
lheir grievances perlaining lo share reIaled issues.

The Connillee conprises of lhree Direclors:

5.Nn. Namc nf DIrcctnr PnsItInn In CnmmIttcc
1 Mr. Sanjav Kapoor Chairnan
2 Mr. Rakesh ßhhalia Menler
3 Mr. Ashok Kunar Iuneja Menler

As on dale, lhere is no inveslor grievance pending. The delaiIs of inveslor grievances received and
resoIved lv ßCIL IiIns & TechnoIogies Liniled in lhe Iasl lhree vears are as foIIovs:
5.Nn. PartIcu!ars
1. TolaI nunler of conpIainls received during lhe IY 2OO7-O8 O2
2. TolaI nunler of conpIainls as on ApriI 1, 2OO8 NiI
3. TolaI nunler of conpIainls received during lhe IY 2OO8-O9 O3
4. TolaI nunler of conpIainls as on ApriI 1, 2OO9 NiI
5. TolaI nunler of conpIainls received during lhe Iasl IY 2OO9-1O NiI
6. TolaI nunler of conpIainls as on ApriI 1, 2O1O NiI
7. TolaI nunler of conpIainls received during lhe currenl IY 2O1O-11 NiI
8.
Nunler of conpIainls pending as on lhe dale of fiIing of lhe Drafl Red
Herring Irospeclus vilh SLßI
NiI
9. Tine nornaIIv laken for disposaI of various lvpes of inveslor grievances 7 davs

ßCIT has furlher confirned lhal il has nol leen delained as viIIfuI defauIlers lv lhe RßI or anv olher
Covernnenl aulhorilv in India. AddilionaIIv, lhere are no vioIalions of securilies Iavs connilled lv il in
lhe pasl or are pending againsl il, lhere have leen no defauIls in neeling anv slalulorv / lank /
inslilulion dues, no proceedings have leen inilialed for econonic offences againsl il and il has nol leen
reslricled fron accessing lhe capilaI narkels for anv reasons, lv SLßI or anv olher aulhorilies.

ß. Un!Istcd Prnmntcr Grnuµ CnmµanIcs

1. KrItI CnmmunIcatInns PrIvatc LImItcd
Naturc nf ActIvItv To carrv on evenl nanagenenl, slaging dranas, dances, nusicaI,
olher enlerlainnenl and aIso lusiness of adverlising agenl and
lusiness of producing, luving, seIIing, exhililing
cinenalographic fiIns, aninaled fiIns, ad fiIns, leIevision fiIns.
Datc nf IncnrµnratInn IuIv 28, 1998
RcgIstcrcd OffIcc addrcss IIal no. 2O6, M.S. Chanlers, C-1, Aruna Iark, Vikash Marg,

98

Laxni Nagar, DeIhi - 11OO92
Namc nf thc DIrcctnrs Mr. Rakesh ßhhalia and Mr. Kunar Iushkar
5harchn!dIng Pattcrn Namc nf thc 5harchn!dcr Nn. nf sharcs % nf
5harchn!dIng
Mr. Rakesh ßhhalia 1OO,OOO 8.13°
Mrs. Arli ßhalia 63,85O 5.19°
Rakesh ßhhalia(HUI) 87,OOO 7.O7°
CridIav Iinnan Irivale
Liniled
282,OOO
22.92°
Iupiler Infraenegv Liniled 19O,OOO 15.44°
CronveII Infonedia Liniled 1O3,5OO 8.41°
Cuckoo Realech Liniled 84,OOO 6.83°
Nunler One Iinvesl Irivale
Liniled
248,OOO
2O.16°
Mr. Caurav ßhalia 6O,OOO 4.88°
Mr. I.K. ßhalia 11,85O O.96°
Tnta! 1,230,200 100.00%
AudItcd FInancIa! InfnrmatInn 2009-2010 2008- 2009 2007- 2008
(C In !akhs)
SaIes/incone fron operalion
411.96 399.6O 884.45
Irofil afler Tax
2.OO 2.77 2.66
Lquilv CapilaI (Iace VaIue C1O/-
per equilv share)
123.O2 123.O2 53.52
Reserves & SurpIus
578.11 573.27 357.41
ßasic and DiIuled Larning per
Shares (LIS) (C)
O.16 O.23 O.5O
Nel Assel VaIue (NAV) (C)*
56.99 56.59 76.74
* NAV is caIcuIaled as NAV = ¦(share capilaI + reserves & surpIus + Share appIicalion nonev) -
MisceIIaneous expendilure¦/ Nunler of equilv shares

Krili Connunicalions Irivale Liniled is nol Iisled al anv Slock Lxchange. Il has nol cone oul vilh anv
pulIic or righl issue in lhe preceding lhree vears. Il has nol lecone a sick conpanv vilhin lhe neaning
of SICA and is nol under vinding up.

Il has furlher confirned lhal il has nol leen delained as viIfuI defauIlers lv lhe RßI or anv olher
Covernnenl aulhorilv in India. AddilionaIIv, lhere are no vioIalions of securilies Iavs connilled lv il in
lhe pasl or are pending againsl il, lhere have leen no defauIls in neeling anv slalulorv / lank /
inslilulion dues, no proceedings have leen inilialed for econonic offences againsl il and il has nol leen
reslricled fron accessing lhe capilaI narkels for anv reasons, lv SLßI or anv olher aulhorilies.

2. BhhatIa Invcstmcnt & FInancc PrIvatc LImItcd
Naturc nf ActIvItv To carrv on lhe lusiness of financiaI consuIlancv.

99

Datc nf IncnrµnratInn Decenler 2O, 1994
RcgIstcrcd OffIcc addrcss 623, 6
lh
IIoor, Devika Tover, 6, Nehru IIace, Nev DeIhi- 11O O19.
Namc nf thc DIrcctnrs Mr. Rakesh ßhhalia and Mrs. Arli ßhalia
5harchn!dIng Pattcrn Namc nf thc 5harchn!dcr Nn. nf
5harcs
% nf
5harchn!dIng
Mrs. Arli ßhalia 26,9OO 18.O3°
ßCIL IiIns & TechnoIogies Liniled 24,2OO 16.22°
Karlik Share Traders Irivale
Liniled
23,OOO 15.42°
CrindIav Iinnan Irivale Liniled 2O,OOO 13.4O°
Krili Connunicalions Irivale
Liniled
2O,OOO 13.4O°
Mr. Rakesh ßhhalia 16,5OO 11.O6°
Rakesh ßhhalia (HUI) 1O,OOO 6.7O°
Mrs. Sanloshi Devi 3,OOO 2.O1°
Mrs. Sneh Lala 2,OOO 1.34°
Mr. KripaI Singh 1,2OO O.8O°
Mrs. Alha Singh 1,OOO O.67°
Mr. Rajeev AgarvaI 1,OOO O.67°
Mr. Una Shankar ßehra 4OO O.27°
Tnta! 149,200 100.00%
AudItcd FInancIa!
InfnrmatInn
2009-2010 2008- 2009 2007- 2008
(C In !akhs)
Incone fron operalions O.27 O.29 1.OO
Irofil afler Tax O.OO O.O1 O.O1
Lquilv CapilaI (Iace VaIue
C1O/- per equilv share)
14.92 12.62 12.62
Reserves & SurpIus 12.62 9.13 9.O2
Larning per Shares (LIS)
(C)
O.O3 O.O8 O.O1
Nel Assel VaIue (NAV) (C)* 18.47 17.23 17.15
* NAV is caIcuIaled as NAV = ¦(share capilaI + reserves & surpIus+ Share appIicalion nonev) -
MisceIIaneous expendilure¦/ Nunler of equilv shares.

ßhhalia Inveslnenl & Iinance Irivale Liniled is nol Iisled al anv Slock Lxchange. Il has nol cone oul
vilh anv pulIic or righl issue in lhe preceding lhree vears. Il has nol lecone a sick conpanv vilhin lhe
neaning of SICA and is nol under vinding up.

Il has furlher confirned lhal il has nol leen delained as viIfuI defauIlers lv lhe RßI or anv olher
Covernnenl aulhorilv in India. AddilionaIIv, lhere are no vioIalions of securilies Iavs connilled lv il in
lhe pasl or are pending againsl il, lhere have leen no defauIls in neeling anv slalulorv / lank /
inslilulion dues, no proceedings have leen inilialed for econonic offences againsl il and il has nol leen
reslricled fron accessing lhe capilaI narkels for anv reasons, lv SLßI or anv olher aulhorilies.

100

3. Numbcr Onc FInscc PrIvatc LImItcd
Naturc nf ActIvItv To carrv on lhe lusiness of financiaI consuIlancv.
Datc nf IncnrµnratInn Decenler 5, 1994
RcgIstcrcd OffIcc addrcss 623, Devika Tover, Nehru IIace, Nev DeIhi- 11O O19.
Namc nf thc DIrcctnrs Mr. Rakesh ßhhalia and Mrs. Arli ßhalia
5harchn!dIng Pattcrn Namc nf thc 5harchn!dcr Nn. nf
5harcs
% nf
5harchn!dIng
Mr. Rakesh ßhhalia 77,1OO 2O.74°
Mrs. Arli ßhalia 59,6OO 16.O3°
ßCIL IiIns & TechnoIogies Liniled 37,5OO 1O.O9°
CrindIav Iinnan Irivale Liniled 4O,OOO 1O.76°
Krili Connunicalions Irivale
Liniled 37,5OO 1O.O9°
ßhhalia Invelsnenl & Iinance
Irivale Liniled 9O,OOO 24.21°
Nunler One Iinvesl Irivale
Liniled 3O,OOO 8.O7°
Tnta! 371,700 100.00%

(C in Iakhs)
AudItcd FInancIa! InfnrmatInn 2009-2010 2008- 2009 2007- 2008
Incone fron operalions O.65 O.26 O.23
Irofil afler Tax O.2O O.OO O.O1
Lquilv CapilaI (Iace VaIue C1O/-
per equilv share)
37.17 37.17 37.17
Reserve & SurpIus 65.24 64.84 64.83
ßasic and DiIuled Larning per
Share (LIS) (C)
O.O54 NegIigilIe O.OO3
Nel Assel VaIue (NAV) (C)* 27.55 27.43 27.44
* NAV is caIcuIaled as NAV = ¦(share capilaI + reserves & surpIus + Share appIicalion nonev) -
MisceIIaneous expendilure¦/ Nunler of equilv shares
Nunler One Iinsec Irivale Liniled is nol Iisled al anv Slock Lxchange. Il has nol cone oul vilh anv
pulIic or righl issue in lhe preceding lhree vears. Il has nol lecone a sick conpanv vilhin lhe neaning
of SICA and is nol under vinding up.

Il has furlher confirned lhal il has nol leen delained as viIfuI defauIlers lv lhe RßI or anv olher
Covernnenl aulhorilv in India. AddilionaIIv, lhere are no vioIalions of securilies Iavs connilled lv il in
lhe pasl or are pending againsl il, lhere have leen no defauIls in neeling anv slalulorv / lank /
inslilulion dues, no proceedings have leen inilialed for econonic offences againsl il and il has nol leen
reslricled fron accessing lhe capilaI narkels for anv reasons, lv SLßI or anv olher aulhorilies.

4. Numbcr Onc FInvcst PrIvatc LImItcd
Naturc nf ActIvItv To carrv on lhe lusiness of financiaI consuIlancv.
Datc nf IncnrµnratInn Decenler 27, 2OO4
RcgIstcrcd OffIcc addrcss 623, Devika Tover, Nehru IIace, Nev DeIhi- 11O O19.
Namc nf thc DIrcctnrs Mr. Rakesh ßhhalia, Mrs. Arli ßhalia and Mr. Iilender Kunar

101

ßhalia
5harchn!dIng Pattcrn Namc nf thc 5harchn!dcr Nn. nf 5harcs % nf
5harchn!dIng
Karlik Share Traders Irivale
Liniled 4,62,4OO 25.38°
Iupiler Infraenergv Liniled 4,42,OOO 24.26°
CronveII Infonedia
Liniled 3,O4,OOO 16.69°
Cuckoo ReaIlech Liniled 2,53,5OO 13.91°
Mr. Iilender Kunar ßhalia 2,26,OOO 12.4O°
Mrs. Arli ßhalia 1,29,OOO 7.O8°
Mr. Rakesh ßhhalia 5,OOO O.27°
Tnta! 18,21,900 100.00%
AudItcd FInancIa! InfnrmatInn 2009-2010 2008- 2009 2007- 2008
(C In !akhs)
SaIes/ incone fron operalions 3.46 O.95 25.58
Irofil afler Tax O.O7 O.O1 (O.O6)
Iaid up Lquilv CapilaI (Iace
VaIue C1O/- per equilv share)
182.19 149.65 149.65
Reserves & SurpIus 197.46 148.65 148.65
ßasic and DiIuled Larning per
Share (LIS) (C)
NegIigilIe NegIigilIe NegIigilIe
Nel Assel VaIue (NAV) (C)* 2O.77 19.81 19.78
* NAV is caIcuIaled as NAV = ¦(share capilaI + reserves & surpIus+Share appIicalion nonev) -
MisceIIaneous expendilure¦/ Nunler of equilv shares

Nunler One Iinvesl Irivale Liniled is nol Iisled al anv Slock Lxchange. Il has nol cone oul vilh anv
pulIic or righl issue in lhe preceding lhree vears. Il has nol lecone a sick conpanv vilhin lhe neaning
of SICA and is nol under vinding up.

Il has furlher confirned lhal il has nol leen delained as viIfuI defauIlers lv lhe RßI or anv olher
Covernnenl aulhorilv in India. AddilionaIIv, lhere are no vioIalions of securilies Iavs connilled lv il in
lhe pasl or are pending againsl il, lhere have leen no defauIls in neeling anv slalulorv / lank /
inslilulion dues, no proceedings have leen inilialed for econonic offences againsl il and il has nol leen
reslricled fron accessing lhe capilaI narkels for anv reasons, lv SLßI or anv olher aulhorilies.

5. GrInd!av FInman PrIvatc LImItcd
CrindIav Iinnan Irivale Liniled is a conpanv incorporaled in India. Il is engaged in lhe lusiness of
financiaI consuIlancv. The Ironolers of our Conpanv hoIds 27.2O° slake in CrindIav Iinnan Irivale
Liniled and lhe laIance is leing heId lv our Ironoler Croup. The conpanv has nol earned anv
lusiness incone during lhe Iasl lhree vears. Il is nol Iisled al anv Slock Lxchange. Il has nol cone oul
vilh anv pulIic or righl issue in lhe preceding lhree vears. Il has nol lecone a sick conpanv vilhin lhe
neaning of SICA and is nol under vinding up.

Il has furlher confirned lhal il has nol leen delained as viIfuI defauIlers lv lhe RßI or anv olher
Covernnenl aulhorilv in India. AddilionaIIv, lhere are no vioIalions of securilies Iavs connilled lv il in

102

lhe pasl or are pending againsl il, lhere have leen no defauIls in neeling anv slalulorv / lank /
inslilulion dues, no proceedings have leen inilialed for econonic offences againsl il and il has nol leen
reslricled fron accessing lhe capilaI narkels for anv reasons, lv SLßI or anv olher aulhorilies.

In addilion lo lhe alove, Rakesh ßhhalia HUI is aIso parl of our Ironoler Croup.

DctaI!s nf Prnmntcr grnuµ cnmµanIcs whnsc namcs havc bccn struck nff frnm RcgIstrar nf
CnmµanIcs
There is no Ironoler group conpanv vhose nanes have leen slruck off fron Regislrar of Conpanies.

UndcrtakIng / cnnfIrmatInns
Our Ironolers and Ironoler Croup conpanies have confirned lhal lhev have nol leen delained as
viIIfuI defauIlers lv lhe RßI or anv olher Covernnenl aulhorilv. AddilionaIIv, lhere are no vioIalions of
securilies Iavs connilled lv lhen in lhe pasl or are pending againsl lhen and none of our Ironolers or
persons in conlroI of lodv corporale forning parl of our Ironoler Croup have leen reslricled fron
accessing lhe capilaI narkels for anv reasons, lv SLßI or anv olher aulhorilies.

Intcrcst nf Prnmntcrs /Prnmntcr Grnuµ In thc µrnµcrtv nf nur Cnmµanv
Our Ironolers/Ironoler Croup have confirned lhal lhev do nol have anv inleresl in anv properlv
acquired lv our Conpanv vilhin lvo vears preceding lhe dale of lhis Drafl Red Herring Irospeclus or
proposed lo le acquired lv our Conpanv. Iurlher, olher lhan as nenlioned in lhe seclion lilIed ¨Our
ßusiness¨, our Ironolers do nol have anv inleresl in lhe acquisilion of anv Iand, conslruclion of anv
luiIding or suppIv of anv equipnenl/nachinerv.

Cnmmnn PursuIts / Cnnf!Ict nf Intcrcst
Lxcepl ßCIL IiIns & TechnoIogies Liniled and Krili Connunicalions Irivale Liniled, our Ironoler
Croup Conpanies do nol have anv connon pursuils and are nol engaged in lusinesses siniIar lo lhose
carried oul lv our Conpanv. There are no lransaclions reIaling lo saIes or purchases lelveen our
Conpanv and our Ironoler Croup Conpanv exceeding 1O° of lhe saIes or purchases of our Conpanv
during lhe Iasl 3 vears excepl as under:
(C in Iakhs)

Namc nf
Prnmntcr Grnuµ
Cnmµanv/ EntItv
AµrI! 2010 tn Junc
2010
FY2009-10 FY2008-09 FY2007-08
Amnunt
% nf
sa!cs /
µurchasc
Amnunt
% nf
sa!cs/
µurchasc
Amnunt
% nf
sa!cs/
µurchasc
Amnunt
% nf
sa!cs/
µurchasc
5a!cs TransactInn
1.
ßCIL IiIns &
TechnoIogies
Liniled
- - 424.17 9.15° 1O3.39 3.O8° 779.15 22.79°
Purchasc TransactInns
2.
Krili
Connunicalions
Irivale Liniled
- - O.69 O.O2° 258.63 9.92° 675.33 25.57°

103

RELATED PARTY TRAN5ACTION5

IIease refer lo Annexure XVI of lhe Audilor´s Reporl, leginning on page no. 12O of lhis Drafl Red
Herring Irospeclus.

104


DIVIDEND POLICY

Our Conpanv has nol paid anv dividends on ils equilv shares in lhe pasl.

We do nol have anv fornaI dividend poIicv. The decIaralion and pavnenl of dividend if anv, viII le
reconnended lv lhe ßoard of Direclors and decIared lhe sharehoIders of our Conpanv, in lheir
discrelion, and viII depend on a nunler of faclors, incIuding lul nol Iiniled lo lhe profils, capilaI
requirenenls, lhe lerns of credil faciIilies, overaII financiaI condilion and olher financing arrangenenls
al lhe line of dividend is considered and olher reIevanl faclors. Our ßoard of Direclors nav aIso pav
inlerin dividend fron line lo line.

The anounls paid as dividends in lhe pasl are nol necessariIv indicalive of our dividend poIicv or
dividend anounls, if anv, in lhe fulure.

105

5ECTION V - FINANCIAL 5TATEMENT5

AUDITOR5 REPORT
ßoard of Direclors,
BharatIva G!nba! InfnmcdIa LImItcd
623, 6
lh
IIoor, Devika Tover,
Nehru IIace, Nev DeIhi - 11OO19

Dear Sirs,

1) We have exanined lhe financiaI infornalion of ßharaliva CIolaI Infonedia Liniled (lhe
¨Conpanv¨) as al Iune 3O, 2O1O, March 31, 2O1O, 2OO9, 2OO8, 2OO7, and 2OO6, annexed lo lhis reporl,
prepared lv lhe Conpanv and approved lv lhe ßoard of Direclors of lhe Conpanv, in accordance
vilh lhe requirenenls of:
a) paragraph ß(1) of Iarl II of ScheduIe II lo lhe Conpanies Acl, 1956 ('lhe Acl'):
l) lhe Securilies and Lxchange ßoard of India (Issue of CapilaI and DiscIosure Requirenenls)
ReguIalions, 2OO9 (lhe 'SLßI (ICDR) ReguIalions´) and lhe reIaled cIarificalions issued lv lhe
Securilies and Lxchange ßoard of India ('SLßI´) fron line lo line and as anended, in pursuance
of Seclion 11 of lhe Securilies and Lxchange ßoard of India Acl, 1992: and
c) lhe lerns of our engagenenl daled Augusl 27, 2O1O received fron lhe Conpanv, requesling us lo
carrv oul lhe assignnenl as per lhe requirenenls of Nole 2 of Sul-cIause IX of CIause 2 of Iarl A
of ScheduIe VIII of SLßI (ICDR) ReguIalions, in conneclion vilh ils IniliaI IulIic Offering of
equilv shares.

FInancIa! InfnrmatInn as µcr audItcd fInancIa! statcmcnts:
1. The financiaI infornalion of lhe Conpanv has leen exlracled lv lhe nanagenenl fron lhe financiaI
slalenenls for lhe period ended Iune 3O, 2O1O and financiaI vears ended March 31, 2O1O, 2OO9, 2OO8,
2OO7 and 2OO6, as approved lv lhe ßoard of Direclors.
2. We have re-audiled lhe financiaI slalenenls of lhe Conpanv for lhe period ended Iune 3O, 2O1O and
financiaI vear ended March 31, 2O1O as per lhe requirenenls of Nole 2 of Sul-cIause IX of CIause 2 of
Iarl A of ScheduIe VIII of SLßI (ICDR) ReguIalions vhich vere earIier audiled lv M/s SNMC and
Co., Charlered Accounlanls. We did nol audil lhe financiaI slalenenls of lhe Conpanv for lhe
financiaI vears ended March 31, 2OO9, 2OO8 and 2OO7 vhich vere audiled lv M/s SNMC and Co.,
Charlered Accounlanls, and for lhe financiaI vear ended March 31, 2OO6 vhich vere audiled lv M/s
Neeraj Cupla and Co., Charlered Accounlanls and accordingIv reIiance has leen pIaced on lhe
financiaI slalenenls audiled lv lhen for lhe said vears for lhe purpose of lhe Reslaled IinanciaI
Infornalion.
3. In accordance vilh lhe requirenenls of Iaragraph ß of Iarl II of ScheduIe II of lhe Acl, lhe SLßI
CuideIines and lerns of our engagenenl agreed vilh vou, ve confirn lhal:
a. lhe Reslaled sunnarv slalenenl of profil and Ioss, lhe annexed reslaled sunnarv slalenenl of
assels and IialiIilies, and reslaled cash fIov slalenenls ('Sunnarv Slalenenls´) of lhe Conpanv, for
lhe period ended on Iune 3O, 2O1O and lhe financiaI vears ended on March 31, 2O1O, 2OO9, 2OO8, 2OO7,
and 2OO6, exanined lv us, as sel oul in Annexure I, II and III lo lhis reporl respecliveIv are afler
naking adjuslnenls and regrouping as in our opinion vere appropriale and nore fuIIv descriled in
Significanl Accounling IoIicies (refer Annexure IV) and Noles lo Reslaled Accounls (refer Annexure
V).
l. ßased on lhe alove ve are of lhe opinion lhal lhe reslaled financiaI infornalion have leen nade
afler:

106

i. adjuslnenls have leen nade for lhe changes in accounling poIicies and eslinales adopled lv lhe
Conpanv relrospecliveIv in respeclive financiaI vears lo refIecl lhe sane accounling lrealnenl as
per changed accounling poIicv and eslinales for aII lhe reporling periods:
ii. naleriaI prior period ilens have leen reslaled lo lhe respeclive vears lo vhich such prior period
ilens reIaled:
iii. We furlher reporl lhal lhere are no exlraordinarv ilens vhich need lo le discIosed separaleIv in
lhe Slalenenl of reslaled financiaI infornalion:
iv. AII quaIificalions in lhe audilors´ reporls, vhich require anv adjuslnenls lo lhe sunnarv
slalenenls, have leen so adjusled.

Othcr FInancIa! InfnrmatInn:
4. Al lhe Conpanv´s requesl, ve have aIso exanined lhe foIIoving financiaI infornalion proposed lo
le incIuded in lhe Drafl Red Herring Irospeclus prepared lv lhe nanagenenl and approved lv lhe
ßoard of Direclors of lhe Conpanv and annexed lo lhis reporl.
i. Slalenenl of Olher Incone, encIosed as Annexure VI
ii. DelaiIs of Conlingenl LialiIilies, encIosed as Annexure VII
iii. DelaiIs of Unsecured Loan, encIosed as Annexure VIII
iv. Slalenenl Shoving age-vise AnaIvsis of Sundrv Dellors, encIosed as Annexure IX
v. Slalenenl of Loans and Advances, encIosed as Annexure X
vi. Slalenenl of CapilaIizalion, encIosed as Annexure XI
vii. Tax-SheIler Slalenenl, encIosed as Annexure XII
viii. Slalenenl of Inveslnenls, encIosed as Annexure XIII
ix. Mandalorv Accounling Ralios, encIosed as Annexure XIV
x. Slalenenl of Dividend Iaid, encIosed as Annexure XV
xi. ReIaled Iarlv lransaclions, encIosed as Annexure XVI
xii. Slalenenl of Secured Loans, encIosed as Annexure XVII
In our opinion, lhe financiaI infornalion as discIosed in lhe annexures lo lhis reporl, read vilh lhe
respeclive significanl accounling poIicies and noles discIosed in Annexure IV and afler naking
adjuslnenls and re-groupings as considered appropriale and discIosed in Annexure V, has leen
prepared in accordance vilh Iarl II of ScheduIe II of lhe Acl and lhe CuideIines.

This reporl shouId nol le in anv vav conslrued as a reissuance or re-daling of anv of lhe previous audil
reporls issued lv us or lv olher firn of Charlered Accounlanls, nor shouId lhis reporl le conslrued as a
nev opinion on anv of lhe financiaI slalenenls referred lo herein.

This reporl is inlended soIeIv for use of nanagenenl and for incIusion in lhe Drafl Red Herring
Irospeclus in conneclion vilh lhe proposed IniliaI IulIic Offering of lhe Conpanv, and is nol lo le
used, referred lo or dislriluled for anv olher purpose vilhoul our prior vrillen consenl.

Fnr M/s K.Prasad & Cn.,
Chartcrcd Accnuntants
FIrm RcgIstratInn Nn. 002755N


CA K.M.Aggarwa!
Partncr
Menlership No. O162O5
IIace: Nev DeIhi
Dale: Ocloler 18, 2O1O

107

Anncxurc - I
5TATEMENT OF AUDITED PROFIT5 & LO55E5 A5 RE5TATED
(C in Iakhs)
Ycar/µcrInd cndcd
Junc 30,
2010
March 31,
2010
March 31,
2009
March 31,
2008
March 31,
2007
March 31,
2006
OµcratIng Incnmc
Incone fron IT Division 2,252.29 4,361.87 3,192.51 3,O75.16 2,593.96 1,9O8.17
Incone fron Media &
Lnlerlainnenl Division
49.57 272.23 167.21 344.33 359.23 125.O9
Tnta! Rcvcnuc
2,301.86 4,634.10 3,359.72 3,419.49 2,953.19 2,033.26
Olher Incone - - O.1O O.O1 - O.28
Increase / (Decrease) in Slock (O.38) 2.62 O.85 (O.O9) (2.25) 2.51
Tnta! Incnmc 2,301.48 4,636.72 3,360.67 3,419.41 2,950.94 2,036.05
ExµcndIturc
Iurchases 1,935.27 3,612.56 2,6O8.25 2,641.55 2,141.86 1,695.35
LnpIovee Cosl 42.69 149.54 156.96 139.76 145.74 32.47
Adninislralion, SeIIing & Olher
Lxpenses
22.3O 1OO.68 111.31 154.3O 122.82 124.41
Cosl of fiIn produclion - - - - 154.81 -
Misc. expenses vrillen off - - - O.58 O.74 O.74
Tnta! ExµcndIturc 2,000.26 3,862.78 2,876.52 2,936.19 2,565.97 1,852.97
PrnfIt Bcfnrc FInancc Cnst,
TaxatInn & DcµrccIatInn
301.22 773.94 484.15 483.22 384.97 183.08
Deprecialion and anorlizalion 77.71 279.84 2O3.28 143.44 91.61 61.73
PrnfIt Bcfnrc FInancc Cnst &
TaxatInn
223.51 494.10 280.87 339.78 293.36 121.35
IinanciaI charges 29.76 91.41 83.6O 37.O8 3.64 5.53
PrnfIt Bcfnrc Tax 193.75 402.69 197.27 302.70 289.72 115.82
Irovision Ior Taxalion 33.2O 84.33 28.33 34.79 12.17 1O.1O
Iringe ßenefil Tax - - 1.4O 2.38 5.12 2.O4
Deferred Tax LialiIilv/(Assel) 41.65 46.16 16O.68 (58.3O) 22.13 68.O2
PrnfIt Aftcr Tax 118.90 272.20 6.86 323.83 250.30 35.66

108

Anncxurc -II

5TATEMENT OF AUDITED A55ET5 & LIABILITIE5 A5 RE5TATED
(C in Iakhs)
Ycar/µcrInd cndcd
Junc 30,
2010
March
31, 2010
March
31, 2009
March
31, 2008
March
31, 2007
March
31, 2006
FIxcd Asscts
Cross ßIock 2,1O4.28 2,O95.11 1,661.83 1,218.82 737.89 721.62
Less: Deprecialion &
Anorlizalion
73O.53 8O2.83 528.O1 324.73 181.29 89.68
Nct B!nck 1,373.75 1,292.28 1,133.82 894.O9 556.6O 631.94
CapilaI Work in Irogress 459.27 271.59 383.5O 133.21 144.94
Tnta! FIxcd Asscts 1,833.02 1,563.87 1,517.32 1,027.30 701.54 631.94
Inveslnenl 14.45 14.45 191.15 91.15 159.O8 299.68
Currcnts Asscts, Lnans and
Advanccs

Invenlories 387.36 356.72 348.31 346.65 6O1.78 592.63
Cash and ßank ßaIance 14.79 11.97 8.77 37.73 4O.34 15.72
Loans and Advances 589.34 589.17 686.82 64O.38 129.92 111.59
Sundrv Dellors 2,415.5O 2,227.7O 1,O69.16 899.26 876.41 63O.4O
Tnta! Currcnts Asscts, Lnans
and Advanccs
3,406.99 3,185.56 2,113.06 1,924.02 1,648.45 1,350.34
Tnta! Asscts 5,254.46 4,763.88 3,821.53 3,042.47 2,509.07 2,281.96
LialiIilies and Irovisions
Secured Ioans 465.78 468.15 476.59 227.4O 165.33 72.23
Unsecured Loans 178.O1 193.O6 151.66 135.92 - 3.97
Deferred Tax LialiIilies 299.77 258.12 211.96 51.28 1O9.58 87.45
Currenl LialiIilies &
Irovisions
1,434.89 1,O87.44 688.42 34O.O3 28O.53 244.72
Tnta! LIabI!ItIcs and
PrnvIsInns
2,378.45 2,006.77 1,528.63 754.63 555.44 408.37
Nct Wnrth 2,876.01 2,757.11 2,292.90 2,287.84 1,953.63 1,873.59
Rcµrcscntcd bv:
Share CapilaI 684.23 684.23 664.23 664.23 664.23 664.23
Share AppIicalion Monev - - 8.OO 9.8O - 171.OO
Reserve and SurpIus 2,191.78 2,O72.88 1,62O.67 1,613.81 1,289.98 1,O39.68
Less: MisceIIaneous
Lxpendilure lo lhe exlend nol
vrillen off
- - - - (O.58) (1.32)
Nct Wnrth 2,876.01 2,757.11 2,292.90 2,287.84 1,953.63 1,873.59

109

Anncxurc III

5TATEMENT OF RE5TATED CA5H FLOW 5TATEMENT
(C in Iakhs)
Ycar/µcrInd cndcd
Junc 30,
2010
March 31,
2010
March 31,
2009
March 31,
2008
March 31,
2007
March 31,
2006
A) Cash F!nw frnm OµcratIng
ActIvItIcs

Nct PrnfIt bcfnrc tax & cxtranrdInarv
Itcms
193.75 402.69 197.27 302.70 289.72 115.82
Adjustmcnts fnr:
Deprecialion 77.71 279.84 2O3.28 143.44 91.61 61.73
Inleresl & IinanciaI Charges 29.76 91.41 83.6O 37.O8 3.64 5.53
Misc Lxpenses Wrillen off - - - O.58 O.74 O.74
Loss on saIe of VehicIe 3.O8 O.97
OµcratIng µrnfIt bcfnrc wnrkIng
caµIta! changcs
304.30 774.91 484.15 483.80 385.71 183.82
WnrkIng CaµIta! Changcs:
Increase in Invenlories O.39 (2.62) (O.85) O.1O 2.24 (2.51)
Work in progress (31.O3) (5.79) (O.81) 255.O3 (11.39) (227.71)
Increase in Sundrv dellors (187.8O) (1,158.54) (169.9O) (22.85) (246.O1) (333.O5)
Increase in Loans & Advances (O.17) 97.65 (46.44) (51O.46) (18.33) 52.O7
Increase in Currenl LialiIilies 314.26 344.42 355.82 39.62 28.62 172.O2
Inleresl received - - (O.1O) (O.O1) - (O.15)
Dividend Received - - - - - (O.13)
WnrkIng CaµIta! Changcs: 95.65 (724.88) 137.72 (238.57) (244.87) (339.46)
Cash Gcncratcd frnm nµcratInns 399.95 50.03 621.87 245.23 140.84 (155.64)
Less Incone Tax paid - 28.32 34.79 12.18 1O.O9 3.84
Less : IßT paid - 1.4O 2.37 5.11 - -
Nct cash f!nw frnm OµcratIng
ActIvItIcs
399.95 20.31 584.72 227.95 130.75 (159.48)
B) Cash F!nw frnm InvcstIng
ActIvItIcs

Iurchase of fixed assels (166.77) (445.78) (443.O1) (48O.93) (16.27) (357.6O)
CapilaI vork in progress (187.68) 111.91 (25O.29) 11.73 (144.94) -
SaIe of nolor car 4.5O 6.51
Iurchase of inveslnenls - 176.7O (1OO.OO) 67.93 14O.6O (216.98)
Inleresl received - - O.1O O.O1 - O.15
Dividend received - - - - - O.13
Nct cash f!nw frnm InvcstIng
actIvItIcs
(349.95) (150.66) (793.20) (401.26) (20.61) (574.30)
C) Cash F!nw frnm FInancIng

110

ActIvItIcs
Inleresl & financiaI charges paid (29.76) (91.41) (83.6O) (37.O8) (3.64) (5.53)
Shares aIIolled during lhe vear - 2O.OO - - - 74.15
AppIicalion nonev received - (8.OO) (1.8O) 9.8O (171.OO) 171.OO
Share preniun received - 18O.OO - - - 448.53
Unsecured Ioan (15.O5) 41.4O 15.74 135.92 (3.97) 3.97
Secured Ioan (2.37) (8.44) 249.19 62.O7 93.1O 43.59
Nct cash f!nw frnm fInancIng
actIvItIcs
(47.18) 133.55 179.53 170.71 (85.51) 735.71
Nct Incrcasc / (dccrcasc) In cash 2.82 3.20 (28.96) (2.61) 24.62 1.93
Cash and cash equivaIenl al lhe
leginning of lhe vear
11.97 8.77 37.73 4O.34 15.72 13.79
Cash and cash cquIva!cnt at thc cnd
nf thc vcar
14.79 11.97 8.77 37.73 40.34 15.72

Anncxurc IV
5IgnIfIcant AccnuntIng Pn!IcIcs

1. AccnuntIng CnnvcntInn
The Conpanv foIIovs nercanliIe svslen of accounling and recognizes incone and expendilure on
accruaI lasis. The financiaI slalenenls are prepared under lhe hisloricaI cosl convenlion as a going
concern, and are consislenl vilh generaIIv accepled accounling principIes in India, and appIicalIe
accounling slandards referred lo in Seclion 211(3C) of lhe Conpanies Acl, 1956.

2. Usc nf EstImatcs
The preparalion of financiaI slalenenls in confornilv vilh lhe generaIIv accepled accounling principIes
requires lhe nanagenenl lo nake eslinales and assunplions considered in lhe reporled anounls of lhe
assels and IialiIilies (incIuding currenl IialiIilies) as of lhe dale of financiaI slalenenls, lhe reporled
incone & expenses during lhe reporling period and discIosure of conlingenl IialiIilies. Managenenl
leIieves lhal lhe eslinales used in lhe preparalion of financiaI slalenenls are prudenl and reasonalIe.
Iulure resuIls couId differ fron lheses eslinales.

3. Rcvcnuc RccngnItInn
a) SaIes incIude saIe of hardvare & soflvare producls. SaIes are recognized vhen producls are
suppIied and are recorded nel of saIes relurn, relales, lrade discounls and VAT/cenlraI saIes lax.
l) Incone fron rendering of services is recognized lased on agreenenls/arrangenenls on conpIeled
service conlracl nelhod.
c) Inleresl incone is recognized on accruaI lasis.
d) Dividends fron inveslnenls are recognized in Irofil and Loss A/c onIv vhen lhe righl lo receive
lhe pavnenl is eslalIished.

4. FIxcd Asscts
Iixed assels are slaled al cosl of acquisilion Iess accunuIaled deprecialion. Cosl incIudes laxes, dulies,
freighl, inslaIIalion expenses and olher non-refundalIe incidenlaI expenses reIaled lo acquisilion. Cains
or Iosses arising on disposaI of fixed assels are recognized in lhe Irofil & Loss Accounl.

111

5. Invcstmcnt
Long lern inveslnenls are vaIued al cosl, Iess provision for dininulion, olher lhan lenporarv. Shorl
lern inveslnenls are vaIued al cosl or narkel vaIue, vhich is Iover.

6. DcµrccIatInn
a) Deprecialion on fixed assels is provided on lhe slraighl Iine nelhod al lhe rales prescriled in
ScheduIe XIV of lhe Conpanies Acl, 1956.
l) Deprecialion is provided on pro-rala lasis, vilh reference lo lhe dale of addilion.
c) Copvrighls are anorlized over lheir usefuI Iife.

7. Invcntnrv
a) Iinished goods are vaIued al cosl or nel reaIizalIe vaIue, vhichever is Iover.
l) Rav naleriaIs and slores & spares are vaIued al cosl.
c) Work in progress is vaIued al lhe cosl incurred.
d) The cosl of invenlories conprises aII cosls of purchase (incIuding dulies for vhich no
credil/relale is lo le received), cosls of conversion and olher cosls incurred in lringing lhe
invenlories lo lheir presenl Iocalion and condilion. Trade discounls, relales, dulv dravlacks and
olher siniIar ilens are deducled in delernining lhe cosls of purchase.
e) The cosl of invenlories is arrived lv using Iirsl-In-Iirsl-Oul (IIIO) cosl fornuIa.

8. BnrrnwIng Cnst
ßorroving cosls lhal are direclIv allrilulalIe lo lhe acquisilion, conslruclion or produclion of a
quaIifving assel, prior lo lhe connencenenl of connerciaI produclion are capilaIized as parl of lhe cosl
of lhal assel. A quaIifving assel is one vhich necessariIv lakes sulslanliaI period of line lo gel readv for
ils inlended use. Olher lorroving cosls are charged lo revenue.

9. FnrcIgn Exchangc TransactInn
The reporling currencv of lhe conpanv is lhe Indian rupee. Ioreign currencv lransaclions are recorded
on iniliaI recognilion in lhe reporling currencv, using lhe exchange rale al lhe dale of lhe lransaclion.
Lxchange differences lhal arise on sellIenenl of nonelarv ilen or on reporling of nonelarv ilen al
ßaIance Sheel dale al lhe cIosing rale is recognized as incone or expense in lhe period in vhich lhev
arise.

10. RctIrcmcnt BcncfIts:
a) AII shorl-lern enpIovee lenefils such as saIaries, vages, lonus, speciaI avards, nedicaI lenefils
vhich faII due vilhin lhe reporling period in vhich lhe enpIovee renders lhe reIaled services vhich
enlilIes hin lo avaiI such lenefils and non-accunuIaling conpensaled alsences are recognized on
an undiscounled lasis charged lo lhe profil and Ioss accounl.
l) Irovision for Craluilv is nade and provided on acluariaI vaIualion lasis.
c) Olher relirenenl lenefils are accounled as per conpanv´s poIicv.

11. TaxatInn
a) Currenl Tax - Irovision is nade for Incone Tax is delernined as lhe anounl of lax pavalIe in
respecl of laxalIe incone for lhe vear afler laking inlo accounl lhe aIIovances, disaIIovances and
exenplions avaiIalIe under lhe Incone Tax Acl, 1961.
l) Deferred Tax - Deferred lax is recognized on lining differences lelveen lhe accounling incone and
lhe laxalIe incone lhal originale in one period and are capalIe of reversaI in one or nore periods
and quaIified using lhe lax rales and lax Iavs enacled or sulslanliveIv enacled as al lhe ßaIance

112

Sheel dale. Deferred lax assel is recognized and carried forvard lo lhe exlenl lhere is
reasonalIe cerlainlv lhal fulure laxalIe incone viII le avaiIalIe, againsl vhich such deferred lax
assel can le reaIized.

12. ImµaIrmcnt nf Asscts
The conpanv assesses al each laIance sheel dale vhelher lhere is anv indicalion lhal an assel nav le
inpaired. If such indicalion exisls, lhe Conpanv eslinales lhe recoveralIe anounl of lhe assels. If such
recoveralIe anounl of lhe assel is Iess lhan ils carrving anounl, lhe carrving anounl is reduced lo ils
recoveralIe anounl. The reduclion is lrealed as an inpairnenl Ioss and is recognized in lhe profil and
Ioss accounl.

13. IntangIb!c Asscts
a) Revenue expendilure on Research and DeveIopnenl is charged lo Irofil and Loss accounl in lhe
vear lhe expendilure is incurred.
l) CapilaI expendilure during lhe deveIopnenl phase is recognized as an assel, onIv if in lhe
opinion of lhe nanagenenl, il is feasilIe lo conpIele ils produclion, il is inlended lo le used or
soId, il viII generale fulure econonic lenefils, lhere are adequale resources avaiIalIe for ils
conpIelion and il is possilIe lo neasure lhe expendilure incurred on il.
c) InlangilIe assels are anorlized over lheir usefuI Iife.

14. MIscc!!ancnus ExµcndIturc
IreIininarv expendilure is anorlized over a period of 5 vears.

15. PrnvIsInns, CnntIngcnt LIabI!ItIcs and CnntIngcnt Asscts
Irovision is recognized vhen lhere is a presenl olIigalion as a resuIl of a pasl evenl lhal
prolalIv requires an oulfIov of resources and a reIialIe eslinale can le nade of lhe anounl of lhe
olIigalion. DiscIosure for conlingenl IialiIilv is nade vhen lhere is a possilIe olIigalion or a presenl
olIigalion lhal nav, lul prolalIv viII nol, require an oulfIov of resources. No provision is recognized
or discIosure for conlingenl IialiIilv is nade vhen lhere is a possilIe olIigalion or a presenl olIigalion
and lhe IikeIihood of oulfIov of resources is renole. Conlingenl Assel is neilher recognized nor
discIosed in lhe financiaI slalenenls.
Anncxurc V
Nntcs tn Rcstatcd Accnunts

1. 5tatcmcnt nf adjustmcnts In PrnfIt and Lnss Accnunt arIsIng nut nf changcs In accnuntIng µn!IcIcs
and / nr matcrIa! adjustmcnts rc!atIng tn µrcvInus vcar / µcrInds:

(C in Iakhs)
Ycar / PcrInd Endcd
Junc 30,
2010
March
31, 2010
March
31, 2009
March
31, 2008
March
31, 2007
March
31, 2006
PrnfIt as µcr PrnfIt & Lnss
Accnunts (aftcr Tax)
120.54 278.48 11.91 328.17 254.42 40.54
Add / (Lcss) Ear!Icr Ycar / PrInr
PcrInd Adjustmcnts

a) Lxcess deprecialion charged - O.25 - - - -
l) LnpIovee lenefils (O.76) (3.O3) (1.55) (O.84) (O.72) (O.72)
c) Anorlizalion on Copvrighls (O.88) (3.5O) (3.5O) (3.5O) (3.5O) (3.5O)

113

d) Lxcess / (Shorl) Irovision on
Tax of earIier vears
- - - - O.1O (O.66)
Nct PrnfIt as µcr Rcstatcd PrnfIt &
Lnss A/c
118.90 272.20 6.86 323.83 250.30 35.66

Nntcs:
a) Lxcess deprecialion charged in IY 2OO9-1O has nov leen correcled.
l) Adjuslnenls have leen done in enpIovee cosl lo provide lhe sane on accruaI lasis in accordance
vilh lhe Accounling Slandard 15 on LnpIovee ßenefils, inslead of cash lasis foIIoved lv lhe
Conpanv in lhe periods reporled. Anounl perlaining lo lhe period prior lo ApriI 1, 2OO5 has leen
adjusled in Reserves & SurpIus as on March 31, 2OO5.
c) The Conpanv acquired copvrighls on March 31, 2OO5. Hovever, il had nol provided for
anorlizalion on copvrighls in lhe periods reporled. The sane has nov leen provided assuning a
usefuI Iife of 1O vears.
d) The profil & Ioss accounl for lhe IY 2OO5-O6 and IY 2OO6-O7 incIude anounl paid/provided for or
refunded, in respecl of shorl/excess incone lax arising oul of assessnenls and on accounl of
shorl/excess incone lax of earIier vears. The inpacl on accounl of such shorl/excess incone lax has
leen adjusled in respeclive vears.

2. MatcrIa! RcgrnuµIngs
a) Olher Incone for lhe vear IY 2OO9-2O1O and IY 2OO6-2OO7 has leen regrouped vilh incone fron
Media & Lnlerlainnenl Division since lhese reIaled lo lhe nain operalions of lhe Conpanv.
l) Anounl incurred on purchase of equipnenls looked as cosl of projecl in lhe period ended Iune 2O1O
and IY 2OO9-1O has leen grouped vilh purchases.
c) Inleresl on car Ioan, earIier shovn as an adninislralive expense, has nov leen regrouped vilh
financiaI charges.
d) Share appIicalion nonev earIier shovn under Currenl LialiIilies in IY 2OO7-O8 and IY 2OO8-O9 and
IY 2OO5-O6 has nov leen shovn as a parl of sharehoIders' funds.
e) Anounl due lo sharehoIders, earIier shovn under Currenl LialiIilies in IY 2OO7-O8 and IY 2OO8-O9,
has nov leen shovn as a parl of unsecured Ioans.
f) Anounl incurred for lhe deveIopnenl of IIRs, earIier looked under vork in progress as a parl of
invenlorv since IY 2OO6-O7, has nov leen nade parl of capilaI vork in progress under fixed assels.

3. 5cgmcnt DIsc!nsurcs
(C in Iakhs)
Ycar / PcrInd Endcd
Junc 30,
2010
March
31, 2010
March
31, 2009
March
31, 2008
March
31, 2007
March
31, 2006
Rcvcnuc
IT Division
2,252.29 4,361.87 3,192.51 3,O75.16 2,593.96 1,9O8.17
Media & Lnlerlainnenl Division
49.57 272.23 167.21 344.33 359.23 125.O9
Tnta! Rcvcnuc
2,301.86 4,634.10 3,359.72 3,419.49 2,953.19 2,033.26
Olher Incone
- - O.1O O.O1 - O.28
PrnfIt Bcfnrc Tax

IT Division
2O1.3O 25O.84 154.O4 161.77 245.62 82.96
Media & Lnlerlainnenl Division (7.55) 151.85 43.16 14O.92 44.1O 32.58

114

Olher Incone
- - O.O7 O.O1 - O.28
Tnta! PrnfIt Bcfnrc Tax
193.75 402.69 197.27 302.70 289.72 115.82

Anncxurc VI
5tatcmcnt nf Othcr Incnmc
(C in Iakhs)
Ycar/µcrInd cndcd
RccurrIng
/ Nnn-
rccurrIng
Rc!atcd /
Nnt rc!atcd
tn busIncss
actIvItv
Junc
30, 2010
March
31, 2010
March
31, 2009
March
31, 2008
March
31, 2007
March
31, 2006
Irofil lefore lax &
exlraordinarv ilens
195.39 4O2.69 197.27 3O2.7O 289.72 115.82
2O° of Nel Irofil
ßefore Tax
39.O8 8O.54 39.45 6O.54 57.94 23.16
Othcr Incnmc fnr thc
vcar

Inleresl on fixed
deposils vilh lanks
Non
recurring
Nol reIaled - - O.1O O.O1 - O.15
Dividend incone
Non
recurring
Nol reIaled - - - - - O.13
Tnta! - - 0.10 0.01 - 0.28

The cIassificalion of incone as Recurring/Non-recurring and ReIaled/Non-ReIaled lo lusiness aclivilv
is lased on lhe currenl operalions and lusiness aclivilv of lhe conpanv as delernined lv lhe
nanagenenl.
Anncxurc VII
DctaI!s nf CnntIngcnt LIabI!ItIcs
(Rupees in Iakhs)
Ycar / PcrInd Endcd
Junc 30,
2010
March
31, 2010
March
31, 2009
March
31, 2008
March
31, 2007
March
31, 2006
CIains againsl lhe Conpanv nol
acknovIedged as dell
2.62 2.62 - - - -
Irovision for saIaries and olher
expenses for ex-enpIovees of lhe
Conpanv
2O.OO 2O.OO - - - -
Tnta! 22.62 22.62 - - - -

Nole:
We have exanined aII lhe conlracls, cIains and Iiligalions againsl lhe Conpanv and have anaIvzed lhe
IikeIv inpacl of lhe sane as indicaled alove. We cerlifv lhal aparl fron lhe conlingenl IialiIilies
indicaled alove lhe conpanv does nol have anv olher conlingenl IialiIilies.

Anncxurc VIII
DctaI!s nf Unsccurcd Lnan
The foIIoving is lhe lreakup of oulslanding unsecured Ioans in lhe Iasl five vears:
(C in Iakhs)

115

Ycar / PcrInd Endcd
Junc 30,
2010
March 31,
2010
March 31,
2009
March 31,
2008
March 31,
2007
March 31,
2006
Iron ßodies corporale 3O.88 3O.88 - - - -
Iron ßanks 23.52 33.2O 72.31 71.42 - -
Iron NßICs 53.36 6O.93 79.35 64.5O - -
Iron Ironoler & Ironoler
Croup
7O.25 68.O5 - - - -
Olhers - - - - - 3.97
Tnta! 178.01 193.06 151.66 135.92 - 3.97

The unsecured Ioans incIude anounl due lo lhe foIIoving pronolers & pronoler group and olher
reIaled parlies:
(C in Iakhs)
Ycar / PcrInd Endcd
Junc 30,
2010
March 31,
2010
March 31,
2009
March 31,
2008
March 31,
2007
March 31,
2006
Nunler One Iinsec Irivale
Liniled
26.3O 26.3O - - - -
Mr. Rakesh ßhhalia 41.5O 39.3O - - - -
Mrs. Sanloshi Devi 2.45 2.45 - - - -
Tnta! 70.25 68.05 - - - -

Noles:
1. No lerns and condilion as lo repavnenl and inleresl are slipuIaled in respecl of lhe Ioan excepl
for unsecured Ioans of C 76.88 Iakhs laken fron lanks & NßICs.
2. The said Ioans are repavalIe on denand excepl for unsecured Ioans of C 76.88 Iakhs laken fron
lanks & financiaI inslilulions.
Anncxurc IX
5tatcmcnt 5hnwIng agc-wIsc ana!vsIs nf 5undrv Dcbtnrs

The foIIoving is lhe lreakup of oulslanding sundrv dellors in lhe Iasl five vears:
(Rupees in Iakhs)
Ycar / PcrInd Endcd
Junc 30,
2010
March 31,
2010
March 31,
2009
March 31,
2008
March 31,
2007
March 31,
2006
(Unsccurcd CnnsIdcrcd Gnnd)
Lxceeding six nonlhs 829.O8 374.16 2OO.52 2OO.52 3O7.67 4O9.48
Olhers 1,586.42 1,853.54 868.64 698.74 568.74 22O.92
Tnta! 2,415.50 2,227.70 1,069.16 899.26 876.41 630.40

Sundrv Dellors incIude dells due lv lhe foIIoving firn /Conpanies in vhich Direclor is a Iarlner /
Direclor / Menler: (Rupees in Iakhs)
Ycar / PcrInd Endcd
Junc 30,
2010
March 31,
2010
March 31,
2009
March 31,
2008
March 31,
2007
March 31,
2006
Dcbts nutstandIng cxcccdIng

116

sIx mnnths
ßhhalia Inveslnenl and
Iinance Irivale Liniled
8.OO
Three-D Connunicalion
Irivale Liniled
48.82
Krili Connunicalions Irivale
Liniled
133.O9
Nunler One Iinvesl Irivale
Liniled
117.38 117.38 117.38 123.36
ßCIL IiIns & TechnoIogies
Irivale Liniled
45O.61 11.24 33.18
Lcss than 5Ix mnnths
Nunler One Iinvesl Irivale
Liniled
12O.82
ßCIL IiIns and TechnoIogies
Irivale Liniled
529.16 71.O6
Tnta! 567.99 646.54 128.62 194.42 120.82 223.09

Anncxurc X
5tatcmcnt nf Lnans and Advanccs
(Rupees in Iakhs)
Ycar / PcrInd Endcd
Junc 30,
2010
March
31, 2010
March
31, 2009
March
31, 2008
March
31, 2007
March
31, 2006
Advances recoveralIe in cash or in
kind or for vaIue lo le received or
pending adjuslnenls.
541.O8 54O.93 449.OO 398.45 95.75 28.51
Securilv deposils 8.95 8.95 13.45 15.45 4.25 2.86
Share appIicalion nonev 172.43 168.75 28.25 7O.1O
Refund due for previous vears O.47 O.47 22.27 1.32 - -
TDS ReceivalIe 38.84 38.82 29.67 56.41 1.67 1O.12
Tnta! 589.34 589.17 686.82 640.38 129.92 111.59

Loans and Advances incIude anounl given lv vav of share appIicalion nonev lo lhe foIIoving reIaled
parlies:
(Rupees in Iakhs)
Ycar / PcrInd Endcd
Junc 30,
2010
March 31,
2010
March 31,
2009
March 31,
2008
March 31,
2007
March 31,
2006
ßhhalia Inveslnenl and
Iinance Irivale Liniled
- - - - 5.75 5.75
CrindIav Iinnan Irivale
Liniled
- - 5.OO 5.OO - 5.OO
Nunler One Iinvesl Irivale
Liniled
- - 81.35 81.35 - -
Tnta! - - 86.35 86.35 5.75 10.75

117

Anncxurc XI
5tatcmcnt nf CaµIta!IzatInn
(Rupees in Iakhs)
PartIcu!ars
Prc Issuc
as nn Junc 30, 2010
Pnst Issucª
BnrrnwIngs
Shorl Tern Dell 4O4.7O |ŏ!
Long Tern Dell 239.O9 |ŏ!
Tnta! Dcbt 643.79 |ŏ!
5harchn!dcrs' Funds
Share CapilaI -Lquilv 684.23 |ŏ!
Reserve & SurpIus 2,191.78 |ŏ!
Less : MisceIIaneous expendilure nol vrillen off - |ŏ!
Tnta! 5harchn!dcrs' Funds 2,876.01 |ŏ!
Long Tern Dell / Lquilv Ralio O.O8 |ŏ!
* The alove figures shaII le discIosed on lhe concIusion of ßook ßuiIding Irocess.
Nole: Shorl Tern Dell represenls anounl repavalIe vilhin one vear fron Iune 3O, 2O1O.
Anncxurc XII
Tax-5hc!tcr 5tatcmcnt
(Rupees in Iakhs)
Ycar / PcrInd Endcd
Junc 30,
2010
March 31,
2010
March 31,
2009
March 31,
2008
March 31,
2007
March 31,
2006
Nel Irofil/(Loss) lefore Tax (as
reslaled) 193.75 4O2.69 197.27 3O2.7O 289.72 115.82
Tax Rale (incIuding surcharge
and educalion cess) 33.99° 33.99° 33.99° 33.99° 33.99° 33.66°
Tax al NornaI Tax Rales (A)
65.86 136.87 67.O5 1O2.89 98.48 38.98
Adjustmcnts :

Pcrmancnt DIffcrcncc (B)

Loss on SaIe of Assels
3.O8 O.97 - - - -
Tnta! Pcrmancnt DIffcrcncc
3.08 0.97 - - - -
Tcmµnrarv DIffcrcncc ( C)

Deprecialion as per ßooks
76.83 276.59 199.78 139.94 88.11 58.23
Deprecialion as per Incone Tax
2O6.94 438.42 399.18 347.89 152.95 184.92
Lxpenses u/s 43ß
8O.42
Tnta! TImIng DIffcrcncc
(130.11) (161.83) (279.82) (207.95) (64.84) (126.69)
Nct Adjustmcnts (B) + ( C ) (127.03) (160.86) (279.82) (207.95) (64.84) (126.69)
Tax Saving lhereon
(43.18) (54.68) (95.11) (7O.68) (22.O4) (42.64)
Nct Tax fnr thc vcar / PcrInd 22.68 82.19 NIL 32.21 76.44 NIL
Noles:
1. The pernanenl/lining differences have leen conpuled considering lhe conpuling of lhe
incone lax lv lhe conpanv for each of lhe respeclive vears presenled in lhe alove slalenenl.

118

2. The aforesaid slalenenl of Tax SheIlers has leen prepared as per lhe reslaled sunnarv slalenenl
of profil and Iosses of lhe conpanv.
Anncxurc XIII
5tatcmcnt nf Invcstmcnts
(Rupees in Iakhs)
Ycar / PcrInd Endcd
Junc 30,
2010
March
31, 2010
March
31, 2009
March
31, 2008
March
31, 2007
March
31, 2006
(I) Quntcd (At cnst)
(As laken, vaIued and cerlified lv
lhe nanagenenl)

Visesh Infosvslens Liniled - - - - 3.28
ßCIL IiIns and TechnoIogies
Liniled
14.45 14.45 14.45 14.45 14.45 14.45
Tnta! 14.45 14.45 14.45 14.45 14.45 17.73
(II) Unquntcd
(As laken, vaIued and cerlified lv
lhe nanagenenl)

Karlik Share Traders Irivale Liniled - - - - 63.43 63.43
Iupiler CapilaI Service Irivale
Liniled
- - - - 1.2O 1.2O
Krili Connunicalions Irivale
Liniled
- - 76.7O 76.7O 76.7O 76.7O
VTV Nelvorks Liniled - - - - - 1O.OO
Nexgen CapilaI Liniled - - - - - 14.16
CronveII HoIdings Liniled - - - - O.75 O.75
Three-D Connunicalions Liniled - - - - - 11O.81
CrindIav Iinnan Irivale Liniled - - - - 2.55 2.55
Vee Vee Infolec - - - - - 2.35
Akrili CoIonizers Irivale Liniled - - 5O.OO - - -
Ninlus India Liniled - - 5O.OO - - -
Tnta! - - 176.70 76.70 144.63 281.95
Tnta! (I + II) 14.45 14.45 191.15 91.15 159.08 299.68

Nole:
The Conpanv has provided 5,62,934 equilv shares of ßCIL IiIns and TechnoIogies Liniled as securilv
lo ollain an inler-corporale Ioan. Hovever, lhe sane is under dispule vilh lhe Iender and pending vilh
lhe HonoralIe High Courl.

Markct Va!uc nf Quntcd Invcstmcnts

(Rupees in Iakhs)
Ycar / PcrInd Endcd
Junc 30,
2010
March
31, 2010
March
31, 2009
March
31, 2008
March
31, 2007
March
31, 2006
Markel VaIue 74.36 85.81 388.98 61.49 37.18 62.12

119

Annexure XIV
Mandatory Accounting Ratios
(Rupees in lakhs)
Year / Period Ended
June 30,
2010
March
31, 2010
March
31, 2009
March
31, 2008
March
31, 2007
March
31, 2006
Basis of Accounting Ratios
Net Profit after tax but before
Extraordinary Item
118.89 272.20 6.86 323.83 250.30 35.66
Weighted average no. of equity
shares for the purpose of EPS
calculation
91,23,110 90,11,330 88,56,444 88,56,444 88,56,444 84,43,555
Number of equity shares for the
purpose of NAV calculation
considering issue of bonus shares
91,23,110 91,23,110 88,56,444 88,56,444 88,56,444 88,56,444
Net Worth 2876.01 2,757.11 2,292.90 2,287.84 1,953.63 1,873.59
Total no. of equity shares
outstanding at the end of year
68,42,333 68,42,333 66,42,333 66,42,333 66,42,333 66,42,333
Accounting Ratios
Earnings per share (`) 1.30* 3.02 0.08 3.66 2.83 0.42
Return on Net Worth (%) 4.1%* 9.9% 0.3% 14.2% 12.8% 1.9%
Net Assets Value per share (`) 31.52 30.22 25.89 25.83 22.06 21.16
* Unannualized

The ratios have been computed as below:
i. Earnings per Share (`): Net profit attributable to equity shareholders / weighted average
number of equity shares outstanding as at the end of the year / period. Earnings per share are
calculated in accordance with Accounting Standard 20 "Earnings Per Share", issued by the
Institute of Chartered Accountants of India. The Company issued Bonus Shares in the ratio of
1:3 on August 27, 2010. For the purpose of calculation of weighted average numbers of shares,
the effect of bonus issue has been given in the reported periods.
ii. Return on Net Worth (%): Net Profit after tax / Net Worth as at the end of the year / period.
iii. Net Assets Value (`): Net worth at the end of the year / Number of Equity Shares outstanding at
the end of the year/period. For the purpose of calculation of NAV, the number of equity shares
outstanding as on the last date of respective financial year and after adjustment of issue of bonus
shares on August 27, 2010 have been considered.
iv. Net profit, as appearing in the statement of restated profits & losses, has been considered for the
purpose of computing the above ratios.

Annexure XV
Statement of Dividend Paid
(Rupees in lakhs)
Year / Period ended
June 30,
2010
March
31, 2010
March
31, 2009
March
31, 2008
March
31, 2007
March
31, 2006
Dividend (Interim and final) Nil Nil Nil Nil Nil Nil
Dividend % - - - - - -

120

Anncxurc XVI
Rc!atcd Partv TransactInns
As per Accounling Slandard (AS-18) on reIaled parlv discIosures issued lv lhe ICAI, lhe discIosures of
lransaclion vilh reIaled parlv are as foIIovs:

a) DIrcctnrs / KMPs

i. Mr. Rakesh ßhhalia
ii. Mrs. Arli ßhalia
iii. Mr. Sanjeev Kunar MillaI
iv. Mr. Harjil Singh Anand
v. Mrs. Iava Misra
vi. Mr. Sanjav Kapoor
vii. Mr. AniI Kunar Kapoor

b) Rc!atIvcs nf DIrcctnrs

i. Mrs. Sanloshi Devi
ii. Mr. Caurav ßhalia
iii. Ms. Carina ßhalia
iv. Mr. I.K ßhalia
v. Mr. ß.K. ßhalia
vi. Mr. KripaI Singh
vii. Mrs. Sneh Lala
viii. Mr. AluI Singh
ix. Mrs. Alha Singh

c) EntcrµrIscs nwncd nr sIgnIfIcant!v Inf!ucnccd bv kcv managcmcnt µcrsnnnc! / dIrcctnrs nr
thcIr rc!atIvcs

i. ßCIL fiIns & TechnoIogies Liniled
ii. ßhhalia Inveslnenl & Iinance privale Liniled
iii. Nunler one Iinsec Irivale Iiniled
iv. Nunler One Iinvesl privale Liniled
v. Krili Connunicalions Irivale Liniled
vi. CrindIav Iinnan Irivale Liniled
vii. Three-D Connunicalions Liniled
viii. Rakesh ßhhalia HUI

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123


Anncxurc XVII
5tatcmcnt nf 5ccurcd Lnans

(Rupees in Iakhs)
Ycar / PcrInd Endcd
Junc 30,
2010
March 31,
2010
March 31,
2009
March 31,
2008
March 31,
2007
March 31,
2006
Working CapilaI Loan 4O4.7O 4O4.37 4O3.25 197.81 144.95 4O.54
VehicIe Loan 2O.O8 22.78 35.27 29.59 12.25 19.1O
Lquipnenl Loan - - - - 8.13 12.59
Inler Corporale Deposils 41.OO 41.OO 38.O7 - - -
Tnta! 465.78 468.15 476.59 227.40 165.33 72.23

DctaI!s nf 5ccurItIcs agaInst Lnan
(Rupees in Iakhs)
Namc nf
Lcndcr
Tvµc nf
Lnan
Amnunt
sanctInncd
Amnunt
nutstandI
ng as nn
Junc 30,
2010
Intcrcst
/
cnmmIs
sInn
5ccurItv
Rcµavmcnt /
Usagc µcrInd
The RovaI
ßank of
ScolIand
Overdrafl
Linil
4OO.OO 4O4.7O 15.75° PrImarv 5ccurItv
Iirsl and excIusive charge
lv vav of hvpolhecalion
on lhe enlire currenl assels
of lhe Conpanv lolh
presenl and fulure.

Iirsl and excIusive charge
lv vav of hvpolhecalion
on lhe novealIe fixed
assels of lhe conpanv lolh
presenl and fulure.

Iirsl and excIusive charge
lv vav of equilalIe
norlgage on lhe properlv
silualed al House Nunler
93: ßIock A, Seclor 26,
Noida slanding in lhe
nane of Mr. Rakesh
ßhhalia and Mrs. Arli
ßhalia.

Iirsl and excIusive charge
lv vav of equilalIe
norlgage on lhe properlv
silualed al ß - 14/16, 3
rd

IIoor, Hingiri
Aparlnenls, Seclor -34,
On denand

124

Noida in lhe nane of Mrs.
Arl ßhalia.

Persona| guarantee of Mr.
Rakesh ßhhalia and Mrs.
Arli ßhalia.
HDIC
ßank
Aulo
Ioan
3.96 2.86 11.69° Hvpolhecalion of
respeclive VehicIe
RepavalIe in 59
LMIs of C O.O9
Iakhs
HDIC
ßank
Aulo
Ioan
4.O4 1.89 11.69° Hvpolhecalion of
respeclive VehicIe
RepavlIe in 6O
LMIs of C O.O9
Iakhs
HDIC
ßank
Aulo
Loan
14.9O 12.22 12.8O° Hvpolhecalion of
respeclive VehicIe
RepavlIe in 6O
LMIs of C O.34
Iakhs
HDIC
ßank
Aulo
Loan
6.8O 3.1O 11.69° Hvpolhecalion of
respeclive VehicIe
RepavlIe in 6O
LMIs of C O.15
Iakhs
Life
Insurance
Corporali
on
Kevnan
IoIicv
Loan
8.OO 8.OO 1O.5O° Hvpolhecalion of Kevnan
poIicv ßond
Malurilv of
poIicv on
26/O2/2O22
Havk
Iincap &
Leasing
Ivl. Lld.

Inler-
corporale
Loan

25.OO 25.OO Inleresl
Iree
Loan
Hvpolhecalion of quoled
shares of ßCIL IiIns &
TechnoIogies Liniled
On denand
Lxxin
Securilies
& Credil
Ivl. Lld.
Inler-
corporale
Loan

8.OO 8.OO Inleresl
Iree
Loan
Hvpolhecalion of quoled
shares of ßCIL IiIns &
TechnoIogies Liniled
On denand






125

MANAGEMENT'5 DI5CU55ION AND ANALY5I5 OF FINANCIAL CONDITION AND
RE5ULT5 OF OPERATION5

You shouId read lhe foIIoving discussion of our financiaI condilion and resuIls of operalions
logelher vilh our audiled financiaI slalenenls (as reslaled) for lhe period ended Iune 3O, 2O1O and
five financiaI vears ended March 31, 2O1O, March 31, 2OO9, March 31, 2OO8, March 31, 2OO7 and March
31, 2OO6, incIuding lhe scheduIes, annexure and noles lherelo and lhe reporls lhereon, vhich appear
in lhe seclion lilIed "IinanciaI Slalenenls of lhe Conpanv" leginning on page no. 1O5 of lhis Drafl
Red Herring Irospeclus. You are aIso advised lo read lhe seclion lilIed "Risk Iaclors" leginning on
page no. iii of lhis Drafl Red Herring Irospeclus, vhich discusses a nunler of faclors and
conlingencies lhal couId inpacl our financiaI condilion, resuIls of operalions and cash fIovs. These
financiaI slalenenls are prepared in accordance vilh Indian CAAI, lhe Conpanies Acl, 1956 and lhe
SLßI (Issue of CapilaI and DiscIosure Requirenenls) ReguIalions, 2OO9 and reslaled as descriled in
Audilors' Reporl of M/s K. Irasad & Co., Charlered Accounlanls, daled Ocloler 18, 2O1O.

The foIIoving discussions are lased on our reslaled financiaI slalenenls for lhe period ended Iune
3O, 2O1O and five financiaI vears ended March 31, 2O1O, March 31, 2OO9, March 31, 2OO8, March 31,
2OO7 and March 31, 2OO6 vhich have leen prepared in accordance vilh Indian CAAI, lhe Conpanies
Acl, 1956 and lhe SLßI (Issue of CapilaI and DiscIosure Requirenenls) ReguIalions, 2OO9 and on
infornalion avaiIalIe fron olher sources. Our fiscaI vear ends on March 31 each vear, so aII
references lo a parlicuIar vear are lo lhe lveIve-nonlh period ended on March 31 of lhal vear.

IndIan IT & BPO Industrv
Doneslic IT-ßIO revenues are expecled lo grov al aInosl 8.5 per cenl lo reach INR 1,O88 liIIion in
IY2O1O. Rise of Indian corporalions facing conpelilive narkel condilions lhrough an increasingIv
gIolaIised Indian narkel, increased spend lv lhe governnenl in severaI e-Covernance inilialives,
enhanced conneclivilv and increased IeveIs of IT spending are kev faclors, vhich nake lhe doneslic
narkel Iucralive lodav. CoupIed vilh lhe facl lhal conpanies are Iooking lo inprove conpeliliveness
lv adopling gIolaI lesl praclices, Ieverage cuslonised service offerings and nev deIiverv nodeIs
such as SaaS, vhich ensures grealer cosl savings. Doneslic IT services are expecled lo grov lv 12 per
cenl in IY2O1O. WhiIe hardvare spend is IargeIv expecled lo renain fIal in IY2O1O, an inninenl
hardvare refresh cvcIe viII posiliveIv inpacl revenues nexl vear. The doneslic ßIO segnenl has
conlinued ils slrong perfornances over lhe pasl fev vears, groving lv 22 per cenl over IY2OO9, lo
reach INR 1O8 liIIion, driven lv Iarge deaIs in lhe leIecon and ßISI space.

Covernnenl IT spending conlinues lo rise across lhe vorId, focusing on infraslruclure, and securilv.
Olher areas of spending incIude ßIM, dala nanagenenl, on denand LRI, virluaIisalion, and efforls
lo increase and deIiver enlerprise nanaged services on II nelvorks.
(Scurcc. NASSCOM S|ra|cgic Rcticu. 2010)

McdIa & EntcrtaInmcnt Industrv
Our Conpanv calers lo lhe IiIns and Aninalion & VIX seclor of lhe M&L induslrv vilh lhe posl-
produclion vork. WhiIe lhe fiIned enlerlainnenl seclor had grovn lv over 15 percenl lelveen 2OO6
and 2OO8, vear 2OO9 vilnessed a significanl de-grovlh for lhe induslrv. In 2OO9 lhe induslrv is
eslinaled lo have decIined lv nearIv 14 percenl lo INR 89.3 liIIion fron INR 1O4.4 liIIion in 2OO8.
This vas IargeIv on accounl of Iover doneslic lhealricaI coIIeclions in 2OO9 conpared lo lhe previous
vear. Though lhe previous vear vilnessed a decIine for lhe fiIned enlerlainnenl induslrv, lhe lrend
is IikeIv lo reverse in 2O1O lo grov al a CACR of 8.9 percenl lo reach INR 136.7 liIIion lv 2O14. In
2OO9, lhe Indian aninalion induslrv conlinued lo reIv on oulsourced vork and co-produclion deaIs
lhal Ied lo a grovlh rale of approxinaleIv 9 percenl over 2OO8. The Aninalion and VIX induslrv has
seen an overaII grovlh of 13.6 percenl over 2OO8 and is expecled lo grov al a CACR of 18.7 percenl in

126

lhe coning vears lo reach INR 46.6 liIIion lv 2O14 driven lv increased consunplion of aninaled
conlenl, crealion of gIolaI II fornals, acceplance of 3D graphics and venluring inlo inlernalionaI
narkels.
(Scurcc. ||CC|-KPMG |núian Mcúia c |n|cr|ainmcn| |núus|ru Rcpcr| - 2010)

Our Cnmµanv's OvcrvIcw
We have designed our producls and services lo provide aulonaled soIulion lhal heIp enlerprises lo
neel lhe chaIIenges of naking IT infraslruclure secure and conpIianl. Our soIulion provides
visiliIilv across lhe IT infraslruclure, inleIIigenlIv idenlifies securilv lhreals and conpIiance lreaches,
and aulonales securilv and conpIiance processes lo reduce risk. We have lolaI of 32 Radio
Irequencv Idenlificalion soIulions, oul of vhich ve gol regislralion for 8 soIulions fron Covernnenl
of India, Copvrighl office and six appIicalions are pending vilh lhe concerned aulhorilv.

Safelv, Securilv & Aulonalion svslen ensures undislurled and safe operalions. Il enconpasses
securilv of assels and prenises fron dala Ioss, lerrorisn, or salolage lv providing lhe inlegraled
phvsicaI & IogicaI securilv soIulions. Il faciIilales in noniloring lhe novenenl of peopIe and assels of
an organizalion.

In Safelv, Securilv & Aulonalion, ve anaIvse, evaIuale, design, inpIenenl and nainlain a coherenl
sel of processes and svslens for effecliveIv nanaging infraslruclure safelv and securilv. As vilh aII
nanagenenl processes, safelv and securilv nanagenenl renains effeclive and efficienl in lhe Iong
lern, adapling lo change in lhe inlernaI organizalion and exlernaI environnenl. We sland for
proleclion againsl unaulhorized access fron lolh inside and oulside lhe conpanv.

Factnrs affcctIng rcsu!ts nf nur nµcratInns

Our resuIls of operalions couId polenliaIIv le affecled lv lhe foIIoving faclors:

• Dependence on lhe orders received fron our cusloners
• Changes in lechnoIogv
• VoIaliIilv in lhe prices of kev equipnenls
• AvaiIaliIilv of lechnicaI nanpover
• TineIv avaiIaliIilv of funds
• Conpelilion
• ConpIiance vilh necessarv reguIalorv norns
• CeneraI econonic condilions in India

OvcrvIcw nf nur rcsu!ts nf nµcratInns

lncome
Our lolaI incone conprises of our incone fron operalions and olher incone. Our incone fron
operalions incIudes:
a) Incone fron IT Division
l) Incone fron Media & Lnlerlainnenl Division

Incnmc frnm IT DIvIsInn
Under lhe IT Division, ve offer producls and services lo provide aulonaled soIulion lhal heIp
enlerprises lo neel lhe chaIIenges of naking IT infraslruclure secure and conpIianl. The producls
suppIied lv us uses RIID lechnoIogv and used for idenlificalion and lracking of lhe idenlilv, Iocalion
and condilions of assels, looIs, invenlorv, peopIe using radio vaves.

127


Incnmc frnm McdIa & EntcrtaInmcnt DIvIsInn
Our Media & Lnlerlainnenl Division has a DigilaI Iosl Iroduclion Sludio, knovn as 8G|| S|uúic al
Andheri (Wesl), Munlai. Il is an inlegraled end lo end IiIn´s Iosl Iroduclion and VisuaI Lffecls
Services House. Il offers services ranging fron visuaI effecls, digilaI fiIn Ial (digilaI inlernediale,
high-resoIulion fiIn scanning and fiIn recording) and ediling and nolion conlroI lo High Definilion
produclion.

Othcr Incnmc
Olher incone incIudes inleresl received on refund of incone lax, inleresl on fixed deposils vilh
lanks, dividend incone and olher nisceIIaneous incone.

The revenue and profil lefore lax fron IT Division, Media & Lnlerlainnenl Division and Olher
Incone during lhe period ended Iune 3O, 2O1O and Iasl five financiaI vears is as under:
(C in Iakhs)
Ycar / PcrInd Endcd
Junc 30,
2010
March
31, 2010
March
31, 2009
March
31, 2008
March
31, 2007
March
31, 2006
Rcvcnuc
IT Division
2,252.29 4,361.87 3,192.51 3,O75.16 2,593.96 1,9O8.17
Media & Lnlerlainnenl Division 49.57 272.23 167.21 344.33 359.23 125.O9
Tnta! Rcvcnuc
2,301.86 4,634.10 3,359.72 3,419.49 2,953.19 2,033.26
Olher Incone - - O.1O O.O1 - O.28
PrnfIt Bcfnrc Tax

IT Division 2O1.3O 25O.84 154.O4 161.77 245.62 82.96
Media & Lnlerlainnenl Division (7.55) 151.85 43.16 14O.92 44.1O 32.58
Olher Incone - - O.O7 O.O1 - O.28
Tnta! PrnfIt Bcfnrc Tax
193.75 402.69 197.27 302.70 289.72 115.82

Exµendlture
Our lolaI expendilure is accounled for under lhe foIIoving heads:

Purchascs
The equipnenls purchased lv us incIude loon larrier, RIID svslen (readers, anlennas, lags), spike
luslers, loon larriers, Ioop deleclors, uIlra sonic sensors, lickel dispensers, LLD signaI Iighls, LLD
dispIavs, under vehicIe surveiIIance svslen, lickel prinlers, larcode readers, face lracking canera,
AVCC (aulonalic vehicIe counler cun cIassifier), conpuler server and cIienls nachine, kiosk
calinels/nini enledded IC, Microsofl & open source progranning pIalforn, handheId devices elc.

Emµ!nvccs RcmuncratInn & BcncfIts
LnpIovees´ renuneralion & lenefils incIude saIaries and vages, direclors´ renuneralion, graluilv,
conlrilulion lo providenl fund and slaff veIfare expenses elc.

AdmInIstratIvc, 5c!!Ing and Othcr cxµcnscs
Adninislralive, seIIing and olher expenses incIude expenses on eIeclricilv expenses, convevance &
lraveIIing expenses, office nainlenance expenses, vehicIe running & nainlenance, lusiness
pronolion expenses and olher nisceIIaneous expenses.

FInancIa! chargcs

128

The financiaI charges incIude inleresl pavalIe lv us on vorking capilaI Ioans, inleresl on unsecured
Ioans, charges on Leller of Credil, processing fees, and olher lank charges.

DcµrccIatInn
This incIudes deprecialion/anorlizalion on conpulers, furnilure & fixlures, vehicIes, pIanl &
nachinerv, pIanl and nachinerv, eIeclricaI inslaIIalions, office equipnenls, nolor vehicIes elc.

PrnvIsInn fnr taxatInn
Incone laxes are accounled for in accordance vilh AS-22, issued lv ICAI on ¨Accounling for Taxes
on Incone¨. Taxes conprise currenl lax, deferred lax & fringe lenefil lax.

Ana|µsls on resu|ts of flnancla| oµeratlons
(Rupees in Iakhs)
Fnr thc vcar/µcrInd cndcd
Junc 30,
2010
March 31,
2010
March 31,
2009
March 31,
2008
March 31,
2007
OµcratIng Incnmc
Incone fron IT Division 2,252.29 4,361.87 3,192.51 3,O75.16 2,593.96
Incone fron Media &
Lnlerlainnenl Division
49.57 272.23 167.21 344.33 359.23
Tnta! Rcvcnuc
2,301.86 4,634.10 3,359.72 3,419.49 2,953.19
Olher Incone - - O.1O O.O1 -
Increase / (Decrease) in Slock (O.38) 2.62 O.85 (O.O9) (2.25)
Tnta! Incnmc 2,301.48 4,636.72 3,360.67 3,419.41 2,950.94
ExµcndIturc
Iurchases 1,935.27 3,612.56 2,6O8.25 2,641.55 2,141.86
LnpIovee Cosl 42.69 149.54 156.96 139.76 145.74
Adninislralion, SeIIing & Olher
Lxpenses
22.3O 1OO.68 111.31 154.3O 122.82
Cosl of fiIn produclion - - - - 154.81
Misc. expenses vrillen off - - - O.58 O.74
Tnta! ExµcndIturc 2,000.26 3,862.78 2,876.52 2,936.19 2,565.97
PrnfIt Bcfnrc FInancc Cnst,
TaxatInn & DcµrccIatInn
301.22 773.94 484.15 483.22 384.97
Deprecialion and anorlizalion 77.71 279.84 2O3.28 143.44 91.61
PrnfIt Bcfnrc FInancc Cnst &
TaxatInn
223.51 494.10 280.87 339.78 293.36
IinanciaI charges 29.76 91.41 83.6O 37.O8 3.64
PrnfIt Bcfnrc Tax 193.75 402.69 197.27 302.70 289.72
Irovision Ior Taxalion 33.2O 84.33 28.33 34.79 12.17
Iringe ßenefil Tax - - 1.4O 2.38 5.12
Deferred Tax LialiIilv/(Assel) 41.65 46.16 16O.68 (58.3O) 22.13
PrnfIt Aftcr Tax 118.90 272.20 6.86 323.83 250.30

CnmµarIsnn nf FY 2009-10 wIth FY 2008-09

lncome from oµeratlons

129

The incone fron IT Division increased lv 36.6° lo C 4,361.87 Iakhs in IY 2OO9-1O fron C 3,192.51
Iakhs in IY 2OO8-O9. During IY 2OO9-1O, ve Iaunched 11 nev producls - loII nanagenenl svslen,
canleen nanagenenl svslen, assel lracking svslen, enpIovee lracking svslen, parking nanagenenl
svslen, parking guidance svslen, snarl canpus svslen, visilor nanagenenl svslen, inleIIigence
nasl conlroIIer svslen, fiIe lracking svslen and Iaplop lracking svslen. During lhe sane period, ve
aIso added a nunler of gIolaI svslen inlegralors as our cusloners vho conlriluled lo lhe increase in
lhe incone fron operalions.

The incone fron Media & Lnlerlainnenl Division increased lv 62.8° lo C 272.23 Iakhs in IY 2OO9-1O
fron C 167.21 Iakhs in IY 2OO8-O9. The prinarv reason for lhe increase vas increased denand of
services fron lhe fiIn and leIevision induslrv.

Other lncome
We did nol earn anv olher incone in IY 2OO9-1O. Olher incone in IY 2OO8-O9 conprised of inleresl
received on fixed deposils vilh lanks anounling lo C O.1O Iakhs.

Purchases
Iurchases increased lo C 3,612.56 Iakhs in IY 2OO9-1O fron C 2,6O8.25 Iakhs in IY 2OO8-O9,
represenling an increase of 38.5°, vhich is in Iine vilh lhe increase in incone fron operalions.
Iurchases as percenlage of lolaI incone increased narginaIIv lo 77.9° in IY 2OO9-1O as againsl 77.6°
in IY 2OO8-O9.

Emµ|oµees´ Cost
The expendilure on enpIovee cosls decreased lo C 149.54 Iakhs in IY 2OO9-1O fron C 156.96 Iakhs in
IY 2OO8-O9. The enpIovee cosl vas 3.2° of lhe lolaI incone in IY 2OO9-1O as againsl 4.7° in IY 2OO8-
O9. The reason for lhe faII in enpIovees´ cosl vas due lo Iess Iead line laken lv our Conpanv in
execuling lhe projecls vhich vas as a resuIl of inproved producl porlfoIio and knovIedge lase.

Admlnlstratlon. se||lng and other exµenses
Adninislralive expenses decreased lv 9.5° lo C 1OO.68 Iakhs in IY 2OO9-1O fron C 111.31 Iakhs in IY
2OO8-O9, due lo decrease in repair & nainlenance cosl, eIeclricilv expenses and IegaI & professionaI
charges. As a percenlage lo lolaI incone, adninislralive, seIIing and olher expenses vere 2.2° in IY
2OO9-1O conpared lo 3.3° in IY 2OO8-O9.

Deµreclatlon and amortltatlon
Deprecialion and anorlizalion cosl increased lv 37.7° lo C 279.84 Iakhs in IY 2OO9-1O fron C 2O3.28
Iakhs in IY 2OO8-O9. The increase in deprecialion vas nainIv due lo addilions in lhe fixed assels
during lhe IY 2OO9-1O.

|lnancla| charges
The financiaI charges increased lv 9.3° lo C 91.41 Iakhs in IY 2OO9-1O fron C 83.6O Iakhs in IY 2OO8-
O9 due lo higher rale of inleresl of Ioan anounl. We look a cash credil Iinil of C 4OO.OO Iakhs fron
RovaI ßank of ScolIand (fornerIv AßN Anro ßank) in IuIv 2OO8 al an effeclive inleresl rale of 13.75°.
This inleresl rale increased uplo 16.75° during IY 2OO9-1O. Iurlher, lhe inleresl vas charged for
approxinaleIv 9 nonlhs in IY 2OO8-O9, conpared lo 12 nonlhs in IY 2OO9-1O.

PrnfIt bcfnrc Tax
The profil lefore lax increased lv 1O4.1° lo C 4O2.69 Iakhs in IY 2OO9-1O fron C 197.27 Iakhs in IY
2OO8-O9. Irofil lefore lax as a percenlage lo lolaI incone increased lo 8.7° in IY 2OO9-1O fron 5.9° in
IY 2OO8-O9. The increase in profil lefore lax vas as a resuIl of increased incone fron operalions and
inproved operalionaI efficiencies during lhe vear.

13O


CnmµarIsnn nf FY 2008-09 wIth FY 2007-08

lncome from oµeratlons
The incone fron IT Division increased lv 3.8° lo C 3,192.51 Iakhs in IY 2OO8-O9 fron C 3,O75.16 Iakhs
in IY 2OO7-O8. The reason for increase in incone vas increased denand of vaIue-added producls
fron our cusloners. During lhis vear, ve kepl our focus on increasing lhe knovIedge lase of our
Conpanv around lhe RIID lechnoIogv, having leller nargins and vhich supporled us in deveIoping
nev producls.

The incone fron Media & Lnlerlainnenl Division decreased lv 51.4° lo C 167.21 Iakhs in IY 2OO8-O9
fron C 344.33 Iakhs in IY 2OO7-O8 due lo reduced denand in lhe nedia induslrv.

Other lncome
Olher incone increased lo C O.1O Iakhs in IY 2OO8-O9 fron C O.O1 Iakhs in IY 2OO7-O8 due lo increase
in inleresl on fixed deposils vilh lanks.

Purchases
Iurchases decreased narginaIIv lv 1.3° lo C 2,6O8.25 Iakhs in IY 2OO8-O9 fron C 2,641.55 Iakhs in IY
2OO7-O8. Iurchases as a percenlage of lolaI incone decreased narginaIIv lo 77.6° in IY 2OO8-O9 fron
77.3° in IY 2OO7-O8.

Emµ|oµees´ Cost
The expendilure on enpIovee cosls increased lv 12.3° lo C 156.96 Iakhs in IY 2OO8-O9 fron C 139.76
Iakhs in IY 2OO7-O8 due lo nev recruilnenls, increased saIaries and olher incenlives paid lo
enpIovees. The enpIovee cosl vas 4.7° of lhe lolaI incone in IY 2OO8-O9 as againsl 4.1° in IY 2OO7-
O8.

Admlnlstratlon. se||lng and other exµenses
Adninislralive, seIIing and olher expenses decreased lv 27.9° lo C 111.31 Iakhs in IY 2OO8-O9 fron C
154.3O Iakhs in IY 2OO7-O8, prinariIv due lo no expense incurred lovards jol vork for posl-
produclion vork vhich vere C 12.31 Iakhs in IY 2OO7-O8, decreased in convevance & lraveIIing
expenses lo C 4.49 Iakhs in IY 2OO8-O9 fron C 16.85 Iakhs in IY 2OO7-O8, decreased in IegaI &
professionaI charges lo C 33.72 Iakhs in IY 2OO8-O9 fron C 43.38 Iakhs in IY 2OO7-O8 and decreased in
office nainlenance expenses lo C 1O.81 Iakhs in IY 2OO8-O9 fron C 14.73 Iakhs in IY 2OO7-O8. As a
percenlage lo lolaI incone, adninislralive, seIIing and olher expenses vere 3.3° in IY 2OO8-O9
conpared lo 4.5° in IY 2OO7-O8.

DcµrccIatInn and amnrtIzatInn
Deprecialion and anorlizalion cosl increased lv 41.7° lo C 2O3.28 Iakhs in IY 2OO8-O9 fron C 143.44
Iakhs in IY 2OO7-O8. The increase in deprecialion vas nainIv due lo addilions in lhe fixed assels
during lhe IY 2OO8-O9.

|lnancla| charges
The financiaI charges increased lv 125.5° lo C 83.6O Iakhs in IY 2OO8-O9 fron C 37.O8 Iakhs in IY
2OO7-O8 due lo increase in lorrovings and higher rale of inleresl.

Proflt before Tax
The profil lefore lax decreased lv 34.8° lo C 197.27 Iakhs in IY 2OO8-O9 fron C 3O2.7O Iakhs in IY
2OO7-O8. Irofil lefore lax as a percenlage lo lolaI incone decreased lo 5.9° in IY 2OO8-O9 fron 8.9°

131

in IY 2OO7-O8. The decrease in profil lefore lax vas as prinariIv a resuIl of increased deprecialion &
anorlizalion cosl and financiaI charges.

CnmµarIsnn nf FY 2007-08 wIth FY 2006-07

lncome from oµeratlons
The incone fron IT Division increased lv 18.6° lo C 3,O75.16 Iakhs in IY 2OO7-O8 fron C 2,593.96
Iakhs in IY 2OO6-O7. During 2OO6-O7, ve focussed prinariIv on seIIing of LRI appIicalions. In IY
2OO7-O8, ve aIso slarled noving lovards appIicalions lased on RIID and olher aulo-idenlificalion
lechnoIogies, al lhe sane line reducing focus on LRI appIicalions.

The incone fron Media & Lnlerlainnenl Division decreased lv 4.1° lo C 344.33 Iakhs in IY 2OO7-O8
fron C 359.23 Iakhs in IY 2OO6-O7. During IY 2OO6-O7, our Conpanv earned revenue of C 113.OO Iakhs
fron lhe saIe of leIecasl righls of lhe novie 'Ii|n |ut - Tumnara´. conpared lo C 5.25 Iakhs in IY
2OO7-O8. Incone fron Media & Lnlerlainnenl division, excIuding lhe revenue fron saIe of leIecasl
righls, increased lo C 339.O8 Iakhs in IY 2OO7-O8 fron C 246.23 Iakhs in IY 2OO6-O7, on accounl of
increased denand fron nedia induslrv.

Other lncome
Olher incone conprised of inleresl on fixed deposils vilh lanks anounling lo C O.O1 Iakhs in IY
2OO7-O8. In IY 2OO6-O7, our Conpanv did nol earn anv olher incone.

Emµ|oµees´ Cost
The expendilure on enpIovee cosls decreased lv 4.1° lo C 139.76 Iakhs in IY 2OO7-O8 fron C 145.74
Iakhs in IY 2OO6-O7 due lo decrease in nanpover enpIoved lv our Conpanv.

Admlnlstratlon. se||lng and other exµenses
Adninislralive, seIIing and olher expenses increased lv 25.6° lo C 154.3O Iakhs in IY 2OO7-O8 fron C
122.82 Iakhs in IY 2OO6-O7. As a percenlage lo lolaI incone, adninislralive, seIIing and olher
expenses increased lo 4.5° in IY 2OO7-O8 conpared lo 4.2° in IY 2OO6-O7. The increase in
adninislralive, seIIing and olher expenses vas due lo increase in convevance & lraveIIing expenses,
IegaI & professionaI charges and office nainlenance expenses.

Cost of fl|m µroductlon
During lhe IY 2OO6-O7, our Conpanv had aIso incurred an anounl of C 154.81 Iakhs as cosl on lhe
produclion of lhe novie ´Ii|n |ut - Tumnara´. No expendilure vas incurred on lhe produclion of anv
novie afler IY 2OO6-O7.

Deµreclatlon and amortltatlon
Deprecialion and anorlizalion cosl increased lv 56.6° lo C 143.44 Iakhs in IY 2OO7-O8 fron C 91.61
Iakhs in IY 2OO6-O7. The increase in deprecialion vas nainIv due lo addilions in lhe fixed assels
during lhe IY 2OO7-O8.

|lnancla| charges
The financiaI charges increased lo C 37.O8 Iakhs in IY 2OO7-O8 fron C 3.64 Iakhs in IY 2OO6-O7 due lo
increase in lorrovings of our Conpanv. During IY 2OO7-O8, ve ollained a nachinerv Ioan of C 18.4O
Iakhs and our cash credil Iinil vas increased fron C 6O Iakhs in IY 2OO6-O7 lo C 215 Iakhs in IY 2OO7-
O8.

Proflt before Tax

132

The profil lefore lax increased lv 4.5° lo C 3O2.7O Iakhs in IY 2OO7-O8 fron C 289.72 Iakhs in IY 2OO6-
O7. The increase in profil lefore lax vas as a resuIl of increased revenue.

Othcr Mattcrs

Unusua| or lnfrequent etents or transactlons
There are no unusuaI or infrequenl evenls or lransaclions lhal have significanlIv affecled our
lusiness.

Slgnlflcant economlc changes that materla||µ affected or are |lke|µ to affect lncome from contlnulng
oµeratlons
Lxcepl as descriled in lhis Drafl Red Herring Irospeclus in generaI, ¨Risk Iaclors¨ on page no. iii
and lhis seclion in parlicuIar, lo lhe lesl of our knovIedge and leIief, lhere are no significanl
econonic changes lhal naleriaIIv affecled Conpanv´s operalions or are IikeIv lo affecl incone fron
conlinuing operalions.

Knoun trends or uncertalntles that hate had or are exµected to hate a materla| adterse lmµact on
sa|es. retenue or lncome from contlnulng oµeratlons.
There are no knovn lrends or uncerlainlies lhal have had or are expecled lo have a naleriaI adverse
inpacl on saIes, revenue or incone fron conlinuing operalions excepl as descriled in lhe seclion
lilIed ¨Risk Iaclors¨ on page no. iii and in ¨Managenenl Discussion and AnaIvsis of IinanciaI
Condilion and ResuIls of Operalions¨ appearing on page no. 125 of lhis Drafl Red Herring
Irospeclus, lo lhe lesl of our Conpanv´s knovIedge.

|uture changes ln re|atlonshlµ betueen costs and retenues
Olher lhan as descriled in lhe seclions lilIed ¨Risk Iaclors¨ and ¨Managenenl´s Discussion and
AnaIvsis of IinanciaI Condilion and ResuIls of Operalions¨ leginning on pages iii and 125
respecliveIv of lhis Drafl Red Herring Irospeclus and eIsevhere in lhis Drafl Red Herring
Irospeclus, lhere are lo lhe lesl of our knovIedge, no knovn faclors vhich vouId have a naleriaI
adverse inpacl on lhe reIalionship lelveen cosl and incone of our Conpanv.

lncreases ln net sa|es or retenue and lntroductlon of neu µroducts or sertlces or lncreased sa|es
µrlces
Increases in revenues are as a resuIl of increases in operalions of our Conpanv. During DY 2OO9-1O,
ve inlroduced 11 nev producls - loII nanagenenl svslen, canleen nanagenenl svslen, assel
lracking svslen, enpIovee lracking svslen, parking nanagenenl svslen, parking guidance svslen,
snarl canpus svslen, visilor nanagenenl svslen, inleIIigence nasl conlroIIer svslen, fiIe lracking
svslen and Iaplop lracking svslen.

Tota| turnoter of each ma]or lndustrµ segment ln uhlch the Comµanµ oµerated
Our Conpanv operales in lvo induslrv segnenls i.e. IT-ßIO induslrv and Media & Lnlerlainnenl
induslrv. We segregale our operaling incone fron lvo divisions viz. IT Division and Media &
Lnlerlainnenl Division. The lurnover fron each induslrv segnenl is as foIIovs:
(C in Iakhs)
Ycar / PcrInd Endcd
Junc 30,
2010
March
31, 2010
March
31, 2009
March
31, 2008
March
31, 2007
March
31, 2006
IT Division
2,252.29 4,361.87 3,192.51 3,O75.16 2,593.96 1,9O8.17
Media & Lnlerlainnenl Division 49.57 272.23 167.21 344.33 359.23 125.O9

133

Status of anµ µub|lc|µ announced Neu Products or Buslness Segment
Our Conpanv has deveIoped (i) aulonalic nunler pIale recognilion svslen, (ii) lickel dispensing
svslen and (iii) loken-Iess lvo-faclor aulhenlicalion svslen, aIlhough ve have nol vel soId lhese
producls.

Seasona|ltµ of buslness
Our Conpanv´s lusiness is nol seasonaI in nalure.

Deµendence on a slng|e or feu suµµ|lers or customers
Our Conpanv´s lusiness is nol dependenl on a singIe or fev suppIiers or cusloners.

Comµetltlte condltlons
We face conpelilion fron exisling pIavers in our induslrv.

Detal|s of materla| dete|oµments after the date of |ast ba|ance sheet
Aparl fron discIosed as under, no olher circunslances have arisen, since lhe dale of lhe Iasl financiaI
slalenenl unliI lhe dale of fiIing of lhis Drafl Red Herring Irospeclus vilh SLßI, vhich naleriaIIv
and adverseIv affecl or is IikeIv lo affecl lhe operalions or profilaliIilv of our Conpanv, or vaIue of
ils assels, or ils aliIilv lo pav ils IialiIilv vilhin lveIve nonlhs:
• Our Conpanv enlered inlo an agreenenl lo seII vilh Mrs. Lsha ßahI and Mrs. Manla ßahI on
Augusl 5, 2O1O for seIIing / lransferring ils ovnership in properlies Iocaled al IIal no. 623-ß
and 6O1, Sixlh IIoor, Devika Tover, 6, Nehru IIace, Nev DeIhi - 11OO19 for a lolaI
consideralion of C 27.OO Iakhs and C 24.84 Iakhs respecliveIv: and
• Issue of lonus shares in lhe ralio of 1: 3 on Augusl 27, 2O1O.




134


5ECTION VI: LEGAL AND OTHER INFORMATION

OUT5TANDING LITIGATION5 AND MATERIAL DEVELOPMENT5

Lxcepl as slaled in lhis seclion, lhere are no oulslanding Iiligalion, suils, crininaI or civiI
proseculions, slalulorv or IegaI proceedings incIuding lhose for econonic offences, lax IialiIilies,
shov cause nolices or IegaI nolices againsl our Conpanv, our Direclors, our Ironolers and Ironoler
Croup or joinl venlures or enlilies vilh vhich our Ironolers vere associaled in lhe pasl. There are
no defauIls incIuding non-pavnenl of slalulorv dues, over-dues lo lanks/financiaI inslilulions,
defauIls againsl lanks/financiaI inslilulions, defauIls in dues pavalIe lo hoIders of anv delenlure,
londs and fixed deposils issued lv our Conpanv, defauIls in crealion of fuII securilv as per lhe lerns
of issue/olher IialiIilies, proceedings inilialed for econonic/civiI/anv olher offences (incIuding pasl
cases vhere penaIlies nav or nav nol have leen avarded and irrespeclive of vhelher lhev are
specified under paragraph (I) of Iarl 1 of ScheduIe XIII of lhe Conpanies Acl) olher lhan uncIained
IialiIilies of our Conpanv excepl as slaled leIov. There has leen no discipIinarv aclion laken lv
SLßI or anv slock exchange againsl our Conpanv, our Direclors, our Ironolers, Ironoler Croup or
enlilies vilh vhich our Ironolers vere associaled in lhe pasl.

Neilher our Conpanv nor our Ironolers or Ironoler Croup or Direclors have leen decIared as
viIfuI defauIlers lv lhe RßI, or anv olher aulhorilv and lhere are no vioIalions of securilies Iavs
connilled lv lhen in lhe pasl or pending againsl lhen or anv person or enlilv connecled vilh lhen.
Iurlher, excepl as discIosed in lhis seclion, lhere are no oulslanding Iiligalion, suils, crininaI or civiI
proseculions, slalulorv or IegaI proceedings incIuding lhose for econonic offences, lax IialiIilies,
shov cause nolices or IegaI nolices pending againsl anv conpanv vhose oulcone couId have a
naleriaI adverse effecl on lhe posilion of our Conpanv, our Ironolers, Ironoler Croup or anv
person or enlilv connecled vilh lhen.

Iurlher lhere is no shov-cause nolices/cIains served on our Conpanv, our Ironolers, our Direclors
or Ironoler Croup fron anv slalulorv aulhorilv/revenue aulhorilv lhal vouId have a naleriaI
adverse affecl on our lusiness excepl as nenlioned hereinafler.

I. CnntIngcnt !IabI!ItIcs nnt µrnvIdcd fnr:
(C in Iakhs)
PartIcu!ars Junc 30, 2010
CIains againsl conpanv nol acknovIedged as dells 2.62
Irovision for saIaries and olher expenses for ex-
enpIovees of lhe conpanv
2O.OO
Tnta! 22.62

II. OUT5TANDING LITIGATION INVOLVING OUR COMPANY AND OUR PROMOTER5/
DIRECTOR5:

(a) CIvI! mattcr:

Rakcsh BhhatIa & Othcrs vs. Pramnd 5harma & nthcrs

Mr. Iranod Sharna and olher defendanls ('Dcfcndants') agreed lo finance a sun of C 1OO Iakhs lo
Mr. Rakesh ßhhalia and olhers ('P!aIntIffs') againsl securilv of 15.4O Iakhs equilv shares of ßCIL
IiIns & TechnoIogies Liniled (ßCIT) in Ocloler, 2OO7. As per lhe agreenenl, lhe said anounl vas

135

repavalIe in one vear´s line and in case, lhe IIainliffs faiIs lo repav lhe said anounl, Defendanls nav
seII or lransfer lhe shares of ßCIL IiIns & TechnoIogies Liniled vilhoul lhe pernission of IIainliff
even lhough lhe Defendanls are relaining lhe said shares in lrusl and as securilv againsl lhe Ioan
advanced.

IniliaIIv a sun of C 75 Iakhs vas given againsl 15.4O Iakhs shares in differenl lranches. Since lhe vaIue
of shares of ßCIT feII fron C 18.7O per equilv share lo C 16.3O per equilv share, Mr. Iranod Sharna
denanded furlher securilv of 1 Iakh equilv shares of ßCIT for reIease of laIance sun of C 25 Iakhs.
AccordingIv, 74,5OO shares vere given on Novenler 29, 2OO7 as addilionaI securilv againsl vhich
laIance Ioan anounl of C 25 Iakhs vas lo le dislursed lv Mr. Iranod Sharna and olher Defendanls.
Hovever, Mr. Iranod Sharna and olher Defendanls did nol pav lhe laIance anounl of C 25 Iakhs.

The Ioan anounl vas lo le repaid in one vear´s line. Il is aIIeged lv lhe pIainliffs lhal lhere vas an
apprehension lhal lhe respondenls nighl seII or lransfer lhe shares of ßCIL IiIns & TechnoIogies
Liniled given lo respondenls vilhoul lhe pernission of pIainliff, even lhough lhe Defendanls are
relaining lhe said shares in lrusl and as securilv againsl lhe Ioan advanced. In viev of lhis, lhe
IIainliffs fiIed a civiI suil in lhe High Courl of DeIhi for ollaining a pernanenl as veII as ad-inlerin
ex-parle injunclion againsl lhe defendanl, lheir agenls, servanls, allornevs, assigns, represenlalives
fron disposing off, aIienaling, lransferring, or crealing anv lhird parlv inleresl in lhe shares of lhe
ßCIT.

Il is cIained lv lhe Defendanls lhal lhere is no Ioan lransaclion lelveen lhe parlies and since lhe
IIainliffs vere in urgenl need of nonev, lhev soId lhe shares lo Defendanls al lhe price of C 5.5 per
share, C 5 per share and C 4 per share for lhree Iols. Defendanls aIso aIIeged lhal lhe IIainliffs have
forged lhe docunenls in an allenpl lo shov lhe Ioan lransaclion.

The Iearned SingIe Iudge issued nolice (vide order daled IuIv 7, 2OO8) againsl lhe appIicalion for ad-
inlerin ex-parle injunclion, againsl vhich IIainliffs preferred an appeaI lo lhe Division lench of lhe
High Courl of DeIhi. The Hon´lIe Division lench of High Courl of DeIhi aIIoved lhe appIicalion of
lhe IIainliffs for ad-inlerin ex-parle injunclion (vide IAO(OS) no. 297/2OO8) and passed an order
reslraining lhe Defendanls fron deaIing vilh or disposing off lhe shares of ßCIT.

Thereafler, Hon´lIe SingIe Iudge of Hon´lIe High Courl vide order daled ApriI 21, 2OO9 in lhe
originaI suil, nade alsoIule lhe order daled IuIv 11, 2OO8 of lhe Hon´lIe Division ßench of lhe High
Courl reslraining lhe defendanls fron deaIing vilh or disposing of lhe shares of lhe ßCIT and
direcled lhe IIainliffs lo deposil lhe sun of C 75 Iakhs vilh inleresl al 3° per nonlh lhereon fron lhe
dale of pavnenl lhereof lv lhe defendanls lo lhe pIainliffs and liII lhe dale of lhe deposil. The
Hon´lIe High Courl furlher direcled lhe IIainliffs lo give an underlaking lo lhe Courl lo, vilhoul anv
lriaI, nake good anv Ioss lo lhe defendanls, if anv, suffered lv lhe Defendanls due lo lhe alove said
reslraining order, caIcuIaled on lhe difference lelveen lhe saIe price of lhe said shares of ßCIT as on
11
lh
IuIv, 2OO8 and on lhe dale of finaI decision of lhe suil. The pIainliffs have nol deposiled lhe
anounl and hence lhe slav slands vacaled. The nexl dale of hearing is Ocloler 25, 2O1O.

The parlies in lhis suil have enlered inlo conpronise and pursuanl lo such conpronise, have noved
an appIicalion on Ocloler 7, 2O1O lo lhe Hon´lIe High Courl for lhe disposaI of lhe suil in lerns of
lhe conpronise. As per lhe lerns of lhe conpronise, IIainliffs are IialIe lo pav a sun of C 27O Iakhs
over a period of nexl six nonlhs exlendalIe uplo a lolaI period of fourleen nonlhs, vilh inleresl,
againsl fuII and finaI sellIenenl of aII cIains of lhe Defendanls. Upon pavnenl of lhe aforesaid
anounl of C 27O Iakhs, Defendanls viII lransfer lhe shares of ßCIT lo lhe IIainliffs, vhich lhe

136

IIainliffs vouId lake lack. If lhe IIainliffs faiI lo nake lhe pavnenl vilhin lhe slipuIaled line
period, lhe Defendanls are free lo dispose of lhe shares heId lv lhen in lhe open narkel.

As per lhe sellIenenl, 16.12 Iakh equilv shares of ßCIT vhich vere given as securilv as per lhe
IIainliffs, aIreadv slands lransferred in lhe nane of Defendanls and lhe IIainliffs are no nore lhe
sharehoIders in ßCIT lo such exlend. Iurlher, oul of 16.12 Iakh shares, Defendanls have aIreadv
disposed off 1.25 Iakhs shares of ßCIT in lhe open narkel and hence, are hoIding onIv 14.87 Iakh
equilv shares. Upon pavnenl of C 27O Iakhs lo Defendanls in lerns of lhe sellIenenl, IIainliffs viII
gel lack 14.87 Iacs equilv shares.

The Hon´lIe High Courl of DeIhi tiúc ils order daled Ocloler 25, 2O1O has laken on record lhe
sellIenenl arrived lelveen lhe parlies and on lhe lasis of lhe lerns of conpronise in lhe said
appIcialion, has decreed lhe suil.

(b) LItIgatInn Invn!vIng CrImIna! nffcnccs

LItIgatInn undcr NcgntIab!c Instrumcnts Act, 1881
Melro Road Svslens Irivale Liniled (lhe ConpIainanl) is in lhe lusiness of deveIoping and
nanagenenl svslens, elc. Our Conpanv approached lhe ConpIainanl and agreed lo deveIop
'soflvare for parking nanagenenl svslens´ and 'soflvare deveIopnenl of ToII CoIIeclion
Svslens´for lhe ConpIainanl. The ConpIainanl nade an advance pavnenl of 25° for lhe said
soflvare lv vav of lvo cheques of C 1.625 Iakhs and C O.525 Iakhs and for securing such advance
pavnenl, ve issued lvo cheques of C 1.625 Iakh and C O.525 Iakh on Augusl 14, 2OO6 and Seplenler
5, 2OO6 respecliveIv as a securilv vhich vere lo le encashalIe in lhe evenl ve deIav or connil
defauIl of ils olIigalions. We deIivered lhe soflvare vilhin lhe slipuIaled line, hovever, lhe
ConpIiananl asked for source-code of lhe soflvare, vhich is lhe soIe and excIusive properlv of lhe
Conpanv and deIiverv of such source-code vas aIso nol underslanding lelveen lolh lhe parlies.
Differences arose lelveen lhe parlies and lhe ConpIainanl deposiled lhe alove cheques, vhich gol
dishonoured vilh renarks ¨Iavnenl slopped lv Draver¨. The ConpIainanl fiIed a conpIainl under
seclion 138 and 142 of lhe NegolialIe Inslrunenls Acl, 1882 in lhe Courl of AddilionaI Chief
MelropoIilan Magislrale, Nev DeIhi. The sunnons have leen issued and Mr. Rakesh ßhhalia is
currenlIv on laiI. The conpIainanl has fiIed an appIicalion for vilhdravaI of lhe conpIainl and lhe
sane is Iisled for appropriale order of lhe courl on Novenler 18, 2O1O.

(c) Casc undcr Incnmc Tax Act, 1961:
Nolice under Seclion 143(2) vas issued lv lhe Assislanl Connissioner of Incone Tax on Ocloler 31,
2OO7 for lhe Assessnenl Year 2OO7-O8. Iursuanl lo lhe Assessnenl Order daled Novenler 3O, 2OO9,
under Seclion 143 (3) of lhe Incone Tax Acl, 1961, lhe Assessing Officer has, for lhe Assessnenl Year
2OO7-O8, raised a denand of C 2.68 Iakh consisling of lax of C 1.64 Iakhs and inleresl of C 1.O3 Iakh tiúc
denand nolice under Seclion 156, daled Novenler 3O, 2OO9. ßv vav of lhe said order passed under
Seclion 143(3) of lhe Incone Tax Acl, 1961, Depulv Connissioner of Incone Tax has disaIIoved lhe
Ioss on saIe of inveslnenls anounling lo C 4.95 Iakh and added lack lhe sane lo lhe laxalIe incone
of lhe Conpanv.

Iurlher, il has leen ordered lhal since Conpanv has furnished inaccurale parlicuIars of incone,
penaIlv proceedings under Seclion 271(1) (c) of lhe Incone Tax, 1961 is lo le inilialed againsl lhe
Conpanv.

The Conpanv has vide Ieller daled Mav 25, 2O1O, repIied lo lhe nolice under Seclion 271(1) (c) daled
Novenler 3O, 2OO9 consequenl lo Order under Seclion 143 (3) for inilialing penaIlv proceeding for

137

conceaInenl of incone. The proceedings under Seclion 271 (1) (c) vere dropped lv lhe Incone Tax
Deparlnenl on 25.O5.2O1O.

The Conpanv accepled lhe addilion anounling lo C 4.95 Iakhs. The Assessing Officer has raised lhe
denand vilhoul giving credil of laxes paid and hence, on 25.O5.2O1O lhe Conpanv has fiIed an
appIicalion under Seclion 154 of lhe Incone Tax, 1961 for lhe credil of lax paid and consequenl
denand raised. The appIicalion under seclion 154 is sliII pending lefore lhe Assessing Officer.

III. LItIgatInn bv Prnmntcr Grnuµ CnmµanIcs & Prnmntcrs

a. CIvI! mattcr:
The conpIainl has leen fiIed lv Mr. Rakesh ßhhalia (ConpIainanl) againsl Slandard Charlered ßank
under Seclion 12 of lhe Consuner Iroleclion Acl, 1986, cIaining conpensalion of C 1O Iakhs for
nenlaI agonv, lorlure, harassnenl and Ioss of repulalion suffered lv Mr. Rakesh ßhhalia and C 2O
Iakhs for Ioss of repulalion suffered lv M/s Vishesh Infolecnics Liniled (VIL) due lo lIocking of
lhree credil cards issued lv Slandard Charlered ßank despile lhe pavnenls leing duIv nade. The
conpIainl vas disnissed in defauIl for non-proseculion on Decenler 1O, 2OO9 since lhe ConpIainanl
faiIed lo le presenl lefore lhe connission on reIevanl dale of hearings. Hovever, in Ocloler, 2O1O,
lhe conpIainanl has fiIed an appIicalion for resloralion of lhe conpIainl.

IV. PrncccdIngs InItIatcd agaInst nur Cnmµanv fnr ccnnnmIc nffcnccs
There are no proceedings inilialed againsl our Conpanv for anv econonic offences.

V. Advcrsc fIndIngs agaInst nur Cnmµanv as rcgards cnmµ!Iancc wIth thc sccurItIcs !aws
There are no adverse findings againsl our Conpanv as regards conpIiance vilh lhe securilies Iavs.

VI. OutstandIng ducs tn sma!! sca!c undcrtakIng(s)
There are no oulslanding dues oved lo snaII scaIe underlaking(s) lv our Conpanv, for nore lhan 3O
davs.

VII. 5hnw-causc nntIccs rcccIvcd bv nur Cnmµanv
Our Conpanv has nol received anv shov Cause nolice or anv IegaI nolice fron anv deparlnenl/
lhird parlv.

VIII. OutstandIng LItIgatInn Invn!vIng nur DIrcctnrs
There are no oulslanding Iiligalions, defauIls invoIving, inler aIia, vioIalion of slalulorv reguIalions
or aIIegalions of crininaI offence, econonic offences, civiI/crininaI cases lovards lax IialiIilies or
pasl penaIlies, againsl or lv our Direclors. Iurlher, no discipIinarv aclion has leen laken lv SLßI or
lhe Slock Lxchanges againsl our Direclors.

IX. OutstandIng LItIgatInn/PrncccdIngs agaInst nur Prnmntcrs and Prnmntcr Grnuµ
CnmµanIcs
There are no oulslanding Iiligalions, defauIls invoIving, inler aIia, vioIalion of slalulorv reguIalions
or aIIegalions of crininaI offence, econonic offences, civiI/crininaI cases lovards lax IialiIilies or
pasl penaIlies, invoIving our Ironolers and Ironoler Croup Conpanies. Iurlher, no discipIinarv
aclion has leen laken lv SLßI or lhe Slock Lxchanges againsl our Ironolers and Ironoler Croup
Conpanies. Lxcepl as slaled in lhis seclion, lhere are no pending Iiligalions, defauIls in respecl lo
enlilies and venlures vilh vhich our Ironolers and Ironoler Croup Conpanies vere associaled in
lhe pasl.

Dc!av In µavmcnt nf unsccurcd !nans:

138

The lolaI overdue anounl in respecl of unsecured Ioans as on Ocloler 3O, 2O1O is C 7.88 Iakhs, delaiIs
of vhich are as under:

Namc nf Lcndcr Amnunt nf !nan dIsburscd
(C In !akhs)
Amnunt nvcrduc as nn
Octnbcr 30, 2010
(C In !akhs)
1 Monev Line Credil Liniled 3O.OO 1.81
2 ReIiance CapilaI Liniled 3O.OO 4.41
3 AßN Anro ßank 16.OO 1.14
4 HDIC ßank 15.OO O.52

Dc!av In µavmcnt nf 5crvIcc Tax: Our Conpanv had deIaved pavnenl of service lax for lhe Iasl
lhree financiaI vears and lhe cunuIalive principIe anounl of service lax due vas C 96.22 Iakhs as on
Seplenler 3O, 2O1O, vhich ve have paid nov in lranches liII Novenler 4, 2O1O. We have nol vel paid
anv inleresl on lhe overdue principIe anounl of service lax.

MatcrIa! Dcvc!nµmcnts sIncc thc !ast ba!ancc shcct datc
Aparl fron discIosed as under, no olher circunslances have arisen, since lhe dale of lhe Iasl financiaI
slalenenl unliI lhe dale of fiIing of lhis Drafl Red Herring Irospeclus vilh SLßI, vhich naleriaIIv
and adverseIv affecl or is IikeIv lo affecl lhe operalions or profilaliIilv of our Conpanv, or vaIue of
ils assels, or ils aliIilv lo pav ils IialiIilv vilhin lveIve nonlhs:
• Our Conpanv enlered inlo an agreenenl lo seII vilh Mrs. Lsha ßahI and Mrs. Manla ßahI on
Augusl 5, 2O1O for seIIing / lransferring ils ovnership in properlies Iocaled al IIal no. 623-ß
and 6O1, Sixlh IIoor, Devika Tover, 6, Nehru IIace, Nev DeIhi - 11OO19 for a lolaI
consideralion of C 27.OO Iakhs and C 24.84 Iakhs respecliveIv: and
• Issue of lonus shares in lhe ralio of 1: 3 on Augusl 27, 2O1O.


139

GOVERNMENT APPROVAL5 / LICEN5ING ARRANGEMENT5

|n ticu cf |nc apprcta|s |is|cú |c|cu. uc can unúcr|a|c |nis |ssuc anú cur prcscn| |usincss ac|iti|ics anú nc
fur|ncr majcr apprcta|s frcm anu gctcrnmcn|a| cr rcgu|a|cru au|ncri|u cr anu c|ncr cn|i|u arc rcuuircú |c
unúcr|a|c |nis |ssuc anú cur prcscn| |usincss ac|iti|ics. || mus| ncuctcr. |c úis|inc||u unúcrs|ccú |na| in
gran|ing |nc a|ctc apprcta|. |nc Gctcrnmcn| anú |nc c|ncr au|ncri|ics úc nc| |a|c anu rcspcnsi|i|i|u fcr |nc
financia| scunúncss cf |nc Ccmpanu cr fcr |nc ccrrcc|ncss cf anu cf |nc s|a|cmcn| cr anu ccmmi|mcn|s maúc cr
cpinicn cxprcsscú. Un|css c|ncruisc s|a|cú. |ncsc apprcta|s arc a|| ta|iú as cf |nc úa|c cf |nis Draf| Rcú Hcrring
Prcspcc|us.

I. Aµµrnva!s fnr thc Issuc

1. The ßoard of Direclors has, pursuanl lo a resoIulion passed al ils neeling heId on Augusl 21,
2O1O, aulhorised lhe Issue, suljecl lo lhe approvaI lv lhe sharehoIders of our Conpanv under
seclion 81(1A) of lhe Conpanies Acl.

2. The sharehoIders have, pursuanl lo a resoIulion daled Augusl 27, 2O1O under Seclion 81(1A) of
lhe Conpanies Acl, aulhorised lhe Issue.

II. Aµµrnva!s rc!atcd tn thc Issuc

1. In-principIe approvaI fron lhe NalionaI Slock Lxchange of India Liniled daled |ŏ!.
2. In-principIe approvaI fron lhe ßonlav Slock Lxchange Liniled daled |ŏ!.

III. Cnmµanv sµccIfIc aµµrnva!s

(I) RcgIstratInn undcr Incnmc Tax Act, 1961

PartIcu!ars RcgIstratInn Nn. Issucd nn Va!Id Uµtn
IAN AAßCß8175ß 24.11.1994 N.A.
TAN DLLßO5971A - N.A.

(II) LIccnsc undcr FnrcIgn Tradc Pn!Icv

PartIcu!ars AuthnrItv RcgIstratInn Nn. Issucd nn Va!Id Uµtn
Cerlificale of Inporler -
Lxporler Code (ILC)
Office of Ioreign
Trade DeveIopnenl
Officer
O5O5O67269 O8.12.2OO5 TiII CanceIIed


(III) RcgIstratInn wIth 5nftwarc Tcchnn!ngv Parks nf IndIa (5TPI)
The Conpanv has ollained regislralion for selling up 1OO° Lxporl Orienled unil under STI schene
for deveIopnenl/nanufaclure of conpuler soflvare/IT enalIed services. The STI regislralion vas
granled lo lhe Conpanv under lhe STI schene vide green card no. MIT/STIIN/2OO7/1865 daled
18.12.2OO6 and is vaIid liII 31.O3.2O11.

(Iv) RcgIstratInn undcr Ccntra! 5a!cs Tax and Va!uc Addcd Tax Laws

LncatInn VAT RcgIstratInn Ccntra! 5a!cs Tax RcgIstratInn
DeIhi Regislralion(TI
N) No.
Iurpose Regislralion
(TIN) No
Iurpose

14O

O766O263O76

SaIe in lhe course
of inlerslale lrade
of connerce or
exporl oulside
India for conpuler
hardvare,
conpuler
soflvare,
conpuler
conponenls &
parls, infornalion
recording device
and for use of iron
& pIaslic slrips as
conlainers or for
purpose of
packing
O766O263O76

ResaIe of conpuler
hardvare, conpuler
soflvare, conpuler
conponenls (parls),
infornalion
processing devices
and for use in
packing of goods for
saIe/resaIe olher
packing naleriaI,
iron pIaslic slrips


(v) RcgIstratInn undcr 5cctInn 69 nf thc FInancc Act, 1994 (5crvIcc Tax)

LncatInn RcgIstratInn Nn. Issucd nn Va!Id Uµ tn Purµnsc
DeIhi AAßCß8175ßSTOO2 O4.O1.2OO6 Nol
appIicalIe
Mainlenance and
Repairs
Munlai, Maharashlra AAßCß8175ßSTOO1 28.12.2OO4 Nol
appIicalIe
Video Tape Iroduclion
services

(vI) RcgIstratInn undcr Emµ!nvcc Wc!farc rc!atcd !aws


(vII) 5hnµs and Estab!Ishmcnt Act

We are required lo ollain regislralion for each of our offices under lhe Shops and LslalIishnenl Acl
for DeIhi, Slale of Ullar Iradesh and Slale of Maharashlra. We have ollained regislralion under Ullar
Iradesh Dookan aur Vanijva Adhishlhan Adhinivan, 1962 vide regislralion no. 35/1O917 daled
Seplenler 25, 2OO9, vhich is vaIid fron Ianuarv 1, 2O1O lo March 31, 2O14. Ior lhe ßranch office in
Munlai, ve have ollained regislralion under lhe ßonlav Shops and LslalIishnenls Acl, 1948 vide
regislralion no. 76O159567/ConnerciaI II daled Ocloler 15, 2OO9, vhich is vaIid liII Decenler 31,
2O1O. In respecl of our Regislered Office, ve have nol nade anv appIicalion under Shops and
LslalIishnenl Acl for DeIhi.
Naturc nf thc
LIccncc/aµµrnva!/rcgIstratI
nn
IssuIng AuthnrItv RcgIstratInn Nn. Issucd nn Va!Id
uµtn
LII regislralion cerlificale Assislanl Irovidenl
Iund Connissioner
IIC/98
Coord/DL/34112/
Coverage/2687/2691
O4.O8.2OO6 NA

141

5ECTION VII - OTHER REGULATORY AND 5TATUTORY DI5CLO5URE5

AuthnrItv fnr thc Issuc
The Issue of Lquilv Shares lv lhe Conpanv has leen aulhorized lv lhe resoIulion of lhe ßoard of
Direclors passed al lheir neeling heId on Augusl 21, 2O1O suljecl lo lhe approvaI of sharehoIders
lhrough a speciaI resoIulion lo le passed pursuanl lo Seclion 81(1A) of lhe Conpanies Acl, 1956. The
sharehoIders approved lhe issue al lhe AnnuaI CeneraI Meeling of lhe Conpanv heId on Augusl 27,
2O1O.

PrnhIbItInn bv 5EBI
Our Conpanv, ils Direclors, ils Ironolers, lhe Ironoler Croup, and lhe conpanies in vhich lhe
Direclors are associaled as direclors, have nol leen prohililed fron accessing or operaling in lhe
capilaI narkel or reslrained fron luving, seIIing or deaIing in securilies under anv order or
direclions passed lv SLßI or anv olher aulhorilv.

Our Direclors are nol in anv nanner associaled vilh lhe securilies narkel and lhere has leen no
aclion laken lv SLßI againsl lhe Direclors or anv enlilv our Direclors are invoIved in as pronolers or
Direclors.

Neilher our Conpanv nor our Direclors, our Ironolers, lheir reIalives, our Ironoler Croup are
delained as viIIfuI defauIlers lv RßI/Covernnenl aulhorilies and lhere are no proceedings reIaling
lo vioIalions of securilies Iavs pending againsl lhen and lhere are no vioIalions of securilies Iavs
connilled lv lhen in lhe pasl.
E!IgIbI!Itv fnr thc Issuc
Our Conpanv is eIigilIe for lhe Issue under ReguIalion 26(1) of SLßI (Issue of CapilaI and DiscIosure
Requirenenls) ReguIalions, 2OO9. As confirned lv lhe Audilors of our Conpanv:

• our Conpanv has nel langilIe assels of alIeasl C 3OO.OO Iakhs in each of lhe 3 preceding fuII vears
(of 12 nonlhs each) of vhich nol nore lhan 5O° is heId in nonelarv assels.
• our Conpanv has a pre-issue nel vorlh of nol Iess lhan C 1OO.OO Iakhs in each of lhe lhree
preceding fuII vears (of 12 nonlhs each).
• our Conpanv has a lrack record of dislrilulalIe profils as per Seclion 2O5 of lhe Conpanies Acl,
1956, for alIeasl lhree oul of lhe innedialeIv preceding five vears (exlraordinarv ilens are nol
considered for caIcuIaling dislrilulalIe profils in lerns of Seclion 2O5 of lhe Conpanies Acl,
1956).
• lhe proposed issue size incIuding aII previous issues in lhe sane financiaI vear vouId nol exceed
five (5) lines lhe pre-issue nel vorlh of our Conpanv as per lhe audiled accounls for lhe vear
ended March 31, 2O1O.
• our Conpanv has nol changed ils nane vilhin lhe Iasl one vear.

The nel langilIe assels, nonelarv assels, dislrilulalIe profils and nel vorlh as derived fron lhe
reslaled financiaI slalenenls prepared in accordance vilh SLßI (ICDR) ReguIalions, for lhe Iasl five
financiaI vears is sel forlh leIov:
(C in Iakhs)
FInancIa! Ycar 2009-10 2008-09 2007-08 2006-07 2005-06
Nel langilIe assels 2816.29 2629.26 2359.94 1928.57 1861.25
Monelarv assels 11.97 8.77 37.73 4O.34 15.72
Monelarv assels as a °age of nel O.4° O.3° 1.6° 2.1° O.8°

142

langilIe assels
DislrilulalIe profils 272.2O 6.86 323.83 25O.3O 35.66
Nel Worlh 2757.11 2292.9O 2287.84 1953.63 1873.59

(1) Nel langilIe assels is defined as lhe sun of fixed assels (incIuding capilaI vork in progress and
excIuding revaIualion reserves), inveslnenls, currenl assels (excIuding deferred lax assels) Iess
currenl IialiIilies (excIuding deferred lax IialiIilies and Iong lern IialiIilies).
(2) Monelarv assels incIude cash on hand and lank.
(3) The dislrilulalIe profils of lhe conpanv as per seclion 2O5 of lhe Conpanies Acl have leen
caIcuIaled fron lhe reslaled IinanciaI Slalenenls.
(4) Nel Worlh incIudes equilv share capilaI and reserves (nel off nisceIIaneous expendilure nol
vrillen off, if anv).

Iurlher, in accordance vilh ReguIalion 26(4) of lhe SLßI (Issue of CapilaI and DiscIosure
Requirenenls) ReguIalions, 2OO9, our Conpanv shaII ensure lhal nunler of prospeclive aIIollees lo
vhon lhe Lquilv Shares viII le aIIolled in lhe Issue shaII nol le Iess lhan 1OOO, faiIing vhich lhe
enlire appIicalion nonev viII le refunded forlhvilh.

5EBI DIsc!aImcr c!ausc

A5 REQUIRED, A COPY OF THI5 DRAFT RED HERRING PRO5PECTU5 HA5 BEEN
5UBMITTED TO 5EBI. IT I5 TO BE DI5TINCTLY UNDER5TOOD THAT 5UBMI55ION OF
THE DRAFT RED HERRING PRO5PECTU5 TO 5ECURITIE5 AND EXCHANGE BOARD OF
INDIA (5EBI) 5HOULD NOT IN ANY WAY BE DEEMED OR CON5TRUED THAT THE 5AME
HA5 BEEN CLEARED OR APPROVED BY 5EBI. 5EBI DOE5 NOT TAKE ANY
RE5PON5IBILITY EITHER FOR THE FINANCIAL 5OUNDNE55 OF ANY 5CHEME OR THE
PROJECT FOR WHICH THE I55UE I5 PROPO5ED TO BE MADE OR FOR THE CORRECTNE55
OF THE 5TATEMENT5 MADE OR OPINION5 EXPRE55ED IN THE DRAFT RED HERRING
PRO5PECTU5. THE BOOK RUNNING LEAD MANAGER, ALMONDZ GLOBAL 5ECURITIE5
LIMITED, HA5 CERTIFIED THAT THE DI5CLO5URE5 MADE IN THE DRAFT RED HERRING
PRO5PECTU5 ARE GENERALLY ADEQUATE AND ARE IN CONFORMITY WITH THE
5ECURITIE5 AND EXCHANGE BOARD OF INDIA (I55UE OF CAPITAL AND DI5CLO5URE
REQUIREMENT5) REGULATION5, 2009 IN FORCE FOR THE TIME BEING. THI5
REQUIREMENT I5 TO FACILITATE INVE5TOR5 TO TAKE AN INFORMED DECI5ION FOR
MAKING INVE5TMENT IN THE PROPO5ED I55UE.

IT 5HOULD AL5O BE CLEARLY UNDER5TOOD THAT WHILE THE COMPANY I5
PRIMARILY RE5PON5IBLE FOR THE CORRECTNE55, ADEQUACY AND DI5CLO5URE OF
ALL RELEVANT INFORMATION IN THE DRAFT RED HERRING PRO5PECTU5, ALMONDZ
GLOBAL 5ECURITIE5 LIMITED I5 EXPECTED TO EXERCI5E DUE DILIGENCE TO EN5URE
THAT THE COMPANY DI5CHARGE THEIR RE5PON5IBILITY ADEQUATELY IN THI5
BEHALF AND TOWARD5 THI5 PURPO5E, THE BOOK RUNNING LEAD MANAGER,
ALMONDZ GLOBAL 5ECURITIE5 LIMITED HA5 FURNI5HED TO 5EBI, A DUE DILIGENCE
CERTIFICATE DATED NOVEMBER 6, 2010 WHICH READ5 A5 FOLLOW5:

"1. WE HAVE EXAMINED VARIOU5 DOCUMENT5 INCLUDING THO5E RELATING TO
LITIGATION LIKE COMMERCIAL DI5PUTE5, PATENT DI5PUTE5, DI5PUTE5 WITH
COLLABORATOR5, ETC., AND OTHER MATERIAL5 IN CONNECTION WITH THE
FINALI5ATION OF THE DRAFT RED HERRING PRO5PECTU5 PERTAINING TO THE
5AID I55UE,

143


2. ON THE BA5I5 OF 5UCH EXAMINATION AND THE DI5CU55ION5 WITH THE
COMPANY, IT5 DIRECTOR5 AND OTHER OFFICER5, OTHER AGENCIE5,
INDEPENDENT VERIFICATION OF THE 5TATEMENT5 CONCERNING THE OBJECT5 OF
THE I55UE, PRICE JU5TIFICATION AND THE CONTENT5 OF THE DOCUMENT5 AND
OTHER PAPER5 FURNI5HED BY THE I55UER,

WE CONFIRM THAT:

(A) THE DRAFT RED HERRING PRO5PECTU5 FILED WITH THE BOARD I5 IN
CONFORMITY WITH THE DOCUMENT5, MATERIAL5 AND PAPER5 RELEVANT TO
THE I55UE,
(B) ALL THE LEGAL REQUIREMENT5 RELATING TO THE I55UE, A5 AL5O THE
REGULATION5, GUIDELINE5, IN5TRUCTION5, ETC. FRAMED / I55UED BY THE
BOARD, THE CENTRAL GOVERNMENT AND ANY OTHER COMPETENT
AUTHORITY IN THI5 BEHALF HAVE BEEN DULY COMPLIED WITH, AND
(C) THE DI5CLO5URE5 MADE IN THE DRAFT RED HERRING PRO5PECTU5 ARE TRUE,
FAIR AND ADEQUATE TO ENABLE THE INVE5TOR5 TO MAKE A WELL INFORMED
DECI5ION A5 TO THE INVE5TMENT IN THE PROPO5ED I55UE AND 5UCH
DI5CLO5URE5 ARE IN ACCORDANCE WITH THE REQUIREMENT5 OF THE
COMPANIE5 ACT, 1956, THE 5ECURITIE5 AND EXCHANGE BOARD OF INDIA
(I55UE OF CAPITAL AND DI5CLO5URE REQUIREMENT5) REGULATION5, 2009 AND
OTHER APPLICABLE LEGAL REQUIREMENT5.

3. WE CONFIRM THAT BE5IDE5 OUR5ELVE5, ALL THE INTERMEDIARIE5 NAMED IN
THE DRAFT RED HERRING PRO5PECTU5 ARE REGI5TERED WITH 5EBI AND THAT
TILL DATE 5UCH REGI5TRATION I5 VALID.

4. WHEN UNDERWRITTEN, WE 5HALL 5ATI5FY OUR5ELVE5 ABOUT THE CAPABILITY
OF THE UNDERWRITER5 TO FULFIL THEIR UNDERWRITING COMMITMENT5.

5. WE CERTIFY THAT WRITTEN CON5ENT FROM THE PROMOTER5 HA5 BEEN
OBTAINED FOR INCLU5ION OF THEIR EQUITY 5HARE5 A5 PART OF THE
PROMOTER5' CONTRIBUTION 5UBJECT TO LOCK-IN AND THE EQUITY 5HARE5
PROPO5ED TO FORM PART OF THE PROMOTER5' CONTRIBUTION 5UBJECT TO
LOCK-IN 5HALL NOT BE DI5PO5ED OR 5OLD OR TRAN5FERRED BY THE
PROMOTER5 DURING THE PERIOD 5TARTING FROM THE DATE OF FILING THE
DRAFT RED HERRING PRO5PECTU5 WITH THE BOARD TILL THE DATE OF
COMMENCEMENT OF THE LOCK-IN PERIOD A5 5TATED IN THE DRAFT RED
HERRING PRO5PECTU5.

6. WE CERTIFY THAT REGULATION 33 OF THE 5ECURITIE5 AND EXCHANGE BOARD OF
INDIA (I55UE OF CAPITAL AND DI5CLO5URE REQUIREMENT5) REGULATION5, 2009,
WHICH RELATE5 TO 5PECIFIED 5ECURITIE5 INELIGIBLE FOR COMPUTATION OF
PROMOTER5' CONTRIBUTION, HA5 BEEN DULY COMPLIED WITH AND
APPROPRIATE DI5CLO5URE5 A5 TO COMPLIANCE WITH THE 5AID REGULATION5
HAVE BEEN MADE IN THE DRAFT RED HERRING PRO5PECTU5.

7. WE UNDERTAKE THAT 5UB-REGULATION (4) OF REGULATION 32 AND CLAU5E (c)
AND (d) OF 5UB-REGULATION (2) OF REGULATION 8 OF THE 5ECURITIE5 AND

144

EXCHANGE BOARD OF INDIA (I55UE OF CAPITAL AND DI5CLO5URE
REQUIREMENT5) REGULATION5, 2009 5HALL BE COMPLIED WITH. WE CONFIRM
THAT ARRANGEMENT5 HAVE BEEN MADE TO EN5URE THAT PROMOTER5'
CONTRIBUTION 5HALL BE RECEIVED AT LEA5T ONE DAY BEFORE THE OPENING OF
THE I55UE. WE UNDERTAKE THAT AUDITOR5' CERTIFICATE TO THI5 EFFECT 5HALL
BE DULY 5UBMITTED TO THE BOARD. WE FURTHER CONFIRM THAT
ARRANGEMENT5 HAVE BEEN MADE TO EN5URE THAT PROMOTER5'
CONTRIBUTION 5HALL BE KEPT IN AN E5CROW ACCOUNT WITH A 5CHEDULED
COMMERCIAL BANK AND 5HALL BE RELEA5ED TO THE COMPANY ALONG WITH
THE PROCEED5 OF THE PUBLIC I55UE. - NOT APPLICABLE.

8. WE CERTIFY THAT THE PROPO5ED ACTIVITIE5 OF THE I55UER FOR WHICH THE
FUND5 ARE BEING RAI5ED IN THE PRE5ENT I55UE FALL WITHIN THE 'MAIN
OBJECT5' LI5TED IN THE OBJECT CLAU5E OF THE MEMORANDUM OF A55OCIATION
OR OTHER CHARTER OF THE I55UER AND THAT THE ACTIVITIE5 WHICH HAVE
BEEN CARRIED OUT UNTIL NOW ARE VALID IN TERM5 OF THE OBJECT CLAU5E OF
IT5 MEMORANDUM OF A55OCIATION.

9. WE CONFIRM THAT NECE55ARY ARRANGEMENT5 HAVE BEEN MADE TO EN5URE
THAT THE MONEY5 RECEIVED PUR5UANT TO THE I55UE ARE KEPT IN A 5EPARATE
BANK ACCOUNT A5 PER THE PROVI5ION5 OF 5UB-5ECTION (3) OF 5ECTION 73 OF
THE COMPANIE5 ACT, 1956 AND THAT 5UCH MONEY5 5HALL BE RELEA5ED BY THE
5AID BANK ONLY AFTER PERMI55ION I5 OBTAINED FROM ALL THE 5TOCK
EXCHANGE5 MENTIONED IN THE PRO5PECTU5. WE FURTHER CONFIRM THAT THE
AGREEMENT ENTERED INTO BETWEEN THE BANKER5 TO THE I55UE AND THE
I55UER 5PECIFICALLY CONTAIN5 THI5 CONDITION.

10. WE CERTIFY THAT A DI5CLO5URE HA5 BEEN MADE IN THE DRAFT RED HERRING
PRO5PECTU5 THAT THE INVE5TOR5 5HALL BE GIVEN AN OPTION TO GET THE
5HARE5 IN DEMAT OR PHY5ICAL MODE. NOT APPLICABLE- A5 THE I55UE 5IZE I5
MORE THAN C 1000 LAKH5, HENCE UNDER 5ECTION 68B OF THE COMPANIE5 ACT,
1956, THE EQUITY 5HARE5 ARE TO BE I55UED IN DEMAT ONLY.

11. WE CERTIFY THAT ALL THE APPLICABLE DI5CLO5URE5 MANDATED IN THE
5ECURITIE5 AND EXCHANGE BOARD OF INDIA (I55UE OF CAPITAL AND
DI5CLO5URE REQUIREMENT5) REGULATION5, 2009 HAVE BEEN MADE IN ADDITION
TO DI5CLO5URE5 WHICH, IN OUR VIEW, ARE FAIR AND ADEQUATE TO ENABLE THE
INVE5TOR TO MAKE A WELL INFORMED DECI5ION.

12. WE CERTIFY THAT THE FOLLOWING DI5CLO5URE5 HAVE BEEN MADE IN THE
DRAFT RED HERRING PRO5PECTU5:

(A) AN UNDERTAKING FROM THE I55UER THAT AT ANY GIVEN TIME THERE 5HALL BE
ONLY ONE DENOMINATION FOR THE 5HARE5 OF THE COMPANY AND
(B) AN UNDERTAKING FROM THE I55UER THAT IT 5HALL COMPLY WITH 5UCH
DI5CLO5URE AND ACCOUNTING NORM5 5PECIFIED BY THE BOARD FROM TIME TO
TIME.

13. WE UNDERTAKE TO COMPLY WITH THE REGULATION5 PERTAINING TO
ADVERTI5EMENT IN TERM5 OF THE 5ECURITIE5 AND EXCHANGE BOARD (I55UE OF
CAPITAL AND DI5CLO5URE REQUIREMENT5) REGULATION5, 2009 WHILE MAKING
THE I55UE.

145


14. WE ENCLO5E A NOTE EXPLAINING HOW THE PROCE55 OF DUE DILIGENCE HA5
BEEN EXERCI5ED BY U5 IN VIEW OF THE NATURE OF CURRENT BACKGROUND OR
THE I55UER, 5ITUATION AT WHICH THE PROPO5ED BU5INE55 5TAND5, THE RI5K
FACTOR5, PROMOTER5 EXPERIENCE, ETC.

15. WE ENCLO5E A CHECKLI5T CONFIRMING REGULATION-WI5E COMPLIANCE WITH
THE APPLICABLE PROVI5ION5 OF THE 5ECURITIE5 AND EXCHANGE BOARD OF
INDIA (I55UE OF CAPITAL AND DI5CLO5URE REQUIREMENT5) REGULATION5, 2009,
CONTAINING DETAIL5 5UCH A5 THE REGULATION NUMBER, IT5 TEXT, THE 5TATU5
OF COMPLIANCE, PAGE NUMBER OF THE DRAFT RED HERRING PRO5PECTU5
WHERE THE REGULATION HA5 BEEN COMPLIED WITH AND OUR COMMENT5, IF
ANY."

THE FILING OF THE DRAFT RED HERRING PRO5PECTU5 DOE5 NOT, HOWEVER,
AB5OLVE THE COMPANY FROM ANY LIABILITIE5 UNDER 5ECTION5 63 OR 68 OF THE
COMPANIE5 ACT, 1956 OR FROM THE REQUIREMENT OF OBTAINING 5UCH 5TATUTORY
OR OTHER CLEARANCE5 A5 MAY BE REQUIRED FOR THE PURPO5E OF THE PROPO5ED
I55UE. 5EBI, FURTHER, RE5ERVE5 THE RIGHT TO TAKE UP, AT ANY POINT OF TIME,
WITH THE BOOK RUNNING LEAD MANAGER, ANY IRREGULARITIE5 OR LAP5E5 IN THE
OFFER DOCUMENT.

ALL LEGAL REQUIREMENT5 PERTAINING TO THE I55UE WILL BE COMPLIED WITH AT
THE TIME OF FILING OF THE RED HERRING PRO5PECTU5 WITH THE REGI5TRAR OF
COMPANIE5, NCT OF DELHI AND HARYANA IN TERM5 OF 5ECTION 60B OF THE
COMPANIE5 ACT, 1956.

DIsc!aImcr frnm thc Issucr Cnmµanv and thc Bnnk RunnIng Lcad Managcr
Our Conpanv, our Direclors and lhe ßook Running Lead Manager accepl no responsiliIilv for
slalenenls nade olhervise lhan in lhis Drafl Red Herring Irospeclus or in lhe adverlisenenl or anv
olher naleriaI issued lv or al ils inslance and lhal anvone pIacing reIiance on anv olher source of
infornalion vouId le doing so al his or her ovn risk.

The ßRLM accepl no responsiliIilv, save lo lhe Iiniled exlenl as provided in lhe Menorandun of
Underslanding enlered inlo lelveen lhe ßook Running Lead Manager, AInondz CIolaI Securilies
Liniled and our Conpanv daled Seplenler 28, 2O1O and lhe Undervriling agreenenl lo le enlered
inlo lelveen lhe Undervrilers and our Conpanv.

AII infornalion shaII le nade avaiIalIe lv lhe ßRLM and lhe Conpanv lo lhe pulIic and inveslors al
Iarge and no seIeclive or addilionaI infornalion vouId le avaiIalIe for a seclion of inveslors in anv
nanner vhalsoever incIuding road shov presenlalions, research or saIes reporls or al coIIeclion
cenlres or eIsevhere.

Neilher lhe Conpanv nor ßRLM or Svndicale Menler or SCSß shaII le IialIe lo lhe ßidders for anv
faiIure in upIoading lhe lids due lo fauIls in anv soflvare/ hardvare svslen or olhervise.

CautInn
Inveslors lhal lid in lhis Issue viII le required lo confirn and deened lo have represenled lo lhe
Conpanv, Undervrilers and lheir respeclive direclors, officers, agenls, affiIiales and represenlalives
lhal lhev are eIigilIe under aII appIicalIe Iavs, ruIes, reguIalions, guideIines and approvaI lo acquire
Lquilv Shares and viII nol offer, seII, pIedge or lransfer lhe Lquilv Shares lo anv person vho is nol

146

eIigilIe under appIicalIe Iavs, ruIes, reguIalions, guideIines and approvaI lo acquire Lquilv Shares.
The Conpanv and lhe Undervrilers and lheir respeclive direclors, officers, agenls, affiIiales and
represenlalives accepl no responsiliIilv or IialiIilv for advising anv inveslor on vhelher such
inveslor is eIigilIe lo acquire Lquilv Shares.

DIsc!aImcr In rcsµcct nf jurIsdIctInn
This Issue is leing nade in India lo persons residenl in India (incIuding Indian nalionaIs residenl in
India), vho are najors, HUI, conpanies, corporale lodies and socielies regislered under lhe
appIicalIe Iavs in India and aulhorised lo invesl in shares, Indian MuluaI Iunds regislered vilh
SLßI, Indian financiaI inslilulions, connerciaI lanks, regionaI ruraI lanks, co-operalive lanks
(suljecl lo RßI pernission), lrusls regislered under lhe Socielies Regislralion Acl, 186O,as anended
fron line lo line, or anv olher lrusl Iav and vho are aulhorised under lheir conslilulion lo hoId and
invesl in shares, pernilled insurance conpanies and pension funds and lo NRIs on non-repalrialIe
lasis and IIIs and sul-accounl regislered vilh SLßI olher lhan a sul-accounl vhich is a foreign
corporale or foreign individuaI. This Drafl Red Herring Irospeclus does nol, hovever, conslilule an
Issue lo seII or an invilalion lo sulscrile lo shares issued herelv in anv olher jurisdiclion lo anv
person lo vhon il is unIavfuI lo nake an issue or invilalion in such jurisdiclion. Anv person inlo
vhose possession lhis Drafl Red Herring Irospeclus cones inlo is required lo inforn hinseIf aloul
and lo olserve anv such reslriclions. Anv dispule arising oul of lhis Issue viII le suljecl lo lhe
jurisdiclion of appropriale courl(s) in Nev DeIhi onIv.

No aclion has leen or viII le laken lo pernil a pulIic offering in anv jurisdiclion vhere pernission
vouId le required for lhal purpose, excepl lhal lhis Drafl Red Herring Irospeclus has leen fiIed vilh
SLßI for olservalions and SLßI has given ils olservalions and lhe Red Herring Irospeclus has leen
fiIed vilh RoC as per lhe provisions of lhe Acl. AccordingIv, lhe Lquilv Shares, represenled lherelv
nav nol le offered or soId, direclIv or indireclIv, and lhis Drafl Red Herring Irospeclus nav nol le
dislriluled, in anv jurisdiclion, excepl in requirenenls appIicalIe in such jurisdiclion. Neilher lhe
deIiverv of lhis Drafl Red Herring Irospeclus nor anv saIe hereunder shaII, under anv circunslances,
creale anv inpIicalion lhal lhere has leen no change in lhe affairs of lhe Conpanv since lhe dale
hereof or lhal lhe infornalion conlained herein is correcl as of anv line sulsequenl lo lhis dale.

The Lquilv Shares have nol leen and viII nol le regislered under lhe US Securilies Acl (¨lhe
Securilies Acl¨) or anv slale securilies Iavs in lhe Uniled Slales and nav nol le issued or soId vilhin
lhe Uniled Slales or lo, or for lhe accounl or lenefil of, ¨U.S. persons¨ (as defined in ReguIalion S
under lhe Securilies Acl), excepl pursuanl lo an exenplion fron, or in a lransaclion nol suljecl lo, lhe
regislralion requirenenls of lhe Securilies Acl.

AccordingIv, lhe Lquilv Shares are onIv leing issued and soId (i) in lhe Uniled Slales lo ¨quaIified
inslilulionaI luvers¨, as defined in RuIe 144A of lhe Securilies Acl in reIiance on RuIe 144A under lhe
Securilies Acl and (ii) oulside lhe Uniled Slales lo cerlain persons in offshore lransaclions in
conpIiance vilh ReguIalion S under lhe Securilies Acl and lhe appIicalIe Iavs of lhe jurisdiclion
vhere lhose issues and saIes occur.

DIsc!aImcr c!ausc nf Bnmbav 5tnck Exchangc LImItcd (B5E, thc DcsIgnatcd 5tnck Exchangc)
As required, a copv of lhis Drafl Red Herring Irospeclus has leen sulnilled lo ßSL. The discIainer
cIause as inlinaled lo lhe Conpanv lv lhe ßSL, posl-scrulinv of lhe Drafl Red Herring Irospeclus,
shaII le incIuded in lhe Red Herring Irospeclus prior lo lhe RoC fiIing.

DIsc!aImcr c!ausc nf thc NatInna! 5tnck Exchangc nf IndIa LImItcd (N5E)
As required, a copv of lhis Drafl Red Herring Irospeclus has leen sulnilled lo NSL. The discIainer
cIause as inlinaled lo lhe Conpanv lv lhe NSL, posl-scrulinv of lhe Drafl Red Herring Irospeclus,

147

shaII le incIuded in lhe Red Herring Irospeclus prior lo lhe RoC fiIing.

DIsc!aImcr c!ausc nf CARE fnr IPO GradIng
As required, ve have appoinled CARL as lhe grading agencv. The DiscIainer CIause as inlinaled lv
CARL shaII le incIuded in lhe Red Herring Irospeclus prior lo RoC fiIing.

FI!Ing
A copv of lhis Drafl Red Herring Irospeclus has leen fiIed vilh SLßI al Securilies & Lxchange ßoard
of India, Norlhern RegionaI Office, 5
lh
fIoor, ßank of ßaroda ßuiIding, 16, Sansad Marg, Nev DeIhi -
11OOO1 and vilh lhe ßonlav Slock Lxchange Liniled, Munlai and NalionaI Slock Lxchange of India
Liniled, Munlai.

A copv of lhe Red Herring Irospeclus, aIong vilh lhe docunenls required lo le fiIed under Seclion
6Oß of lhe Conpanies Acl, viII le deIivered for regislralion lo lhe ROC and a copv of lhe Irospeclus
required lo le fiIed under Seclion 6O of lhe Conpanies Acl viII le deIivered for regislralion lo lhe
RoC silualed al Regislrar of Conpanies, NCT of DeIhi & Harvana, 4
lh
fIoor, IICI Tover, 61, Nehru
IIace, Nev DeIhi-11O O19.

LIstIng
The iniliaI Iisling appIicalions have leen nade lo ßonlav Slock Lxchange Liniled (ßSL) and
NalionaI Slock Lxchange of India Liniled (NSL) for pernission lo Iisl lhe Lquilv Shares and for an
officiaI quolalion of lhe Lquilv Shares of lhe Conpanv. ßonlav Slock Lxchange Liniled (ßSL) viII
le lhe Designaled Slock Lxchange.

In case lhe pernission for Iisling of lhe Lquilv Shares and for officiaI quolalion of lhe Lquilv Shares is
nol granled lv anv of lhe alove nenlioned Slock Lxchanges, lhe Conpanv shaII forlhvilh repav,
vilhoul inleresl, aII nonies received fron lhe appIicanls in pursuance of lhis Drafl Red Herring
Irospeclus and if such nonev is nol repaid vilhin eighl davs afler lhe dav fron vhich lhe Issuer
lecones IialIe lo repav il, lhen lhe Conpanv and everv Direclor of lhe Conpanv vho is an officer in
defauIl shaII, on and fron lhe expirv of 8 davs, le joinlIv and severaIIv IialIe lo repav lhe nonev vilh
inleresl prescriled under Seclion 73 of lhe Conpanies Acl 1956.

The Conpanv vilh lhe assislance of lhe ßook Running Lead Manager shaII ensure lhal aII sleps for
lhe conpIelion of lhe necessarv fornaIilies for Iisling and connencenenl of lrading al lolh lhe Slock
Lxchanges nenlioned alove are laken vilhin lveIve vorking davs of lhe ßid /Issue CIosing Dale.

Cnnscnts
Consenls in vriling of Direclors, lhe Conpanv Secrelarv, ConpIiance Officer, lhe Slalulorv Audilors,
Ieer Reviev Audilors, ßanker lo lhe Conpanv, ßook Running Lead Manager lo lhe Issue, Regislrars
lo lhe Issue, and LegaI Advisors, lo acl in lheir respeclive capacilies, have leen ollained and shaII le
fiIed aIong vilh a copv of lhe Red Herring Irospeclus vilh lhe Regislrar of Conpanies, as required
under Seclions 6O of lhe Conpanies Acl, 1956 and such consenls have nol leen vilhdravn up lo lhe
line of deIiverv of a copv of lhe Red Herring Irospeclus, for regislralion vilh lhe Regislrar of
Conpanies, NCT of DeIhi & Harvana.

M/s. SNMC & Co., Charlered Accounlanls, Slalulorv Audilors, and M/s K. Irasad & Co., Charlered
Accounlanls, Ieer Reviev Audilors, have aIso given lheir consenl lo lhe incIusion of lheir reporl as
appearing hereinafler in lhe forn and conlexl in vhich il appears in lhis Drafl Red Herring
Irospeclus and aIso lax lenefils accruing lo lhe Conpanv and lo lhe nenlers of lhe Conpanv and
such consenl and reporl have nol leen vilhdravn up lo lhe line of deIiverv of lhis Drafl Red
Herring Irospeclus for regislralion vilh lhe Regislrar of Conpanies, NCT of DeIhi & Harvana.

148


Exµcrt nµInInn
No opinion of anv experl has leen ollained lv lhe Conpanv, excepl lhal of M/s. SNMC & Co.,
Charlered Accounlanls, Slalulorv Audilors of our Conpanv and M/s K. Irasad & Co., Charlered
Accounlanls, Ieer Reviev Audilors, and Vaish Associales Advocales, LegaI Advisors lo lhe Issue.
Pub!Ic Issuc cxµcnscs*
The expenses for lhis Issue incIudes Issue nanagenenl fees, undervriling & seIIing connission,
(incIuding connission lo SCSß/Svnidcale/sul-svndicale for ASßA appIicalions) & lrokerage,
regislrars´ fee, grading fee, prinling and dislrilulion of issue slalionerv, adverlisenenl and
narkeling expenses, IegaI counseI fees and Iisling fess pavalIe lo lhe slock exchanges, anong olhers.
The lolaI expenses for lhis Issue are eslinaled lo le C |ŏ! Iakhs, delaiIs of vhich are as under:
(C In !akhs)
5r.
Nn.
ActIvItv Amnunt
% nf Tnta!
Issuc sIzc
% nf
Issuc
Exµcnscs
1 Issue Managenenl Iees, Undervriling & SeIIing
Connission (incIuding connission lo
SCSß/Svnidcale/sul-svndicale for ASßA
appIicalions) & ßrokerage
|ŏ! |ŏ! |ŏ!
2 Regislrars fees |ŏ! |ŏ! |ŏ!
3 Iees for LegaI CounseI lo lhe Issue |ŏ! |ŏ! |ŏ!
4 Iees pavalIe lo Crading Agencv for grading lhe
Issue
|ŏ! |ŏ! |ŏ!
5 Iees lo lhe ßankers lo lhe Issue |ŏ! |ŏ! |ŏ!
6 Irinling and Dislrilulion of Issue Slalionerv |ŏ! |ŏ! |ŏ!
7 Adverlising and Markeling expenses |ŏ! |ŏ! |ŏ!
8 Olher expenses (slanp dulv, iniliaI Iisling fees,
deposilorv fees, charges for using lhe look
luiIding soflvare of lhe exchanges and olher
reIaled expenses)
|ŏ! |ŏ! |ŏ!
Tnta! |ŏ! |ŏ! |ŏ!
* WiII le incorporaled afler finaIizalion of Issue Irice

Fccs µavab!c tn thc BRLM, undcrwrItIng, brnkcragc and sc!!Ing cnmmIssInn
The lolaI fees pavalIe lo lhe ßRLM incIuding lrokerage and seIIing connission for lhe Issue viII le
as per lhe engagenenl Ieller(s) daled Augusl 28, 2O1O is avaiIalIe for inspeclion al lhe Corporale
Office of our Conpanv.

Fccs µavab!c tn thc RcgIstrar tn thc Issuc
The lolaI fees pavalIe lo lhe Regislrar lo lhe Issue viII le as per lhe Menorandun of Underslanding
execuled lelveen lhe Conpanv and lhe Regislrar daled Seplenler 7, 2O1O, copv of vhich is
avaiIalIe for inspeclion al lhe Regislered Office of lhe Conpanv.

Adequale funds viII le provided lo lhe Regislrar lo lhe Issue lo enalIe lhen lo send refund order(s)
or aIIolnenl advice lv regislered posl or speed posl or under cerlificale of posling.

PrcvInus µub!Ic nr rIghts Issucs
Our Conpanv has nol nade anv pulIic or righls issue during lhe Iasl five vears.

149

PrcvInus Issucs nf sharcs nthcrwIsc than fnr cash
The Conpanv has nol issued shares for consideralion olher lhan for Cash, excepl as slaled in lhe lilIe
¨CapilaI Slruclure¨ on page no. 15 of lhis Drafl Red Herring Irospeclus.

CnmmIssInn and brnkcragc µaId nn µrcvInus Issucs
Since lhis is lhe iniliaI pulIic issue of lhe Conpanv, no sun has leen paid or has leen pavalIe as
connission or lrokerage for sulscriling lo or procuring or agreeing lo procure sulscriplion for anv
of Lquilv Shares of lhe Conpanv since ils inceplion.

DctaI!s nf caµIta! Issuc madc durIng !ast thrcc vcars In rcgard tn thc Issucr Cnmµanv and nthcr
!Istcd cnmµanIcs undcr thc samc managcmcnt wIthIn thc mcanIng nf scctInn 370(1)(b) nf thc
CnmµanIcs Act, 1956.
There have leen no capilaI issues during Iasl 3 vears lv our Conpanv and olher Iisled conpanies
under lhe sane nanagenenl vilhin lhe neaning of Seclion 37O(1)(ß) of lhe Acl al presenl or during
lhe Iasl lhree vears.

OµtInn tn subscrIbc
Lquilv Shares leing issued lhrough lhis Drafl Red Herring Irospeclus can le appIied for in
DenaleriaIized forn onIv.

PrnmIsc vIs-à-vIs µcrfnrmancc
Our Conpanv has nol nade anv Issue in lhe pasl.

OutstandIng dcbcnturcs, bnnds, rcdccmab!c µrcfcrcncc sharcs nr nthcr Instrumcnts
As on lhe dale of fiIing of lhis Drafl Red Herring Irospeclus vilh SLßI, our Conpanv does nol have
anv oulslanding delenlures, londs, redeenalIe preference shares or olher inslrunenls.

5tnck markct data fnr cquItv sharcs nf thc Cnmµanv
As lhis is lhe IniliaI IulIic Issue of our Conpanv, lhe Lquilv Shares are nol Iisled on anv slock
exchange.

McchanIsm fnr rcdrcssa! nf Invcstnr grIcvanccs
We have appoinled Karvv Conpulershare Irivale Liniled as lhe Regislrar lo lhe Issue, lo handIe lhe
inveslor grievances in co-ordinalion vilh ConpIiance Officer of our Conpanv. AII grievances
reIaling lo lhe presenl issue nav le addressed lo lhe Regislrars lo lhe Issue, vilh a copv lo lhe
ConpIiance Officer, giving fuII delaiIs such as nane, address of lhe appIicanl, nunler of Lquilv
Shares appIied for, anounl paid on appIicalion and ßidder/ßank lranch vhere lhe appIicalion vas
sulnilled. Our Conpanv viII nonilor lhe vork of lhe Regislrars lo lhe Issue lo ensure lhal lhe
grievances are sellIed expediliousIv and salisfacloriIv.

AII grievances reIaling lo lhe ASßA process nav le addressed lo lhe SCSß, giving fuII delaiIs such as
nane, address of lhe appIicanl, nunler of Lquilv Shares appIied for, anounl paid on appIicalion and
lhe Designaled ßranch or lhe coIIeclion cenlre of lhe SCSß vhere lhe ßid-cun-ASßA Iorn vas
sulnilled lv lhe ASßA ßidders.

DIsµnsa! nf Invcstnr grIcvanccs
Karvv Conpulershare Irivale Liniled, lhe Regislrars lo lhe Issue, or lhe SCSßs in case of ASßA
ßidders, viII handIe inveslor grievances perlaining lo lhe Issue. A forlnighlIv slalus reporl of lhe
conpIainls received and redressed lv lhen vouId le forvarded lo our Conpanv. Our Conpanv
vouId aIso le coordinaling vilh Regislrar lo lhe Issue in allending lo lhe grievances of lhe inveslors.
Our Conpanv assures lhal lhe ßoard of Direclors, in respecl of lhe conpIainls, if anv, lo le received,

15O

shaII adhere lo lhe foIIoving scheduIes:

5r. Nn. Naturc nf Cnmµ!aInt TImc Takcn
1. Non-receipl of refund Wilhin 7 davs of receipl of conpIainl, suljecl lo
produclion of salisfaclorv evidence.
2. Change of Address nolificalion Wilhin 7 davs of receipl of Infornalion
3. Anv olher conpIainl in reIalion lo
IulIic Issue
Wilhin 7 davs of receipl of conpIainl vilh aII
reIevanl delaiIs

We have appoinled Mr. Kunar Iushkar as ConpIiance Officer vho vouId direclIv deaI vilh SLßI
vilh respecl lo inpIenenlalion /conpIiance of various Iavs, reguIalions and olher direclives issued
lv SLßI and nallers reIaled lo inveslor ConpIainls. The inveslor nav conlacl lhe ConpIiance Officer
in case of anv pre issue/posl issue reIaled prolIens. The ConpIiance Officer can le conlacled al lhe
foIIoving address:

Mr. Kumar Pushkar
Cnmµanv 5ccrctarv & Cnmµ!Iancc OffIccr
ßharaliva CIolaI Infonedia Liniled
ß-6O, Seclor-57,
Noida-2O13O1
Ullar Iradesh, India
TeI.: +91-12O-4227792
Iax: +91-12O-4227791
L naiI: kunar.pushkar©lgiIinfo.con

Changcs In AudItnrs
There has leen no change in lhe Audilors of lhe Conpanv during lhe Iasl lhree vears. We have
appoinled M/s K. Irasad & Co., Charlered Accounlanls as Ieer Reviev Audilor in lerns of Nole 2 of
Sul-cIause IX of CIause 2 of Iarl A of ScheduIe VIII of SLßI (ICDR) ReguIalions, 2OO9.

CaµIta!IzatInn nf rcscrvcs nr µrnfIts (durIng thc !ast fIvc vcars)
The Conpanv has nol capilaIized ils profils or reserves al anv line excepl as slaled in lhe seclion
lilIed ¨IinanciaI Slalenenls of lhe Conpanv¨ and ¨CapilaI Slruclure¨ on page no. 1O5 and 15 of lhis
Drafl Red Herring Irospeclus.

Rcva!uatInn nf asscts (durIng thc !ast fIvc vcars)
There has leen no revaIualion of lhe assels of our Conpanv during lhe Iasl five vears.


151

5ECTION VIII: I55UE RELATED INFORMATION

TERM5 OF THE I55UE

The Lquilv Shares leing issued are suljecl lo lhe provisions of lhe Conpanies Acl, our Conpanv´s
Menorandun and ArlicIes of Associalion, lhe lerns of lhe Drafl Red Herring Irospeclus, Red
Herring Irospeclus, Irospeclus, ßid-cun-AppIicalion Iorn, lhe revision forn, ßid-cun-ASßA Iorn,
Alridged Irospeclus, lhe Confirnalion of AIIocalion Nole and olher lerns and condilions as nav le
incorporaled in lhe aIIolnenl advices and olher docunenls/cerlificales lhal nav le execuled in
respecl of lhe Issue. The Lquilv Shares shaII aIso le suljecl lo Iavs as appIicalIe, guideIines,
nolificalions and reguIalions reIaling lo lhe issue of capilaI and Iisling and lrading of securilies issued
fron line lo line lv SLßI, lhe Covernnenl, Slock Lxchanges, IIIß, RßI, RoC and/or olher
aulhorilies, as in force on lhe dale of lhe Issue and lo lhe exlenl appIicalIe.

RankIng nf EquItv 5harcs
The Lquilv Shares leing issued shaII le suljecl lo lhe provisions of lhe Conpanies Acl, 1956,
Menorandun and ArlicIes of Associalion of our Conpanv and shaII rank pari-passu in aII respecls
vilh lhe exisling Lquilv Shares of our Conpanv incIuding righls in respecl of dividend. The aIIollees
viII le enlilIed lo dividend or anv olher corporale lenefils, if anv, decIared lv our Conpanv afler lhe
dale of aIIolnenl. Ior furlher delaiIs, pIease see lhe seclion lilIed ¨Main Irovisions of ArlicIes of
Associalion of lhe Conpanv¨ leginning fron page no. 195 of lhis Drafl Red Herring Irospeclus.

Mndc nf µavmcnt nf DIvIdcnd
Our Conpanv shaII pav dividend, if anv, lo ils sharehoIders as per lhe provisions of lhe Conpanies
Acl, 1956.
Facc Va!uc and Issuc PrIcc
The Lquilv Shares vilh a face vaIue of C 1O/- each are leing issued in lerns of lhe Drafl Red Herring
Irospeclus / Red Herring Irospeclus / Irospeclus al a Issue Irice of C |y! per Lquilv Share. Al anv
given poinl of line lhere shaII le onIv one denoninalion for lhe Lquilv Shares, suljecl lo appIicalIe
Iavs.

RIghts nf thc EquItv 5harchn!dcrs
Suljecl lo appIicalIe Iavs, lhe equilv sharehoIders shaII have lhe foIIoving righls:

ƒ Righl lo receive dividend, if decIared:
ƒ Righl lo allend generaI neelings and exercise voling povers, unIess prohililed lv Iav:
ƒ Righl lo vole on a poII eilher in person or lv proxv:
ƒ Righl lo receive offers for righls shares and le aIIolled lonus shares, if announced:
ƒ Righl lo receive surpIus on Iiquidalion suljecl lo anv slalulorv and olher preferenliaI cIains
leing salisfied:
ƒ Righl of free lransferaliIilv: and
ƒ Such olher righls, as nav le avaiIalIe lo a sharehoIder of a Iisled pulIic conpanv under lhe
Conpanies Acl, 1956 lhe lerns of lhe Iisling agreenenls vilh lhe Slock Lxchanges and
Menorandun and ArlicIes of Associalion of lhe Conpanv.

Ior a delaiIed descriplion of lhe nain provisions of ArlicIes of Associalion of our Conpanv deaIing
vilh voling righls, dividend, forfeilure and Iien, lransfer and lransnission and/or
consoIidalion/spIilling, pIease refer lo lhe seclion ¨Main Irovisions of ArlicIes of Associalion of lhe

152

Conpanv¨ leginning on page no. 195 of lhis Drafl Red Herring Irospeclus.
Markct !nt and tradIng !nt
In lerns of Seclion 68ß of lhe Conpanies Acl, 1956 lhe Lquilv Shares of lhe Conpanv shaII le
aIIolled onIv in denaleriaIised forn. As per exisling SLßI (ICDR) ReguIalions, lhe lrading of Lquilv
Shares of our Conpanv shaII le in denaleriaIised forn onIv. Since lrading of Lquilv Shares of lhe
Conpanv is conpuIsoriIv in denaleriaIized node, lhe lradalIe Iol is one Lquilv Share. AIIolnenl
lhrough lhis Issue viII le done onIv in eIeclronic forn in nuIlipIes of |ŏ! Lquilv Share suljecl lo a
Mininun AIIolnenl of |ŏ! Lquilv Shares.
JnInt Hn!dcrs
Suljecl lo provisions conlained in our ArlicIes, vhere lvo or nore persons are regislered as lhe
hoIders of anv Lquilv Shares, lhev shaII le deened lo hoId lhe sane as joinl lenanls vilh lenefils of
survivorship.
NnmInatInn facI!Itv tn thc Invcstnr
In accordance vilh Seclion 1O9A of lhe Conpanies Acl, lhe soIe or firsl ßidder, aIong vilh olher joinl
ßidder, nav noninale anv one Ierson in vhon, in lhe evenl of lhe dealh of soIe ßidder or in case of
joinl ßidders, dealh of aII lhe ßidders, as lhe case nav le, lhe Lquilv Shares aIIolled, if anv, shaII vesl.
A Ierson, leing a noninee, enlilIed lo lhe Lquilv Shares lv reason of lhe dealh of lhe originaI
hoIder(s), shaII in accordance vilh Seclion 1O9A of lhe Conpanies Acl, le enlilIed lo lhe sane
lenefils lo vhich he or she vouId le enlilIed if he or she vere lhe regislered hoIder of lhe Lquilv
Share(s). Where lhe noninee is a ninor, lhe hoIder(s) nav nake a noninalion lo appoinl, in lhe
prescriled nanner, anv Ierson lo lecone enlilIed lo Lquilv Share(s) in lhe evenl of his or her dealh
during lhe ninorilv. A noninalion shaII sland rescinded upon a saIe/ lransfer/ aIienalion of Lquilv
Share(s) lv lhe Ierson noninaling. A luver viII le enlilIed lo nake a fresh noninalion in lhe
nanner prescriled. Iresh noninalion can le nade onIv on lhe prescriled forn avaiIalIe on requesl
al lhe regislered office of our Conpanv or vilh lhe Regislrar or Transfer Agenls of our Conpanv.

In accordance vilh Seclion 1O9ß of lhe Conpanies Acl, anv Ierson vho lecones a noninee lv virlue
of lhe provisions of Seclion 1O9A of lhe Conpanies Acl, shaII upon lhe produclion of such evidence
as nav le required lv lhe ßoard, eIecl eilher:
a. lo regisler hinseIf or herseIf as lhe hoIder of lhe Lquilv Shares: or
l. lo nake such lransfer of lhe Lquilv Shares, as lhe deceased hoIder couId have nade.

Iurlher, lhe ßoard nav al anv line give nolice requiring anv noninee lo choose eilher lo le
regislered hinseIf or herseIf or lo lransfer lhe Lquilv Shares, and if lhe nolice is nol conpIied vilh,
vilhin a period of ninelv davs, lhe ßoard nav lhereafler vilhhoId pavnenl of aII dividends, lonuses
or olher nonies pavalIe in respecl of lhe Lquilv Shares, unliI lhe requirenenls of lhe nolice have
leen conpIied vilh.

Since lhe aIIolnenl of Lquilv Shares in lhe Issue viII le nade onIv in denaleriaIised node, lhere is
no need lo nake a separale noninalion vilh lhe Conpanv. Noninalions regislered vilh lhe
respeclive deposilorv parlicipanl of lhe appIicanl vouId prevaiI. If an inveslor needs lo change lhe
noninalion, lhev are requesled lo inforn lheir respeclive Deposilorv Iarlicipanl.

Issuc PcrInd
ßidders nav sulnil lheir ßids onIv in lhe ßid/Issue Ieriod. The ßid/Issue Opening Dale is |ŏ! and
lhe ßid/Issue CIosing Dale is |ŏ!.

153

MInImum 5ubscrIµtInn
If our Conpanv does nol receive lhe nininun sulscriplion of 9O° of lhe Issue lo lhe pulIic lo lhe
exlenl of lhe anounl, incIuding devoIvenenl of Undervrilers, vilhin 6O davs fron lhe ßid CIosing
Dale, our Conpanv shaII forlhvilh refund lhe enlire sulscriplion anounl received. If lhere is a deIav
levond eighl davs afler our Conpanv lecone IialIe lo pav lhe anounl (i.e., 6O davs fron lhe ßid
CIosing Dale), our Conpanv shaII pav inleresl prescriled under Seclion 73 of lhe Conpanies Acl.

In accordance vilh ReguIalion 26(4) of lhe SLßI (ICDR) ReguIalions, our Conpanv shaII ensure lhal
lhe nunler of prospeclive aIIollees lo vhon lhe Lquilv Share viII le aIIolled viII nol le Iess lhan
1OOO.

Aµµ!IcatInn bv NRIs, FIIs, 5ub-Accnunts and FVCIs
Il is lo le dislinclIv underslood lhal lhere is no reservalion for NRIs, IIIs, Sul-Accounls and IVCIs.
As per exisling reguIalions, OCßs cannol parlicipale in lhis Issue.

Arrangcmcnts fnr dIsµnsa! nf ndd !nts
There are no arrangenenls for disposaI of odd Iols.

RcstrIctInn nn Transfcr nf 5harcs
Lxcepl for lhe Iock-in of lhe pre-Issue capilaI of our Conpanv and lhe Ironoler´s conlrilulion as
provided lhe seclion lilIed ¨CapilaI Slruclure¨ on page no. 15 of lhis Drafl Red Herring Irospeclus
and olhervise as provided in our ArlicIes, lhere are no reslriclions on lransfer and lransnission of
shares / delenlures and on lheir consoIidalion and spIilling. IIease see seclion ¨Main Irovisions of
ArlicIes of Associalion of lhe Conpanv¨ on page no. 195 of lhe Drafl Red Herring Irospeclus.

WIthdrawa! nf thc Issuc
In accordance vilh lhe SLßI ReguIalions, our Conpanv, in consuIlalion vilh ßook Running Lead
Manager, reserves lhe righl nol lo proceed vilh lhis Issue al anvline afler lhe ßid /Issue Opening
Dale, vilhoul assigning lhe reasons lherefore. Hovever, if our Conpanv vilhdravs lhe Issue afler
lhe ßid CIosing Dale, ve viII give lhe reason lhereof vilhin lvo davs of lhe ßid /Issue CIosing Dale
lv vav of a pulIic nolice vhich shaII le pulIished vilhin lvo davs of lhe ßid /Issue CIosing Dale in
lhe sane nevspapers vhere lhe pre-Issue adverlisenenl vas pulIished. Iurlher, lhe Slock
Lxchanges shaII le inforned pronplIv in lhis regard and lhe ßook Running Lead Manager, lhrough
lhe Regislrar lo lhe Issue, shaII nolifv lhe SCSßs lo unlIock lhe ßank Accounls of lhe ASßA ßidders
vilhin one dav fron lhe dale of receipl of such nolificalion. In lhe evenl of vilhdravaI of lhe Issue
and sulsequenlIv, pIans of an IIO lv our Conpanv, a Drafl Red Herring Irospeclus viII le
sulnilled again for olservalions of SLßI.
Nolvilhslanding lhe foregoing, lhis Issue is aIso suljecl lo ollaining lhe finaI Iisling and lrading
approvaIs of lhe Slock Lxchanges, vhich our Conpanv shaII appIv for afler aIIolnenl, and lhe finaI
RoC approvaI of lhe Irospeclus.
In lerns of lhe SLßI ReguIalions, OIßs ßidding in lhe OIß Iorlion shaII nol le aIIoved lo vilhdrav
lheir ßids afler lhe ßid CIosing Dale.
OµtInn tn rcccIvc EquItv 5harcs In DcmatcrIa!Iscd Fnrm
Inveslors shouId nole lhal aIIolnenl of Lquilv Shares lo aII successfuI ßidders viII onIv le in
denaleriaIised forn. ßidders viII nol have lhe oplion of gelling aIIolnenl of lhe Lquilv Shares in
phvsicaI forn. The Lquilv Shares on aIIolnenl shaII le lraded onIv in lhe denaleriaIised segnenl of
lhe Slock Lxchanges.

154

JurIsdIctInn
LxcIusive jurisdiclion for lhe purpose of lhis Issue is vilh conpelenl courls/aulhorilies in Nev
DeIhi, India.

155

I55UE PROCEDURE

Tnis scc|icn app|ics |c a|| 8iúúcrs. P|casc nc|c |na| a|| 8iúúcrs can par|icipa|c in |nc |ssuc |nrcugn |nc AS8A
prcccss. AS8A 8iúúcrs sncu|ú nc|c |na| |nc AS8A prcccss intc|tcs app|ica|icn prcccúurcs |na| arc úiffcrcn|
frcm |nc prcccúurc app|ica||c |c |nc 8iúúcrs c|ncr |nan |nc AS8A 8iúúcrs. 8iúúcrs app|uing |nrcugn |nc AS8A
prcccss sncu|ú carcfu||u rcaú |nc prctisicns app|ica||c |c sucn app|ica|icns |cfcrc ma|ing |ncir app|ica|icn
|nrcugn |nc AS8A prcccss. P|casc nc|c |na| a|| |nc 8iúúcrs arc rcuuircú |c ma|c paumcn| cf |nc fu|| 8iú
Amcun| cr ins|ruc| |nc rc|ctan| SCS8 |c ||cc| |nc fu|| 8iú Amcun| a|cng ui|n |nc 8iú cum App|ica|icn |crm
cr AS8A |crm. as |nc casc mau |c. AS8A 8iúúcrs in|cnúing |c su|scri|c |c |nc |ssuc sna|| su|mi| a ccmp|c|c
AS8A |crm |c |nc úcsigna|cú |rancn cf SCS8 cr |c |nc Sunúica|c/Su|-sunúica|c mcm|cr.

Bnnk BuI!dIng Prnccdurc

This Issue is leing nade lhrough a 1OO° ßook ßuiIding Irocess vherein nol nore lhan 5O° of lhe
Issue lo IulIic shaII le aIIolled on a proporlionale lasis lo OuaIified InslilulionaI ßuvers (¨OIßs¨).
5° of lhe OIß Iorlion shaII le avaiIalIe for aIIocalion on a proporlionale lasis lo MuluaI Iunds onIv
and lhe renainder shaII le avaiIalIe for aIIolnenl on a proporlionale lasis lo OIßs and MuluaI
Iunds, suljecl lo vaIid lids leing received fron lhen al or alove lhe Issue Irice. Iurlher, nol Iess
lhan 15° of lhe Issue lo IulIic shaII le avaiIalIe for aIIocalion on a proporlionale lasis lo Non-
InslilulionaI ßidders and nol Iess lhan 35° of lhe Issue lo IulIic shaII le avaiIalIe for aIIocalion on a
proporlionale lasis lo RelaiI IndividuaI ßidders, suljecl lo vaIid lids leing received al or alove lhe
Issue Irice.

Undersulscriplion, if anv, in anv calegorv, excepl lhe OIß Iorlion, vouId le aIIoved lo le nel vilh
spiII-over fron anv olher calegorv or conlinalion of calegories al lhe discrelion of our Conpanv, in
consuIlalion vilh lhe ßRLM and lhe Designaled Slock Lxchange.

ßidders are required lo sulnil lheir ßids lhrough lhe Svndicale Menler onIv. In case of OIß ßidders,
our Conpanv in consuIlalion vilh ßRLM nav rejecl ßid procured lv anv or aII nenlers of lhe
svndicale al lhe line of acceplance of ßid-cun-AppIicalion Iorn provided lhal lhe reasons for
rejecling lhe sane are provided lo such ßidders in vriling. In case of Non-InslilulionaI ßidders and
RelaiI IndividuaI ßidders, our Conpanv vouId have a righl lo rejecl lhe ßids onIv on lechnicaI
grounds.

Invcstnrs shnu!d nntc that EquItv 5harcs wnu!d bc a!!nttcd tn a!! succcssfu! BIddcrs nn!v In
dcmatcrIa!Izcd fnrm. BIddcrs wI!! nnt havc thc nµtInn nf gcttIng a!!ntmcnt nf thc EquItv 5harcs In
µhvsIca! fnrm. Thc EquItv 5harcs nn a!!ntmcnt sha!! bc tradcd nn!v In thc dcmatcrIa!Izcd scgmcnt
nf thc 5tnck Exchangcs.

BId-cum-Aµµ!IcatInn / A5BA Fnrm

ßidders shaII onIv use lhe specified ßid-cun-AppIicalion Iorn learing lhe slanp of a nenler of lhe
Svndicale for lhe purpose of naking a ßid in lerns of lhe Drafl Red Herring Irospeclus, unIess lhev
are using lhe ASßA process. The ßidder shaII have lhe oplion lo nake a naxinun of lhree ßids (in
lerns of nunler of Lquilv Shares and respeclive lid prices) in lhe ßid-cun-AppIicalion Iorn and
such oplions shaII nol le considered as nuIlipIe ßids. The ßid-cun-AppIicalion Iorn shaII le seriaIIv
nunlered and lhe dale and line slanped al lhe ßidding Cenlres and such forn shaII le issued in
dupIicale signed lv lhe ßidder and counlersigned lv lhe reIevanl nenler of lhe Svndicale.

Upon lhe aIIocalion of Lquilv Shares, dispalch of lhe CAN, and fiIing of lhe Irospeclus vilh lhe
ROC, lhe ßid-cun-AppIicalion Iorn shaII le considered as lhe AppIicalion Iorn. Upon conpIeling

156

and sulnilling lhe ßid-cun-AppIicalion Iorn lo a nenler of lhe Svndicale, lhe ßidder is deened lo
have aulhorized our Conpanv lo nake lhe necessarv changes in lhe Red Herring Irospeclus and lhe
ßid-cun-AppIicalion Iorn as vouId le required for fiIing lhe Irospeclus vilh lhe ROC and as
vouId le required lv ROC afler such fiIing, vilhoul prior or sulsequenl nolice of such changes lo
lhe ßidder.

ßidders can aIso sulnil lheir ßids lhrough lhe ASßA lv sulnilling ßid-cun-ASßA Iorns, eilher in
phvsicaI or eIeclronic node, lo lhe SCSß vilh vhon lhe ASßA Accounl is nainlained or lo
Svndicale/sul-svndicale nenler. An ASßA ßidder shaII use lhe ASßA Iorn ollained fron lhe
Designaled ßranches for lhe purpose of naking a ßid. ASßA ßidders can sulnil lheir ßids, eilher in
phvsicaI or eIeclronic node. In case of appIicalion in phvsicaI node, lhe ASßA ßidder shaII sulnil
lhe ASßA Iorn al lhe reIevanl Designaled ßranch of SCSß or Svndicale/sul-svndicale nenler. In
case of appIicalion in eIeclronic forn, lhe ASßA ßidder shaII sulnil lhe ASßA Iorn eilher lhrough
lhe inlernel lanking faciIilv avaiIalIe vilh lhe SCSß/Svndicale/sul-svndicale nenler, or such olher
eIeclronicaIIv enalIed nechanisn for lidding and lIocking funds in lhe ASßA Accounl heId vilh
SCSß, and accordingIv regislering such ßids. The SCSß shaII lIock an anounl in lhe ASßA Accounl
equaI lo lhe ßid Anounl specified in lhe ASßA Iorn. Upon conpIeling and sulnilling lhe ASßA
Iorn lo lhe SCSß/ Svndicale/sul-svndicale nenler, lhe ASßA ßidder is deened lo have aulhorised
our Conpanv lo nake lhe necessarv changes in lhe Red Herring Irospeclus and lhe ASßA Iorn, as
vouId le required for fiIing lhe Irospeclus vilh lhe RoC and as vouId le required lv RoC afler such
fiIing, vilhoul prior or sulsequenl nolice of such changes lo lhe ASßA ßidder.

The prescriled coIour of lhe ßid-cun-AppIicalion Iorn for various calegories is as foIIovs:

Catcgnrv Cn!nur nf BId-cum-Aµµ!IcatInn /
BId-cum-A5BA Fnrm
Indian NalionaIs or NRIs appIving on a non-repalrialion lasis While
NRIs or IIIs or Ioreign Venlure CapilaI Iunds regislered vilh SLßI,
MuIliIaleraI and ßiIaleraI DeveIopnenl IinanciaI Inslilulions
appIving on a repalrialion lasis
ßIue
ASßA ßidders lidding lhrough a phvsicaI Iorn While

Whn Can BId?
1. Iersons eIigilIe lo invesl under aII appIicalIe Iavs, ruIes, reguIalions and guideIines:
2. Indian nalionaIs residenl in India vho are najors, in singIe or joinl nanes (nol nore lhan
lhree) or in lhe nanes of lheir ninor chiIdren as naluraI/IegaI guardians in singIe or joinl
nanes (nol nore lhan lhree):
3. HUIs, in lhe individuaI nane of lhe Karla. The ßidder shouId specifv lhal lhe ßid is leing
nade in lhe nane of lhe HUI in lhe ßid-cun-AppIicalion Iorn as foIIovs: "Nane of SoIe or
Iirsl ßidder: XYZ Hindu Undivided IaniIv appIving lhrough XYZ, vhere XYZ is lhe nane of
lhe Karla". ßids lv HUIs vouId le considered al par vilh lhose fron individuaIs:
4. Conpanies and corporale lodies regislered under lhe appIicalIe Iavs in India and aulhorized
lo invesl in Lquilv shares:
5. Trusls/socielies regislered under lhe Socielies Regislralion Acl, 186O, as anended, or under
anv olher Iav reIaling lo lrusls/socielies and vho are aulhorized under lheir conslilulion lo
hoId and invesl in equilv shares:
6. MuluaI funds regislered vilh SLßI:

157

7. Indian financiaI inslilulions, scheduIed connerciaI lanks (excIuding foreign lanks), regionaI
ruraI lanks, co-operalive lanks (suljecl lo RßI reguIalions and SLßI CuideIines and
ReguIalions, as appIicalIe):
8. IIIs and sul-accounl regislered vilh SLßI, olher lhan a sul-accounl vhich is a foreign
corporale or foreign individuaI:
9. Sul-accounls of IIIs regislered vilh SLßI vhich are foreign corporale or foreign individuaIs
onIv under lhe Non-InslilulionaI ßidders calegorv.
1O. Venlure capilaI funds regislered vilh SLßI:
11. Ioreign venlure capilaI funds regislered vilh SLßI:
12. Slale InduslriaI DeveIopnenl Corporalions:
13. Insurance conpanies regislered vilh lhe Insurance ReguIalorv and DeveIopnenl Aulhorilv:
14. As pernilled lv lhe appIicalIe Iavs, Irovidenl funds vilh nininun corpus of C 25OO Lakhs
and vho are aulhorized under lheir conslilulion lo hoId and invesl in Lquilv Shares:
15. Iension funds vilh nininun corpus of C 25OO Lakhs and vho are aulhorized under lheir
conslilulion lo hoId and invesl in Lquilv Shares:
16. MuIliIaleraI and liIaleraI deveIopnenl financiaI inslilulions:
17. LIigilIe Non-residenls incIuding NRIs and IIIs on a repalrialion lasis or a non- repalrialion
lasis suljecl lo appIicalIe IocaI Iavs:
18. Scienlific and/or induslriaI research organizalions in India aulhorized under lheir
conslilulion lo invesl in equilv shares: and
19. NalionaI Inveslnenl Iund sel up lv resoIulion I. No. 2/3/2OO5-DD-11 daled Novenler 23,
2OO5 of Covernnenl of India, pulIished in lhe Cazelle of India
As µcr cxIstIng rcgu!atInns, OCBs arc µrnhIbItcd frnm InvcstIng In thIs Issuc.

Nntc: The ßRLM and Svndicale Menler shaII nol le aIIoved lo sulscrile lo lhis Issue in anv nanner
excepl lovards fuIfiIIing lheir undervriling olIigalions, if anv. Hovever, associales and affiIiales of
lhe ßRLM and Svndicale Menler are enlilIed lo lid and sulscrile lo Lquilv Shares in lhe Issue eilher
in lhe OIß Iorlion or in Non InslilulionaI Iorlion as nav le appIicalIe lo such inveslors, vhere lhe
aIIolnenl viII le on a proporlionale lasis.

BIddcrs arc advIscd tn cnsurc that anv sIng!c BId frnm thcm dncs nnt cxcccd thc Invcstmcnt !ImIts
nr maxImum numbcr nf EquItv 5harcs that can bc hc!d bv thcm undcr aµµ!Icab!c !aw.

BIds bv Mutua! Funds
An eIigilIe ßid lv a MuluaI Iund shaII firsl le considered for aIIocalion proporlionaleIv in lhe
MuluaI Iunds Iorlion. In lhe evenl lhal lhe denand is grealer lhan 1,68,OOO Lquilv Shares, aIIocalion
shaII le nade lo MuluaI Iunds on proporlionale lasis lo lhe exlenl of lhe MuluaI Iunds Iorlion. The
renaining denand lv MuluaI Iunds shaII, as parl of lhe aggregale denand lv OIß ßidders, le nade
avaiIalIe for aIIocalion proporlionaleIv oul of lhe renainder of lhe OIß Iorlion, afler excIuding lhe
aIIocalion in lhe MuluaI Iunds Iorlion.

In case of a MuluaI Iund, a separale ßid can le nade in respecl of each schene of lhe MuluaI Iund
regislered vilh SLßI and such ßids in respecl of nore lhan one schene of lhe MuluaI Iund viII nol
le lrealed as nuIlipIe ßids provided lhal lhe ßids cIearIv indicale lhe schene for vhich lhe ßid has
leen nade.

158

As µer the current regu|atlons. the fo||oulng restrlctlons are aµµ|lcab|e for lntestments bµ
Mutua! Funds:

No MuluaI Iund schene shaII invesl nore lhan 1O° of ils nel assel vaIue in equilv shares or equilv
reIaled inslrunenls of anv conpanv provided lhal lhe Iinil of 1O° shaII nol le appIicalIe for
inveslnenls in index funds or seclor or induslrv specific funds. No MuluaI Iund under aII ils
schenes shouId ovn nore lhan 1O° of anv conpanv's paid-up capilaI carrving voling righls. These
Iinils vouId have lo le adhered lo lv lhe nuluaI funds for inveslnenl in lhe Lquilv Shares. The ßids
nade lv Assel Managenenl Conpanies or cuslodians of MuluaI Iund shaII cIearIv indicale lhe nane
of lhe concerned schenes for vhich lhe appIicalion is leing nade.

BIds bv E!IgIb!c NRIs

LIigilIe NRI ßidders lo conpIv vilh lhe foIIoving:

a) IndividuaI NRI ßidders can ollain lhe ßid-cun-AppIicalion Iorns fron Regislered Office of our
Conpanv, nenlers of lhe Svndicale or lhe Regislrar lo lhe Issue.

l) LIigilIe NRI ßidders nav pIease nole lhal onIv such ßids as are acconpanied lv pavnenl in free
foreign exchange shaII le considered for aIIolnenl. LIigilIe NRIs vho inlend lo nake pavnenl
lhrough Non-Residenl Ordinarv (NRO) accounls shaII use lhe ßid-cun-AppIicalion Iorn neanl
for residenl Indians (While in coIour). AII inslrunenls acconpanving lids shaII le pavalIe in
Munlai onIv.

BIds bv FIIs

As µcr thc currcnt rcgu!atInns, thc fn!!nwIng rcstrIctInns arc aµµ!Icab!c fnr Invcstmcnts bv FIIs:
No singIe III can hoId nore lhan 1O° of posl-issue paid-up capilaI of our Conpanv (i.e., 1O° of
1,58,43,11O Lquilv Shares). In respecl of an III invesling in Lquilv Shares of our Conpanv on lehaIf
of ils sul-accounls (olher lhan a sul-accounl vhich is a foreign corporale or foreign individuaI
lidding under lhe OIß Iorlion), lhe inveslnenl on lehaIf of each such sul-accounl shaII nol exceed
1O° of lolaI issued equilv capilaI or 5° of our lolaI issued equilv capilaI in case such sul-accounls is
a foreign corporale or a foreign individuaI. Under lhe currenl foreign inveslnenl poIicv appIicalIe lo
us foreign equilv parlicipalion uplo 1OO° is pernissilIe under lhe aulonalic roule.

Suljecl lo conpIiance vilh aII appIicalIe Indian Iavs, ruIes, reguIalions guideIines and approvaIs in
lerns of ReguIalion 15A(1) of lhe Securilies Lxchange ßoard of India (Ioreign InslilulionaI Inveslors)
ReguIalions, 1995, as anended, an III or ils sul-accounls nav issue, deaI or hoId, off shore derivalive
inslrunenls such as Iarlicipalorv Noles, equilv-Iinked noles or anv olher siniIar inslrunenls againsl
underIving securilies Iisled or proposed lo le Iisled in anv slock exchange in India onIv in favour of
lhose enlilies vhich are reguIaled lv anv reIevanl reguIalorv aulhorilies in lhe counlries of lheir
incorporalion or eslalIishnenl suljecl lo conpIiance of "knov vour cIienl" requirenenls. An III or
sul-accounl shaII aIso ensure lhal no furlher dovnslrean issue or lransfer of anv inslrunenl referred
lo hereinalove is nade lo anv person olher lhan a reguIaled enlilv.

BIds bv 5EBI rcgIstcrcd VCF and FVCI
The SLßI (Venlure CapilaI Iunds) ReguIalions, 1996, and lhe SLßI (Ioreign Venlure CapilaI
Inveslors) ReguIalions, 2OOO, prescrile inveslnenl reslriclions on venlure capilaI funds and foreign
venlure capilaI inveslors regislered vilh SLßI. AccordingIv, lhe inveslnenl lv anv VCI or IVCI
shouId nol exceed lhe prescriled inveslnenl Iinil as lhe case nav le.

159

AccordingIv, lhe hoIding lv anv individuaI VCIs in one conpanv shouId nol exceed 25° of lhe
corpus of lhe said VCI. Iurlher, VCIs and IVCIs can invesl onIv up lo 33.33° of lhe inveslilIe funds
lv vav of sulscriplion lo an iniliaI pulIic offer of a venlure capilaI underlaking.

According lo ReguIalion 37(l) of Securilies and Lxchange ßoard of India (Issue of CapilaI and
DiscIosure Requirenenls) ReguIalions, 2OO9, lhe equilv shares heId lv a venlure capilaI fund or
foreign venlure capilaI inveslor vouId le exenpl fron lhe Iock-in requirenenls onIv if lhe equilv
shares have leen heId for a period of al Ieasl one vear prior lo lhe dale of lhe fiIing of lhe Drafl Red
Herring Irospeclus vilh lhe SLßI.

BIds bv Insurancc cnmµanIcs
In case of ßids nade lv insurance conpanies regislered vilh Insurance ReguIalorv and DeveIopnenl
Aulhorilv, a cerlified copv of lhe cerlificale of regislralion issued lv Insurance ReguIalorv and
DeveIopnenl Aulhorilv nusl le sulnilled vilh lhe ßid-cun-AppIicalion Iorn. IaiIing lhis, lhe
Conpanv reserves lhe righl lo accepl or rejecl anv ßid in vhoIe or in parl, in eilher case vilhoul
assigning anv reason lhereof.

BIds bv µrnvIdcnt funds / µcnsInn funds
In case of ßids nade lv providenl fund vilh lhe nininun corpus of C 25OO Lakhs (suljecl lo
appIicalIe Iav) and pension fund vilh lhe nininun corpus of C 25OO Lakhs, a cerlified copv of
cerlificale fron a charlered accounlanl cerlifving lhe corpus of lhe providenl fund/ pension fund
nusl le Iodged vilh lhe ßid-cun-AppIicalion Iorn. IaiIing lhis, lhe Conpanv reserves lhe righl lo
accepl or rejecl anv ßid in vhoIe or in parl, in eilher case vilhoul assigning anv reason lhereof.

BIds and rcvIsInn nf BIds bv nnn-rcsIdcnts Inc!udIng E!IgIb!c NRIs, FIIs and FnrcIgn Vcnturc
caµIta! Funds rcgIstcrcd wIth 5EBI nn a rcµatrIatInn basIs must bc madc:

1. On lhe prescriled ßid-cun-AppIicalion Iorn or Revision Iorn, as appIicalIe (lIue in coIour) and
conpIeled in fuII in ßLOCK LLTTLRS in LNCLISH in accordance vilh lhe inslruclions conlained
lherein.
2. In a singIe nane or joinl nanes (nol nore lhan lhree and in lhe sane order as lheir Deposilorv
Iarlicipanl delaiIs):
3. LIigilIe NRIs for a ßid Anounl of up lo C 1,OO,OOO vouId le considered under lhe RelaiI ßidders
porlion for lhe purposes of aIIocalion and ßids for a ßid anounl of nore lhan C 1,OO,OOO vouId le
considered under lhe Non-InslilulionaI ßidders porlion for lhe purposes of aIIocalion: Olher Non-
Residenl ßidders nusl lid for a nininun of such nunler of Lquilv Shares and in nuIlipIes of |y!
Lquilv Shares lhereafler lhal lhe ßid anounl exceeds C 1,OO,OOO: for furlher delaiIs see "Maxinun
and Mininun ßid Size" al page no. 161 of lhis Drafl Red Herring Irospeclus.
4. In lhe nanes of individuaIs, or in lhe nanes of IIIs or in lhe nanes of Ioreign Venlure CapilaI
Iunds regislered vilh SLßI, MuIliIaleraI and ßiIaleraI DeveIopnenl IinanciaI Inslilulions lul nol
in lhe nanes of ninors, OCßs, firns or parlnerships, foreign nalionaIs (excIuding NRIs) or lheir
noninees. Refunds, dividends and olher dislrilulions, if anv, viII le pavalIe in Indian Rupees
onIv and nel of lank charges or connission. In case of ßidders vho renil nonev lhrough Indian
Rupee drafls purchased alroad, such pavnenls in Indian Rupees viII le converled inlo U.S.
DoIIars or anv olher freeIv converlilIe currencv as nav le pernilled lv lhe RßI al lhe rale of
exchange prevaiIing al lhe line of renillance and viII le dispalched lv regislered posl or if lhe
ßidders so desire, viII le crediled lo lheir Non-Residenl LxlernaI (NRL) accounls, delaiIs of vhich
shouId le furnished in lhe space provided for lhis purpose in lhe ßid-cun-AppIicalion Iorn. The
Conpanv viII nol le responsilIe for Ioss, if anv, incurred lv lhe ßidder on accounl of conversion
of foreign currencv.

16O

It Is tn bc dIstInct!v undcrstnnd that thcrc Is nn rcscrvatInn fnr Nnn RcsIdcnts, NRIs, FIIs and
FnrcIgn Vcnturc CaµIta! Funds and a!! Nnn RcsIdcnts, NRI, FII and FnrcIgn Vcnturc CaµIta!
Funds aµµ!Icants wI!! bc trcatcd nn thc samc basIs wIth nthcr catcgnrIcs fnr thc µurµnsc nf
a!!ncatInn.

Thc abnvc InfnrmatInn Is gIvcn fnr thc bcncfIt nf thc BIddcrs. Our Cnmµanv and thc BRLM arc
nnt !Iab!c fnr anv amcndmcnts nr mndIfIcatInns nr changcs In thc aµµ!Icab!c !aws nr rcgu!atInns,
whIch mav nccur aftcr thc datc nf thIs Draft Rcd HcrrIng Prnsµcctus. BIddcrs arc advIscd tn makc
thcIr Indcµcndcnt InvcstIgatInns and cnsurc that thc numbcr nf EquItv 5harcs bId fnr dn nnt
cxcccd thc aµµ!Icab!c !ImIts undcr !aws nr rcgu!atInns.

BIds undcr Pnwcr nf Attnrncv
In case of lids nade pursuanl lo a pover of allornev lv Iiniled conpanies, corporale lodies,
regislered socielies, a cerlified copv of lhe Iover of Allornev or lhe reIevanl resoIulion or aulhorilv,
as lhe case nav le, aIong vilh a cerlified copv of lhe Menorandun and ArlicIe of Associalion
and/or ßve Lavs nusl le Iodged aIong vilh lhe ßid-cun-AppIicalion Iorn. IaiIing lhis, our
Conpanv reserves lhe righl lo accepl or rejecl anv lid in vhoIe or in parl, in eilher case, vilhoul
assigning anv reason lhereof.

In case of ßids nade pursuanl lo a Iover of Allornev lv IIIs, a cerlified copv of lhe pover of
allornev or lhe reIevanl resoIulion or aulhorilv, as lhe case nav le, aIong vilh a cerlified copv of
lheir SLßI regislralion cerlificale nusl le sulnilled vilh lhe ßid-cun-AppIicalion Iorn. IaiIing lhis,
lhe Conpanv reserves lhe righl lo accepl or rejecl anv ßid in vhoIe or in parl, in eilher case vilhoul
assigning anv reason lhereof.

In case of ßids nade pursuanl lo Iover of Allornev lv MuluaI Iund regislered vilh SLßI, venlure
capilaI fund regislered vilh SLßI and foreign venlure capilaI inveslor regislered vilh SLßI, a cerlified
copv of lhe reIevanl resoIulion or aulhorilv, as lhe case nav le, aIong vilh a cerlified copv of lheir
SLßI regislralion cerlificale nusl le sulnilled vilh lhe ßid-cun-AppIicalion Iorn. IaiIing lhis, lhe
Conpanv reserves lhe righl lo accepl or rejecl anv ßid in vhoIe or in parl, in eilher case, vilhoul
assigning anv reason.

In case of ßids nade pursuanl lo Iover of Allornev lv NalionaI Inveslnenl Iund or Insurance funds
sel up lv resoIulion I. No. 2/3/2OO5-DD-II daled Novenler 23, 2OO5 of Covernnenl of India
pulIished in lhe Cazelle of India and fund sel and nanaged lv arnv, navv or air force of lhe Union
of India, a cerlified copv of lhe reIevanl resoIulion or aulhorilv, as lhe case nav le nusl le sulnilled
vilh lhe ßid-cun-AppIicalion Iorn. IaiIing lhis, lhe Conpanv reserves lhe righl lo accepl or rejecl
anv ßid in vhoIe or in parl, in eilher case, vilhoul assigning anv reason.

In case of ßids nade pursuanl lo Iover of Allornev lv ASßA ßidders, a cerlified copv of lhe pover
of allornev nusl le Iodged aIong vilh lhe ASßA Iorn. IaiIing lhis, lhe Conpanv reserves lhe righl
lo accepl or rejecl anv ßid in vhoIe or in parl, in eilher case, vilhoul assigning anv reason.

Our Conpanv, in ils alsoIule discrelion, reserves lhe righl lo reIax lhe alove condilion of
sinuIlaneous Iodging of lhe pover of allornev aIong vilh lhe ßid-cun-AppIicalion Iorn, suljecl lo
such lerns and condilions as lhe Conpanv and lhe ßRLM nav deen fil.

The Conpanv in ils alsoIule discrelion reserves lhe righl lo pernil lhe hoIder of lhe pover of
allornev lo requesl lhe Regislrar lo lhe issue lhal for lhe purpose of prinling parlicuIars on lhe refund
order and naiIing of lhe refund order/CANs/ aIIocalion advice, lhe Denographic delaiIs given on
lhe ßid-cun-AppIicalion forn shouId le used (and nol lhose ollained fron lhe Deposilorv of lhe

161

ßidder). In such cases, lhe Regislrar lo lhe Issue shaII use Denographic delaiIs as given on lhe ßid-
cun-AppIicalion Iorn inslead of lhose ollained fron lhe Deposilories.

MaxImum and MInImum BId sIzc

Fnr RctaI! BIddcrs: The ßid nusl le for a nininun of |y! Lquilv Shares and in nuIlipIes of |y!
Lquilv Shares and il nusl le ensured lhal lhe ßid Anounl pavalIe lv lhe ßidder does nol exceed C
1,OO,OOO. Bldders maµ note that the tota| Bld amount ul|| be used to determlne lf a Bld ls ln the retal|
categorµ or not. and not ]ust the amount µaµab|e on Aµµ|lcatlon. In case of revision of ßids, lhe
RelaiI IndividuaI ßidders have lo ensure lhal lhe ßid anounl does nol exceed C 1,OO,OOO. In case lhe
ßid anounl is over C 1,OO,OOO due lo revision of lhe ßid or revision of lhe Irice ßand or on exercise of
oplion lo ßid al Cul-off price, lhe ßid vouId le considered for aIIocalion under lhe Non-InslilulionaI
Iorlion. The oplion lo ßid al Cul-off price is an oplion given onIv lo lhe RelaiI IndividuaI ßidders
indicaling lheir agreenenl lo lid and purchase Lquilv Shares al lhe finaI Issue Irice as delernined al
lhe end of lhe ßook ßuiIding Irocess.

Fnr Nnn-InstItutInna! BIddcrs and QIB BIddcrs: The ßid nusl le for a nininun of such nunler of
Lquilv Shares in nuIlipIes of |y! Lquilv Shares such lhal lhe ßid Anounl pavalIe lv lhe ßidder
exceeds C 1,OO,OOO and in nuIlipIes of |y! Lquilv Shares lhereafler. A ßid cannol le sulnilled for
nore lhan lhe Issue size. Hovever, lhe naxinun ßid lv a OIß inveslor shouId nol exceed lhe
inveslnenl Iinils prescriled for lhen lv appIicalIe Iavs. Under lhe exisling SLßI (ICDR)
ReguIalions, a OIß ßidder cannol vilhdrav ils ßid afler lhe ßid/Issue CIosing. The idenlilv of OIßs
lidding in lhe Issue in lhe Nel OIß Iorlion shaII nol le nade pulIic during lhe ßidding Ieriod.

In case of revision in ßids, lhe Non-InslilulionaI ßidders vho are individuaIs have lo ensure lhal lhe
ßid Anounl is grealer lhan C 1,OO,OOO, for leing considered for aIIocalion in lhe Non-InslilulionaI
Iorlion. In case lhe ßid Anounl reduces lo C 1,OO,OOO or Iess due lo a revision in ßids or revision of
lhe Irice ßand, lhe sane vouId le considered for aIIocalion under lhe RelaiI Iorlion in respecl of lhe
ßids lv Non-InslilulionaI ßidders vho are olhervise eIigilIe for aIIocalion under lhe RelaiI Iorlion.
Non InslilulionaI ßidders and OIßs are nol aIIoved lo ßid al 'Cul-off´.

BIddcrs arc advIscd tn cnsurc that anv sIng!c BId frnm thcm dncs nnt cxcccd thc Invcstmcnt !ImIts
nr maxImum numbcr nf EquItv 5harcs that can bc hc!d bv thcm undcr aµµ!Icab!c !aw nr
rcgu!atInn nr as sµccIfIcd In thc Draft Rcd HcrrIng Prnsµcctus.

The naxinun and nininun lid size appIicalIe lo a OIß, RelaiI IndividuaI ßidder or a Non-
InslilulionaI ßidder shaII le appIicalIe lo an ASßA ßidder in accordance vilh lhe calegorv lhal such
ASßA ßidder faIIs under.

InfnrmatInn fnr thc BIddcrs

a. Our Conpanv viII fiIe lhe Red Herring Irospeclus vilh lhe RoC al Ieasl lhree davs lefore lhe
ßid/Issue Opening Dale.
l. Our Conpanv and lhe ßRLM shaII decIare lhe ßid/Issue Opening Dale, ßid/Issue CIosing Dale
and Irice ßand afler regislering lhe Red Herring Irospeclus vilh RoC and aIso pulIish lhe sane
in lvo videIv circuIaled nalionaI nevspapers (one each in LngIish and Hindi). This
adverlisenenl, suljecl lo lhe provisions of Seclion 66 of lhe Conpanies Acl shaII le in lhe fornal
prescriled in Iarl A of ScheduIe XIII of SLßI (Issue of CapilaI and DiscIosure Requirenenls)
ReguIalions, 2OO9.

162

c. The nenlers of lhe svndicale shaII accepl lids fron lhe ßidders during lhe ßidding/Issue
Ieriod in accordance vilh lhe lerns of lhe svndicale agreenenl.
d. The nenlers of lhe Svndicale viII circuIale copies of lhe Red Herring Irospeclus aIong vilh lhe
ßid-cun-AppIicalion Iorn lo lheir polenliaI inveslors. Anv inveslor (vho is eIigilIe lo invesl in
lhe Lquilv Shares) desirous of ollaining a copv of lhe Red Herring Irospeclus aIong vilh lhe
ßid-cun- AppIicalion Iorn can ollain lhe sane fron lhe Regislered Office of our Conpanv or
fron lhe ßRLM, or fron a nenler of lhe Svndicale.
e. LIigilIe inveslors vho are inleresled in sulscriling for lhe Lquilv Shares shouId approach lhe
ßRLM or Svndicale Menler or lheir aulhorized agenl(s) lo regisler lheir ßids.
f. The ßids shouId le sulnilled on lhe prescriled ßid-cun-AppIicalion Iorn onIv. ßid-cun-
AppIicalion Iorns shouId lear lhe slanp of a nenler of lhe Svndicale, olhervise lhev viII le
rejecled.
g. The ßidding/Issue Ieriod shaII le a nininun of lhree vorking davs and shaII nol exceed seven
vorking davs. The nenlers of lhe Svndicale shaII accepl ßids fron lhe ßidders during lhe
ßidding/Issue Ieriod in accordance vilh lhe lerns of lhe Svndicale Agreenenl.
h. In case lhe Irice ßand is revised, lhe ßidding/ Issue Ieriod nav le exlended, if required, lv an
addilionaI lhree davs, suljecl lo lhe lolaI ßidding/ Issue Ieriod nol exceeding 1O vorking davs.
The revised Irice ßand and ßidding/ Issue Ieriod, if appIicalIe, viII le videIv disseninaled lv
nolificalion lo lhe ßSL and lhe NSL, and lv pulIishing in lvo videIv circuIaled nalionaI
nevspapers (one each in LngIish and Hindi) and aIso lv indicaling lhe change on lhe velsiles of
lhe ßook Running Lead Manager and al lhe lerninaIs of lhe nenlers of lhe Svndicale.
i. We, in consuIlalion vilh lhe ßRLM, can finaIise lhe Issue Irice vilhin lhe Irice ßand, vilhoul
lhe prior approvaI of, or inlinalion lo lhe ßidders.

InfnrmatInn sµccIfIc tn A5BA BIddcrs

a. ASßA ßidders vho vouId Iike lo ollain lhe Red Herring Irospeclus and/or lhe ASßA Iorn can
ollain lhe sane fron lhe Designaled ßranches of SCSßs. ASßA ßidders can aIso ollain a copv of
lhe Red Herring Irospeclus and/or lhe ASßA Iorn in eIeclronic forn on lhe velsiles of lhe
SCSßs or Svndicale Menler.
l. The ßids shouId le sulnilled lo lhe SCSßs/Svndicale/Sul-svndicale nenler on lhe prescriled
ASßA Iorn if appIied in phvsicaI node. SCSßs or Svndicale/sul-svndicale nenler nav
provide lhe eIeclronic node of lidding eilher lhrough an inlernel enalIed lidding and lanking
faciIilv or such olher secured, eIeclronicaIIv enalIed nechanisn for lidding and lIocking funds
in lhe ASßA Accounl.
c. The SCSßs shaII accepl ßids onIv during lhe ßidding Ieriod.
d. The ßook Running Lead Manager shaII ensure lhal adequale arrangenenls are nade lo circuIale
copies of lhe Red Herring Irospeclus and ASßA Iorn lo lhe SCSßs. The SCSßs viII lhen nake
avaiIalIe such copies lo inveslors inlending lo appIv in lhis Issue lhrough lhe ASßA process.
AddilionaIIv, lhe ßook Running Lead Manager shaII ensure lhal lhe SCSßs are provided vilh
sofl copies of lhe alridged prospeclus as veII as lhe ASßA Iorn and lhal lhe sane are nade
avaiIalIe on lhe velsiles of lhe SCSßs.
Mcthnd and Prnccss nf bIddIng

1. During lhe ßidding period, ßidders shouId approach nenlers of lhe Svndicale or lheir
aulhorised agenls lo regisler lheir ßids. ASßA ßidders shouId approach lhe SCSßs and/or
Designaled ßranches or Svndicale/sul-svndicale nenler lo regisler lheir ßids.

163


2. The Irice ßand has leen fixed al C |•! lo C |•! per Lquilv Share. The ßidders can lid al anv price
vilhin lhe Irice ßand, in nuIlipIes of C 1 (One). Lach ßid-cun-AppIicalion Iorn viII give lhe
ßidder lhe choice lo lid for up lo lhree oplionaI prices (for delaiIs refer lo lhe paragraph lilIed
"ßids al Differenl Irice LeveIs" on page no. 164 of lhis Drafl Red Herring Irospeclus) vilhin lhe
Irice ßand and specifv lhe denand (i.e. lhe nunler of Lquilv Shares lid for) in each oplion. The
price and denand oplions sulnilled lv lhe ßidder in lhe ßid-cun-AppIicalion Iorn viII le
lrealed as oplionaI denands fron lhe ßidder and viII nol le cunuIaled. Afler delerninalion of
lhe Issue Irice, lhe naxinun nunler of Lquilv Shares lid for lv a ßidder al or alove lhe Issue
Irice viII le considered for aIIocalion and lhe resl of lhe ßid(s), irrespeclive of lhe ßid price, viII
lecone aulonalicaIIv invaIid.

3. The ßidder cannol lid on anolher ßid-cun-AppIicalion Iorn or ASßA Iorn afler ßids on one
ßid-cun-AppIicalion Iorn or ASßA Iorn have leen sulnilled lo anv nenler of lhe
Svndicale/sul-svndicale or SCSß as lhe case nav le. Sulnission of a second ßid-cun-
AppIicalion Iorn / ASßA Iorn lo eilher lhe sane or lo anolher nenler of lhe Svndicale/sul-
svndicale or an ASßA Iorn lo anv SCSß viII le lrealed as nuIlipIe lidding and is IialIe lo le
rejecled eilher lefore enlering lhe ßid inlo lhe eIeclronic lidding svslen, or al anv poinl of line
prior lo lhe aIIolnenl of Lquilv Shares in lhis Issue. Hovever, lhe ßidder can revise lhe ßid
lhrough lhe Revision Iorn, lhe procedure for vhich is delaiIed in lhe paragraph "ßuiId up of lhe
ßook and Revision of ßids" on page no. 175 of lhis Drafl Red Herring Irospeclus.

4. The nenlers of lhe Svndicale/sul-svndicale or SCSß viII enler each lid oplion inlo lhe
eIeclronic lidding svslen as a separale ßid and generale a Transaclion Regislralion SIip, ("TRS"),
for each price and denand oplion and give lhe sane lo lhe ßidder. Therefore, a ßidder can
receive up lo lhree TRSs for each ßid-cun-AppIicalion Iorn or ASßA Iorn.

5. In case Svndicale or sul-svndicale nenler procure ASßA Iorns fron ßidders, lhese ASßA
Iorns shaII le sulnilled lo SCSßs lv lhen. Svndicale / Sul-svndicale nenler vouId le
required lo upIoad lhe ßid and olher reIevanl delaiIs of such ASßA Iorns in lhe lidding
pIalforn provided lv lhe Slock Lxchanges and forvard lhe sane lo lhe respeclive SCSßs. SCSßs
shaII carrv oul furlher aclion for such ASßA Iorns such as signalure verificalion, lIocking of
funds, elc. and forvard lhese Iorns lo lhe Regislrars lo lhe Issue.

6. During lhe ßidding Ieriod, lhe ßidders nav approach lhe Svndicale lo sulnil lheir ßid. Lverv
nenler of lhe Svndicale shaII accepl ßids fron aII cIienls/inveslors vho pIace orders lhrough
lhen and shaII have lhe righl lo vel lhe ßids.

7. Our Conpanv, in consuIlalion vilh lhe ßRLM shaII decide lhe nininun nunler of Lquilv
Shares for each ßid lo ensure lhal lhe nininun appIicalion vaIue is vilhin lhe range of C 5,OOO lo
C 7,OOO.

8. AIong vilh lhe ßid-cun-AppIicalion Iorn, aII ßidders viII nake pavnenl in lhe nanner
descriled under lhe paragraph "Terns of Iavnenl and Iavnenl inlo lhe Lscrov CoIIeclion
Accounl" on page no. 177 of lhis Drafl Red Herring Irospeclus.

9. Ior lhe ßidders vho appIv lhrough lhe ASßA process, SCSßs shaII lIock lhe ßid Anounl in an
ASßA Accounl. Upon sulnission of an ASßA Iorn vilh lhe SCSß/Svndicale/sul-svndicale
nenler, vhelher in phvsicaI or eIeclronic node, each ASßA ßidder shaII le deened lo have
agreed lo lIock an anounl equivaIenl lo lhe ßid Anounl and aulhorized lhe Designaled ßranch

164

lo lIock lhe ßid Anounl in lhe ASßA Accounl.

1O. The ßid Anounl shaII renain lIocked in lhe ASßA Accounl unliI finaIizalion of lhe 'ßasis of
AIIocalion´ or vilhdravaI/faiIure of lhe Issue or vilhdravaI/rejeclion of lhe ASßA ßid, as lhe
case nav le. In lhe evenl lhe ASßA Accounl does nol have a sufficienl credil laIance for lhe ßid
Anounl, lhe ßid shaII le rejecled lv lhe SCSß and no funds shaII le lIocked in lhal ASßA
Accounl.

11. The ASßA Iorn shouId nol le acconpanied lv cash, drafl, nonev order, poslaI order or anv
node of pavnenl olher lhan lIocked anounl in lhe ASßA Accounl.

12. On lhe Designaled Dale, lhe SCSßs shaII iniliale lransfer of lhe lIocked ßid Anounl fron lhe
ASßA Accounl for successfuI ßids inlo lhe IulIic Issue Accounl and lhe laIance anounl, if anv,
shaII le unlIocked. Nol nore lhan five ASßA Iorns can le sulnilled vhen uliIizing an ASßA
Accounl.

BIds at dIffcrcnt µrIcc !cvc!s and rcvIsInn nf BIds

1. The Irice ßand has leen fixed al C |•! lo C |•! per Lquilv Share of C 1O/- each, C |•! leing lhe Iover
end of lhe Irice ßand and C |•! leing lhe higher end of lhe Irice ßand. The ßidders can lid al anv
price vilh in lhe Irice ßand, in nuIlipIes of Re. 1 (One).
2. Our Conpanv, in consuIlalion vilh lhe ßRLM, can revise lhe Irice ßand during lhe ßid/Issue
Ieriod in accordance vilh lhe SLßI (ICDR) ReguIalions, 2OO9, in vhich case lhe ßidding Ieriod
shaII le exlended furlher for a period of addilionaI lhree vorking davs, suljecl lo lhe lolaI
ßidding Ieriod nol exceeding len vorking davs. The cap on lhe Irice ßand shouId nol le nore
lhan 2O° of lhe IIoor of lhe Irice-land. Suljecl lo conpIiance vilh lhe innedialeIv preceding
senlence, lhe fIoor of Irice ßand can nove up or dovn lo lhe exlenl of 2O° of lhe IIoor Irice
discIosed in lhis Drafl Red Herring Irospeclus.
3. Anv revision in lhe Irice ßand and lhe revised ßid /Issue Ieriod, if appIicalIe, viII le videIv
disseninaled lv inforning lhe slock exchanges and lhe SCSßs and lv issuing a pulIic nolice in
lvo videIv circuIaled nalionaI nevspapers (one each in LngIish and Hindi) and a regionaI
Ianguage nevspaper of vide circuIalion in lhe pIace vhere our Regislered Office is silualed and
aIso indicaling lhe change on lhe reIevanl velsile of lhe ßRLM, Conpanv and lhe lerninaIs of
lhe nenlers of lhe Svndicale.
4. The Conpanv, in consuIlalion vilh lhe ßRLM, can finaIise lhe Issue Irice vilhin lhe Irice ßand,
in accordance vilh lhis cIause, vilhoul lhe prior approvaI of, or inlinalion lo, lhe ßidders.
5. The ßidder can lid al anv price vilhin lhe Irice ßand. The ßidder has lo lid for lhe desired
nunler of Lquilv Shares al a specific price. RelaiI IndividuaI ßidders appIving for a naxinun
ßid in anv of lhe lidding oplions nol exceeding C 1,OO,OOO nav lid al "Cul-off". Hovever, lidding
al "Cul-off" is nol pernilled for OIß or Non-InslilulionaI ßidders vho lid for and such ßids fron
OIßs and Non-InslilulionaI ßidders shaII le rejecled.
6. RelaiI IndividuaI ßidders vho lid al lhe Cul-off agree lhal lhev shaII purchase lhe Lquilv Shares
al anv price vilhin lhe Irice ßand. RelaiI IndividuaI ßidders lidding al Cul-off shaII deposil lhe
ßid Anounl lased on lhe Cap Irice in lhe Lscrov Accounl. In lhe evenl lhe ßid Anounl is higher
lhan lhe sulscriplion anounl pavalIe lv lhe RelaiI IndividuaI ßidders vho lid al lhe Cul-off
Irice, such ßidders shaII receive lhe refund of lhe excess anounls fron lhe respeclive Refund
Accounl.
7. In case of an upvard revision in lhe Irice ßand announced as alove, RelaiI IndividuaI ßidders,
vho had lid al Cul-Off Irice couId eilher (i) revise lheir ßid or (ii) nake addilionaI pavnenl

165

lased on lhe cap of lhe revised Irice ßand (such lhal lhe lolaI anounl i.e. originaI ßid Anounl
pIus addilionaI pavnenl does nol exceed C 1,OO,OOO if lhe lidder vanls lo conlinue lo lid al Cul-
off Irice), vilh lhe nenler of lhe Svndicale lo vhon lhe originaI ßid vas sulnilled. In case lhe
lolaI anounl (i.e. originaI ßid Anounl pIus addilionaI pavnenl) exceeds C 1,OO,OOO, lhe ßid lv
RelaiI IndividuaI ßidder viII le considered for aIIocalion under lhe Non-InslilulionaI porlion in
lerns of lhe Red Herring Irospeclus. If, hovever, lhe ßidder does nol eilher revise lhe ßid or
nake addilionaI pavnenl and lhe Issue Irice is higher lhan lhe higher end of lhe Irice ßand prior
lo revision, lhe nunler of Lquilv Shares lid for shaII le adjusled dovnvard for lhe purpose of
aIIocalion, such lhal no addilionaI pavnenl vouId le required fron lhe ßidder and lhe ßidders is
deened lo have approved such revised ßid al Cul-off Irice.
8. In case of a dovnvard revision in lhe Irice ßand, announced as alove, RelaiI IndividuaI ßidders
vho have lid al Cul-off couId eilher revise lheir ßid or lhe excess anounl paid al lhe line of
lidding vouId le refunded fron lhe respeclive Refund Accounl.
9. In lhe evenl of anv revision in lhe Irice ßand, vhelher upvards or dovnvards, lhe Mininun
AppIicalion Size shaII le vilhin lhe range of C 5,OOO lo C 7,OOO. The Conpanv in consuIlalion vilh
lhe ßRLM shaII accordingIv slipuIale lhe nininun appIicalion size (in lerns of nunler of
shares) faIIing vilhin lhe aforesaid range.
1O. During lhe ßidding/Issue Ieriod, anv ßidder vho has regislered his or her inleresl in lhe Lquilv
Shares al a parlicuIar price IeveI is free lo revise his or her ßid vilhin lhe Irice ßand during lhe
ßidding/Issue Ieriod using lhe prinled Revision Iorn, vhich is a parl of lhe ßid-cun-
AppIicalion Iorn and ASßA Iorn.
11. Revisions can le nade in lolh lhe desired nunler of Lquilv Shares and lhe ßid price lv using
lhe Revision Iorn. Aparl fron nenlioning lhe revised oplions in lhe Revision Iorn, lhe ßidder
nusl aIso nenlion lhe delaiIs of aII lhe oplions in his or her ßid-cun-AppIicalion Iorn or earIier
Revision Iorn. Ior exanpIe, if a ßidder has ßid for lhree oplions in lhe ßid-cun-AppIicalion
Iorn and he is changing onIv one of lhe oplions in lhe Revision Iorn, he nusl sliII fiII lhe delaiIs
of lhe olher lvo oplions lhal are nol leing changed in lhe Revision Iorn. InconpIele or
inaccurale Revision Iorns viII nol le accepled lv lhe nenlers of lhe Svndicale.
12. The ßidder can nake revision anv nunler of lines during lhe ßidding Ieriod. Hovever, for anv
revision(s) in lhe ßid, lhe ßidders viII have lo use lhe services of lhe sane nenler of lhe
Svndicale lhrough vhon he or she had pIaced lhe originaI ßid.
13. ßidders are advised lo relain copies of lhe lIank Revision Iorn and lhe revised ßid nusl le
nade onIv in such Revision Iorn or copies lhereof.
14. Anv revision of lhe ßid shaII le acconpanied lv pavnenl in lhe forn of cheque or denand drafl
for lhe increnenlaI anounl, if anv, lo le paid on accounl of lhe upvard revision of lhe ßid. The
excess anounl, if anv, resuIling fron dovnvard revision of lhe ßid vouId le relurned lo lhe
ßidder al lhe line of refund in accordance vilh lhe lerns of lhis Drafl Red Herring Irospeclus.
15. When a ßidder revises his or her ßid, he or she shaII surrender lhe earIier TRS and gel a revised
TRS fron lhe nenlers of lhe Svndicale. It Is thc rcsµnnsIbI!Itv nf thc BIddcr tn rcqucst fnr and
nbtaIn thc rcvIscd TR5, whIch wI!! act as µrnnf nf hIs nr hcr havIng rcvIscd thc µrcvInus BId.

Gcncra! InstructInns

Dn's:

(a) Check if vou are eIigilIe lo appIv having regard lo appIicalIe Iavs, ruIes, reguIalions,
guideIines and approvaIs and lhe lerns of lhis Drafl Red Herring Irospeclus:
(l) Read aII lhe inslruclions carefuIIv and conpIele lhe ßid-cun-AppIicalion Iorn (vhile or lIue
in coIour) as lhe case nav le:

166

(c) Lnsure lhal lhe delaiIs aloul Deposilorv Iarlicipanl and ßeneficiarv Accounl are correcl and
lhe ßeneficiarv Accounl is aclivaled, as aIIolnenl of Lquilv Shares viII le in lhe denaleriaIised
forn onIv.
(d) Lnsure lhal lhe ßids are sulnilled al lhe ßidding Cenlres onIv on forns learing slanp of lhe
Svndicale Menler:
(e) Inveslors nusl ensure lhal lhe nane given in lhe ßid-cun-AppIicalion forn is exaclIv lhe sane
as lhe nane in vhich lhe Deposilorv accounl is heId. In case lhe ßid-cun-AppIicalion Iorn is
sulnilled in Ioinl nanes, il shouId le ensured lhal lhe Deposilorv accounl is aIso heId in lhe
sane Ioinl nanes and are in lhe sane sequence in vhich lhev appear in lhe ßid-cun-
AppIicalion Iorn.
(f) Lnsure lhal vou have leen given a TRS for aII vour ßid oplions:
(g) Sulnil revised lids lo lhe sane Svndicale Menler lhrough vhon lhe originaI ßid vas pIaced
and ollain a revised TRS:
(h) Lnsure lhal lhe ßid is vilhin lhe Irice ßand.
(i) Lach ßidder shouId nenlion his or her Iernanenl Accounl Nunler (IAN) aIIolled under lhe
I.T. Acl.
(j) Lnsure lhal denographic delaiIs are updaled lrue and correcl in aII respecls.

Dnn'ts:

a. Do nol ßid if vou are prohililed fron doing so under lhe Iav of vour IocaI jurisdiclion:
l. Do nol ßid for Iover lhan nininun ßid size:
c. Do nol ßid or revise lhe ßid lo Iess lhan lhe Iover end of lhe Irice ßand or higher lhan lhe higher
end of lhe Irice ßand:
d. Do nol ßid on anolher ßid-cun-AppIicalion Iorn afler vou have sulnilled a ßid lo lhe nenlers
of lhe Svndicale:
e. Do nol pav ßid anounl in cash, nonev order, poslaI order or lv slockinvesl:
f. Do nol ßid al cul off price (for OIß ßidders and Non-InslilulionaI ßidders)
g. Do nol lid vhere lid anounl exceeds C 1,OO,OOO (for RelaiI IndividuaI ßidders)
h. Do nol fiII up lhe ßid-cun-AppIicalion Iorn for an anounl lhal exceeds lhe Issue size and / or
inveslnenl Iinil or naxinun nunler of Lquilv Shares lhal can le heId lv a ßidder under lhe
appIicalIe Iavs / reguIalions or naxinun anounl pernissilIe under lhe appIicalIe reguIalions.
i. Do nol send ßid-cun-AppIicalion Iorn lv posl: inslead sulnil lhe sane lo a nenler of lhe
Svndicale onIv.
j. Do nol provide vour CIR nunler inslead of vour IAN as lid is IialIe lo le rejecled on lhose
ground.
k. Do nol sulnil lhe ßid vilhoul lhe IuII ßid Anounl lhrough lhe ßid-cun-AppIicalion Iorn.

InstructInns sµccIfIc tn A5BA BIddcrs

Dn's:

a. Lnsure lhal vou use lhe ßid-cun-ASßA Iorn specified for lhe purposes of ASßA process.
l. Read aII lhe inslruclions carefuIIv and conpIele lhe ßid-cun-ASßA Iorn.
c. Lnsure lhal lhe delaiIs of vour Deposilorv Iarlicipanl and leneficiarv accounl are correcl and lhal
vour leneficiarv accounl is aclivaled, as Lquilv Shares viII le aIIolled in denaleriaIised forn
onIv.
d. Lnsure lhal vour ßid is sulnilled vilh Svndicale/sul-svndicale nenler or al a Designaled
ßranch of an SCSß, vilh a lranch of vhich lhe ASßA ßidder or a person vhose lank accounl viII
le uliIized lv lhe ASßA ßidder for lidding has a lank accounl and nol lo lhe ßankers lo lhe
Issue/CoIIecling ßanks (assuning lhal such CoIIecling ßank is nol a SCSß), lo lhe Conpanv or

167

Regislrar or ßRLM lo lhe Issue.
e. Lnsure lhal lhe ßid-cun-ASßA Iorn is signed lv lhe accounl hoIder in case lhe appIicanl is nol
lhe accounl hoIder.
f. Lnsure lhal vou have nenlioned lhe correcl lank accounl nunler in lhe ßid-cun-ASßA Iorn.
g. Lnsure lhal vou have funds equaI lo lhe ßid Anounl nenlioned in lhe ßid-cun-ASßA Iorn
avaiIalIe in vour lank accounl nainlained vilh lhe SCSß lefore sulnilling lhe ßid-cun-ASßA
Iorn lo lhe respeclive Designaled ßranch of lhe SCSß.
h. Lnsure lhal vou have correclIv checked lhe aulhorisalion lox in lhe ßid-cun-ASßA Iorn, or have
olhervise provided an aulhorisalion lo lhe SCSß via lhe eIeclronic node, for lhe Designaled
ßranch lo lIock funds equivaIenl lo lhe ßid Anounl nenlioned in lhe ßid-cun-ASßA Iorn in
vour ASßA Accounl nainlained vilh a lranch of lhe concerned SCSß.
i. Lnsure lhal vou receive an acknovIedgenenl fron lhe Svndicale/sul-svndicale nenler or lhe
Designaled ßranch of lhe concerned SCSß for lhe sulnission of vour ßid-cun-ASßA Iorn.
j. Lnsure lhal vou have nenlioned vour Iernanenl Accounl Nunler (¨IAN¨) aIIolled under lhe
I.T. Acl.
k. Lnsure lhal lhe nane(s) given in lhe ßid-cun-ASßA Iorn is exaclIv lhe sane as lhe nane(s) in
vhich lhe leneficiarv accounl is heId vilh lhe Deposilorv Iarlicipanl. In case lhe ASßA ßid is
sulnilled in joinl nanes, ensure lhal lhe leneficiarv accounl is aIso heId in sane joinl nanes and
such nanes are in lhe sane sequence in vhich lhev appear in lhe ßid-cun-ASßA Iorn.
I. Lnsure lhal lhe Denographic DelaiIs are updaled, lrue and correcl, in aII respecls

Dnn'ts:
a. Do nol ßid or revise ßid price lo Iess lhan lhe fIoor price or nore lhan lhe cap price.
l. Do nol ßid for Iover lhan lhe nininun ßid size.
c. Do nol ßid lhrough anolher ASßA or non ßid-cun-ASßA Iorn afler vou have sulnilled a ßid lo
a Designaled ßranch of lhe SCSß/ Svndicale/sul-svndicale nenler.
d. Iavnenl of ßid Anounls in anv node olher lhan lIocked anounls in lhe lank accounls
nainlained lv SCSßs, shaII nol le accepled under lhe ASßA process.
e. Do nol send vour phvsicaI ßid-cun-ASßA Iorn lv posl: inslead sulnil lhe sane lo a Designaled
ßranch of lhe SCSß/Svndicale/sul-svndicale nenler onIv.
f. Do nol fiII up lhe ßid-cun-ASßA Iorn such lhal lhe lid anounl againsl lhe nunler of Lquilv
Shares ßid for exceeds lhe inveslnenl Iinil under lhe appIicalIe Iavs or reguIalions or naxinun
anounl pernissilIe under lhe appIicalIe reguIalions or under lhe lerns of lhe Red Herring
Irospeclus.
g. Do nol sulnil lhe CIR nunler inslead of lhe IAN Nunler.
h. Do nol inslrucl vour respeclive lanks lo reIease lhe funds lIocked in lhe lank accounl under lhe
ASßA process.

InstructInns fnr cnmµ!ctIng thc BId-cum-Aµµ!IcatInn / A5BA Fnrm

(a) Made onIv in lhe prescriled ßid-cun-AppIicalion Iorn or Revision Iorn, as appIicalIe (vhile
coIour for Residenl Indians and non-residenls appIving on a non-repalrialion lasis: lIue coIour
for lhe LIigilIe NRIs and IIIs appIving on a repalrialion lasis).

(l) In singIe nane or in joinl nanes (nol nore lhan lhree, and in lhe sane order as lheir Deposilorv
Iarlicipanl delaiIs).

168

(c) ConpIeled in fuII, in ßLOCK LLTTLRS in LNCLISH and in accordance vilh lhe inslruclions
conlained herein, in lhe ßid-cun-AppIicalion Iorn or in lhe Revision Iorn.

(d) The ßids fron lhe RelaiI IndividuaI ßidders nusl le for a nininun of |y! Lquilv Shares and in
nuIlipIes of |y! Lquilv Shares lhereafler, suljecl lo a naxinun ßid Anounl of C 1,OO,OOO.

(e) Ior Non-InslilulionaI ßidders and OIß ßidders, ßids nusl le for a nininun of such nunler of
Lquilv Shares in nuIlipIes of |y! Lquilv Shares such lhal lhe ßid Anounl exceeds C 1,OO,OOO and
in nuIlipIes of |y! Lquilv Shares. ßids cannol le nade for nore lhan lhe Issue. ßidders are
advised lo ensure lhal a singIe ßid fron lhen shouId nol exceed lhe inveslnenl Iinils or
naxinun nunler of shares lhal can le heId lv lhen under lhe appIicalIe Iavs or reguIalions.

(f) Thunl inpressions and signalures olher lhan in lhe Ianguages specified in lhe Lighlh ScheduIe
in lhe Conslilulion of India nusl le allesled lv a Magislrale or a Nolarv IulIic or a SpeciaI
Lxeculive Magislrale under officiaI seaI.

(g) ßids lhrough ASßA nusl le:

a. nade onIv in lhe prescriled ASßA Iorn (if sulnilled in phvsicaI node) or lhe eIeclronic
node.
l. nade in singIe nane or in joinl nanes (nol nore lhan lhree, and in lhe sane order as lheir
delaiIs appear vilh lhe Deposilorv Iarlicipanl).
c. conpIeled in fuII, in ßLOCK LLTTLRS in LNCLISH and in accordance vilh lhe inslruclions
conlained in lhe Red Herring Irospeclus and in lhe ASßA Iorn.
d. for a nininun of |y! Lquilv Shares and in nuIlipIes of |y! Lquilv Shares lhereafler suljecl lo a
naxinun of |y! Lquilv Shares. ßid lv an ASßA ßidder faIIing under lhe RelaiI IndividuaI ßidder
calegorv cannol exceed C 1,OO,OOO.

(h) ASßA ßidders shouId correclIv nenlion lhe ASßA Accounl nunler and ensure lhal funds equaI
lo lhe ßid Anounl are avaiIalIe in lhe ASßA Accounl lefore sulnilling lhe ASßA Iorn lo lhe
Svndicale or sul-svndicale nenler or lhe Designaled ßranch olhervise lhe concerned SCSß
shaII rejecl lhe ßid.

(i) If lhe ASßA Accounl hoIder is differenl fron lhe ASßA ßidder, lhe ASßA Iorn shouId le signed
lv lhe ASßA Accounl hoIder, in accordance vilh lhe inslruclions provided in lhe ASßA Iorn.

(j) ßidders shouId correclIv nenlion lheir nane, DI ID and CIienl ID and such olher delaiIs as
required in lhe ßid-cun-AppIicalion Iorn, or lhe ASßA Iorn, as lhe case nav le. Ior lhe
purpose of evaIualing lhe vaIidilv of ßids, lhe Denographic DelaiIs of ßidders shaII le derived
fron lhe DI ID and CIienl ID nenlioned in lhe ßid cun AppIicalion Iorn, or lhe ASßA Iorn, as
lhe case nav le.

(k) Ior ASßA ßidders, lhe ßids in phvsicaI node shouId le sulnilled lo lhe SCSßs/Svndicale/sul-
svndicale nenler on lhe prescriled ASßA Iorn. SCSßs/Svndicale/sul-svndicale nenler nav
provide lhe eIeclronic node of lidding eilher lhrough an inlernel enalIed lidding and lanking
faciIilv or such olher secured, eIeclronicaIIv enalIed nechanisn for lidding and lIocking funds
in lhe ASßA Accounl.

(I) ASßA Iorns shouId lear lhe slanp of lhe Svndicale Menler and/or Designaled ßranch. ASßA
Iorns vhich do nol lear lhe slanp viII le rejecled.

169


Aµµ!IcatInn In thc Issuc

Lquilv Shares leing issued lhrough lhis Drafl Red Herring Irospeclus can le appIied for in lhe
denaleriaIized forn onIv.

BIddcr's DcµnsItnrv Accnunt DctaI!s

BIddcrs shnu!d nntc that nn thc basIs nf namc nf thc BIddcrs, DcµnsItnrv PartIcIµant's namc,
DcµnsItnrv PartIcIµant IdcntIfIcatInn numbcr and BcncfIcIarv Accnunt Numbcr µrnvIdcd bv thcm
In thc BId-cum-Aµµ!IcatInn Fnrm, thc RcgIstrar tn thc Issuc wI!! nbtaIn frnm thc DcµnsItnrv
dcmngraµhIc dctaI!s nf thc BIddcrs such as addrcss, bank accnunt dctaI!s fnr µrIntIng nn rcfund
nrdcrs nr gIvIng crcdIt thrnugh EC5, DIrcct CrcdIt, RTG5 nr NEFT and nccuµatInn (hcrcInaftcr
rcfcrrcd tn as "DcmngraµhIc DctaI!s"). Hcncc, BIddcrs shnu!d carcfu!!v fI!! In thcIr DcµnsItnrv
Accnunt dctaI!s In thc BId-cum-Aµµ!IcatInn Fnrm nr A5BA Fnrm.

IT I5 MANDATORY FOR ALL THE BIDDER5 TO GET THEIR EQUITY 5HARE5 IN THE
DEMATERIALI5ED FORM. ALL BIDDER5 5HOULD MENTION THEIR PAN, DEPO5ITORY
PARTICIPANT'5 NAME, DEPO5ITORY PARTICIPANT'5 IDENTIFICATION NUMBER AND
BENEFICIARY ACCOUNT NUMBER IN THE BID-CUM-APPLICATION FORM OR A5BA
FORM. INVE5TOR5 MU5T EN5URE THAT THE DP ID, CLIENT ID AND PAN GIVEN IN THE
BID-CUM-APPLICATION FORM OR A5BA FORM I5 EXACTLY THE 5AME A5 THE DP ID,
CLIENT ID AND PAN AVAILABLE IN THE DEPO5ITORY DATABA5E. IN CA5E THE BID-
CUM-APPLICATION FORM OR A5BA FORM I5 5UBMITTED IN JOINT NAME5, IT 5HOULD
BE EN5URED THAT THE DEPO5ITORY ACCOUNT I5 AL5O HELD IN THE 5AME JOINT
NAME5 AND ARE IN THE 5AME 5EQUENCE IN WHICH THEY APPEAR IN THE BID-CUM-
APPLICATION FORM OR A5BA FORM.

These Denographic DelaiIs vouId le used for aII correspondence vilh lhe ßidders incIuding naiIing
of lhe refund orders/ CANs/AIIocalion Advice and prinling of ßank parlicuIars on lhe refund order
or for refunds lhrough eIeclronic lransfer of funds, as appIicalIe. The Denographic DelaiIs given lv
ßidders in lhe ßid-cun-AppIicalion Iorn or ASßA Iorn vouId nol le used for anv olher purposes
lv lhe Regislrars lo lhe Issue.

Hcncc, BIddcrs arc advIscd tn uµdatc thcIr DcmngraµhIc DctaI!s as µrnvIdcd tn thcIr DcµnsItnrv
PartIcIµants and cnsurc that thcv arc truc and cnrrcct.

ßv signing lhe ßid-cun-AppIicalion Iorn, ßidder vouId le deened lo have aulhorised lhe
deposilories lo provide, upon requesl, lo lhe Regislrar lo lhe Issue, lhe required Denographic delaiIs
as avaiIalIe on ils records.

Refund Orders/ AIIocalion Advice/ CANs vouId le naiIed lo lhe ßidder as per lhe Denographic
DelaiIs received fron lhe Deposilories. ßidders nav nole lhal deIiverv of refund orders/ aIIocalion
advice/ CANs nav gel deIaved if lhe sane once senl lo lhe address ollained fron lhe deposilories
are relurned undeIivered. In such an evenl, lhe address and olher delaiIs given lv lhe ßidders olher
lhan ASßA ßidders in lhe ßid-cun-AppIicalion Iorn vouId le used onIv lo ensure dispalch of
refund orders. IIease nole lhal anv such deIav shaII le al lhe ßidders soIe risk and neilher lhe
Conpanv, lhe Regislrar, Lscrov CoIIeclion ßank(s) nor lhe ßRLM/Svndicale Menler shaII le IialIe
lo conpensale lhe ßidder for anv Iosses caused lo lhe ßidder due lo anv such deIav or IialIe lo pav
anv inleresl for such deIav. In case of refunds lhrough eIeclronic nodes as delaiIed in lhis Drafl Red
Herring Irospeclus, lidders nav nole lhal refunds nav gel deIaved if lank parlicuIars ollained

17O

fron lhe deposilorv parlicipanls are incorrecl.

In case no corresponding record is avaiIalIe vilh lhe Deposilories lhal nalches lhree paranelers,
naneIv, IAN of lhe soIe/Iirsl ßidder, lhe Deposilorv Iarlicipanl's idenlilv (DI ID) and lhe
leneficiarv's idenlilv, lhen such ßids are IialIe lo le rejecled. Our Conpanv in ils alsoIule discrelion,
reserve lhe righl lo pernil lhe hoIder of lhe pover of allornev lo requesl lhe Regislrar lhal for lhe
purpose of prinling parlicuIars on lhe refund order and naiIing of lhe refund
order/CANs/aIIocalion advice/ refunds lhrough eIeclronic lransfer of funds, lhe Denographic
DelaiIs given on lhe ßid-cun-AppIicalion Iorn or ASßA Iorn shouId le used (and nol lhose
ollained fron lhe Deposilorv of lhe ßidder). In such cases, lhe Regislrar shaII use Denographic
DelaiIs as given in lhe ßid-cun-AppIicalion Iorn or ASßA Iorn inslead of lhose ollained fron lhe
deposilories.

Rcfunds, dIvIdcnds and nthcr dIstrIbutInns, If anv, wI!! bc µavab!c In IndIan Ruµccs nn!v and nct
nf bank chargcs and / nr cnmmIssInn. In casc nf BIddcrs whn rcmIt mnncv thrnugh IndIan Ruµcc
drafts µurchascd abrnad, such µavmcnts In IndIan Ruµccs wI!! bc cnnvcrtcd Intn U5 Dn!!ars nr
anv nthcr frcc!v cnnvcrtIb!c currcncv as mav bc µcrmIttcd bv thc RBI at thc ratc nf cxchangc
µrcvaI!Ing at thc tImc nf rcmIttancc and wI!! bc dIsµatchcd bv rcgIstcrcd µnst nr If thc BIddcrs sn
dcsIrc, wI!! bc crcdItcd tn thcIr NRE accnunts, dctaI!s nf whIch shnu!d bc furnIshcd In thc sµacc
µrnvIdcd fnr thIs µurµnsc In thc BId-cum-Aµµ!IcatInn Fnrm nr A5BA Fnrm. Thc Cnmµanv and/nr
thc Bnnk RunnIng Lcad Managcr wI!! nnt bc rcsµnnsIb!c fnr !nss, If anv, Incurrcd bv thc BIddcr nn
accnunt nf cnnvcrsInn nf fnrcIgn currcncv.

OTHER IN5TRUCTION5

JnInt BIds In thc casc nf IndIvIdua!s

IndividuaIs nav nake lid in singIe or joinl nanes (nol nore lhan lhree). In lhe case of joinl ßids, aII
refunds viII le nade oul in favour of lhe ßidder vhose nane appears firsl in lhe ßid-cun-
AppIicalion Iorn or Revision Iorn ("Iirsl ßidder"). AII connunicalions viII le addressed lo lhe
Iirsl ßidder and viII le dispalched lo his or her address as per lhe Denographic DelaiIs received
fron lhe Deposilorv.

Iurlher, ASßA ßids nav le nade in singIe or joinl nanes (nol nore lhan lhree). In case of joinl ßids
lv ASßA ßidders, aII connunicalions viII le addressed lo lhe firsl ßidder and viII le dispalched lo
his/her address.

Mu!tIµ!c BIds

A ßidder shouId sulnil onIv one ßid (and nol nore lhan one) for lhe lolaI nunler of Lquilv Shares
required. Tvo or nore ßids viII le deened lo le nuIlipIe ßids if lhe soIe or firsl lidder is one and
lhe sane.

In lhis regard, iIIuslralions of cerlain procedures, vhich nav le foIIoved lv lhe Regislrar lo lhe Issue
lo delecl nuIlipIe appIicalions, are provided leIov:
1. AII appIicalions vilh lhe sane nane and age viII le accunuIaled and laken lo a separale process
fiIe, vhich vouId serve as a nuIlipIe nasler.
2. In lhis nasler, a check viII le carried oul for lhe sane IAN. In cases vhere lhe IAN nunlers are
differenl, lhe sane viII le deIeled fron lhis nasler.
3. The Regislrar viII ollain, fron deposilories, delaiIs of lhe appIicanls' address lased on lhe DI ID

171

and ßeneficiarv Accounl Nunler provided in lhe ßid-cun-AppIicalion Iorn and creale an
address nasler.
4. The addresses of aII lhe appIicanls in lhe nuIlipIe nasler viII le slrung fron lhe address nasler.
This invoIves pulling lhe addresses in a singIe Iine afler deIeling non-aIpha and non-nuneric
characlers i.e. connas, fuII slops, hash elc. Sonelines, lhe nane, lhe firsl Iine of addresses and
pin code viII le converled inlo a slring for each appIicalion received and a pholo nalch viII le
carried oul anongsl aII lhe appIicalion processed. A prinl-oul of lhe addresses viII le laken lo
check for connon nanes. The appIicalion vilh sane nane and sane address viII le lrealed as
nuIlipIe appIicalions.
5. The appIicalions viII le scrulinised for lheir DI ID and ßeneficiarv Accounl Nunlers. In case
appIicalions lear lhe sane DI ID and ßeneficiarv Accounl Nunlers, lhese viII le lrealed as
nuIlipIe appIicalions.
6. Sulsequenl lo lhe aforesaid procedures, a prinl oul of nuIlipIe nasler viII le laken and
appIicalions phvsicaIIv verified lo laIIv signalures as aIso falher's/husland's nanes. On
conpIelion of lhis, lhe appIicalions viII le idenlified as nuIlipIe appIicalions.

In case of a nuluaI fund, a separale ßid can le nade in respecl of each schene of lhe nuluaI fund
regislered vilh SLßI and such ßids in respecl of nore lhan one schene of lhe nuluaI fund viII nol le
lrealed as nuIlipIe lids provided lhal lhe ßids cIearIv indicale lhe schene concerned for vhich lhe
ßid has leen nade.

The Conpanv reserves lhe righl lo rejecl, in lheir alsoIule discrelion, aII or anv nuIlipIe ßids in anv
or aII calegories. A check viII le carried oul for lhe sane IAN. In cases vhere lhe IAN is sane, such
lids viII le lrealed as nuIlipIe appIicalions.

An ASßA ßidder shouId sulnil onIv one ßid. Tvo or nore ßids viII le deened lo le nuIlipIe lids if
lhe soIe or firsl ßidder is lhe sane.

Pcrmancnt Accnunt Numbcr (PAN)

Lxcepl for lhe ßids on lehaIf of CenlraI and Slale Covernnenl and officiaIs appoinled lv Courl, lhe
ßidders or in lhe case of ßids nade in joinl nanes, each of lhe ßidder, shouId nenlion his or her
Iernanenl Accounl Nunler (IAN) aIIolled under lhe I.T. Acl. SLßI has issued a CircuIar No.
MRD/DoI/Cir-O5/2OO7 daled ApriI 27, 2OO7 requiring lhal vilh effecl fron IuIv 2, 2OO7 lhe IAN
vouId le lhe soIe idenlificalion nunler for lhe parlicipanls lransacling in lhe securilies narkel,
irrespeclive of lhe anounl of lransaclion. Aµµ!IcatInns wIthnut thIs InfnrmatInn wI!! bc cnnsIdcrcd
Incnmµ!ctc and arc !Iab!c tn bc rcjcctcd. It Is tn bc sµccIfIca!!v nntcd that BIddcrs shnu!d nnt
submIt thc GIR numbcr Instcad nf thc PAN, as thc BId Is !Iab!c tn bc rcjcctcd nn thIs grnund.

IMPER5ONATION

Allenlion of lhe appIicanls is specificaIIv dravn lo lhe provisions of sul-seclion (1) of Seclion 68A of
lhe Conpanies Acl, vhich is reproduced leIov:

"Anv µcrsnn whn:

(a) makcs In a fIctItInus namc, an aµµ!IcatInn tn a Cnmµanv fnr acquIrIng nr subscrIbIng fnr, anv
sharcs thcrcIn, nr

172

(b) nthcrwIsc Induccs a Cnmµanv tn a!!nt, nr rcgIstcr anv transfcr nf sharcs thcrcIn tn hIm, nr anv
nthcr µcrsnn In a fIctItInus namc, sha!! bc µunIshab!c wIth ImµrIsnnmcnt fnr a tcrm whIch
mav cxtcnd tn fIvc vcars."


5ubmIssInn nf BId-cum-Aµµ!IcatInn Fnrm

AII ßid-cun-AppIicalion Iorns or Revision Iorns duIv conpIeled and acconpanied lv Accounl
Iavee cheques or drafls shaII le sulnilled lo lhe Menlers of lhe Svndicale al lhe line of sulnilling
lhe ßid-cun-AppIicalion Iorn.

No separale receipls shaII le issued for lhe nonev pavalIe on sulnission of ßid-cun-AppIicalion
Iorn or Revision Iorn. Hovever, lhe coIIeclion cenlre of lhe Menlers of lhe Svndicale viII
acknovIedge lhe receipl of lhe ßid-cun-AppIicalion Iorns or Revision Iorns lv slanping and
relurning lo lhe ßidder lhe acknovIedgenenl sIip. This acknovIedgenenl sIip viII serve as lhe
dupIicale of lhe ßid-cun-AppIicalion Iorn for lhe records of lhe ßidder.

E!cctrnnIc RcgIstratInn nf BIds bv BIddcrs, nthcr than A5BA BIddcrs

(a) The nenlers of lhe Svndicale and SCSßs viII regisler lhe ßids using lhe on-Iine faciIilies of lhe
Slock Lxchanges. There viII le al Ieasl one on-Iine conneclivilv in each cilv, vhere a slock
exchange is Iocaled in India and vhere ßids are leing accepled. The Menlers of lhe Svndicale,
our Conpanv, and lhe Regislrar lo lhe Issue are nol responsilIe for anv acls, nislakes or errors
or onission and connissions in reIalion lo, (i) lhe ßids accepled lv lhe SCSßs, (ii) lhe ßids
upIoaded lv lhe SCSßs, (iii) lhe ßids accepled lul nol upIoaded lv lhe SCSßs or (iv) vilh
respecl lo ASßA ßids accepled and upIoaded vilhoul lIocking funds in lhe ASßA Accounls. Il
shaII le presuned lhal for ßids upIoaded lv lhe SCSßs, lhe ßid Anounl has leen lIocked in
lhe reIevanl ASßA Accounl. The nenlers of lhe Svndicale and lhe SCSßs shaII le responsilIe
for anv error in lhe ßid delaiIs upIoaded lv lhen.
(l) The nenlers of lhe Svndicale and lhe SCSßs viII underlake nodificalion of seIecled fieIds in
lhe ßid delaiIs aIreadv upIoaded vilhin one Working Dav fron lhe Issue CIosing Dale.
(c) In case of apparenl dala enlrv error lv eilher lhe nenlers of lhe Svndicale or lhe coIIecling
lank in enlering lhe ßid cun AppIicalion Iorn nunler in lheir respeclive scheduIes olher
lhings renaining unchanged, lhe ßid cun AppIicalion Iorn nav le considered as vaIid and
such exceplions nav le recorded in ninules of lhe neeling sulnilled lo Slock Lxchange(s). In
lhe evenl of nislake in capluring lhe ßid cun AppIicalion Iorn nunler lv eilher lhe nenler
of lhe Svndicale or coIIecling lank Ieading lo rejeclion of lhe ßid cun AppIicalion Iorn, lhe
Regislrar nav idenlifv lased on lhe ßid cun AppIicalion Iorn, lhe enlilv responsilIe for lhe
error.
(d) The Slock Lxchanges viII offer an eIeclronic faciIilv for regislering ßids for lhe Issue. This
faciIilv viII le avaiIalIe vilh nenlers of lhe Svndicale and lheir aulhorised agenls and lhe
SCSßs during lhe Issue Ieriod. The nenlers of lhe Svndicale and lhe Designaled ßranches can
aIso sel up faciIilies for off-Iine eIeclronic regislralion of ßids suljecl lo lhe condilion lhal lhev
viII sulsequenlIv upIoad lhe off-Iine dala fiIe inlo lhe on-Iine faciIilies for ßook ßuiIding
Irocess on a reguIar lasis. On lhe Issue CIosing Dale, lhe nenlers of lhe Svndicale and lhe
Designaled ßranches shaII upIoad lhe ßids liII such line as nav le pernilled lv lhe Slock
Lxchanges. This infornalion viII le avaiIalIe vilh lhe nenlers of lhe Svndicale on a reguIar
lasis. ßidders are caulioned lhal a high infIov of high voIunes on lhe Iasl dav of lhe Offer
Ieriod nav Iead lo sone ßids received on lhe Iasl dav nol leing upIoaded and such ßids viII
nol le considered for aIIocalion.
(e) ßased on lhe aggregale denand and price for ßids regislered on lhe eIeclronic faciIilies of lhe

173

Slock Lxchanges, a graphicaI represenlalion of consoIidaled denand and price vouId le nade
avaiIalIe al lhe lidding cenlres during lhe Issue Ieriod.

Al lhe line of regislering each ßid, lhe nenlers of lhe Svndicale shaII enler lhe foIIoving delaiIs
of lhe inveslor in lhe on-Iine svslen:
• Nane of lhe ßidder(s): ßidders shouId ensure lhal lhe nane given in lhe ßid-cun-
AppIicalion Iorn is exaclIv lhe sane as lhe nane in vhich lhe Deposilorv Accounl is heId.
In case lhe ßid-cun-AppIicalion Iorn is sulnilled in joinl nanes, ßidders shouId ensure
lhal lhe Deposilorv Accounl is aIso heId in lhe sane joinl nanes and are in lhe sane
sequence in vhich lhev appear in lhe ßid-cun-AppIicalion Iorn:
• Inveslor Calegorv - IndividuaI, Corporale, OIß, NRI, III, MuluaI Iund elc.:
• IAN (of Iirsl ßidder in case of nore lhan one ßidder):
• Nunlers of Lquilv Shares lid for:
• ßid price:
• ßid-cun-AppIicalion Iorn nunler:
• Cheque delaiIs:
• Deposilorv Iarlicipanl Idenlificalion Nunler and CIienl Idenlificalion Nunler of lhe
denal Accounl of lhe ßidder.

(f) A svslen generaled TRS viII le given lo lhe ßidder as a proof of lhe regislralion of each of lhe
lidding oplions. It Is thc BIddcr's rcsµnnsIbI!Itv tn nbtaIn thc TR5 frnm thc mcmbcrs nf thc
5vndIcatc. The regislralion of lhe ßid lv lhe nenlers of lhe Svndicale does nol guaranlee lhal
lhe Lquilv Shares shaII le aIIocaled eilher lv lhe nenlers of lhe Svndicale or our Conpanv.

(g) Such TRS viII le non-negolialIe and lv ilseIf viII nol creale anv olIigalion of anv kind.

(h) The ßRLM/ nenler of lhe Svndicale have lhe righl lo accepl lhe ßid or rejecl il in case of OIßs:
hovever, such rejeclion shouId le nade al lhe line of receiving lhe lid and onIv afler assigning
a reason for such rejeclion in vriling. In case of Non-InslilulionaI ßidders and RelaiI IndividuaI
ßidders, ßids shouId nol le rejecled excepl on lhe lechnicaI grounds Iisled on page no. 18O of lhis
Drafl Red Herring Irospeclus.

(i) Il is lo le dislinclIv underslood lhal lhe pernission given lv NSL and ßSL lo use lheir nelvork
and soflvare of lhe onIine IIO svslen shouId nol in anv vav le deened or conslrued lo nean
lhal lhe conpIiance vilh various slalulorv and olher requirenenls lv our Conpanv or ßRLM
are cIeared or approved lv NSL and ßSL: nor does il in anv nanner varranl, cerlifv or endorse
lhe correclness or conpIeleness of anv of lhe conpIiance vilh lhe slalulorv and olher
requirenenls nor does il lake anv responsiliIilv for lhe financiaI or olher soundness of our
Conpanv, our Ironolers, our nanagenenl or anv schene or projecl of our Conpanv.

(j) Il is aIso lo le dislinclIv underslood lhal lhe approvaI given lv ßSL and/or NSL shouId nol in
anv vav le deened or conslrued lhal lhis Drafl Red Herring Irospeclus has leen cIeared or
approved lv ßSL and NSL: nor does il in anv nanner varranl, cerlifv or endorse lhe correclness
or conpIeleness of anv of lhe conlenls of lhis Drafl Red Herring Irospeclus: nor does il varranl
lhal lhe Lquilv Shares viII le Iisled or viII conlinue lo le Iisled on lhe ßSL and NSL.

(k) Il is lo le noled lhal Svndicale Menlers shaII le responsilIe for anv error in lhe ßid delaiIs

174

upIoaded lv lhen. In case of apparenl dala enlrv error lv eilher Svndicale Menler or coIIecling
lank in enlering lhe appIicalion nunler in lheir respeclive scheduIes olher lhings renaining
unchanged, lhe ßid nav le considered as vaIid and such exceplions nav le recorded in ninules
of lhe neeling sulnilled lo Slock Lxchange(s). In lhe evenl of nislake in capluring lhe
appIicalion nunler lv eilher lhe Svndicale Menler or coIIecling lank Ieading lo rejeclion of
ßid, lhe Regislrar nav idenlifv lased on lhe ßid forn, lhe enlilv responsilIe for lhe error. VaIid
records in eIeclronic fiIe viII le lhose for vhich nonev is received.

(I) OnIv ßids lhal are upIoaded on lhe onIine IIO svslen of lhe NSL and ßSL shaII le considered
for aIIocalion/ aIIolnenl. In case of discrepancv of dala lelveen ßSL or NSL and nenlers of lhe
Svndicale, lhe decision of lhe ßRLM lased on lhe phvsicaI records of ßid-cun-AppIicalion Iorn
shaII le finaI and linding lo aII concerned.

E!cctrnnIc rcgIstratInn nf BIds bv 5C5Bs

a) In case of ßid-cun-ASßA Iorns, vhelher in phvsicaI or eIeclronic node, lhe Designaled ßranch
of lhe SCSßs viII regisler lhe ßids using lhe onIine faciIilies of lhe Slock Lxchanges. SCSß shaII nol
upIoad anv ASßA AppIicalion Iorn in lhe eIeclronic lidding svslen of lhe Slock Lxchange(s)
unIess
i) il has received lhe ASßA in a phvsicaI or eIeclronic forn: and
ii) il has lIocked lhe appIicalion nonev in lhe lank accounl specified in lhe ASßA or has svslens
lo ensure lhal LIeclronic ASßAs are accepled in lhe svslen onIv afler lIocking of appIicalion
nonev in lhe reIevanl lank accounl opened vilh il.
l) The Slock Lxchanges offer a screen-lased faciIilv for regislering ßids for lhe Issue vhich viII le
avaiIalIe on lhe lerninaIs of Designaled ßranches during lhe ßid/Issue Ieriod. The Designaled
ßranches can aIso sel up faciIilies for offIine eIeclronic regislralion of ßids suljecl lo lhe condilion
lhal lhev viII sulsequenlIv upIoad lhe offIine dala fiIe inlo lhe onIine faciIilies for look luiIding
on a reguIar lasis. On lhe ßid/Issue CIosing Dale, lhe Designaled ßranches of lhe SCSßs shaII
upIoad lhe ßids liII such line as nav le pernilled lv lhe Slock Lxchanges. ASßA ßidders are
caulioned lhal high infIov of lids lvpicaIIv received on lhe Iasl dav of lhe lidding nav Iead lo
sone ßids received on lhe Iasl dav nol leing upIoaded due lo Iack of sufficienl upIoading line,
and such lids lhal are nol upIoaded nav nol le considered for aIIocalion.
c) Al lhe line of regislering each ßid, lhe Designaled ßranches of lhe SCSßs shaII enler lhe
infornalion perlaining lo lhe inveslor inlo lhe onIine svslen, incIuding lhe foIIoving delaiIs:
• Nane of lhe ßidder(s):
• ASßA Iorn Nunler:
• Iernanenl Accounl Nunler (of Iirsl ßidder in case of nore lhan one ßidder):
• Nunler of Lquilv Shares ßid for:
• ßid Anounl:
• Deposilorv Iarlicipanl Idenlificalion Nunler:
• ßank Accounl nunler:
• ßidder´s ßeneficiarv Accounl Nunler: and
• CIienl Idenlificalion No. of lhe ßidder´s leneficiarv accounl.
In case of eIeclronic ASßA, lhe ASßA ßidder shaII hinseIf fiII in aII lhe alove nenlioned delaiIs,
excepl lhe appIicalion nunler vhich shaII le svslen generaled. The SCSßs shaII lhereafler
upIoad aII lhe alove nenlioned delaiIs in lhe eIeclronic lidding svslen provided lv lhe Slock
Lxchange(s).

175

d) A svslen generaled TRS viII le given lo lhe ASßA ßidder upon requesl as proof of lhe
regislralion of lhe ßid. It Is thc A5BA BIddcr's rcsµnnsIbI!Itv tn nbtaIn thc TR5 frnm thc
DcsIgnatcd Branchcs nf thc 5C5Bs. The regislralion of lhe ßid lv lhe Designaled ßranch of lhe
SCSß does nol guaranlee lhal lhe Lquilv Shares lid for shaII le aIIocaled lo lhe ASßA ßidders.
e) Such TRS viII le non-negolialIe and lv ilseIf viII nol creale anv olIigalion of anv kind.
f) Il is lo le dislinclIv underslood lhal lhe pernission given lv lhe Slock Lxchanges lo use lheir
nelvork and soflvare of lhe onIine IIO svslen shouId nol in anv vav le deened or conslrued lo
nean lhal lhe conpIiance vilh various slalulorv and olher requirenenls lv our Conpanv or lhe
ßRLM or lhe Designaled ßranches of lhe SCSßs are cIeared or approved lv lhe Slock Lxchanges:
nor does il in anv nanner varranl, cerlifv or endorse lhe correclness or conpIeleness of
conpIiance vilh lhe slalulorv and olher requirenenls: nor does il lake anv responsiliIilv for lhe
financiaI or olher soundness of our Conpanv, our nanagenenl or anv schene or projecl of our
Conpanv.
g) The SCSß nav rejecl lhe ASßA ßid upon receipl of ßid-cun-ASßA Iorn, if lhe ASßA Accounl
nainlained vilh lhe SCSß as nenlioned in lhe ßid-cun-ASßA Iorn does nol have sufficienl
funds equivaIenl lo lhe ßid Anounl. Sulsequenl lo lhe acceplance of lhe ßid lv lhe Designaled
ßranch, our Conpanv vouId have a righl lo rejecl lhe ßids onIv on lechnicaI grounds.
h) OnIv ßids lhal are upIoaded on lhe onIine IIO svslen of lhe Slock Lxchanges shaII le considered
for aIIocalion/AIIolnenl. In case of discrepancv of dala lelveen lhe ßSL or NSL and lhe
Designaled ßranches of lhe SCSßs, lhe decision of lhe Regislrar, in consuIlalion vilh lhe ßRLM,
lhe Conpanv and lhe Designaled Slock Lxchange, lased on lhe phvsicaI records of lhe ßid-cun-
ASßA Iorns shaII le finaI and linding on aII concerned.

BuI!d uµ nf thc Bnnk and RcvIsInn nf BIds, nthcr than A5BA µrnccss

(a) ßids regislered lv various ßidders lhrough lhe nenlers of lhe Svndicale shaII le eIeclronicaIIv
lransnilled lo lhe NSL or ßSL nainfrane on a reguIar lasis.
(l) The look gels luiId up al various price IeveIs. This infornalion viII le avaiIalIe vilh lhe ßRLM
on a reguIar lasis.
(c) During lhe ßidding Ieriod, anv ßidder vho has regislered his or her inleresl in lhe Lquilv
Shares al a parlicuIar price IeveI is free lo revise his or her ßid vilhin lhe price land using lhe
prinled Revision Iorn, vhich is a parl of lhe ßid-cun-AppIicalion Iorn.
(d) Revisions can le nade in lolh lhe desired nunlers of Lquilv Shares and lhe lid price lv using
lhe Revision Iorn. Aparl fron nenlioning lhe revised oplions in lhe revision forn, lhe ßidder
nusl aIso nenlion lhe delaiIs of aII lhe oplions in his or her ßid-cun-AppIicalion Iorn or
earIier Revision Iorn. Ior exanpIe, if a ßidder has lid for lhree oplions in lhe ßid-cun-
AppIicalion Iorn and he is changing onIv one of lhe oplions in lhe Revision Iorn, he nusl sliII
fiII lhe delaiIs of lhe olher lvo oplions lhal are nol leing changed, in lhe Revision Iorn
unchanged. InconpIele or inaccurale Revision Iorns viII nol le accepled lv lhe nenlers of
lhe Svndicale.
(e) Anv revision of lhe ßid shaII le acconpanied lv pavnenl in lhe forn of cheque or denand
drafl for lhe increnenlaI anounl, if anv, lo le paid on accounl of lhe upvard revision of lhe
ßid. The excess anounl, if anv, resuIling fron dovnvard revision of lhe ßid vouId le relurned
lo lhe ßidder al lhe line of refund in accordance vilh lhe lerns of lhis Drafl Red Herring
Irospeclus. In case of OIß ßidders, lhe nenlers of lhe Svndicale shaII coIIecl lhe pavnenl in
lhe forn of cheque or denand drafl or eIeclronic lransfer of funds lhrough RTCS for lhe
increnenlaI anounl in lhe OIß ßid Anounl, if anv, lo le paid on accounl of lhe upvard

176

revision of lhe ßid al lhe line of one or nore revisions lv lhe OIß ßidders.
(f) The ßidder can nake lhis revision anv nunler of lines during lhe ßidding Ieriod. Hovever,
for anv revision(s) in lhe ßid, lhe ßidders viII have lo use lhe services of lhe sane nenler of
lhe Svndicale lhrough vhon he or she has pIaced lhe originaI ßid. ßidders are advised lo relain
copies of lhe lIank Revision Iorns and lhe revised ßid nusl le nade onIv in such Revision
Iorn or copies lhereof.
(g) When a ßidder revises his or her ßid, he or she shaII surrender lhe earIier TRS and gel a revised
TRS fron lhe nenlers of lhe Svndicale. It Is thc rcsµnnsIbI!Itv nf thc BIddcr tn rcqucst fnr
and nbtaIn thc rcvIscd TR5, whIch wI!! act as µrnnf nf hIs nr hcr havIng rcvIscd thc µrcvInus
BId.
(h) OnIv ßids lhal are upIoaded on lhe onIine IIO svslen of lhe NSL and ßSL shaII le considered
for aIIocalion/aIIolnenl. In case of discrepancv of dala lelveen ßSL or NSL and nenlers of
lhe Svndicale, lhe decision of lhe ßRLM lased on lhe phvsicaI records of ßid-cun-AppIicalion
Iorn shaII le finaI and linding lo aII concerned.
(i) OIßs shaII nol le aIIoved lo vilhdrav lheir lids afler lhe ßID/Issue CIosing Dale.

BuI!d uµ nf thc Bnnk and RcvIsInn nf BIds undcr A5BA µrnccss

a. ßids regislered lhrough lhe Designaled ßranches of lhe SCSßs shaII le eIeclronicaIIv lransnilled
lo lhe ßSL or lhe NSL nainfrane on a reguIar lasis.
l. The SCSßs shaII provide lo lhe Regislrar aggregale infornalion aloul lhe nunlers of ßid-cun-
ASßA Iorns upIoaded, lolaI nunler of Lquilv Shares and lolaI anounl lIocked againsl lhe
upIoaded ßid-cun-ASßA Iorn and olher infornalion perlaining lo lhe ASßA ßidders. The
Regislrar lo lhe Issue shaII reconciIe lhe eIeclronic dala received fron lhe Slock Lxchanges and lhe
infornalion received fron lhe SCSßs. In lhe evenl of anv error or discrepancv, lhe Regislrar lo lhe
Issue shaII inforn lhe SCSß of lhe sane. The SCSß shaII le responsilIe lo provide lhe reclified
dala vilhin lhe line slipuIaled lv lhe Regislrar lo lhe Issue. Iurlher lhe decision of lhe Regislrar
lo lhe Issue in consuIlalion vilh lhe ßRLM, our Conpanv, and lhe Designaled Slock Lxchange, in
lhis regard shaII le finaI and linding.
c. During lhe ßid Ieriod, anv ASßA ßidder vho has regislered his/ her inleresl in lhe Lquilv Shares
al lhe IIoor Irice is free lo revise his/ her ßid using lhe ASßA Revision Iorn, vhich is a parl of
lhe ßid-cun-ASßA Iorn. Hovever, lhe SCSß viII nol accepl inconpIele or inaccurale Revision
Iorns.
d. The ASßA ßidder can nake lhis revision anv nunler of lines during lhe ßid Ieriod. Hovever,
for anv revision(s) in lhe ßid, lhe ASßA ßidders viII have lo use lhe services of lhe sane
Designaled ßranch of lhe SCSß vilh vhon he/she or il hoIds lhe lank accounl. ASßA ßidders
are advised lo relain copies of lhe ASßA Revision Iorn and lhe revised ßid nusl le nade onIv in
such ASßA Revision Iorn or copies lhereof.
e. Anv revision of lhe ßid shaII le acconpanied lv an inslruclion lo lIock lhe increnenlaI anounl
on accounl of lhe upvard revision of lhe ßid. The excess anounl, if anv, resuIling fron dovnvard
revision of lhe ßid vouId le unlIocked lv lhe SCSß.
f. When an ASßA ßidder revises his/her or ils ßid, he/she or il shaII surrender lhe earIier TRS and
gel a revised TRS fron lhe SCSßs. It Is thc rcsµnnsIbI!Itv nf thc A5BA BIddcr tn rcqucst fnr and
nbtaIn thc rcvIscd TR5, whIch wI!! act as µrnnf nf hIs nr hcr havIng rcvIscd thc µrcvInus BId.
g. OnIv ßids lhal are upIoaded on lhe onIine IIO svslen of lhe ßSL and NSL shaII le considered for
aIIocalion/aIIolnenl.

PAYMENT IN5TRUCTION5

177


Escrnw McchanIsm fnr BIddcrs nthcr than A5BA BIddcrs

1. Our Conpanv and nenlers of lhe Svndicale shaII open Lscrov Accounls vilh one or nore
Lscrov CoIIeclion ßanks in vhose favour lhe ßidders shaII nake lhe cheque or denand drafl in
respecl of his or her ßid and/or revision of lhe lid. Cheques or denand drafls received for lhe
fuII ßid anounl fron ßidders in a cerlain calegorv vouId le deposiled in lhe Lscrov Accounl for
lhe Issue. The Lscrov CoIIeclion ßanks viII acl in lerns of lhis Drafl Red Herring Irospeclus and
an Lscrov Agreenenl. The nonies in lhe Lscrov Accounl of our Conpanv shaII le nainlained
lv lhe Lscrov CoIIeclion ßank(s) for and on lehaIf of lhe ßidders. The Lscrov CoIIeclion ßank(s)
shaII nol exercise anv Iien vhalsoever over lhe nonies deposiled lherein and shaII hoId lhe
nonies lherein in lrusl for lhe ßidders. On lhe Designaled Dale, lhe Lscrov CoIIeclion ßanks
shaII lransfer lhe nonies fron lhe Lscrov Accounl lo lhe IulIic Issue Accounl vilh lhe ßankers
lo lhe Issue and lo lhe Refund Accounl as per lhe lerns of lhe Lscrov Agreenenl. Iavnenl of
refund lo lhe ßidders shaII aIso le nade fron lhe Refund Accounl as per lhe lerns of lhe Lscrov
Agreenenl and lhis Drafl Red Herring Irospeclus.

2. The ßidders nav nole lhal lhe Lscrov Mechanisn is nol prescriled lv SLßI and lhe sane has
leen eslalIished as an arrangenenl lelveen our Conpanv, lhe Svndicale, Lscrov CoIIeclion
ßank(s) and lhe Regislrars lo lhe Issue lo faciIilale coIIeclions fron lhe ßidders.

Tcrms nf Pavmcnt and Pavmcnt Intn thc Escrnw Cn!!cctInn Accnunt

Lach ßidder, shaII provide lhe appIicalIe ßid Anounl, vilh lhe sulnission of lhe ßid-cun-
AppIicalion Iorn lv draving a cheque, denand drafl in favour of lhe Lscrov Accounl of lhe
Lscrov CoIIeclion ßank(s) as per lhe leIov lerns:

(a) The nenlers of lhe Svndicale shaII deposil lhe cheque or denand drafl vilh lhe Lscrov
CoIIeclion ßank(s), vhich viII hoId lhe nonies for lhe lenefil of lhe ßidders liII lhe Designaled
Dale. On lhe Designaled Dale, lhe Lscrov CoIIeclion ßank(s) shaII lransfer lhe funds vhose lids
have leen accepled fron lhe Lscrov Accounl, as per lhe lerns of lhe Lscrov Agreenenl, inlo
lhe IulIic Issue Accounl vilh lhe ßanker(s) lo lhe Issue and lhe SCSßs viII aIso lransfer lhe
funds represenled lv aIIocalion of Lquilv Shares fron lhe respeclive ASßA Accounls lo lhe
IulIic Issue Accounl. The laIance anounl afler lransfer lo lhe IulIic Issue Accounl shaII le heId
in lhe Refund Accounl for lhe lenefil of lhe ßidders vho are enlilIed lo refunds.

(l) Lach calegorv of ßidders (i.e. OIßs, Non-InslilulionaI ßidders and RelaiI IndividuaI ßidders)
vouId le required lo pav lheir IuII ßid Anounl al lhe line of lhe sulnission of lhe ßid-cun-
AppIicalion Iorn lv vav of a cheque or denand drafl for lhe naxinun anounl of his/ her ßid
in favour of lhe Lscrov Accounl of lhe Lscrov CoIIeclion ßank(s) and sulnil lhe sane lo lhe
nenler of lhe Svndicale lo vhon lhe ßid is leing sulnilled. (Ior delaiIs pIease see lhe seclion
lilIed ¨Issue Irocedure - Iavnenl Inslruclions¨ leginning on page no. 177 of lhis Drafl Red
Herring Irospeclus. The ßid Anounl pavalIe lv each calegorv of ßidders is nenlioned in lhe
seclion lilIed ¨ßasic Terns of lhe Issue¨ leginning on page no. 37 of lhis Drafl Red Herring
Irospeclus. ßid-cun-AppIicalion Iorns acconpanied lv cash shaII nol le accepled. The
naxinun ßid Irice has lo le paid al lhe line of sulnission of lhe ßid-cun-AppIicalion Iorn
lased on lhe highesl lidding oplion of lhe ßidder.

(c) Where lhe ßidder has leen aIIocaled Iesser nunler of Lquilv Shares lhan he or she had lid for,
lhe excess anounl paid on lidding, if anv, afler adjuslnenl for aIIocalion, viII le refunded lo
such ASßA ßidder(s) vilhin 9 vorking davs and lo Non-ASßA ßidders vilhin 1O vorking davs

178

fron lhe ßid CIosing Dale/Issue CIosing Dale, faiIing vhich our Conpanv shaII pav inleresl ©
15° per annun for anv deIav levond lhe periods nenlioned alove.

(d) The ßidders shaII, al lhe line of sulnission of lhe ßid-cun-AppIicalion Iorn, drav a pavnenl
inslrunenl for lhe ßid Anounl in favour of lhe Lscrov Accounl of our Conpanv and sulnil lhe
sane lo lhe nenler of lhe Svndicale.

(e) The pavnenl inslrunenls for pavnenl inlo lhe Lscrov Accounl of our Conpanv shouId le
dravn in favour of:

(i) In case of residenl OIß ßidders- "Escrnw Accnunt - BGIL - Pub!Ic Issuc - QIB - R"
(ii) In case of Residenl RelaiI and Non-InslilulionaI ßidders- "Escrnw Accnunt - BGIL-
Pub!Ic Issuc - R"
(iii) In case of Non-Residenl OIß ßidders- "Escrnw Accnunt - BGIL - Pub!Ic Issuc-QIB - NR"
(iv) In case of Non -Residenl RelaiI and Non-InslilulionaI ßidders - "Escrnw Accnunt -
BGIL- Pub!Ic Issuc - NR"

(f) In case of ßids lv NRIs appIving on repalrialion lasis, lhe pavnenls nusl le nade lhrough
Indian Rupee drafls purchased alroad or cheques or lank drafls, for lhe anounl pavalIe on
appIicalion renilled lhrough nornaI lanking channeIs or oul of funds heId in Non-Residenl
LxlernaI (NRL) Accounls or Ioreign Currencv Non-Residenl (ICNR) accounls, nainlained vilh
lanks aulhorised lo deaI in foreign exchange in India, aIong vilh docunenlarv evidence in
supporl of lhe renillance. Iavnenl viII nol le accepled oul of a Non-Residenl Ordinarv
Accounl of a Non-Residenl ßidder lidding on a repalrialion lasis. Iavnenl lv drafls shouId le
acconpanied lv a lank cerlificale confirning lhal lhe drafl has leen issued lv deliling an NRL
or ICNR Accounl.

(g) In case of ßids lv NRIs appIving on non repalrialion lasis, lhe pavnenls nusl le nade lhrough
Indian Rupee drafls purchased alroad or cheques or lank drafls, for lhe anounl pavalIe on
appIicalion renilled lhrough nornaI lanking channeIs or oul of funds heId in Non-Residenl
LxlernaI (NRL) Accounls or Ioreign Currencv Non-Residenl (ICNR) accounls, nainlained vilh
lanks aulhorised lo deaI in foreign exchange in India, aIong vilh docunenlarv evidence in
supporl of lhe renillance or oul of an NRO accounl of a Non-residenl ßidder lidding on non
repalrialion lasis Iavnenl lv drafls shouId le acconpanied lv a lank cerlificale confirning
lhal lhe drafl has leen issued lv deliling an NRL or ICNR Accounl or an NRO accounl.

(h) In case of ßids lv IIIs, IVCIs regislered vilh SLßI lhe pavnenl shouId le nade oul of funds
heId in a SpeciaI Rupee Accounl aIong vilh docunenlarv evidence in supporl of lhe renillance.
Iavnenl lv drafls shouId le acconpanied lv a lank cerlificale confirning lhal lhe drafl has
leen issued lv deliling lhe SpeciaI Rupee Accounl.

(i) Where a ßidder has leen aIIocaled a Iesser nunler of equilv shares lhen lhe ßidder has lid for,
lhe excess anounl, if anv, paid on lidding, afler adjusling lovards lhe laIance pavalIe on equilv
shares aIIocaled, viII le refunded lo lhe ßidder fron lhe refund anounl.

(j) The nonies deposiled in lhe Lscrov Accounl of our Conpanv viII le heId for lhe lenefil of lhe
ßidders liII lhe Designaled Dale. On lhe Designaled Dale, lhe Lscrov CoIIeclion ßanks shaII
lransfer lhe funds fron lhe Lscrov Accounl of our Conpanv as per lhe lerns of lhe Lscrov
Agreenenl inlo lhe IulIic Issue Accounl vilh lhe ßankers lo lhe Issue.

179

(k) On lhe Designaled Dale and no Ialer lhan 1O vorking davs fron lhe ßid/Issue CIosing Dale, lhe
Lscrov CoIIeclion ßank shaII refund aII anounls pavalIe lo unsuccessfuI ßidders (olher lhan
ASßA ßidders) and lhe excess anounl paid on ßidding, if anv, afler adjusling for aIIocalion lo
lhe ßidders.

(I) Iavnenls shouId le nade lv cheque, or denand drafls dravn on anv ßank (incIuding a Co-
operalive ßank), vhich is silualed al, and is a nenler of or sul-nenler of lhe lankers´ cIearing
house Iocaled al lhe cenler vhere lhe ßid-cun-AppIicalion Iorn is sulnilled. Oulslalion
cheque/lank drafls dravn on lanks nol parlicipaling in lhe cIearing process viII nol le
accepled and appIicalions acconpanied lv such cheques or lank drafls are IialIe lo le rejecled.
Cash/ Slockinvesl/ Monev Orders/ IoslaI Orders viII nol le accepled.

(n) ßidders are advised lo nenlion lhe nunler of lhe ßid-cun-AppIicalion Iorn on lhe reverse of
lhe cheque or denand drafl lo avoid nisuse of lhe inslrunenl sulnilled aIong vilh lhe ßid-
cun-AppIicalion Iorn.

Pavmcnt mcchanIsm fnr A5BA BIddcrs
The ASßA ßidders shaII specifv lhe ASßA Accounl nunler in lhe ASßA Iorn and lhe reIevanl SCSß
shaII lIock an anounl equivaIenl lo lhe appIicalion nonev in lhe ASßA Accounl specified in lhe
ASßA Iorn. The SCSß shaII keep lhe ßid Anounl in lhe reIevanl lank accounl lIocked unliI
vilhdravaI/ rejeclion of lhe ASßA ßid or receipl of inslruclions fron lhe Regislrar lo lhe Issue lo
unlIock lhe ßid Anounl. In lhe evenl of vilhdravaI or rejeclion of lhe ASßA Iorn or for
unsuccessfuI ASßA Iorns, lhe Regislrar lo lhe Issue shaII give inslruclions lo lhe SCSß lo unlIock
lhe appIicalion nonev in lhe reIevanl lank accounl vilhin 9 vorking davs of lhe Issue CIosing Dale.
The ßid Anounl shaII renain lIocked in lhe ASßA Accounl unliI approvaI of lhe ßasis of AIIolnenl
in lhe Issue and consequenl lransfer of lhe ßid Anounl lo lhe IulIic Issue Accounl, or unliI
vilhdravaI/ faiIure of lhe Issue or unliI rejeclion of lhe ASßA ßid, as lhe case nav le.

Pavmcnt bv 5tnck-Invcst
In lerns of Reserve ßank of India CircuIar No. DßOD No. ISC ßC 42/24.47.OO/2OO3-2OO4 daled
Novenler 5,2OO3, lhe oplion lo use lhe slock-invesl inslrunenl in Iieu of cheques or lank drafls for
pavnenl of ßid nonev has leen vilhdravn. Hence, pavnenl lhrough slock-invesl vouId nol le
accepled in lhis Issue.

Annnunccmcnt nf Prc-Issuc AdvcrtIscmcnt
Suljecl lo Seclion 66 of lhe Conpanies Acl, our Conpanv shaII, afler regislering lhe Red Herring
Irospeclus vilh Regislrar of Conpanies, nake a Ire-Issue Adverlisenenl in lhe fornal specified in
Iarl A of ScheduIe XIII of SLßI (Issue of CapilaI and DiscIosure Requirenenls) ReguIalions, 2OO9, in
one LngIish nalionaI daiIv nevspaper vilh vide circuIalion, and one Hindi nalionaI daiIv nevspaper
vilh vide circuIalion.

AdvcrtIscmcnt rcgardIng Issuc PrIcc and Prnsµcctus
An adverlisenenl viII le issued lv our Conpanv in one LngIish nalionaI daiIv nevspaper vilh vide
circuIalion and one Hindi nalionaI daiIv nevspaper vilh vide circuIalion, afler fiIing of lhe
Irospeclus vilh lhe RoC. This adverlisenenl in addilion lo lhe infornalion lhal has lo le sel oul in
lhe adverlisenenl shaII indicale lhe Issue Irice. Anv naleriaI updales lelveen lhe dale of lhe Red
Herring Irospeclus and lhe Irospeclus viII le incIuded in such adverlisenenl.

RIght tn Rcjcct BIds
In case of OIß ßidders, lhe Conpanv in consuIlalion vilh lhe ßRLM nav rejecl a ßid pIaced lv a
OuaIified OIß for reasons lo le recorded in vriling, provided lhal such rejeclion shaII le nade al lhe

18O

line of sulnission of lhe ßid and lhe reasons lherefore shaII le discIosed lo lhe OIß ßidders in
vriling. In case of Non-InslilulionaI ßidders and RelaiI IndividuaI ßidders, lhe Conpanv vouId have
a righl lo rejecl ßids onIv on lechnicaI grounds.

RIght tn rcjcct A5BA BIds
The Designaled ßranches of lhe SCSßs shaII have lhe righl lo rejecl ASßA ßids if al lhe line of
lIocking lhe ßid Anounl in lhe ASßA accounl, lhe respeclive Designaled ßranch ascerlains lhal
sufficienl funds are nol avaiIalIe in lhe ßidder´s lank accounl nainlained vilh lhe SCSß. Sulsequenl
lo lhe acceplance of lhe ASßA ßid lv lhe SCSß, our Conpanv vouId have a righl lo rejecl lhe ASßA
ßids onIv on lechnicaI grounds.

Iurlher, in case anv DI ID, CIienl ID or IAN nenlioned in lhe ßid-cun-ASßA Iorn does nol nalch
vilh one avaiIalIe in lhe deposilorv´s dalalase, such ASßA ßid shaII le rejecled lv lhe Regislrar lo
lhe Issue.

WIthdrawa! nf BIds
In case an ASßA inveslor vanls lo vilhdrav his/her ASßA during lhe lidding period, he/she shaII
sulnil his vilhdravaI requesl lo lhe SCSß, vhich shaII do lhe necessarv, incIuding deIelion of
delaiIs of lhe vilhdravn ASßA fron lhe eIeclronic lidding svslen of lhe Slock Lxchanges and
unlIocking of funds in lhe reIevanl lank accounl.

In case an ASßA Inveslor (excepl in case of a OIß lidding lhrough ASßA process) vanls lo vilhdrav
his/her ASßA afler lhe ßid/ Issue CIosing Dale, he/she shaII sulnil lhe vilhdravaI requesl lo lhe
Regislrar lefore finaIizalion of ßasis of AIIolnenl. The Regislrar shaII deIele lhe vilhdravn ßid fron
lhe lid fiIe. The inslruclion for unlIocking of funds in lhe reIevanl lank accounl, in such
vilhdravaIs, shaII le forvarded lv lhe Regislrars lo lhe Issue lo lhe SCSß on finaIizalion of lhe ßasis
of AIIolnenl.

Grnunds fnr tcchnIca! rcjcctInns
ßidders are advised lo nole lhal ßids are IialIe lo le rejecled, inler aIia, on lhe foIIoving lechnicaI
grounds:
1. Anounl paid doesn'l laIIv vilh lhe anounl pavalIe for lhe highesl vaIue of Lquilv Shares lid
for:
2. Age of Iirsl ßidder nol given:
3. In case of Iarlnership firns, lhe shares nav le regislered in lhe nane of individuaI parlners and
no such parlnership firn shaII le enlilIed lo appIv:
4. ßids lv Iersons nol conpelenl lo conlracl under lhe Indian Conlracl Acl, 1872, incIuding
ninors, insane Iersons:
5. IAN nol slaled:
6. ßids for Iover nunler of Lquilv Shares lhan specified for lhal calegorv of inveslors:
7. ßids al a price Iess lhan lhe Iover end of lhe Irice ßand:
8. ßids al a price nore lhan lhe higher end of lhe Irice ßand:
9. ßids for nunler of Lquilv Shares, vhich are nol in nuIlipIes of |y!:
1O. Calegorv nol licked:
11. MuIlipIe lids as defined in lhis Drafl Red Herring Irospeclus:
12. In case of ßid under pover of allornev lv Iiniled conpanies, corporale, lrusl elc., reIevanl
docunenls are nol sulnilled:
13. ßids acconpanied lv Slock invesl/nonev order/ poslaI order/ cash:

181

14. Signalure of soIe and/or joinl ßidders nissing:
15. ßid-cun-AppIicalion Iorn or ASßA Iorn does nol have lhe slanp of lhe ßRLM or lhe
Svndicale Menler:
16. ßid-cun-AppIicalion Iorn or ASßA Iorn does nol have ßidder's deposilorv accounl delaiIs:
17. ßid-cun-AppIicalion Iorns or ASßA Iorn are nol sulnilled lv lhe ßidders vilhin lhe line
prescriled as per lhe ßid-cun-AppIicalion Iorn or ASßA Iorn and lhe Drafl Red Herring
Irospeclus and as per lhe inslruclions in lhe Drafl Red Herring Irospeclus and lhe ßid-cun-
AppIicalion Iorn and ASßA Iorn:
18. ßids for anounls grealer lhan lhe naxinun pernissilIe anounls prescriled lv lhe reguIalions:
19. In case no corresponding record is avaiIalIe vilh lhe Deposilories lhal nalches lhree
paranelers, naneIv, IAN, lhe deposilorv parlicipanl's idenlilv (DI ID) and lhe leneficiarv's
accounl nunler:
2O. ßids lv OCßs:
21. ßids lv US persons olher lhan "OuaIified InslilulionaI ßuvers" as defined in RuIe 144A of lhe
Securilies Acl or olher lhan in reIiance ReguIalion under lhe Securilies Acl:
22. ßids lv OIßs nol sulnilled lhrough ßRLM or nenlers of lhe svndicale:
23. ßids lv NRIs nol discIosing lheir residenliaI slalus:
24. If CIR nunler is nenlioned inslead of IAN nunler:
25. ßids vhere cIear funds are nol avaiIalIe in Lscrov Accounls as per finaI cerlificale fron lhe
Lscrov CoIIeclion ßanks:
26. Wilh respecl lo ASßA ßids, inadequale funds in lhe ASßA Accounl lo lIock lhe ßid Anounl
specified in lhe ASßA Iorn al lhe line of lIocking such ßid Anounl in lhe ASßA Accounl:
27. ßids lv persons prohililed fron luving, seIIing or deaIing in lhe shares direclIv or indireclIv lv
SLßI or anv olher reguIalorv aulhorilv:
28. ßids lv anv person residenl oulside India, if nol in conpIiance vilh appIicalIe foreign and
Indian Iavs, or lv anv persons vho are nol eIigilIe lo acquire Lquilv Shares of lhe Conpanv, in
lerns of aII appIicalIe Iavs, ruIes, reguIalions, guideIines and approvaIs:
29. ßids al cul-off price lv Non-InslilulionaI and OIß ßidders:
3O. ßids or revision lhereof lv OIßs and Non-InslilulionaI ßidders vhere lhe ßid Anounl is in
excess of C 1,OO,OOO, upIoaded afler 4.OO p.n. or anv such line as prescriled lv Slock Lxchanges
on lhe ßid/Issue CIosing Dale:
31. ßids in respecl of vhich lhe ßid-cun-AppIicalion Iorn or ASßA Iorn does nol reach lhe
Regislrar lo lhe Issue prior lo lhe finaIisalion of lhe lasis of aIIolnenl:
32. Aulhorisalion for lIocking funds in lhe ASßA Accounl nol licked or provided:
33. ßids nol upIoaded in lhe looks: and on lhe lerninaIs of lhe Slock Lxchanges.

PrIcc DIscnvcrv and A!!ncatInn
(a) Afler lhe ßid/Issue CIosing Dale, lhe ßRLM shaII anaIvze lhe denand generaled al various price
IeveIs. The Regislrar lo lhe Issue shaII aggregale lhe denand generaled under lhe ASßA and
provide lhe sane lo lhe ßRLM.

(l) Our Conpanv, in consuIlalion vilh lhe ßRLM shaII finaIise lhe ¨Issue Irice¨ and lhe nunler of
Lquilv Shares lo le aIIolled in each calegorv lo ßidders.

(c) Nol nore lhan 5O° of lhe Issue lo IulIic shaII le aIIolled on a proporlionale lasis lo OuaIified
InslilulionaI ßuvers (¨OIßs¨). 5° of lhe OIß Iorlion shaII le avaiIalIe for aIIocalion on a

182

proporlionale lasis lo MuluaI Iunds onIv and lhe renainder shaII le avaiIalIe for aIIolnenl on a
proporlionale lasis lo OIßs and MuluaI Iunds, suljecl lo vaIid lids leing received fron lhen al
or alove lhe Issue Irice. Iurlher, nol Iess lhan 15° of lhe Issue lo IulIic shaII le avaiIalIe for
aIIocalion on a proporlionale lasis lo Non InslilulionaI ßidders and nol Iess lhan 35° of lhe
Issue lo IulIic shaII le avaiIalIe for aIIocalion on a proporlionale lasis lo RelaiI IndividuaI
ßidders, suljecl lo vaIid lids leing received al or alove lhe Issue Irice

(d) Under-sulscriplion, if anv, in anv calegorv of lhe Issue, vouId le aIIoved lo le nel vilh spiII
over fron anv of lhe olher calegories al lhe discrelion of our Conpanv, in consuIlalion vilh
ßRLM. If lhe aggregale denand lv MuluaI Iunds is Iess lhan 1,68,OOO Lquilv Shares, lhe laIance
Lquilv Shares avaiIalIe for aIIocalion in lhe MuluaI Iund Iorlion viII firsl le added lo lhe OIß
Iorlion and le aIIolled proporlionaleIv lo lhe OIß ßidders. In lhe evenl lhal lhe aggregale
denand in lhe OIß porlion has leen nel, under-sulscriplion, if anv, vouId le aIIoved lo le nel
vilh spiIIover fron anv olher calegorv or conlinalion of calegories al lhe discrelion of our
Conpanv, in consuIlalion vilh lhe ßRLM and lhe Designaled Slock Lxchange.

(e) AIIocalion lo LIigilIe NRIs, IIIs, foreign venlure capilaI funds, nuIli-IaleraI and liIaleraI
deveIopnenl financiaI inslilulions regislered vilh SLßI appIving on repalrialion lasis viII le
suljecl lo lhe appIicalIe Iavs, ruIes, reguIalions, guideIines and approvaIs.

(f) The ßRLM, in consuIlalion vilh our Conpanv shaII nolifv lhe Svndicale Menler of lhe Issue
Irice and aIIocalions lo lheir respeclive ßidders.

(g) Our Conpanv, in consuIlalion vilh lhe ßRLM, reserves lhe righl nol lo proceed vilh lhe Issue in
accordance vilh SLßI (ICDR) ReguIalions. Irovided, if our Conpanv vilhdravs lhe Issue afler
lhe ßid/Issue CIosing Dale, lhe reason lhereof shaII le provided vilhin lvo davs of lhe
ßid/Issue CIosing Dale lv vav of a pulIic nolice in lhe sane nevspapers in vhich lhe pre-issue
adverlisenenl had appeared. The Slock Lxchanges shaII aIso le inforned pronplIv.

(h) In lerns of SLßI (Issue of CapilaI and DiscIosure Requirenenls) ReguIalions, 2OO9, OIß ßidders
shaII nol le aIIoved lo vilhdrav lheir lid afler lhe lid / issue cIosing dale.

(i) The aIIolnenl delaiIs shaII le pul on lhe velsile of lhe Regislrar lo lhe Issue al vvv.karvv.con .

(j) ßids received fron ASßA ßidders viII le considered al par vilh ßids received fron olher RelaiI
IndividuaI ßidders and Non-inslilulionaI ßidders. No preference shaII le given lo ASßA lidders
vis-a-vis olher OIßs, RelaiI IndividuaI ßidders and Non-InslilulionaI ßidders or vice-versa. The
¨ßasis of AIIocalion´ lo such vaIid ASßA and olher OIßs, RelaiI IndividuaI ßidders and Non-
InslilulionaI ßidders viII le lhal appIicalIe lo OIßs, RelaiI IndividuaI ßidders and Non-
InslilulionaI ßidders

5IgnIng nf UndcrwrItIng Agrccmcnt and ROC FI!Ing
(a) Our Conpanv, lhe ßRLM, and lhe Svndicale Menler shaII enler inlo an Undervriling
Agreenenl on finaIisalion of lhe Issue Irice and aIIocalion(s) lo lhe ßidders.
(l) Afler signing lhe Undervriling Agreenenl, our Conpanv viII updale and fiIe lhe updaled Red
Herring Irospeclus vilh RoC, vhich lhen vouId le lerned 'Irospeclus'. The Irospeclus vouId
have delaiIs of lhe Issue Irice, Issue Size, undervriling arrangenenls and vouId le conpIele in
aII naleriaI respecls.

FI!Ing nf thc Rcd HcrrIng Prnsµcctus and thc Prnsµcctus wIth ROC
The Conpanv viII fiIe a copv of lhe Red Herring Irospeclus and lhe Irospeclus vilh lhe Regislrar of

183

Conpanies, NCT of DeIhi and Harvana in lerns of Seclion 56, Seclion 6O and Seclion 6Oß of lhe
Conpanies Acl, 1956.

Issuancc nf CnnfIrmatInn nf A!!ncatInn Nntc
(a) Upon approvaI of lhe lasis of AIIolnenl lv lhe Designaled Slock Lxchange, lhe ßRLM or lhe
Regislrar lo lhe Issue shaII send lo lhe nenlers of lhe Svndicale a Iisl of lheir ßidders vho
have leen aIIocaled Lquilv Shares in lhe Issue. The approvaI of lhe lasis of aIIocalion lv lhe
Designaled Slock Lxchange for OIß ßidders nav le done sinuIlaneousIv vilh or prior lo lhe
approvaI of lhe lasis of aIIocalion for lhe RelaiI and Non-InslilulionaI ßidders. Inveslor shouId
nole lhal our Conpanv shaII ensure lhal lhe denal credil of lhe Lquilv Shares pursuanl lo
aIIolnenl shaII le nade on lhe sane dale lo aII inveslors in lhis Issue:
(l) The ßRLM or lhe nenlers of lhe Svndicale vouId lhen send lhe CAN lo lheir ßidders vho
have leen aIIocaled Lquilv Shares in lhe Issue. The dispalch of a CAN shaII le deened lo le a
vaIid, linding and irrevocalIe conlracl for lhe ßidder lo pav lhe enlire Issue Irice for aII lhe
Lquilv Shares aIIocaled lo such ßidder:
(c) Such ßidders vho have leen aIIocaled Lquilv Shares and vho have aIreadv paid lhe fuII ßid
Anounl inlo lhe Lscrov Accounl al lhe line of lidding shaII direclIv receive lhe CAN fron
lhe Regislrars lo lhe Issue suljecl, hovever, lo reaIizalion of lheir cheque or denand drafl paid
inlo lhe Lscrov Accounl. The dispalch of a CAN shaII le deened lo le a vaIid, linding and
irrevocalIe conlracl for lhe ßidder.
(d) The Issuance of CAN is suljecl lo "Nolice lo OIßs: AIIolnenl ReconciIialion and Revised
CANs" as sel forlh leIov in lhis Drafl Red Herring Irospeclus.

WIth rcsµcct tn A5BA bIddcrs:

1. Upon approvaI of lhe 'ßasis of AIIocalion´ lv lhe Designaled Slock Lxchange, lhe Regislrar lo lhe
Issue shaII send a Iisl of lhe ASßA ßidders vho have leen aIIocaled Lquilv Shares in lhe Issue lo
lhe ConlroIIing ßranches aIong vilh:

(i) The nunler of Lquilv Shares lo le aIIolled againsl each successfuI ASßA Iorn:

(ii) The anounl lo le lransferred fron lhe ASßA Accounl lo lhe IulIic Issue Accounl, for each
successfuI ASßA Iorn:

(iii) The dale lv vhich lhe funds referred lo in sul-para (ii) alove, shaII le lransferred lo lhe IulIic
Issue Accounl: and

(iv) The delaiIs of rejecled ASßA Iorns, if anv, aIong vilh reasons for rejeclion and delaiIs of
vilhdravn (excepl in case of OIß lidding lhrough an ASßA Iorn) or unsuccessfuI ASßA Iorns,
if anv, lo enalIe SCSßs lo unlIock lhe respeclive ASßA Accounls.
ASßA ßidders shouId nole lhal our Conpanv shaII ensure lhal lhe inslruclions lv our Conpanv
for denal credil of lhe Lquilv Shares lo aII inveslors in lhis Issue shaII le given on lhe sane dale:
and

2. The ASßA ßidders shaII direclIv receive lhe CANs fron lhe Regislrar lo lhe Issue. The dispalch of a
CAN lo an ASßA ßidder shaII le deened a vaIid, linding and irrevocalIe conlracl vilh lhe ASßA
ßidder.

NntIcc tn QIBs: A!!ntmcnt RccnncI!IatInn and RcvIscd CANs

184

Afler lhe ßid/Issue CIosing Dale, an eIeclronic look viII le prepared, lv lhe Regislrar, on lhe lasis
of, ßids upIoaded on lhe ßSL/NSL svslen. ßased on lhe eIeclronic look, OIßs viII le senl a CAN,
indicaling lhe nunler of Lquilv Shares lhal nav le aIIocaled lo lhen. This CAN is suljecl lo lhe
lasis of finaI AIIolnenl, vhich viII le approved lv lhe Designaled Slock Lxchange and refIecled in
lhe reconciIed look prepared lv lhe Regislrar. Suljecl lo SLßI (ICDR) ReguIalions, cerlain ßid
appIicalions nav le rejecled due lo lechnicaI reasons, non-receipl of funds, canceIIalion of cheques,
cheque louncing, incorrecl delaiIs, elc., and lhese rejecled appIicalions viII le refIecled in lhe
reconciIialion and lasis of AIIolnenl as approved lv lhe Designaled Slock Lxchange. As a resuIl, a
revised CAN nav le senl lo OIßs, and lhe aIIocalion of Lquilv Shares in such revised CAN nav le
differenl fron lhal specified in lhe earIier CAN. OIßs shouId nole lhal lhev nav le required lo pav
addilionaI anounls, if anv, lv lhe Iav-in-Dale specified in lhe revised CAN, for anv increased
aIIocalion of Lquilv Shares. The CAN viII conslilule lhe vaIid, linding and irrevocalIe conlracl
(suljecl onIv lo lhe issue of a revised CAN) for lhe OIß lo pav lhe enlire Issue Irice for aII lhe Lquilv
Shares aIIocaled lo such OIß. The revised CAN, if issued, viII supersede in enlirelv lhe earIier CAN.

DcsIgnatcd Datc and A!!ntmcnt nf EquItv 5harcs
1. Our Conpanv viII ensure lhal (i) AIIolnenl of Lquilv Shares: and (ii) credil lo lhe successfuI
ßidders' deposilarv accounl viII le conpIeled vilhin 1O (len) Working Davs of lhe ßid/Issue CIosing
Dale.

2. As µcr thc 5EBI (Issuc nf CaµIta! and DIsc!nsurc RcquIrcmcnts) Rcgu!atInns, 2009, EquItv
5harcs wI!! bc Issucd and a!!ntmcnt sha!! bc madc nn!v In thc dcmatcrIa!Iscd fnrm tn thc a!!nttccs.
AIIollees viII have lhe oplion lo re-naleriaIise lhe Lquilv Shares so aIIolled, if lhev so desire, as per
lhe provisions of lhe Conpanies Acl and lhe Deposilories Acl.

Invcstnrs arc advIscd tn Instruct thcIr DcµnsItnrv PartIcIµant tn acccµt thc EquItv 5harcs that mav
bc a!!ncatcd tn thcm µursuant tn thIs Issuc.

BasIs nf A!!ncatInn

A. Fnr RctaI! IndIvIdua! BIddcrs
• ßids received fron lhe RelaiI IndividuaI ßidders al or alove lhe Issue Irice shaII le grouped
logelher lo delernine lhe lolaI denand under lhis calegorv. The aIIolnenl lo aII lhe successfuI
RelaiI individuaI ßidders viII le nade al lhe Issue Irice.
• The Issue size Iess aIIocalion lo Non-InslilulionaI ßidders and OIß ßidders shaII le avaiIalIe
for aIIocalion lo RelaiI IndividuaI ßidders vho have lid in lhe Issue al a price, vhich is equaI
lo or grealer lhan lhe Issue Irice.
• If lhe vaIid ßids in lhis calegorv is Iess lhan or equaI lo |y! Lquilv Shares al or alove lhe Issue
Irice, fuII aIIolnenl shaII le nade lo lhe RelaiI IndividuaI ßidders lo lhe exlenl of lheir vaIid
lids.
• If lhe vaIid ßids in lhis calegorv is grealer lhan |y! Lquilv Shares al or alove lhe Issue Irice,
lhe aIIocalion shaII le nade on a proporlionale lasis up lo a nininun of |y! Lquilv Shares
and in nuIlipIes of one Lquilv Shares lhereafler. Ior lhe nelhod of proporlionale lasis of
aIIocalion, refer leIov.

B. Fnr Nnn-InstItutInna! BIddcrs
• ßids received fron Non-InslilulionaI ßidders al or alove lhe Issue Irice shaII le grouped
logelher lo delernine lhe lolaI denand under lhis calegorv. The aIIolnenl lo aII successfuI

185

Non-InslilulionaI ßidders viII le nade al lhe Issue Irice.
• The Issue size Iess aIIocalion lo OIß ßidders and RelaiI IndividuaI ßidders shaII le avaiIalIe
for aIIocalion lo Non- InslilulionaI ßidders vho have lid in lhe Issue al a price, vhich is equaI
lo or grealer lhan lhe Issue Irice.
• If lhe vaIid ßids in lhis calegorv is Iess lhan or equaI lo |y! Lquilv Shares al or alove lhe Issue
Irice, fuII aIIolnenl shaII le nade lo Non-InslilulionaI ßidders lo lhe exlenl of lheir denand.
• In case lhe vaIid ßids in lhis calegorv is grealer lhan |y! Lquilv Shares al or alove lhe Issue
Irice: aIIocalion shaII le nade on a proporlionale lasis up lo a nininun of |y! Lquilv Shares
and in nuIlipIes of one Lquilv Shares lhereafler. Ior lhe nelhod of proporlionale lasis of
aIIolnenl refer leIov.

C. Fnr QIB BIddcrs
• ßids received fron lhe OIß ßidders al or alove lhe Issue Irice shaII le grouped logelher lo
delernine lhe lolaI denand under lhis porlion. The aIIocalion lo aII lhe OIßs viII le nade al
lhe issue price.
• The Issue size Iess aIIocalion lo Non-InslilulionaI porlion and RelaiI Iorlion shaII le avaiIalIe
for aIIocalion lo OIß ßidders vho have lid in lhe Issue al a price, vhich is equaI lo or grealer
lhan lhe Issue Irice.
• Hovever, eIigilIe ßids lv MuluaI Iunds onIv shaII firsl le considered for aIIocalion
proporlionaleIv in lhe MuluaI Iunds Iorlion. Afler conpIeling proporlionale aIIocalion lo
MuluaI Iunds for an anounl of up lo 1,68,OOO Lquilv Shares (lhe MuluaI Iunds Iorlion), lhe
renaining denand lv MuluaI Iunds, if anv, shaII lhen le considered for aIIocalion
proporlionaleIv, logelher vilh ßids lv olher OIßs, in lhe renainder of lhe OIß Iorlion (i.e.
afler excIuding lhe MuluaI Iunds Iorlion). Ior lhe nelhod of aIIocalion in lhe OIß Iorlion,
see lhe paragraph lilIed ¨IIIuslralion of AIIolnenl lo OIßs¨ appearing leIov. If lhe vaIid ßids
lv MuluaI Iunds are for Iess lhan 1,68,OOO Lquilv Shares, lhe laIance Lquilv Shares avaiIalIe
for aIIocalion in lhe MuluaI Iunds Iorlion viII firsl le added lo lhe OIß Iorlion and aIIocaled
proporlionaleIv lo lhe OIß ßidders.
• The aIIolnenl shaII le underlaken in lhe foIIoving nanner -
(a) In lhe firsl inslance, aIIocalion lo nuluaI funds for uplo 5° of lhe OIß porlion shaII le
delernined as foIIovs-
ƒ In lhe evenl lhal lids fron nuluaI funds exceed 5° of lhe OIß porlion, aIIocalion lo
nuluaI funds shaII le done on a proporlionale lasis uplo 5° of lhe OIß porlion.
ƒ In lhe evenl lhal lhe aggregale denand fron nuluaI funds is Iess lhan 5° of OIß
porlion, lhen aII nuluaI funds shaII gel fuII aIIolnenl lo lhe exlenl of vaIid lids
received alove lhe issue price.
ƒ Lquilv Shares renaining unsulscriled, if anv, nol aIIocaled lo nuluaI funds shaII le
avaiIalIe lo aII OIß ßidders as sel oul in as (l) leIov:

(l) In lhe second inslance, aIIocalion lo aII OIßs shaII le delernined as foIIovs -
ƒ In lhe evenl lhal lhe over sulscriplion in lhe OIß porlion, aII OIß ßidders vho have
sulnilled ßids alove lhe Issue Irice shaII le aIIolled Lquilv Shares on a proporlionale
lasis for uplo 95° of lhe OIß porlion.
ƒ MuluaI Iunds, vho have received aIIocalion as per (a) alove, for Iess lhan lhe nunler
of equilv shares ßid for lv lhen, are eIigilIe lo receive Lquilv Shares on a
proporlionale lasis aIong vilh olher OIß ßidders.
ƒ Under-sulscriplion leIov 5° of lhe OIß porlion, if anv, fron MuluaI Iunds, vouId le
incIuded for aIIocalion lo lhe renaining OIß ßidders on a proporlionale lasis.

186


Under-sulscriplion, if anv, in anv calegorv vouId le aIIoved lo le nel vilh spiIIover fron anv olher
calegorv or conlinalion of calegories al lhe soIe discrelion of lhe Conpanv in consuIlalion vilh lhe
ßRLM.

Prnccdurc and TImc 5chcdu!c fnr A!!ntmcnt
The Issue viII le conducled lhrough a ¨1OO° look luiIding process¨ pursuanl lo vhich lhe
Undervrilers viII accepl lids for lhe Lquilv Shares during lhe ßidding Ieriod. The ßidding Ieriod
viII connence on |ŏ! and expire on |ŏ!. IoIIoving lhe expiralion of lhe ßidding Ieriod, our
Conpanv, in consuIlalion vilh lhe ßRLM, viII delernine lhe Issue Irice, and, in consuIlalion vilh
lhe ßRLM, lhe lasis of aIIolnenl and enlilIenenl lo aIIolnenl are finaIised lased on lhe lids received
and suljecl lo lhe confirnalion lv lhe ßSL/NSL. SuccessfuI lidders viII le provided vilh a
confirnalion of lheir aIIocalion and viII le required lo pav anv unpaid anounl for lhe Lquilv Shares
vilhin a prescriled line. The Irospeclus viII le fiIed vilh SLßI and lhe Regislrar of Conpanies and
viII le nade avaiIalIe lo inveslors. SLßI (ICDR) ReguIalions require our Conpanv lo conpIele lhe
aIIolnenl and credil lo successfuI lidders vilhin 11 vorking davs of lhe expiralion of lhe ßidding
Ieriod. Upon approvaI lv lhe Slock Lxchanges, lhe Lquilv Shares viII le Iisled and lrading viII
connence.

Unb!nckIng nf A5BA Accnunt
Once lhe ßasis of AIIolnenl is approved lv lhe Designaled Slock Lxchange, lhe Regislrar shaII
provide lhe foIIoving delaiIs lo lhe ConlroIIing ßranch of each SCSß, aIong vilh inslruclions lo
unlIock lhe reIevanl lank accounls and lransfer lhe requisile nonev lo lhe IulIic Issue Accounl
vilhin lhe lineIines specified in lhe ASßA process:

(i) Nunler of shares lo le aIIolled againsl each vaIid ASßA
(ii) Anounl lo le lransferred fron lhe reIevanl lank accounl lo lhe IulIic Issue accounl, for each
vaIid ASßA
(iii) The dale lv vhich lhe funds referred lo in sul-para (ii) alove, shaII le lransferred lo lhe ASßA
IulIic Issue accounl
(iv) The delaiIs of rejecled ASßAs, if anv, aIong vilh reasons for rejeclion and delaiIs of vilhdravn/
unsuccessfuI ASßAs, if anv, lo enalIe SCSßs lo unlIock lhe respeclive lank accounls. SCSß shaII
lhereafler unlIock lhe anounls lIocked in lhe accounl of lhe ASßA Inveslor.

Mcthnd nf PrnµnrtInnatc BasIs nf A!!ncatInn
In lhe evenl of lhe issue leing over-sulscriled, our Conpanv shaII finaIise lhe lasis of aIIolnenl lo
RelaiI IndividuaI ßidders and Non-InslilulionaI ßidders in consuIlalion vilh lhe Designaled Slock
Lxchange. The Lxeculive Direclor or Managing Direclor (or anv olher senior officiaI noninaled lv
lhen) of lhe Designaled Slock Lxchange aIong vilh lhe ßRLM and lhe Regislrars lo lhe issue shaII le
responsilIe for ensuring lhal lhe lasis of aIIolnenl is finaIized in a fair and proper nanner.

ßidders viII le calegorized according lo lhe nunler of Lquilv Shares appIied for lv lhen and lhe
aIIolnenl shaII le nade on a proporlionale lasis as expIained leIov:-

(a) The lolaI nunler of Lquilv Shares lo le aIIolled lo each calegorv as a vhoIe shaII le arrived al
on a proporlionale lasis, vhich is lhe lolaI nunler of Lquilv Shares appIied for in lhal calegorv
(nunler of ßidders in lhe calegorv nuIlipIied lv lhe nunler of Lquilv Shares appIied for)
nuIlipIied lv lhe inverse of lhe over-sulscriplion ralio.
(l) Nunler of Lquilv Shares lo le aIIolled lo lhe successfuI ßidders viII le arrived al on a
proporlionale lasis, vhich is lhe lolaI nunler of Lquilv Shares appIied for lv each ßidder in lhal
calegorv nuIlipIied lv lhe inverse of lhe over-sulscriplion ralio.

187

(c) If lhe proporlionale aIIolnenl lo a ßidder is a nunler lhal is nore lhan |y! lul is nol a nuIlipIe
of one (vhich is lhe narkel Iol), lhe decinaI vouId le rounded off lo lhe higher vhoIe nunler if
lhal decinaI is O.5 or higher. If lhal nunler is Iover lhan O.5. il vouId le rounded off lo lhe
Iover vhoIe nunler. AIIolnenl lo aII ßidders in such calegories vouId le arrived al afler such
rounding off.
(d) In aII ßids vhere lhe proporlionale aIIolnenl is Iess lhan |y! Lquilv Shares per ßidder, lhe
aIIolnenl shaII le nade as foIIovs:
Ɣ Lach successfuI ßidder shaII le AIIolled a nininun of |y! Lquilv Shares: and
Ɣ The successfuI ßidders oul of lhe lolaI ßidders for a calegorv shaII le delernined lv drav
of Iols in a nanner such lhal lhe lolaI nunler of Lquilv Shares aIIolled in lhal calegorv is
equaI lo lhe nunler of Lquilv Shares caIcuIaled in accordance vilh (l) alove: and
(e) If lhe Lquilv Shares aIIocaled on a proporlionale lasis lo anv calegorv are nore lhan lhe Lquilv
Shares aIIolled lo lhe ßidders in lhal calegorv, lhe renaining Lquilv Shares avaiIalIe for
aIIolnenl shaII le firsl adjusled againsl anv olher calegorv, vhere lhe aIIolled Lquilv Shares are
nol sufficienl for proporlionale aIIolnenl lo lhe successfuI ßidders in lhal calegorv. The laIance
Lquilv Shares, if anv, renaining afler such adjuslnenl viII le added lo lhe calegorv conprising
ßidders appIving for nininun nunler of Lquilv Shares.

I!!ustratInn nf A!!ntmcnt tn QIBs and Mutua! Funds ("MF")

A. Issuc dctaI!s

5r.
Nn.
PartIcu!ars Issuc dctaI!s
1 Issue size 1O Lakhs Lquilv Shares
2 AIIocalion lo OIß (nol nore lhan 5O° of lhe Issue) 5 Lakhs Lquilv Shares
Of vhich:
a. Reservalion Ior MuluaI Iunds, (5°) O.25 Lakhs Lquilv Shares
l. ßaIance for aII OIßs incIuding MuluaI Iunds 4.75 Lakhs Lquilv Shares
3 Nunler of OIß appIicanls 1O
4 Nunler of Lquilv Shares appIied for 25 Lakhs Lquilv Shares

B. DctaI!s nf QIB BIds

5r. Nn. Tvµc nf QIB bIddcrs# Nn. nf sharcs bId fnr (In Lakhs)
1 A1 2.5
2 A2 1.O
3 A3 6.5
4 A4 2.5
5 A5 2.5
6 MI1 2.O
7 MI2 2.O
8 MI3 4.O
9 MI4 1.O
1O MI5 1.O
TOTAL 25
# A1-A5. (Q|8 8iúúcrs c|ncr |nan Mu|ua| |unús). M|1-M|5 (Q|8 8iúúcrs unicn arc Mu|ua| |unús)

C. DctaI!s nf A!!ntmcnt tn QIB BIddcrs/Aµµ!Icants

188

(Num|cr cf cuui|u snarcs in |a|ns)

Tvµc nf
QIB
bIddcrs

5harcs bId
Fnr (In Lakhs)

A!!ncatInn nf 0.25
Lakhs EquItv
5harcs tn MF
µrnµnrtInnatc!v
(µ!casc scc nntc
2 bc!nw)

A!!ncatInn nf
ba!ancc 4.75 Lakhs
EquItv 5harcs tn
QIBs
µrnµnrtInnatc!v
(µ!casc scc nntc 4
bc!nw)
Aggrcgatc
a!!ncatInn tn
MFs

(I) (II) (III) (IV) (V)
A1 2.5 O O.48 O
A2 1.O O O.192 O
A3 6.5 O 1.248 O
A4 2.5 O O.48O O
A5 2.5 O O.48O O
MI1 2.O O.O5O O.374 O.424
MI2 2.O O.O5O O.374 O.424
MI3 4.O O.1OO O.748 O.848
MI4 1.O O.O25 O.187 O.212
MI5 1.O O.O25 O.187 O.212
25.0 0.250 4.750 2.120

P!casc nntc:
1. The iIIuslralion presunes conpIiance vilh lhe requirenenls specified in lhis Drafl Red Herring
Irospeclus in lhe seclion lilIed ¨ßasic Terns of lhe Issue¨ leginning on page no. 37 of lhis Drafl
Red Herring Irospeclus.
2. Oul of 5 Lakhs Lquilv Shares aIIocaled lo OIßs, O.25O Lakhs (i.e. 5°) viII le aIIocaled on
proporlionale lasis anong five MuluaI Iund appIicanls vho appIied for 1OO Iakh shares in lhe
OIß Iorlion.
3. The laIance 4.75 Lakhs Lquilv Shares |i.e. 5.OO - O.25 (avaiIalIe for MuluaI Iunds onIv)! viII le
aIIocaled on proporlionale lasis anong 1O OIß ßidders vho appIied for 25 Lakhs Lquilv Shares
(incIuding 5 MuluaI Iund appIicanls vho appIied for 1O Lakhs Lquilv Shares).
4. The figures in lhe fourlh coIunn lilIed ¨AIIocalion of laIance 4.75 Lakhs Lquilv Shares lo OIßs
proporlionaleIv¨ in lhe alove iIIuslralion are arrived as under:

i. Ior OIßs olher lhan MuluaI Iunds (A1 lo A5)= Nunler of Lquilv Shares ßid for X 4.75/24.75

ii. Ior MuluaI Iunds (MI1 lo MI5)= |(No. of shares lid for (i.e., in coIunn II of lhe lalIe alove)
Iess Lquilv Shares aIIolled ( i.e., coIunn III of lhe lalIe alove)! X 4.75/24.75
The nuneralor and denoninalor for arriving al aIIocalion of 4.75 Lakhs Lquilv Shares lo lhe 1O OIßs
are reduced lv O.25 Lakhs shares, vhich have aIreadv leen aIIolled lo MuluaI Iunds in lhe nanner
specified in coIunn III of lhe lalIe alove.

EquItv 5harcs In DcmatcrIa!Iscd Fnrm wIth N5DL nr CD5L

As per lhe provisions of Seclion 68ß of lhe Conpanies Acl, lhe Lquilv Shares in lhis Issue shaII le
aIIolled onIv in a denaleriaIised forn, (i.e. nol in lhe forn of phvsicaI cerlificales lul le fungilIe and
le represenled lv lhe slalenenl issued lhrough lhe eIeclronic node).

189

In lhis conlexl, lvo lriparlile agreenenls have leen signed anong lhe Conpanv, lhe Deposilories
and lhe Regislrar,

1. An Agreenenl daled |y! anong NSDL, our Conpanv and Regislrar lo lhe Issue.
2. An Agreenenl daled |y! anong CDSL, our Conpanv and Regislrar lo lhe Issue.

AII ßidders can seek aIIolnenl onIv in DenaleriaIized node. ßids fron anv ßidder vilhoul lhe
foIIoving delaiIs of his or her deposilorv accounl are IialIe lo le rejecled:

1. A ßidder appIving for Lquilv Shares nusl have al Ieasl one leneficiarv accounl vilh eilher of lhe
Deposilorv Iarlicipanls of NSDL or CDSL prior lo naking lhe ßid.
2. The ßidder nusl necessariIv fiII in lhe delaiIs (incIuding lhe leneficiarv accounl nunler and
Deposilorv Iarlicipanl's Idenlificalion nunler) appearing in lhe ßid-cun-AppIicalion Iorn or
Revision Iorn.
3. Lquilv Shares aIIolled lo a successfuI ßidder viII le crediled in eIeclronic forn direclIv lo lhe
leneficiarv accounl (vilh lhe Deposilorv Iarlicipanl) of lhe ßidder.
4. Nanes in lhe ßid-cun-AppIicalion Iorn or Revision Iorn shouId le idenlicaI lo lhose appearing
in lhe accounl delaiIs in lhe Deposilorv. In case of joinl hoIders, lhe nanes shouId necessariIv le
in lhe sane sequence as lhev appear in lhe deposilorv accounl delaiIs of lhe ßidder(s) vilh lhe
Deposilorv.
5. Non TransferalIe aIIolnenl advice or refund orders viII le direclIv senl lo lhe ßidders lv lhe
regislrar lo lhe Issue.
6. If inconpIele or incorrecl delaiIs are given under lhe heading 'ßidders Deposilorv Accounl
DelaiIs' in lhe ßid-cun-AppIicalion Iorn or Revision Iorn, il is IialIe lo le rejecled.
7. The ßidder is responsilIe for lhe correclness of his or her Denographic DelaiIs given in lhe ßid-
cun-AppIicalion Iorn vis-a-vis lhose vilh his or her Deposilorv Iarlicipanl.
8. Il nav le noled lhal Lquilv Shares in eIeclronic forn can le lraded onIv on lhe slock exchanges
having eIeclronic conneclivilv vilh NSDL or CDSL. AII lhe slock exchanges vhere Lquilv Shares
are proposed lo le Iisled are connecled lo NSDL and CDSL.
9. The lrading of Lquilv Shares of lhe Conpanv vouId onIv le in denaleriaIized forn for aII
inveslors in lhe denal segnenl of lhe respeclive Slock exchanges.

DIsµnsa! nf Aµµ!IcatInns and Aµµ!IcatInns Mnncv and Intcrcst In casc nf dc!av
Wilh respecl lo ßidders olher lhan ASßA ßidders, our Conpanv shaII ensure dispalch of AIIolnenl
Advice, refund orders (excepl for ßidders vho receive refunds lhrough eIeclronic lransfer of funds)
and give lenefil lo lhe leneficiarv accounl vilh Deposilorv Iarlicipanls and sulnil lhe docunenls
perlaining lo lhe AIIolnenl lo lhe Slock Lxchanges afler lhe AIIolnenl.

In case of ßidders vho receive refunds lhrough LCS, or RTCS or Direcl Credil or NLIT, lhe refund
inslruclions viII le given lo lhe cIearing svslen and a suilalIe connunicalion shaII le senl lo such
ßidders vilhin 11 vorking davs fron lhe ßid/Issue CIosing Dale, giving delaiIs of lhe lank vhere
refunds shaII le crediled aIong vilh anounl and expecled dale of eIeclronic credil of refund.

We underlake lhal aII sleps viII le laken for conpIelion of necessarv fornaIilies for Iisling and
connencenenl of lrading al aII lhe slock exchanges vhere lhe Lquilv Shares are proposed lo le
Iisled vilhin 12 vorking davs of lhe ßid/Issue CIosing Dale.

The Conpanv shaII dispalch refund orders, as per lhe procedure nenlioned under seclion ¨Dispalch
of Refund Orders¨ on page no. 191 of lhis Drafl Red Herring Irospeclus, al lhe soIe or Iirsl ßidder´s

19O

soIe risk.

Thc Cnmµanv wI!! µrnvIdc adcquatc funds rcquIrcd fnr dIsµatch nf rcfund nrdcrs nr fnr crcdIt nf
rcfunds, as thc casc mav bc, tn thc RcgIstrar tn thc Issuc.

In accordance vilh lhe Conpanies Acl, lhe requirenenls of lhe slock exchanges and SLßI (ICDR)
ReguIalions, lhe Conpanv furlher underlakes lhal:
ƒ AIIolnenl of Lquilv Shares shaII le nade onIv in denaleriaIized forn vilhin 1O vorking
davs of lhe ßid/Issue CIosing Dale:
ƒ Wilh respecl lo ßidders olher lhan ASßA ßidders, dispalch of refund orders or in a case
vhere lhe refund or porlion lhereof is nade in eIeclronic nanner, lhe refund inslruclions are
given lo lhe cIearing svslen vilhin 11 Working Davs of lhe Issue CIosing Dale vouId le
ensured. Wilh respecl lo lhe ASßA ßidders, inslruclions for unlIocking of lhe ASßA ßidder´s
ASßA Accounl shaII le nade vilhin nine vorking davs fron lhe Issue CIosing Dale: and
ƒ Our Conpanv shaII pav inleresl al 15° per annun for anv deIav levond lhe 12 Working
Davs fron lhe ßid/Issue CIosing Dale as nenlioned alove, if aIIolnenl is nol nade and
refund orders are nol dispalched or if, in a case vhere lhe refund or porlion lhereof is nade in
eIeclronic nanner, lhe refund inslruclions have nol leen given lo lhe cIearing svslen in lhe
discIosed nanner and/or denal credils are nol nade lo inveslors vilhin lhe 11 Working
Davs prescriled alove. If such nonev is nol repaid vilhin eighl davs fron lhe dav our
Conpanv lecones IialIe lo repav, our Conpanv and everv Direclor of our Conpanv vho is
an officer in defauIl shaII, on and fron expirv of eighl davs, le joinlIv and severaIIv IialIe lo
repav lhe nonev vilh inleresl as prescriled under lhe appIicalIe Iav.

Our Conpanv viII provide adequale funds required for dispalch of refund orders or AIIolnenl
advice lo lhe Regislrar lo lhe Issue as per lhe node discIosed under ¨Dispalch of Refund Order¨
appearing on page no. 191 of lhis Drafl Red Herring Irospeclus.

Save and excepl refunds effecled lhrough lhe eIeclronic node i.e. LCS, Direcl Credil or RTCS,
refunds viII le nade lv cheques, pav-orders or denand drafls dravn on lhe Refund ßank and
pavalIe al par al pIaces vhere ßids are received. The ßank charges, if anv, for encashing such
cheques, pav orders or denand drafls al olher cenlres viII le pavalIe lv lhe ßidders

Lcttcrs nf A!!ntmcnt nr Rcfund Ordcrs
The Regislrars lo lhe Issue shaII give inslruclions for credil lo lhe leneficiarv accounl vilh deposilorv
parlicipanls vilhin 11 vorking davs fron lhe Issue CIosing dale. AppIicanls having lank accounls al
anv of lhe 68 cenlres vhere cIearing houses are nanaged lv lhe Reserve ßank of India (RßI) viII gel
refunds lhrough LIeclronic Credil Service (LCS) onIv, excepl vhere appIicanl is olhervise discIosed
as eIigilIe lo gel refunds lhrough direcl credil or ReaI Tine Cross SellIenenl (RTCS). In case of olher
appIicanls, our Conpanv shaII dispalch refund orders, if anv, of vaIue uplo C 1,5OO lv ¨Under
Cerlificale of Iosling¨, and viII dispalch refund orders alove C 1,5OO, if anv, lv regislered posl onIv
al lhe soIe or firsl ßidder´s soIe risk vilhin 11 vorking davs of lhe ßid / Issue CIosing dale.
AppIicanls lo vhon refunds are nade lhrough LIeclronic lransfer of funds viII le senl a Ieller
lhrough ¨Under Cerlificale of Iosling¨ vilhin 11 vorking davs of cIosure of Issue, inlinaling lhen
aloul lhe node of credil of refund, lhe lank vhere refunds shaII le crediled aIong vilh lhe anounl
and lhe expecled dale of eIeclronic credil of refund.

In case of ASßA ßidders, lhe Regislrar lo lhe Issue shaII inslrucl lhe reIevanl SCSß lo unlIock lhe

191

funds in lhe reIevanl ASßA Accounl lo lhe exlenl of lhe ßid Anounl specified in lhe ASßA Iorns for
vilhdravn, rejecled or unsuccessfuI or parliaIIv successfuI ASßA ßids vilhin 11 Working Davs of lhe
Offer CIosing Dale.

DI5PATCH OF REFUND ORDER5

The pavnenl of refund, if anv, vouId le done lhrough various nodes in lhe foIIoving order of
preference -

1. LCS - Iavnenl of refund vouId le done lhrough LCS for appIicanls having an accounl al anv of
lhe foIIoving 68 cenlers - Ahnedalad, ßangaIore, ßhulneshvar, KoIkalla, Chandigarh, Chennai,
Cuvahali, Hvderalad, Iaipur, Kanpur, Munlai, Nagpur, Nev DeIhi, Ialna and
Thiruvanlhapuran (nanaged lv RßI): ßaroda, Dehradun, Nashik, Ianaji, Sural, Trichv, Trichur,
Iodhpur, CvaIior, IalaIpur, Raipur, CaIicul, SiIiguri (Non-MICR), Iondicherrv, HulIi, ShinIa
(Non-MICR), Tirupur, ßurdvan (Non-MICR), Durgapur (Non-MICR), ShoIapur, Ranchi, Tirupali
(Non-MICR), Dhanlad (Non-MICR), NeIIore (Non-MICR) and Kakinada (Non-MICR) (nanaged
lv Slale ßank of India): Agra, AIIahalad, IaIandhar, Lucknov, Ludhiana, Varanasi, KoIhapur,
Aurangalad, Mvsore, Lrode, Udaipur, Corakpur and Iannu (nanaged lv Iunjal NalionaI
ßank): Indore (nanaged lv Slale ßank of Indore): Iune, SaIen and Ianshedpur (nanaged lv
Union ßank of India): Visakhapalnan nanaged lv Andhra ßank): MangaIore (nanaged lv
Corporalion ßank): Coinlalore and Rajkol (nanaged lv ßank of ßaroda): Kochi/LrnakuIun
(nanaged lv Slale ßank of Travancore): ßhopaI (nanaged lv CenlraI ßank of India): Madurai
(nanaged lv Canara ßank): Anrilsar (nanaged lv OrienlaI ßank of Connerce): HaIdia (Non-
MICR) (nanaged lv Uniled ßank of India): Vijavvada (nanaged lv Slale ßank of Hvderalad):
and ßhiIvara (nanaged lv Slale ßank of ßikaner and Iaipur). This node of pavnenl of refunds
vouId le suljecl lo avaiIaliIilv of conpIele lank accounl delaiIs incIuding lhe MICR Code as
appearing on a cheque Ieaf fron lhe Deposilories. The pavnenl of refunds is nandalorv lhrough
lhis node for appIicanls having a lank accounl al anv of lhe alove nenlioned 68 cenlers, excepl
vhere lhe appIicanl, leing eIigilIe, opls lo receive refund lhrough direcl credil or RTCS or NLIT.
Refunds lhrough LCS nav aIso le done al olher Iocalions lased on operalionaI efficiencv and in
lerns of denographic delaiIs ollained lv lhe Regislrar fron lhe Deposilorv Iarlicipanl.

2. Direcl Credil - AppIicanls having lank accounls vilh lhe Refund ßanker, shaII le eIigilIe lo
receive funds lhrough direcl credil. Charges, if anv, Ievied lv lhe Refund ßanker for lhe sane
vouId le lorne lv lhe Conpanv.

3. RTCS - AppIicanls having a lank accounl al anv of lhe alove-nenlioned 68 cenlers, have aIso lhe
oplion lo receive refund lhrough RTCS. Such eIigilIe appIicanls vho indicale lheir preference lo
receive refund lhrough RTCS are required lo provide lhe IISC Code in lhe ßid-cun-AppIicalion
forn. In lhe evenl lhe sane is nol provided, refund shaII le nade lhrough LCS. Charges, if anv,
Ievied lv lhe refund lanks for lhe sane vouId le lorne lv lhe Conpanv. Charges, if anv, Ievied
lv lhe appIicanls´ lank receiving lhe credil vouId le lorne lv lhe appIicanl.

4. NLIT - Iavnenl of refund shaII le underlaken lhrough NLIT vherever lhe appIicanls´ lank has
leen assigned lhe IISC, vhich can le Iinked lo a MICR, if anv, avaiIalIe lo lhal parlicuIar lank
lranch. IISC viII le ollained fron lhe velsile of RßI as on a dale innedialeIv prior lo lhe dale
of pavnenl of refund, duIv napped vilh MICR nunlers. Wherever lhe appIicanls have
regislered lheir nine digil MICR nunler and lheir lank accounl nunler vhiIe opening and
operaling lhe denal accounl, lhe sane viII le duIv napped vilh lhe IISC of lhal parlicuIar lank
lranch and lhe pavnenl of refund viII le nade lo lhe appIicanls lhrough lhis nelhod. The
process fIov in respecl of refunds lv vav of NLIT is al an evoIving slage hence use of NLIT is

192

suljecl lo operalionaI feasiliIilv, cosl and process efficiencv. In lhe evenl lhal NLIT is nol
operalionaIIv feasilIe, lhe pavnenl of refunds vouId le nade lhrough anv one of lhe olher
nodes as discussed in lhe seclions.

5. Refund Orders - Ior aII olher appIicanls, incIuding lhose vho have nol updaled lheir lank
parlicuIars vilh lhe MICR code, lhe refund orders viII le dispalched under cerlificale of posling
for vaIue up lo C 1,5OO and lhrough Speed Iosl/ Regislered Iosl for refund orders of C 1,5OO and
alove. Such refunds viII le nade lv cheques, pav orders or denand drafls dravn on lhe Lscrov
CoIIeclion ßanks and pavalIe al par al pIaces vhere ßids are received. ßank charges, if anv, for
cashing such cheques, pav orders or denand drafls al olher cenlres viII le pavalIe lv lhe
ßidders.

P!casc nntc that nn!v aµµ!Icants havIng a bank accnunt at anv nf thc 68 ccntrcs whcrc c!carIng
hnuscs fnr EC5 arc managcd bv thc RBI, 5tatc Bank nf IndIa, Punjab NatInna! Bank, 5tatc Bank nf
Indnrc, UnInn Bank nf IndIa, Andhra Bank, CnrµnratInn Bank, Bank nf Barnda, 5tatc Bank nf
Travancnrc, Ccntra! Bank nf IndIa, Canara Bank, OrIcnta! Bank nf Cnmmcrcc, UnItcd Bank nf
IndIa, 5tatc Bank nf Hvdcrabad and 5tatc Bank nf BIkancr and JaIµur arc c!IgIb!c tn rcccIvc
rcfunds thrnugh thc mndcs dctaI!cd In 1, 2, 3 & 4 hcrcInabnvc. Fnr a!! thc nthcr aµµ!Icants,
Inc!udIng aµµ!Icants whn havc nnt uµdatcd thcIr bank µartIcu!ars a!nng wIth thc nInc dIgIt MICR
cndc, thc rcfund nrdcrs wnu!d bc dIsµatchcd "Undcr CcrtIfIcatc nf PnstIng" fnr rcfund nrdcrs nf
va!uc uµtn C 1,500 and thrnugh 5µccd Pnst / RcgIstcrcd Pnst fnr rcfund nrdcrs nf C 1,500 and abnvc.

UNDERTAKING BY THE COMPANY

Our Conpanv underlake as foIIovs:
(a) lhal lhe conpIainls received in respecl of lhis Issue shaII le allended lo lv us expediliousIv and
salisfacloriIv:
(l) lhal aII sleps viII le laken for lhe conpIelion of lhe necessarv fornaIilies for Iisling and
connencenenl of lrading al aII lhe slock exchanges vhere lhe Lquilv Shares are proposed lo le
Iisled vilhin 12 vorking davs of lhe ßid/Issue CIosing Dale:
(c) lhal lhe funds required for naking refunds lo unsuccessfuI appIicanls as per lhe node(s)
discIosed under lhe heading ¨Dispalch of Refund Orders¨ on page no. 191 of lhis Drafl Red
Herring Irospeclus shaII le nade avaiIalIe lo lhe Regislrar lo lhe Issue lv our Conpanv:
(d) lhal vhere refunds are nade lhrough eIeclronic lransfer of funds, a suilalIe connunicalion shaII
le senl lo lhe appIicanl vilhin 11 vorking davs of cIosure of Issue, giving delaiIs of lhe lank
vhere refunds shaII le crediled aIongvilh lhe anounl and expecled dale of eIeclronic credil of
refund:
(e) lhal lhe refund orders or aIIolnenl advice lo lhe LIigilIe NRIs or IIIs shaII le dispalched vilhin
specified line: and
(f) lhal no furlher Issue of Lquilv Shares shaII le nade unliI lhe Lquilv Shares Issued lhrough lhis
Drafl Red Herring Irospeclus are Iisled or unliI lhe ßid Monev is refunded on accounl of non-
Iisling, under-sulscriplion elc.
(g) lhal adequale arrangenenls shaII le nade lo coIIecl aII AppIicalions Supporled lv ßIocked
Anounl (ASßA) and lo consider lhen siniIar lo non-ASßA appIicalions vhiIe finaIizing lhe
lasis of aIIolnenl.

UTILI5ATION OF I55UE PROCEED5

193

Our ßoard of Direclors of lhe Conpanv cerlifies lhal:
(a) aII nonies received oul of lhe Issue shaII le crediled / lransferred lo a separale lank accounl
olher lhan lhe lank accounl referred lo in sul-seclion (3) of Seclion 73 of lhe Conpanies Acl,
1956:
(l) delaiIs of aII nonies uliIized oul of lhe Issue referred alove shaII le discIosed under an
appropriale separale head in ils laIance sheel indicaling lhe purpose for vhich such nonies
have leen uliIized:
(c) delaiIs of aII unuliIized nonies oul of lhe Issue, if anv, shaII le discIosed under lhe appropriale
separale head in ils laIance sheel indicaling lhe forn in vhich such unuliIised nonies have leen
invesled:

Our Conpanv shaII conpIv vilh lhe requirenenls of CIause 49 of lhe Lisling Agreenenl in reIalion
lo lhe discIosure and noniloring of lhe uliIizalion of lhe proceeds of lhe Issue.

Our Conpanv shaII nol have recourse lo lhe Issue proceeds unliI lhe approvaI for lrading of lhe
Lquilv Shares fron aII lhe Slock Lxchanges vhere Iisling is soughl has leen received.

COMMUNICATION5

AII fulure connunicalions in conneclion vilh ßids lv ßidders (olher lhan ASßA lidders) nade in
lhis Issue shouId le addressed lo lhe Regislrar lo lhe Issue quoling lhe fuII nane of lhe soIe or Iirsl
ßidder, ßid-cun-AppIicalion Iorn nunler, delaiIs of Deposilorv Iarlicipanl, nunler of Lquilv
Shares appIied for, dale of ßid Iorn, nane and address of lhe nenler of lhe Svndicale vhere lhe
ßid vas sulnilled and cheque or drafl nunler and issuing lank lhereof.

Inveslors (olher lhan ASßA lidders) can conlacl lhe ConpIiance Officer or lhe Regislrar lo lhe Issue
in case of anv pre-Issue or posl-Issue reIaled prolIens such as non-receipl of Iellers of aIIolnenl,
credil of aIIolled shares in respeclive leneficiarv accounls, refund orders elc.

Ior ASßA ßidders, in reIalion lo aII fulure connunicalion in conneclion vilh ASßA ßids nade in
lhis Issue shouId le addressed lo lhe Regislrar lo lhe Issue quoling lhe fuII nane of lhe soIe or firsl
ASßA ßidder, ASßA Iorn nunler, delaiIs of Deposilorv Iarlicipanl, nunler of Lquilv Shares
appIied for, dale of ASßA Iorn, nane and address of lhe Designaled ßranch vhere lhe ASßA ßid
vas sulnilled and lank accounl nunler of lhe ASßA Accounl, vilh a copv lo lhe reIevanl SCSß.
The Regislrar lo lhe Issue shaII ollain lhe required infornalion fron lhe reIevanl SCSßs for
addressing anv cIarificalions or grievances. The SCSß shaII le responsilIe for anv danage or IialiIilv
resuIling fron anv errors, fraud or viIfuI negIigence on lhe parl of anv enpIovee of lhe concerned
SCSß, incIuding ils Designaled ßranches and lhe lranches vhere lhe ASßA Accounls are heId.


ASßA ßidders can conlacl lhe ConpIiance Officer, lhe Designaled ßranch vhere lhe ASßA Iorn vas
sulnilled, or lhe Regislrar lo lhe Issue in case of anv pre or posl-Issue reIaled prolIens such as non
receipl of credil of aIIolled Lquilv Shares in lhe respeclive leneficiarv accounls, unlIocking of excess
ßid Anounl, elc.

The ßook Running Lead Manager underlakes lhal lhe conpIainls or connenls received in respecl of
lhis Issue shaII le allended lo lv our Conpanv expediliousIv and salisfacloriIv.

RcstrIctInns nn FnrcIgn OwncrshIµ nf IndIan 5ccurItIcs

194

Ioreign inveslnenl in Indian securilies is reguIaled lhrough lhe InduslriaI IoIicv, 1991 of lhe CoI and
ILMA. WhiIe lhe InduslriaI IoIicv prescriles lhe Iinils and lhe condilions suljecl lo vhich foreign
inveslnenl can le nade in differenl seclors of lhe Indian econonv, ILMA reguIales lhe precise
nanner in vhich such inveslnenl nav le nade. Under lhe InduslriaI IoIicv of lhe Covernnenl of
India, unIess specificaIIv reslricled, foreign inveslnenl is freeIv pernilled in aII seclors of Indian
econonv up lo anv exlenl and vilhoul anv prior approvaIs, lul lhe foreign inveslor is required lo
foIIov cerlain prescriled procedures for naking such inveslnenl.

5ubscrIµtInn bv Nnn-RcsIdcnts
The Lquilv Shares have nol leen and viII nol le regislered under lhe Securilies Acl or anv slale
securilies Iavs in lhe Uniled Slales and nav nol le offered or soId vilhin lhe Uniled Slales or lo, or
for lhe accounl or lenefil of, ¨U.S. persons¨ (as defined in ReguIalion S under lhe Securilies Acl),
excepl pursuanl lo an exenplion fron, or in a lransaclion nol suljecl lo, lhe regislralion requirenenls
of lhe Securilies Acl or lhe requirenenls of lhe Inveslnenl Conpanv Acl.

AccordingIv, lhe Lquilv Shares are onIv leing offered and soId (i) in lhe Uniled Slales lo enlilies lhal
are lolh ¨quaIified inslilulionaI luvers¨, as defined in RuIe 144A of lhe Securilies Acl and ¨quaIified
purchasers¨ as defined under lhe Inveslnenl Conpanv Acl and (ii) oulside lhe Uniled Slales lo
cerlain persons in offshore lransaclions in conpIiance vilh ReguIalion S under lhe Securilies Acl and
lhe appIicalIe Iavs of lhe jurisdiclion vhere lhose offers and saIes occur.

As µcr thc currcnt rcgu!atInns, OCBs cannnt µartIcIµatc In thIs Issuc.
The alove infornalion is given for lhe lenefil of lhe ßidders. The Conpanv, lhe ßRLM are nol IialIe
for anv anendnenls or nodificalion or changes in appIicalIe Iavs or reguIalions, vhich nav happen
afler lhe dale of lhis Drafl Red Herring Irospeclus. ßidders are advised lo nake lheir independenl
invesligalions and ensure lhal lhe nunler of Lquilv Shares lid for do nol exceed lhe appIicalIe
Iinils under Iavs or reguIalions. Hovever ve shaII updale lhis Drafl Red herring Irospeclus and
keep lhe pulIic inforned of anv naleriaI changes in nallers concerning our lusiness and operalions
liII lhe Iisling and connencenenl of lrading of lhe Lquilv Shares.

195


5ECTION IX: MAIN PROVI5ION5 OF ARTICLE5 OF A55OCIATION OF THE COMPANY

5HARE CAPITAL

3. Amnunt nf 5harc CaµIta!:
The Aulhorised Share CapilaI of lhe conpanv shaII le such anounls and le divided inlo such
shares as nav, fron line lo line, le provided in CIause V of lhe Menorandun of Associalions.
The Conpanv shaII have lhe pover lo increase or reduce lhe capilaI, fron line lo line in
accordance vilh lhe Conpanv's reguIalions and IegisIalive provisions for lhe line leing in force
in lhis lehaIf and vilh povers lo divide lhe share capilaI of lhe Conpanv for lhe line leing,
vhelher originaI or increased or decreased, and vhelher issued or nol, inlo severaI cIasses, and
allach lhere lo respecliveIv anv ordinarv, preferenliaI, quaIified, deferred or speciaI righls,
priviIeges, and condilions as shaII fron line lo line le provided lv lhe ReguIalions of lhe
Conpanv and lhe IegisIalive provisions for lhe line leing in force in lhis lehaIf. The nininun
paid up capilaI of lhe Conpanv shaII le C 5,OO,OOO/- (Rupees Iive Lacs).

4. Incrcasc In thc sharc caµIta! nf thc Cnmµanv
The Conpanv nav lv an ordinarv resoIulion passed al a CeneraI Meeling increase lhe share
capilaI lv such sun lo le divided inlo shares of such anounl as lhe resoIulion nav prescrile. The
nev shares shaII le issued on such lerns and condilions and vilh such righls and priviIeges
annexed lherelo, as lhe resoIulion nav prescrile and direcl, and if no direclion le given, as lhe
Direclors shaII delernine, and in parlicuIar, such shares nav le issued suljecl lo arlicIes, vilh a
preferenliaI or quaIified righl lo dividends, and in lhe dislrilulion of assels of lhe Conpanv and
vilh a righl lo vole al lhe CeneraI Meeling in confornilv vilh Seclions 87 and 88 of lhe Acl.
UnIess olhervise slaled, aII nev shares of lhe sane cIass shaII rank pari passu vilh exisling
shares of lhe sane cIass. Whenever lhe CapilaI of lhe Conpanv is increased under lhe provisions
of lhis ArlicIe, lhe ßoard shaII conpIv vilh lhe provisions of seclion 97 of lhe Acl.

5. Ncw CaµIta! samc as cxIstIng CaµIta!:
Lxcepl so far as olhervise provided lv lhe condilions of lhe issue or lv lhese presenls, anv
CapilaI raised lv lhe crealion of nev shares shaII le considered as parl of lhe exisling CapilaI,
and shaII le suljecl lo lhe provisions herein conlained, vilh reference lo lhe pavnenl of caIIs and
inslaIInenls, forfeilure, Iien, surrender, lransfer and lransnission, voling and olhervise.

6. EquItv 5harc CaµIta! wIth DIffcrcntIa! RIghts:
(a) Suljecl lo lhe provisions of Seclion 86 of lhe Acl and appIicalIe ruIes, guideIines and
reguIalions, lhe Conpanv shaII have lhe pover lo issue equilv shares vilh differenliaI righl
as lo dividend, voling or olhervise.

(l)To lhe exlenl lhal lhe Conpanv is pernilled lv appIicalIe Iav lo issue non-voling shares or
shares vhich have righls allached lherelo differenl fron lhe righls allached lo equilv shares
or anv olher kind, cIass or lvpe of shares, lhe Conpanv nav, if so aulhorised lv lhe
resoIulion of lhe nenlers under seclion 81 (1A) of lhe Acl, and olher reIevanl provisions of
lhe Acl, issue such shares upon such lerns and condilions and vhich such righls and
priviIeges allached lherelo as lhoughl fil as nav le pernilled lv appIicalIe Iav.

7. Rcdccmab!c Prcfcrcncc 5harcs:
Suljecl lo lhe provisions of Seclion 8O of lhe Acl and appIicalIe ruIes, guideIines and reguIalions,
lhe Conpanv shaII have lhe pover lo issue Ireference Shares vhich are, or al lhe oplion of lhe

196

Conpanv are lo le IialIe, lo le redeened and lhe resoIulion aulhorising such issue shaII
prescrile lhe nanner, lerns and condilions of redenplion.

8. PrnvIsInns tn aµµ!v nn Issuc nf rcdccmab!c µrcfcrcncc sharcs:
On lhe issue of RedeenalIe Ireference Shares under lhe provisions of ArlicIe 7 hereof lhe
foIIoving provisions shaII lake effecl: -

(a) No such shares shaII le redeened excepl oul of lhe profils of lhe Conpanv vhich vouId
olhervise le avaiIalIe for dividend or oul of lhe proceeds of a fresh issue of shares nade for
lhe purpose of lhe redenplion:

(l) No such shares shaII le redeened unIess lhev are fuIIv paid:

(c) The preniun, if anv, pavalIe on redenplion nusl have leen provided for oul of lhe profils
of lhe Conpanv or lhe Conpanv's Securilies Ireniun Accounl lefore lhe shares are
redeened:

(d) Where anv such shares are redeened olhervise lhan oul of lhe proceeds of a fresh issue, lhere
shaII, oul of profils vhich vouId olhervise have leen avaiIalIe for dividend, le lransferred lo
a reserve fund, lo le caIIed lhe ''CapilaI Redenplion Reserve Accounl'', a sun equaI lo lhe
noninaI anounl of lhe shares redeened and lhe provisions of lhe Acl, reIaling lo lhe
reduclion of lhe share CapilaI of lhe Conpanv shaII, excepl as provided in seclion 8O of lhe
Acl, appIv as if lhe CapilaI Redenplion Reserve Accounl vere paid up share CapilaI of lhe
Conpanv.

9. Pnwcr nf thc Cnmµanv tn buv Its nwn sharcs:
Suljecl lo lhe provisions as Iaid dovn in Seclion 77A, 77AA and 77ß and suljecl lo such
approvaIs as nav le required under olher appIicalIe seclions of lhe Acl, if anv, and olher
provisions, ruIes, guideIines, reguIalions and anv anendnenl and nodificalions lherelo, lhe
Conpanv shaII have lhe pover lo purchase / luv lack ils ovn shares and / or olher securilies.

10. Funds nf thc cnmµanv nnt tn bc aµµ!Icd In µurchasc nf sharcs nf thc Cnmµanv
None of lhe funds of lhe Conpanv shaII le appIied in lhe purchase of anv shares of lhe
Conpanv, and il shaII nol give anv financiaI assislance for or in conneclion vilh lhe purchase or
sulscriplion of anv shares in lhe Conpanv or in ils hoIding Conpanv save as provided lv
seclion 77 of lhe Acl.

11. 5ub-dIvIsInn, cnnsn!IdatInn and cancc!!atInn nf sharcs:
The Conpanv nav, lv ordinarv resoIulion in CeneraI Meeling:

(a) consoIidale and divide aII or anv of ils capilaI inlo shares of Iarger anounls lhan ils exisling
shares.

(l) sul-divide ils shares or anv of lhen, inlo shares of siniIar anounls lhan is fixed lv lhe
Menorandun of Associalion, so hovever, lhan in lhe sul-division lhe proporlion lelveen
lhe anounl paid and lhe anounl, if anv, unpaid on each reduced share shaII le lhe sane as il
vas in lhe case of lhe share fron vhich lhe reduced share is derived:

(c) canceI anv share vhich, al lhe dale of lhe passing of lhe resoIulion in lhal lehaIf, have nol
leen laken or agreed lo le laken lv anv person and dininish lhe anounl of ils share capilaI
lv lhe anounl of lhe shares so canceIIed.

197

12. Issuc nf 5wcat EquItv 5harcs
Conpanv, suljecl lo and in accordance vilh lhe provisions of seclion 79A of lhe Acl, shaII have
lhe pover, lv a SpeciaI ResoIulion passed al a CeneraI Meeling lo issue Sveal Lquilv Shares lo
lhe Direclors, LnpIovees of lhe Conpanv.

13. PrnvIsInn fnr Issuc nf sharcs undcr Emµ!nvccs' 5tnck OµtInn 5chcmc
(a) Suljecl lo lhe provisions of seclion 81(1A) and olher appIicalIe provisions, if anv, of lhe
Conpanies Acl, 1956, suljecl lo lhe passing of speciaI resoIulion in generaI neeling and
lhese ReguIalions, lhe ßoard nav, fron line lo line, creale, offer and issue lo or for lhe
lenefil of lhe Conpanv's enpIovees incIuding lhe Direclors, Lxeculive Chairnan, Vice-
Chairnan, lhe Managing Direclors and lhe WhoIe line Direclors such nunler of equilv
shares of lhe Conpanv, in one or nore lrenches on such lerns as nav le delernined lv
lhe ßoard prior lo lhe issue and offer, in consuIlalion vilh lhe aulhorilies concerned and in
accordance vilh such guideIines or olher provisions of Iav as nav le prevaIenl al lhal line
lul ranking pari passu vilh lhe exisling equilv shares of lhe Conpanv.

(l) The issue price of such shares shaII le delernined lv lhe ßoard in accordance vilh lhe Iavs
prevaIenl al lhe line of lhe issue.

(c) In lhe aIlernalive lo equilv shares, nenlioned hereinalove, lhe ßoard nav aIso issue londs,
equilv varranls or olher securilies as nav le pernilled in Iav, fron line lo line.

14. RcductInn nf 5harc CaµIta!
The Conpanv nav, fron line lo line, lv SpeciaI ResoIulion and on conpIiance vilh lhe
provisions of Seclion 1OO lo 1O5 of lhe Acl, reduce ils share capilaI and anv capilaI reserve fund
or share preniun accounl.

15. MndIfIcatInn nf RIghts
(a) If al anv line lhe share capilaI is divided inlo differenl cIasses of shares, lhe righls allached
lo anv cIass (unIess olhervise provided lv lhe lerns of issue of lhe shares of lhal cIass) nav,
suljecl lo lhe provisions of Seclions 1O6 and 1O7 of lhe Acl, nodified, connuled, affecled,
alrogaled, deaIl vilh or varied vilh lhe consenl in vriling of lhe hoIders of lhree fourlhs of
lhe issued shares of lhal cIass or vilh a sanclion of a speciaI resoIulion passed al a separale
neeling of lhe hoIders of lhe shares of lhal cIass.

(l) Suljecl lo lhe provisions of lhe Acl, lo everv such separale neeling, lhe provisions of lhese
reguIalions reIaling lo neelings shaII nulalis nulandis appIv, lul so lhal lhe necessarv
quorun shaII le five persons al Ieasl hoIding or represenling lv proxv or one-lhird of lhe
issued shares of lhe cIass in queslion.

(c) The righls conferred upon lhe hoIders of lhe shares of anv cIass issued vilh preferred or
olher righls shaII nol unIess olhervise provided lv lhe lerns of issue of lhe shares of lhal
cIass le deened lo le varied lv lhe crealion or issue of furlher shares ranking pari passu
lherevilh.

16. CnmmIssInn and Brnkcragc nn sharcs:
(a) The Conpanv nav exercise lhe povers of paving connission offered lv Seclion 76 of lhe
Acl, provided lhal lhe rale percenl or lhe anounl of lhe connission paid or agreed lo le
paid shaII le discIosed in lhe nanner required lv lhe Seclion.

198

(l) The rale of connission shaII nol exceed lhe rale of 5° ( five percenl) of lhe price al vhich
lhe shares in respecl vhereof lhe sane is paid are issued or an anounl equaI lo 5° (five
percenl) of such price, as lhe case nav le and in lhe case of delenlures 2½°(lvo and a haIf
percenl) of lhe price al vhich lhe delenlures in respecl vhereof lhe sane is paid are issued
or an anounl equaI lo 2½ (lvo and a haIf percenl) of such price, as lhe case nav le.

(c) The connission nav le salisfied lv pavnenl in cash or lv aIIolnenl of fuIIv or parlIv paid
shares or parlIv in one vav and parlIv in lhe olher.

(d) The Conpanv nav aIso, on anv issue of shares, pav such lrokerage as nav le IavfuI.

Intcrcst nut nf CaµIta!

17. Pavmcnt nf Intcrcst nut nf CaµIta!
The Conpanv shaII have pover lo pav inleresl oul of ils capilaI on so nuch of shares vhich
vere issued for lhe purpose of raising nonev lo defrav lhe expenses of lhe conslruclion of anv
vork or luiIding or lhe provisions of anv pIanl for lhe Conpanv in accordance vilh lhe
provisions of Seclion 2O8 of lhe Acl.

5harcs and CcrtIfIcatcs

18. Furthcr Issuc nf CaµIta!:
(a) When al anv line afler lhe expiralion of lvo vears fron lhe fornalion of lhe Conpanv or
al anv line afler lhe expiralion of one vear fron lhe aIIolnenl of shares in lhe Conpanv
nade for lhe firsl line afler ils fornalion, vhichever is earIier, il is proposed lo increase
lhe sulscriled share capilaI of lhe Conpanv lv lhe aIIolnenl of furlher shares, eilher oul
of lhe unissued capilaI or oul of lhe increased share capilaI lhen:

(i) such furlher shares shaII le offered lo lhe persons vho al lhe dale of lhe offer are
hoIders of lhe equilv shares of lhe Conpanv, in proporlion, as near as circunslances
adnil, lo lhe capilaI paid up on lhose shares al lhal dale:

(ii) such offer shaII le nade lv a nolice specifving lhe nunler of shares offered and
Iiniling lhe line nol leing Iess lhan 15 davs fron lhe dale of lhe offer vilhin vhich
lhe offer, if nol accepled, viII le deened lo have leen decIined.

(iii) lhe offer aforesaid shaII le deened lo incIude a righl exercisalIe lv lhe person
concerned lo renounce lhe shares offered lo hin or anv of lhen in favour of anv olher
person and nolice referred lo in cIause (ii) alove shaII conlain a slalenenl of lhis righl.

IROVIDLD THAT lhe Direclors nav decIine, vilhoul assigning anv reason lo aIIol
anv shares lo anv person in vhose favour anv nenler nav, renounce lhe shares
offered lo hin.

(iv) Afler lhe expirv of lhe line specified in lhe nolice aforesaid, or on receipl of earIier
inlinalion fron lhe person lo vhon such nolice is given lhal he decIines lo accepl lhe
shares offered, lhe ßoard of Direclors nav dispose off lhen in such nanner and lo
such persons(s) as lhev lhink, in lheir soIe discrelion fil.

199

(l) Nolvilhslanding anvlhing conlained in sul cIauses (a) lhereof, lhe furlher shares
aforesaid nav le offered lo anv persons (vhelher or nol lhose persons incIude lhe persons
referred lo in cIause (i) of ArlicIe 18 (a) in anv nanner vhalsoever-

(i) if a speciaI resoIulion lo lhal effecl is passed lv lhe Conpanv in CeneraI Meeling, or

(ii) vhere no such speciaI resoIulion is passed, if lhe voles casl (vhelher on a shov of
hands, or on a poII, as lhe case nav le) in favour of lhe proposaI conlained in lhe
resoIulion noved in lhal CeneraI Meeling (incIuding lhe casling vole, if anv of lhe
Chairnan) lv nenlers vho, leing enlilIed so lo do, vole in person, or vhere proxies
are aIIoved, lv proxv, exceed lhe voles, if anv, casl againsl lhe proposaI lv nenlers
so enlilIed and voling and lhe CenlraI Covernnenl is salisfied, on an appIicalion
nade lv lhe ßoard of direclors in lhis lehaIf, lhal lhe proposaI is nosl leneficiaI lo lhe
Conpanv.

(c) Nolhing in cIause (iii) of ArlicIe 18 (a) alove shaII le deened-

(i) lo exlend lhe line vilhin vhich lhe offer shouId le accepled, or

(ii) To aulhorise anv person lo exercise lhe righl of renuncialion for a second line, on lhe
ground lhal lhe person in vhose favour lhe renuncialion vas firsl nade has decIined
lo lake lhe shares conprised in lhe renuncialion.

(d) Tern of issue of delenlure :
Anv delenlures, delenlure-slock or olher securilies nav le issued al a discounl,
preniun or olhervise and nav le issued on condilion lhal lhev shaII le converlilIe inlo
shares of anv denoninalion and vilh anv priviIeges and condilion as lo redenplion,
surrender, draving, aIIolnenl of Direclors and olhervise Delenlures vilh lhe righl lo
conversion inlo or aIIolnenl of shares shaII le issued onIv vilh lhe consenl of lhe
Conpanv in lhe CeneraI Meeling lv a SpeciaI ResoIulion.

(e) Nolhing in lhis ArlicIe shaII appIv lo lhe increase of lhe sulscriled capilaI of lhe
Conpanv caused lv lhe exercise of an oplion allached lo delenlures issued or Ioans
raised lv lhe Conpanv-

(i) lo converl such delenlures or Ioans inlo shares in lhe Conpanv, or

(ii) lo sulscrile for shares in lhe Conpanv.

Irovided lhal lhe lerns of issue of such delenlures or lhe lerns of such Ioans incIude a
lern providing for such oplion and such lern-

I. eilher has leen approved lv lhe CenlraI Covernnenl lefore lhe issue of delenlures or
lhe raising of lhe Ioans, or is in confornilv vilh lhe ruIes, if anv, nade lv lhal
Covernnenl in lhis lehaIf: and

II. in lhe case of delenlures or Ioans olher lhan delenlures issued lo, or Ioans ollained
fron, lhe Covernnenl or anv inslilulion specified lv lhe CenlraI Covernnenl in lhis
lehaIf, has aIso leen approved lv a speciaI resoIulion passed lv lhe Conpanv in
CeneraI Meeling lefore lhe issue of lhe delenlures or lhe raising of lhe Ioans.

2OO


19. 5harcs at thc dIsµnsa! nf DIrcctnrs:
Suljecl lo lhe provisions of Seclion 81 of lhe Acl and lhese ArlicIes, lhe shares in lhe capilaI of
lhe conpanv for lhe line leing shaII le under lhe conlroI of lhe Direclors vho nav issue, aIIol
or olhervise dispose of lhe sane or anv of lhen lo such persons, in such proporlion and on
such lerns and condilions and eilher al a preniun or al par or (suljecl lo lhe conpIiance vilh
lhe provisions of seclion 79 of lhe Acl) al a discounl and al such line as lhev nav fron line lo
line lhink fil and vilh lhe sanclion of lhe conpanv in lhe CeneraI Meeling lo give lo anv
person or persons lhe oplion or righl lo caII for anv shares eilher al par or preniun during such
line and for such consideralion as lhe Direclors lhink fil, and nav issue and aIIol shares in lhe
capilaI of lhe conpanv on pavnenl in fuII or parl of anv properlv soId and lransferred or for
anv services rendered lo lhe conpanv in lhe conducl of ils lusiness and anv shares vhich nav
so le aIIolled nav le issued as fuIIv paid up shares and if so issued, shaII le deened lo le fuIIv
paid shares. Irovided lhal opinion or righl lo caII of shares shaII nol le given lo anv person or
persons vilhoul lhe sanclion of lhe conpanv in lhe CeneraI Meeling.
20. Pnwcr tn nffcr 5harcs/nµtInns tn acquIrc 5harcs
Wilhoul prejudice lo lhe generaIilv of lhe povers of lhe ßoard given under ArlicIe 17 or in anv
olher ArlicIe of lhese ArlicIes of Associalion:

(a) lhe ßoard or anv Connillee lhereof duIv consliluled nav, suljecl lo lhe appIicalIe
provisions of lhe Acl, ruIes nolified lhere under and anv olher appIicalIe Iavs, ruIes and
reguIalions, al anv poinl of line, offer exisling or furlher shares (consequenl lo increase of
share capilaI) of lhe Conpanv, or oplions lo acquire such Shares al anv poinl of line,
vhelher such oplions are granled lv vav of varranls or in anv olher nanner (suljecl lo
such consenls and pernissions as nav le required) lo ils enpIovees, incIuding Direclors
(vhelher vhoIe-line or nol), vhelher al par, al discounl or al a preniun, for cash or for
consideralion olher lhan cash, or anv conlinalion lhereof as nav le pernilled lv Iav for
lhe line leing in force.

(l) In addilion lo lhe povers of lhe ßoard under ArlicIe 18 (a), lhe ßoard nav aIso aIIol lhe
Shares referred lo in ArlicIe 18 (a) lo anv lrusl, vhose principaI oljecls vouId in|cr a|ia
incIude furlher lransferring such Shares lo lhe Conpanv´s enpIovees |incIuding lv vav of
oplions, as referred lo in ArlicIe 18 (a)! in accordance vilh lhe direclions of lhe ßoard or anv
Connillee lhereof duIv consliluled for lhis purpose. The ßoard nav nake such provision
of nonevs for lhe purposes of such lrusl, as il deens fil.

(c) The ßoard, or anv Connillee lhereof duIv aulhorised for lhis purpose, nav do aII such acls,
deeds, lhings, elc. as nav le necessarv or expedienl for lhe purposes of achieving lhe
oljeclives sel oul in ArlicIes 18 (a) and (l) alove.

21. Acccµtancc nf 5harcs
Anv appIicalion signed lv or on lehaIf of an appIicanl for shares in lhe Conpanv, foIIoved lv
an aIIolnenl of anv shares lherein, shaII le an acceplance of shares vilhin lhe neaning of lhese
ArlicIes: and everv person vho lhus or olhervise accepls anv shares and vhose nane is on lhe
regisler shaII, for lhe purposes of lhe ArlicIes, le a nenler.

22. DcµnsIt and ca!! ctc., tn bc dcbt µavab!c
The nonev, if anv vhich lhe ßoard of Direclors shaII on lhe aIIolnenl of anv Shares leing nade
lv lhen, require or direcl lo le paid lv vav of deposil, caII or olhervise, in respecl of anv
Shares aIIolled lv lhen shaII innedialeIv on lhe inscriplion of lhe nane of lhe aIIollee in lhe

2O1

Regisler of Menlers as lhe hoIder of such Shares, lecone a dell due lo and recoveralIe lv lhe
Conpanv fron lhe aIIollee lhereof, and shaII le paid lv hin accordingIv.

23. LIabI!Itv nf Mcmbcrs
Lverv Menler, or his heirs, execulors or adninislralors shaII pav lo lhe Conpanv lhe porlion
of lhe CapilaI represenled lv his share or shares vhich nav, for lhe line leing, renain unpaid
lhereon, in such anounls, al such line or lines, and in such nanner as lhe ßoard shaII, fron
line lo line in accordance vilh lhe Conpanv's reguIalions, require or fix for lhe pavnenl
lhereof.

24. RcgIstcr and Indcx nf Mcmbcrs
The Conpanv shaII keep a Regisler of ils nenlers and delenlure hoIders connencing fron
lhe dale of regislralion of lhe Conpanv and Index of ils nenlers and delenlure hoIders and
enler lherein lhe parlicuIars as prescriled in Seclion 15O, 151 and 152 of lhe Acl and lhe
Deposilories Aclvilh lhe delaiIs of shares heId in phvsicaI or denaleriaIised forn in anv nedia
as pernilled lv appIicalIe Iav incIuding anv forn of eIeclronic nedia. The Conpanv shaII le
enlilIed lo keep in anv Slale or Counlrv oulside India a lranch Regisler of Menlers residenl in
lhal Slale or Counlrv. The Regisler and Index of leneficiaI ovners nainlained lv Deposilorv
under Seclion 11 of lhe Deposilories AclshaII le deened lo le lhe Regisler and index of
Menlers for lhe purpose of lhis Acl in respecl of shares heId in denaleriaIised forn.

25. 5harcs tn bc numbcrcd µrngrcssIvc!v & nn sharc tn bc sub- dIvIdcd
Iursuanl lo lhe provisions of Seclion 83 of lhe Acl, shares in lhe CapilaI shaII le nunlered
progressiveIv according lo lheir severaI denoninalions, and excepl in lhe nanner hereinlefore
nenlioned, no share shaII le sul-divided. Lverv forfeiled or surrendered share shaII conlinue
lo lear lhe nunler lv vhich lhe sane vas originaIIv dislinguished.

Irovided lhal nolhing in lhis ArlicIe shaII appIv lo lhe shares heId vilh a deposilorv.

26. Issuc nf 5harc CcrtIfIcatcs
Lverv Menler shaII le enlilIed, vilhoul pavnenl lo one or nore cerlificales in narkelalIe Iols,
for aII lhe shares of each cIass or denoninalion regislered in his nane, or if lhe direclors so
approve (upon paving such fee as lhe Direclors so line delernine) lo severaI cerlificales, each
for one or nore of such shares and lhe Conpanv shaII conpIele and have readv for deIiverv
such cerlificales vilhin lhree nonlhs fron lhe dale of aIIolnenl, unIess lhe condilions of issue
lhereof olhervise provide, or vilhin lvo nonlhs of lhe receipl of appIicalion of regislralion of
lransfer, lransnission, sul-division, consoIidalion or renevaI of anv of ils Shares as lhe case
nav le. Lverv cerlificale of Shares shaII le under lhe seaI of lhe Conpanv and shaII specifv lhe
nunler and dislinclive nunlers of Shares in respecl of vhich il is issued and anounl paid - up
lhereon and shaII le in such forn as lhe direclors nav prescrile and approve, provided lhal in
respecl of a Share or shares heId joinlIv lv severaI persons, lhe Conpanv shaII nol le lound lo
issue nore lhan one cerlificale and deIiverv of a cerlificale of Shares lo one or severaI joinl
hoIders shaII le a sufficienl deIiverv lo aII such hoIder.

The Connon seaI shaII le affixed in lhe presence of lvo Direclors or persons acling on lehaIf
of lhe Direclors under a duIv regislered pover of allornev and lhe Secrelarv or sone olher
person appoinled lv lhe ßoard for lhe purpose, and lvo Direclors or lheir allornevs and lhe
Secrelarv or olher person shaII sign lhe share cerlificale, provided lhal if lhe conposilion of lhe
ßoard pernils of il, al Ieasl one of lhe aforesaid lvo Direclors shaII le a person olher lhan a
Managing or a WhoIe line Direclor. IarlicuIars of everv share cerlificale issued shaII le enlered

2O2

in lhe Regisler of Menlers againsl lhe nane of lhe person, lo vhon il has leen issued,
indicaling lhe dale of issue.

Irovided lhal, lhese provisions shaII nol appIv lo lhe shares heId in denaleriaIised forn.

27. Issuc nr Rcncwa! nf 5harc CcrtIfIcatcs
If anv cerlificale le vorn oul, defaced, nuliIaled, or lorn or if lhere le no furlher space on lhe lack
lhereof for endorsenenl of lransfer, lhen upon produclion and surrender lhereof lo lhe conpanv, a
nev cerlificale nav le issued in Iieu lhereof and if anv cerlificale Iosl or deslroved lhen upon proof
lhereof lo lhe salisfaclion of lhe conpanv and on execulion of such indennilv as lhe conpanv
deen adequale, leing given, an a nev cerlificale in Iieu lhereof shaII le given lo lhe parlv enlilIed
lo such Iosl or deslroved cerlificale. Lverv cerlificales under lhe ArlicIe shaII le issued vilhoul
pavnenl of fees if lhe Direclors so decide, or on pavnenl of such fees (nol exceeding C2/- for each
cerlificale) as lhe Direclors shaII prescrile. Irovided lhal no fee shaII le charged for issue of nev
cerlificales in repIacenenl of lhose vhich are oId, defaced or vorn oul or vhere lhere is no furlher
space on lhe lack lhereof for endorsenenl of lransfer.

Irovided lhal nolvilhslanding vhal is slaled alove lhe Direclors shaII conpIv vilh such RuIes or
ReguIalion or requirenenls of anv Slock Lxchange or lhe RuIes nade under lhe Acl or lhe ruIes
nade under Securilies Conlracls (ReguIalion) Acl, 1956 or anv olher Acl, or ruIes appIicalIe in lhis
lehaIf. The provision of lhis ArlicIe shaII nulalis nulandis appIv lo delenlures of lhe Conpanv.

28. Thc fIrst namcd nf jnInt hn!dcrs dccmcd sn!c hn!dcr
If anv share slands in lhe nanes of lvo or nore Iersons, lhe Ierson firsl naned in lhe Regisler
of Menlers shaII as regards receipls of dividends, lhe service of nolices and suljecl lo lhe
provisions of lhese ReguIalions, aII or anv olher naller connecled vilh lhe Conpanv excepl lhe
issue of share cerlificales, voling al neeling and lhe lransfer of lhe share, le deened lhe soIe
hoIder lhereof.

29. LIabI!Itv nf JnInt Hn!dcrs
If anv share slands oul in lhe nanes of lvo or nore persons aII lhe joinl hoIders of lhe share
shaII le severaIIv as veII as joinlIv IialIe for lhe pavnenl of aII deposils, inslaIInenls, and
caIIs due in respecl of such shares, and for aII incidenls lhereof according lo lhe Conpanv's
ReguIalions, lul lhe person firsl naned in lhe Regisler shaII, as regards receipl of dividend or
lonus or service of nolice, and aII or anv olher nallers connecled vilh lhe Conpanv, excepl
voling al neelings and lhe lransfer of lhe shares, and anv olher naller lv lhe said Acl or
herein olhervise provided, le deened lhe soIe hoIder lhereof.

30. Cnmµanv nnt bnund tn rccngnIzc anv Intcrcst In sharc nthcr than that nf rcgIstcrcd hn!dcr
Lxcepl as ordered lv a Courl of conpelenl jurisdiclion or as lv Iav required, lhe Conpanv
shaII nol le lound lo recognise, even vhen having nolice lhereof anv equilalIe, conlingenl,
fulure or parliaI inleresl in anv Share, or (excepl onIv as is lv lhese ArlicIes olhervise expressIv
provided) anv righl in respecl of a Share olher lhan an alsoIule righl lherelo, in accordance
vilh lhese ArlicIes, in lhe person fron line lo line regislered as hoIder lhereof lo regisler anv
Share in lhe joinl nanes of anv lvo or nore persons (lul nol exceeding 3 persons) or lhe
survivor or survivors of lhen.

31. FractInna! CcrtIfIcatcs
The Conpanv nav issue such fraclionaI coupons as lhe ßoard nav approve in respecl of anv of
lhe shares of lhe Conpanv on such lerns as lhe ßoard lhinks fil.

2O3


32. Dcc!aratInn bv µcrsnn nnt hn!dIng bcncfIcIa! Intcrcst In anv sharcs:
(a) A person vhose nane is al anv line in lhe Regisler of Menlers of lhe Conpanv as lhe
hoIder of a share in Conpanv, lul vho does nol hoId lhe leneficiaI inleresl in such share,
shaII, if so required lv lhe Acl, vilhin such line and in such forn as nav le prescriled,
nake a decIaralion lo lhe Conpanv specifving lhe nane and olher parlicuIars of person or
persons vho hoId lhe leneficiaI inleresl in such share in lhe nanner provided in lhe Acl:

(l) A person vho hoIds a leneficiaI inleresl in a share or a cIass of shares of lhe Conpanv shaII,
if so required lv lhe Acl, vilhin lhe line prescriled, afler his leconing such leneficiaI
ovner, nake a decIaralion lo lhe Conpanv specifving lhe nalure of his inleresl, parlicuIars
of lhe person in vhose nane lhe shares sland in lhe Regisler of Menlers of lhe Conpanv
and such olher parlicuIars as nav le prescriled as provided in lhe Acl:

(c) Whenever lhere is change in lhe leneficiaI inleresl in a share referred lo alove, lhe
leneficiaI ovner shaII, if so required lv lhe Acl, vilhin lhe line prescriled, fron lhe dale of
such change, nake a decIaralion lo lhe Conpanv in such forn and conlaining such
parlicuIars as nav le prescriled in lhe Acl.

DEMATERIALI5ATION OF 5ECURITIE5
33. Nolvilhslanding anvlhing conlained in lhese ReguIalions, lhe Conpanv shaII le enlilIed lo
appoinl a Deposilorv, denaleriaIize ils exisling Securilies, renaleriaIize ils Securilies heId in
lhe Deposilories and/or offer ils fresh securilies in denaleriaIized forn pursuanl lo
Deposilories Acl and anv olher appIicalIe acls, ruIes and reguIalions.

34. DcmatcrIa!IsatInn nf sccurItIcs:
a.) Lilher on lhe Conpanv or on lhe inveslor exercising an oplion lo hoId his securilies vilh a
Deposilorv in a denaleriaIised forn, lhe Conpanv shaII enler inlo an agreenenl vilh lhe
Deposilorv lo enalIe lhe inveslor lo denaleriaIise lhe securilies, in vhich evenl lhe righls
and olIigalions of lhe parlies concerned shaII le governed lv lhe Deposilories Acl.

l.) Lverv person sulscriling lo securilies offered lv lhe Conpanv shaII have lhe oplion lo
receive lhe securilv cerlificales or lo hoId lhe securilies vilh a deposilorv. Where a person
opls lo hoId a securilv vilh a deposilorv, lhe Conpanv shaII inlinale such deposilorv lhe
delaiIs of aIIolnenl of lhe securilv so lhal and on receipl of such infornalion lhe
deposilorv shaII enler in ils record lhe nane of lhe aIIollee as lhe leneficiaI ovner of lhal
securilv .
c.) AII securilies heId lv a deposilorv shaII le denaleriaIised and shaII le in a fungilIe forn.

d.) Nolhing conlained in Seclions 153, 153ß, 187C and 372A of lhe Acl shaII appIv lo a
deposilorv in respecl of lhe securilies heId lv il on lehaIf of lhe leneficiaI ovners.

35. RIghts nf dcµnsItnrIcs and bcncfIcIa! nwncrs
(a) Nolvilhslanding anvlhing lo lhe conlrarv conlained in lhe Acl or lhese ReguIalions, a
deposilorv shaII le deened lo le lhe regislered ovner for lhe purposes of effecling
lransfer of ovnership of securilv on lehaIf of lhe leneficiaI ovner.

(l) Save as olhervise provided in (a) alove, lhe deposilorv as a regislered ovner shaII nol
have anv voling righls or anv olher righls in respecl of securilies heId lv il.

2O4

(c) Lverv person hoIding equilv share CapilaI of lhe Conpanv and vhose nane is enlered,
as leneficiaI ovner in lhe records of lhe deposilorv shaII le deened lo le a nenler of
lhe Conpanv. The leneficiaI ovner shaII le enlilIed lo aII lhe righls and lenefils and le
suljecled lo aII lhe IialiIilies in respecl of lhe securilies heId lv a deposilorv.

36. DcµnsItnrv tn furnIsh InfnrmatInn:
Lverv deposilorv shaII furnish lo lhe Conpanv infornalion aloul lhe lransfer of securilies in
lhe nane of lhe leneficiaI ovners al such inlervaIs and in such nanner as nav le specified lv
lhe lve Iavs and lhe Conpanv in lhal lehaIf.

37. OµtInn tn nµt nut In rcsµcct nf anv sccurItv
(a) If a leneficiaI ovner seeks lo opl oul of a deposilorv in respecl of anv securilv, lhe
leneficiaI ovner shaII inforn lhe deposilorv accordingIv.

(l) The deposilorv shaII, on receipl of inlinalion as alove, nake appropriale enlries in ils
records and shaII inforn lhe Conpanv.
(c) The Conpanv shaII, vilhin lhirlv (3O) davs of lhe receipl of inlinalion fron lhe
deposilorv and on fuIfiIInenl of such condilions and on pavnenl of such fees as nav le
specified lv lhe reguIalions, issue lhe cerlificale of securilies lo lhe leneficiaI ovner or
lhe lransferee as lhe case nav le.

38. 5cctInn 83 and 108 nf thc Act nnt tn aµµ!v
(a) Nolvilhslanding anvlhing lo lhe conlrarv conlained in lhe ArlicIes, Seclion 83 of lhe Acl
shaII nol appIv lo lhe shares heId vilh a deposilorv.

(l) Seclion 1O8 of lhe Acl shaII nol appIv lo lransfer of securilv effecled lv lhe lransferor and
lhe lransferee lolh of vhon are enlered as leneficiaI ovners in lhe records of a
deposilorv.

39. 5crvIcc nf dncumcnts
Nolvilhslanding anvlhing in lhe Acl or lhese ArlicIes lo lhe conlrarv, vhere securilies are heId
in a deposilorv, lhe records of lhe leneficiaI ovnership nav le served lv such deposilorv on
lhe Conpanv lv neans of eIeclronic node or lv deIiverv of fIoppies or discs.

40. A!!ntmcnt nf sccurItIcs dca!t wIthIn a dcµnsItnrv
Nolvilhslanding anvlhing in lhe Acl or lhese ReguIalions vhere securilies are deaIl vilh lv a
deposilorv, lhe Conpanv shaII inlinale lhe delaiIs lhereof lo lhe deposilorv innedialeIv on
aIIolnenl of such securilies.

41. Upon receipl of cerlificale of securilies of surrender lv a person vho has enlered inlo an
agreenenl vilh lhe Deposilorv lhrough a Deposilarv Iarlicipanl, lhe Conpanv shaII canceI such
cerlificale and sulslilule in ils records lhe nane of Deposilorv as lhe regislered ovner in respecl of
lhe said securilies and shaII aIso inforn lhe Deposilorv accordingIv.

42. RcgIstcr and Indcx nf bcncfIcIa! nwncrs
(a) The Regisler and index of leneficiaI ovners nainlained lv a deposilorv under, lhe
Deposilories Acl shaII le deened lo le lhe Regisler and Index of Menlers and Securilv
hoIders for lhe purposes of lhese ReguIalions.

(l) Nolvilhslanding anvlhing conlained in lhe Acl and ArlicIes hereof, vhere anv decIaralion
referred lo alove is nade lo lhe Conpanv, lhe Conpanv shaII, if so required lv lhe Acl,

2O5

nake a nole of such decIaralion in lhe Regisler of Menlers and fiIe vilhin lhe line
prescriled fron lhe dale of receipl of lhe decIaralion a relurn in lhe prescriled forn vilh
lhe Regislrar vilh regard lo such decIaralion.

43. Lxcepl as specificaIIv provided in lhese ArlicIes, lhe provisions reIaling lo joinl hoIders of
shares, caIIs, Iien on shares, forfeilure of shares and lransfer and lransnission of shares shaII
le appIicalIe lo shares heId in Deposilorv so far as lhev appIv lo shares heId in phvsicaI forn
suljecl lo lhe provisions of lhe Deposilorv Acl.

CALL5 ON 5HARE5

44. DIrcctnrs mav makc ca!!s
The ßoard of Direclors nav, fron line lo line, nake caIIs upon lhe nenlers in respecl
of nonev unpaid on lheir shares ( vhelher on accounl of lhe noninaI vaIue of lhe shares or lv
vav of preniun) and nol lv lhe condilion of aIIolnenl lhereof nade pavalIe al fixed lines.

45. NntIcc nf ca!!
Lach nenler shaII, suljecl lo receiving al Ieasl 15 davs´ nolice specifving lhe line or lines and
pIace of pavnenl of lhe caII nonev pav lo lhe Conpanv al lhe line lo lines and pIace so
specified, lhe anounl caIIed on his shares.

46. Ca!!s tn bc nn unIfnrm basIs
Anv caII for share capilaI shaII le nade on a uniforn lasis on aII Shares faIIing under lhe sane
cIass. Ior lhe purpose of lhese ArlicIes Shares of lhe sane noninaI vaIue, on vhich
differenl anounls have leen paid up, shaII nol le deened lo faII under lhe sane cIass.

47. Ca!! mav bc rcvnkcd nr µnstµnncd
A caII nav le revoked or poslponed al lhe discrelion of lhe ßoard.

48. Ca!! dccmcd tn bc du!v madc
A caII shaII le deened lo have leen duIv nade al lhe line vhen lhe resoIulion of lhe
ßoard aulhorizing lhe caII vas passed. CaII nonev nav le required lo le paid lv
InslaIInenls.

49. LIabI!Itv nf jnInt hn!dcrs
The joinl hoIders of a share shaII le joinlIv and severaIIv IialIe lo pav aII caIIs in respecl
lhereof.

50. Intcrcst nn ca!! tn bc µaId In casc nf dc!av In µavmcnt
(a) If a sun caIIed in respecl of a share is nol paid lefore or on lhe dav appoinled for pavnenl
lhereof, lhe person fron vhon lhe sun is due shaII pav inleresl lhereon fron lhe dav
appoinled for pavnenl lhereof lo lhe line of acluaI pavnenl al such rale of inleresl as lhe
ßoard nav delernine.

(l) The ßoard shaII le al Iilerlv lo vaive pavnenl of anv such inleresl vhoIIv or in parl.

51. DIrcctnrs mav cxtcnd tImc fnr µavmcnt
The ßoard nav, fron line lo line al ils discrelion, exlend lhe line fixed for lhe pavnenl of
anv caII, and nav exlend such line as lo aII or anv of lhe Menlers or olher cause, lhe
ßoard nav deen fairIv enlilIed lo such exlension lul no Menler shaII le enlilIed lo such
exlension save as a naller of grace and favour.

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52. Amnunt µavab!c at fIxcd tImc nr bv Insta!!mcnts tn bc trcatcd as ca!!s
(a) Anv sun vhich lv lhe lerns of issue of a share lecone pavalIe on aIIolnenl or al anv
fixed dale, vhelher on accounl of lhe noninaI vaIue of lhe shares or lv vav of preniun,
shaII for purposes of lhese ReguIalions, le deened lo le a caII dulv nade and pavalIe on
lhe dale on vhich lv lhe lerns of issue such sun lecones pavalIe.

(l) In case of non-pavnenl of such sun, aII lhe reIevanl provisions of lhese reguIalions as lo
pavnenl of inleresl and expenses, forfeilure or olhervise shaII appIv as if such sun had
lecone pavalIe lv virlue of a caII dulv nade and nolified.

53. Pavmcnt In AntIcIµatInn nf Ca!! mav carrv Intcrcst
The Direclors nav, if lhev lhink fil, suljecl lo lhe provisions lhereof as fron line lo line
exceeds lhe anounl of lhe caIIs lhen nade upon lhe shares in respecl of vhich such advances
has leen nade, lhe conpanv nav pav inleresl al such advance has leen nade, lhe conpanv
nav pav inleresl al such rale, as lhe nenler paving such sun in advance and lhe Direclors
agree upon provided lhal nonev paid in advance of caIIs shaII nol confer a righl lo parlicipale
in profils or divided. The Direclors nav al anv line repav lhe anounl so advanced.

The nenler shaII nol le enlilIed lo anv voling righls in respecl of lhe nonevs so paid lv hin
unliI lhe sane vouId lul for such pavnenl , lecone presenlIv pavalIe.

The Irovisions of lhese ArlicIes shaII nulalis nulandis appIv lo lhe caIIs on delenlures of lhe
Conpanv.

54. Prnnf nn trIa! nf suIt fnr mnncv duc nn
On lhe lraiI or hearing of anv suil or proceedings lroughl lv lhe Conpanv againsl anv nenler
or his represenlalive lo recover anv dell or nonev cIained lo le due lo lhe Conpanv in respecl
of his share, il shaII le sufficienl lo prove lhal lhe nane of lhe defendanl is or vas, vhen lhe
cIain arose, on lhe Regisler of Menlers of lhe Conpanv as a hoIder or one of lhe hoIders of lhe
nunler of shares in respecl of vhich such cIain is nade and lhal lhe anounl cIained is nol
enlered as paid in lhe looks of lhe Conpanv and il shaII nol le necessarv lo prove lhe
appoinlnenl of lhe Direclors vho resoIved lo nake anv caII, nor lhal a quorun of Direclors
vas presenl al ßoard Meeling al vhich anv caII vas resoIved lo le nade, nor lhal lhe neeling
al vhich anv caII vas resoIved lo le nade vas duIv convened or consliluled nor anv olher
naller, lul lhe proof of lhe nallers aforesaid shaII le concIusive evidence of lhe dell.

55. PartIa! µavmcnt nnt tn µrcc!udc fnrfcIturc
Neilher lhe receipl lv lhe Conpanv of a porlion of anv nonev vhich shaII, fron line lo line,
le due fron anv nenler lo lhe Conpanv in respecl of his shares, eilher lv vav of principaI or
inleresl, nor anv induIgence granled lv lhe Conpanv in respecl of lhe pavnenl of anv such
nonev, shaII, precIude lhe Conpanv fron lhereafler proceeding lo enforce a forfeilure of such
shares as hereinafler provided.
LIEN
56. Cnmµanv tn havc !Icn nn sharcs/dcbcnturcs
(a) The Conpanv shaII have a firsl and paranounl Iien upon aII lhe shares/delenlures (olher
lhan fuIIv paid up shares/delenlures) regislered in lhe nane of each nenler (vhelher
soIeIv or joinlIv vilh olhers) and upon lhe proceeds of saIe lhereof for aII nonevs (vhelher
presenlIv pavalIe or nol) caIIed or pavalIe al a fixed line in respecl of such
shares/delenlures. UnIess olhervise agreed lhe regislralion of a lransfer of
shares/delenlures shaII operale as a vaiver of lhe Conpanv´s Iien if anv, on such

2O7

shares/delenlures. The Direclors nav al anv line decIare anv shares/delenlures vhoIIv or
in parl lo le exenpl fron lhe provisions of lhis cIause.

(l) The Conpanv´s Iien, if anv, on a share shaII exlend lo aII dividends and lonuses fron line
lo line decIared in respecl of such securilies.

(c) IuIIv paid shares shaII le free fron aII Iien and lhal in lhe case of parlIv paid shares lhe
Issuer's Iien shaII le reslricled lo nonevs caIIed or pavalIe al a fixed line in respecl of such
shares.

57. EnfnrcIng !Icn
The Conpanv nav seII, in such nanner as lhe ßoard lhinks fil, anv Shares on vhich lhe
Conpanv has Iien for lhe purpose of enforcing lhe sane.

IROVIDLD THAT no saIe shaII le nade:-

(i) UnIess a sun in respecl of vhich lhe Iien exisls is presenlIv pavalIe: or

(ii) UnliI lhe expiralion of fourleen davs afler a nolice in vriling slaling and denanding
pavnenl of such parl of lhe anounl in respecl of vhich lhe Iien exisls as is /presenlIv
pavalIe has leen given lo lhe regislered hoIder for lhe line leing of lhe Share or lhe person
enlilIed lherelo lv reason of his dealh or insoIvencv.

Ior lhe purpose of such saIe lhe ßoard nav cause lo le issued a dupIicale cerlificale in
respecl of such Shares and nav aulhorise one of lheir nenlers lo execule a lransfer lhere
fron lehaIf of and in lhe nane of such Menlers.

(iii) The purchaser shaII nol le lound lo see lhe appIicalion of lhe purchase nonev, nor shaII his
lilIe lo lhe Shares le affecled lv anv irreguIarilv, or invaIidilv in lhe proceedings in
reference lo lhe saIe.

58. Aµµ!IcatInn nf µrncccds nf sa!c
The nel proceeds of anv such saIe shaII le received lv lhe Conpanv and appIied in or lovards
pavnenl of such parl of lhe anounl in respecl of vhich lhe Iien exisls as is presenlIv pavalIe
and lhe residue, if anv, shaII (suljecl lo a Iike Iien for suns nol presenlIv pavalIe as exisled
upon lhe shares lefore lhe saIe) le paid lo lhe persons enlilIed lo lhe shares al lhe dale of lhe
saIe.

FORFEITURE OF 5HARE5

59. NntIcc tn bc gIvcn If ca!! Is nnt µaId
If a nenler faiIs lo pav anv caII or inslaIInenl of a caII, on lhe dav appoinled for pavnenl
lhereof, lhe ßoard nav, al anv line lhereafler during such line as anv parl of lhe caII or
inslaIInenl renains unpaid, serve a nolice on hin requiring pavnenl of so nuch of lhe caII or
inslaIInenl as is unpaid logelher vilh anv inleresl vhich nav have accrued and aII expenses
lhal nav have leen incurred lv lhe Conpanv lv reason of such non-pavnenl.

60. Cnntcnt nf nntIcc

The nolice aforesaid shaII:-

2O8

(i) nane of furlher dav (nol earIier lhan lhe expirv of 3O (lhirlv) davs fron lhe dale of service
of nolice) on or lefore vhich lhe pavnenl required lv lhe nolice is lo le nade : and
(ii) slale lhal, in lhe evenl of non-pavnenl on or lefore lhe davs so naned, lhe shares in
respecl of vhich lhe caII vas nade, viII le IialIe lo le forfeiled.

61. 5harcs tn bc fnrfcItcd If dcfau!t In µavmcnt
If lhe requirenenls of anv such nolice as aforesaid are nol conpIied vilh, anv share in respecl
of vhich lhe nolice has leen given nav, al anv line, lhereafler, lefore lhe pavnenl required lv
lhe nolice has leen nade, le forfeiled lv a resoIulion of lhe ßoard lo lhal effecl. Such forfeilure
shaII incIude aII dividends decIared in respecl of lhe forfeiled shares and nol acluaIIv paid
lefore lhe dale of forfeilure, vhich shaII le lhe dale on vhich lhe resoIulion of lhe ßoard is
passed forfeiling lhe shares.

62. NntIcc nf fnrfcIturc tn a mcmbcr
When anv share shaII have leen so forfeiled, nolice of lhe forfeilure shaII le given lo lhe
Menler in vhose nane il slands innedialeIv prior lo lhe forfeilure, and an enlrv of lhe
forfeilure, vilh lhe dale lhereof, shaII forlhvilh le nade in lhe Regisler of Menlers, lul no
forfeilure shaII le in anv nanner invaIidaled lv anv onission or negIecl lo give such nolice or
lo nake anv such enlrv as aforesaid.

63. FnrfcItcd sharcs tn bc µrnµcrtv nf thc Cnmµanv & mav bc sn!d ctc.
Anv share so forfeiled shaII le deened lo le lhe properlv of lhe Conpanv, and nav le soId, re-
aIIolled, or olhervise disposed of, eilher lo lhe originaI hoIder lhereof or lo anv olher person,
upon such lerns and in such nanner as lhe ßoard shaII lhink fil.

64. Mcmbcrs stI!! !Iab!c tn µav mnncv duc nntwIthstandIng thc fnrfcIturc
Anv Menler vhose shares have leen forfeiled shaII, nolvilhslanding lhe forfeilure, le IialIe
lo pav, and shaII forlhvilh pav lo lhe Conpanv on denand aII caIIs, anounls, inslaIInenls,
inleresl and expenses oving upon or in respecl of such shares al lhe line of lhe forfeilure,
logelher vilh inleresl lhereon fron lhe line of lhe forfeilure unliI pavnenl, al such rale as lhe
ßoard nav delernine and lhe ßoard nav enforce lhe pavnenl lhereof if il lhinks fil.

65. Bnard mav annu! fnrfcIturc
The ßoard nav al anv line lefore anv share, so forfeiled shaII have leen soId, re-aIIolled or
olhervise disposed of, annuI lhe forfeilure lhereof upon such condilions as il lhinks fil.

66. Dcc!aratInn nf fnrfcIturc
A dulv verified decIaralion in vriling lhal lhe decIaranl is a direclor or lhe secrelarv of lhe
Conpanv and lhal a share in lhe conpanv has leen duIv forfeiled on a dale slale in lhe
decIaralion, shaII le concIusive evidence of lhe facls lherein slaled as againsl aII persons
cIaining lo le enlilIed lo lhe share.

67. Effcct nf fnrfcIturc
(a) The forfeilure of a share shaII invoIve lhe exlinclion of aII inleresl in and aIso of aII cIains
and denands againsl lhe Conpanv in respecl of lhe share, and aII olher righls incidenlaI
lherelo excepl onIv such of lhose righls as lv lhese ArlicIes are expressIv saved.

(l) The Conpanv nav receive lhe consideralion, if anv, given for lhe share on anv saIe or
disposaI lhereof and nav execule a lransfer of lhe share in favour of lhe person lo vhon
lhe share is soId or disposed off.

2O9


(c) The lransferee shaII lhereupon le regislered as lhe hoIder of lhe share.

(d) The lransferee shaII nol le lound lo see lo lhe appIicalion of lhe purchase nonev, if anv,
nor shaII his lilIe lo lhe share le affecled lv anv irreguIarilv or invaIidilv in lhe
proceedings in reference lo lhe forfeilure, saIe of disposaI of lhe share.

68. Va!IdItv nf sa!c
Upon anv saIe, afler forfeilure or for enforcing a Iien in purporled exercise of povers herein
lefore given, lhe ßoard nav appoinl sone person lo execule an inslrunenl of lransfer of lhe
shares soId and cause lhe purchaser´s nane lo le enlered in lhe Regisler in respecl of lhe shares
soId and lhe purchaser shaII nol le lound lo see lo lhe reguIarilv of lhe proceedings or lo lhe
appIicalion of lhe purchase nonev and afler his nane has leen enlered in lhe Regisler in
respecl of such shares, lhe vaIidilv, of lhe saIe shaII nol le inpeached lv anv person and lhe
renedv of anv person aggrieved lv lhe saIe shaII le in danage onIv and againsl lhe Conpanv
excIusiveIv.

69. Cancc!!atInn nf 5harc CcrtIfIcatcs uµnn fnrfcIturc
Upon anv saIe, re-aIIolnenl or olher disposaI under lhe provisions of lhese ArlicIes reIaling lo
Iien or lo forfeilure, lhe cerlificale or cerlificales originaIIv issued in respecl of lhe reIalive
shares shaII (unIess lhe sane shaII on denand lv lhe Conpanv have leen previousIv
surrendered lo il lv lhe defauIling nenler) sland canceIIed and lecone nuII and void and of
no effecl. When anv shares, under lhe povers in lhal lehaIf herein conlained are soId lv lhe
ßoard and lhe cerlificale in respecl lhereof has nol leen deIivered up lo lhe Conpanv lv lhe
forner hoIder of such shares, lhe ßoard nav, issue a nev cerlificale for such shares
dislinguishing il in such nanner as il nav lhink fil, fron lhe cerlificale nol so deIivered.

70. PrnvIsInns nf thcsc Rcgu!atInns as tn fnrfcIturc tn aµµ!v In casc nf nnnµavmcnt nf anv sum
The provisions of lhese reguIalions as lo forfeilure shaII appIv, in lhe case of nonpavnenl of
anv sun vhich, lv lhe lerns of issue of a share, lecones pavalIe al a fixed line, vhelher on
accounl of lhe noninaI vaIue of lhe share or lv vav of preniun, as if lhe sane had leen
pavalIe lv virlue of a caII duIv nade and nolified.

71. DIrcctnrs mav acccµt surrcndcr nf sharcs

The Direclors nav, suljecl lo lhe provisions of lhe Acl, accepl fron anv nenler on such lerns
and condilions as shaII le agreed, a surrender of his shares or slock or anv parl lhereof.

TRAN5FER AND TRAN5MI55ION

72. RcgIstcr nf transfcr/transmIssInn tn bc maIntaIncd
Nolvilhslanding anvlhing conlained in lhese ReguIalions, everv hoIder of shares in or delenlures
of lhe Conpanv nav al anv line noninale in lhe nanner prescriled under lhe Acl, a person lo
vhon his shares in or delenlures of lhe Conpanv shaII vesl in lhe evenl of his dealh.
Such noninalion and righl of noninee lo le regislered as hoIder of shares/ delenlures, as lhe case
nav le, or for lransfer of lhe shares/delenlures as lhe case nav le shaII le governed lv lhe
provisions of Seclion 1O9A and 1O9ß and olher appIicalIe provisions of lhe Acl.

The Conpanv shaII keep a "Regisler of Transfers", and lherein shaII le fairIv and dislinclIv enlering
parlicuIars of everv lransfer or lransnission of anv share and vhereas in case of shares heId in

21O

denaleriaIised forn, lhe Regisler of Transfer nainlained lv lhe Deposilorv shaII le deened lo le
lhe Regisler of Transfer.

73. Nn transfcrs tn mInnrs ctc.
No share shaII in anv circunslances le lransferred lo anv ninor, insoIvenl or person of
unsound nind. Hovever a lransfer of fuIIv paid-up shares lo a ninor shaII le aIIoved.

74. ExccutInn nf transfcr
(a) The inslrunenl of lransfer of anv Share shaII le duIv slanped and execuled lv or on lehaIf
of lolh lhe lransferor and lhe lransferee and shaII le vilnessed.

(l) The lransferor shaII le deened lo renain a hoIder of lhe share unliI lhe nane of lhe
lransferee is enlered in lhe regisler of nenlers in respecl lhereof.

75. Instrumcnt nf transfcr
(a) The inslrunenl of lransfer shaII le in vriling and aII lhe provisions of Seclion 1O8 of lhe Acl
and of anv nodificalion lhereof for lhe line leing shaII le conpIied vilh in respecl of aII
lransfers of shares and regislralion lhereof.

(l) In lhe case of lransfer of shares or olher narkelalIe securilies vhere lhe Conpanv has nol
issued anv cerlificales and vhere such shares or securilies are leing heId in eIeclronic forn,
lhe provisions of lhe Deposilories Acl, as anended, shaII appIv.

76. NntIcc tn transfcrnr If Instrumcnt submIttcd bv transfcrcc
UnIess lhe Direclors decide olhervise, vhen an inslrunenl of lransfer is lendered lv lhe
lransferee, lefore regislering anv such lransfer, lhe Direclors shaII give nolice lv Ieller senl lv
regislered acknovIedgenenl due posl lo lhe regislered hoIder lhal such lransfer has leen
Iodged and lhal unIess oljeclion is laken lhe lransfer viII le regislered. If such regislered
hoIder faiIs lo Iodge an oljeclion in vriling al lhe office vilhin len davs fron lhe posling of
such nolice lo hin, he shaII le deened lo have adnilled lhe vaIidilv of lhe said lransfer. Where
no nolice is received lv lhe regislered hoIder, lhe Direclors shaII le deened lo have decided nol
lo give nolice and in anv evenl lhe non-receipl lv lhe regislered hoIder of anv nolice shaII nol
enlilIe hin lo nake anv cIain of anv kind againsl lhe Conpanv or lhe Direclors in respecl of
such non-receipl.

77. Transfcr nf µart!v µaId uµ sharcs
When lhe appIicalion is nade lv lhe lransferor and reIales lo parlIv paid-up shares, lhe lransfer
shaII nol le regislered unIess lhe Direclors gives nolice lv regislered posl vilh
acknovIedgenenl due, of lhe appIicalion lo lhe lransferee and lhe lransferee nake no oljeclion
lo lhe lransfer vilhin lvo veeks fron lhe receipl of lhe nolice.

78. C!nsurc nf transfcr bnnks, rcgIstcr nf mcmbcrs/dcbcnturc hn!dcrs:
The ßoard shaII have pover on giving nol Iess lhan seven davs previous nolice lv
adverlisenenl in sone nevspaper circuIaling in lhe dislricl in vhich lhe regislered office of lhe
Conpanv is silualed lo cIose lhe Transfer ßooks, lhe Regisler of Menlers and/or lhe Regisler
of Delenlure HoIders al such line or lines and for such period or periods, nol exceeding lhirlv
davs al a line and nol exceeding in lhe aggregale forlv-five davs in each vear.

79. DIrcctnrs mav rcfusc tn rcgIstcr transfcr

211

(a) Suljecl lo lhe provisions of Seclion 111 of lhe Acl and Seclion 22A of lhe Securilies
Conlracls (ReguIalion) Acl, 1956, lhe Direclors nav, al lheir ovn alsoIule and unconlroIIed
discrelion and lv giving reasons, decIine lo regisler or acknovIedge anv lransfer of shares
vhelher fuIIv paid or nol and lhe righl of refusaI, shaII nol le affecled lv lhe circunslances
lhal lhe proposed lransferee is aIreadv a nenler of lhe Conpanv lul in such cases, lhe
Direclors shaII vilhin one nonlh fron lhe dale on vhich lhe inslrunenl of lransfer vas
Iodged vilh lhe conpanv, send lo lhe lransferee and lransferor nolice of lhe refusaI lo
regisler such lransfer provided lhal regislralion of lransfer shaII nol le refused on lhe
ground of lhe lransferor leing eilher aIone or joinlIv vilh anv olher person or persons
indelled lo lhe Conpanv on anv accounl vhalsoever excepl vhen lhe conpanv has a Iien
on lhe shares. Transfer of shares / delenlures in vhalever Iol shaII nol le refused.

(l) The ßoard nav aIso decIine lo recognize anv inslrunenl of lransfer unIess-

(i) lhe inslrunenl of lransfer is acconpanied lv lhe cerlificale of lhe shares lo vhich il
reIales, and such olher evidence as lhe ßoard nav reasonalIv require lo shov lhe righl of
lhe lransferor lo nake lhe lransfer: and

(ii) lhe inslrunenl is in respecl of onIv one cIass of shares.

(iii) if lhe lransfer resuIls in, or is perceived lo or nav resuIl in, a conlravenlion or vioIalion of
anv reslriclion under Iav as appIicalIe lo lhe Conpanv.

The decision of lhe ßoard or person (s) designaled lv lhe ßoard vilh respecl lo vhelher lhe
lransfer resuIls in, or is perceived lo or nav resuIl in, a conlravenlion or vioIalion of anv
reslriclion under Iav as appIicalIe lo lhe Conpanv shaII le finaI and linding in aII respecls.

80. Instrumcnt nf transfcr tn bc rctaIncd
AII inslrunenls of lransfer vhich shaII le regislered shaII le relained lv lhe Conpanv, lul nav
le deslroved upon lhe expiralion of such period as lhe ßoard nav fron line lo line
delernine. Anv inslrunenl of lransfer vhich lhe ßoard decIines lo regisler shaII (excepl in anv
case of fraud) le relurned lo lhe person deposiling lhe sane.

81. 5usµcnsInn nf transfcrs
The regislralion of lransfers nav le suspended al such lines and for such period as lhe ßoard
nav, fron line lo line, delernine. Irovided lhal such regislralion shaII nol le suspended for
nore lhan forlv-five davs in lhe aggregale in anv vear or for nore lhan lhirlv davs al anv one
line.

82. Nn fcc tn bc chargcd
There shaII le no charge for:

(a) regislralion of shares or delenlures:

(l) sul-division and/or consoIidalion of shares and delenlures cerlificales and sul-division
of Lellers of AIIolnenl and spIil consoIidalion, renevaI and pucca lransfer receipls inlo
denoninalions corresponding lo lhe narkel unil or lrading:

(c) sul-division of renouncilIe Iellers of righl:

212

(d) issue of nev cerlificales in repIacenenl of lhose vhich are decrepil or vorn oul or vhere
lhe cages on lhe reverse for recording lransfers have leen fuIIv uliIized:

(e) regislralion of lransfer, lransnission, prolale, succession cerlificale and Iellers of
adninislralion, cerlificale of dealh or narriage, pover of allornev or siniIar olher
docunenl.

83. Dcath nf nnc nr mnrc jnInt hn!dcrs nf sharcs
(a) On lhe dealh of a nenler, lhe survivor or survivors vhere lhe nenler vas a joinl hoIder
and his IegaI represenlalive vhere he vas a soIe hoIder shaII le lhe onIv person
recognized lv lhe Conpanv as having anv lilIe lo his inleresl in lhe shares.

(l) Nolhing in cIause (a) shaII reIease lhe eslale of a deceased joinl hoIder fron anv IialiIilv in
respecl of anv share vhich had leen joinlIv heId lv hin vilh olher persons.

84. Pcrsnn cntIt!cd mav rcgIstcr as hn!dcr nr transfcr
(a) Anv person leconing enlilIed lo a share in consequence of lhe dealh, Iunacv, lankruplcv
or insoIvencv of a nenler or lv anv IavfuI neans olher lhan lv a lransfer in accordance
vilh lhese ArlicIes nav, upon such evidence leing produced as nav fron line lo line
properIv le required lv lhe ßoard and suljecl as hereinafler provided eIecl, eilher-

(i) lo le regislered hinseIf as hoIder of lhe share: or

(ii) lo nake such lransfer of lhe shares as lhe deceased or insoIvenl nenler couId have
nade.

(l) The ßoard shaII, in eilher case, have lhe sane righl lo decIine or suspend regislralion as il
vouId have had, if lhe deceased or insoIvenl nenler had hinseIf lransferred lhe share
lefore his dealh or insoIvencv.

(c) If lhe person so leconing enlilIed, shaII eIecl lo le regislered as hoIder of lhe share
hinseIf, he shaII deIiver or send lo lhe Conpanv a nolice in vriling signed lv hin slaling
lhal he so eIecls.

(d) If lhe person aforesaid shaII eIecl lo lransfer lhe share, he shaII leslifv his eIeclion lv
execulive a lransfer of lhe share.

(e) AII lhe Iinilalions, reslriclions and provisions of lhese reguIalions reIaling lo lhe righl lo
lransfer and lhe regislralion of lransfers of shares shaII le appIicalIe lo anv such nolice or
lransfer as aforesaid as if lhe dealh or insoIvencv of lhe nenler had nol occurred and lhe
nolice of lransfer vere a lransfer signed lv lhal nenler.

85. Pcrsnn cntIt!cd mav rcccIvc dIvIdcnd wIthnut bcIng rcgIstcrcd as mcmbcr
On lhe lransfer of lhe share leing regislered in his nane a person leconing enlilIed lo a share
lv reason of lhe dealh or insoIvencv of lhe hoIder shaII le enlilIed lo lhe sane dividends and
olher advanlages lo vhich he vouId le enlilIed if he vas lhe regislered hoIder of lhe share
and lhal he shaII nol, lefore leing regislered as a nenler in respecl of lhe share le enlilIed in
respecl of il lo exercise anv righl conferred lv nenlership in reIalion lo neelings of lhe
Conpanv.

213

Irovided lhal lhe ßoard nav, al anv line, give nolice requiring anv such person lo eIecl eilher
lo le regislered hinseIf or lo lransfer lhe share and if lhe nolice is nol conpIied vilh vilhin
9O (ninelv) davs, lhe ßoard nav lhereafler vilh hoId pavnenl of aII dividends, lonus or olher
nonevs pavalIe in respecl of lhe share, unliI lhe requirenenls of lhe nolice leen conpIied
vilh.

86. Cnmµanv nnt !Iab!c fnr dIsrcgard nf a nntIcc µrnhIbItIng rcgIstratInn nf transfcr
The Conpanv shaII incur no IialiIilv vhalever in consequence of ils regislering or giving effecl,
lo anv lransfer of share nade or purporling lo le nade lv anv apparenl IegaI ovner lhereof ( as
shov or appearing in lhe regisler of nenlers) lo lhe prejudice of persons having or cIaining
anv equilalIe righl, lilIe of inleresl lo or in lhe said shares nolvilhslanding lhal lhe Conpanv
nav have had nolice of such equilalIe righls, lilIe or inleresl or nolice prohililing regislralion
of such lransfer and nav have enlered such nolice or referred lherelo, in anv look of lhe
Conpanv, and lhe Conpanv shaII nol le lound or required lo regard or allend or give effecl lo
anv nolice vhich nav le given lo il of anv equilalIe righls, lilIe or inleresl or le under anv
IialiIilv for refusing or negIecling so lo do, lhough il nav have leen enlered or referred lo in
sone look of lhe Conpanv lul lhe Conpanv lhough nol lound so lo do, shaII le al Iilerlv lo
regard and allend lo anv such nolice and give effecl :lherelo if lhe ßoard shaII so lhink fil.

CONVER5ION OF 5HARE5 INTO 5TOCK

87. 5harcs can bc cnnvcrtcd Intn stnck
The Conpanv nav, lv an ordinarv resoIulion:-

(a) converl anv paid-up shares inlo slock: and

(l) reconverl anv slock inlo paid-up shares of anv denoninalion aulhorized lv lhese
reguIalions.

88. Transfcr stnck
The hoIders of slock nav lransfer lhe sane or anv parl lhereof in lhe sane nanner as, and
suljecl lo lhe sane reguIalions under vhich, lhe shares fron vhich lhe slock arose nighl
lefore lhe conversion have leen lransferred or as near lherelo as circunslances adnil.

Irovided lhe ßoard nav, fron line lo line, fix lhe nininun anounl of Slock lransferalIe, so,
hovever, lhal such nininun shaII nol exceed lhe noninaI anounl of lhe shares fron vhich lhe
slock arose.

89. RIght nf stnckhn!dcrs
The hoIders of slock shaII, according lo lhe anounl of slock heId lv lhen, have lhe sane righls,
priviIeges and advanlages as regard dividends voling and neeling of lhe Conpanv, and olher
nallers, as if lhev heId lhe shares fron vhich lhe slock arose: lul no such priviIege or
advanlage (excepl parlicipalion in lhe dividends and profils of lhe Conpanv and in lhe assels
on vinding up) shaII le conferred lv an anounl of slock vhich vouId nol, if exisling in shares,
have conferred lhal priviIege or advanlage.

5HARE WARRANT5

90. Cnmµanv mav Issuc sharc warrants
The Conpanv nav issue share varranl, suljecl lo and in accordance vilh, lhe provisions of
Seclions 114 and 115 of lhe Acl and accordingIv lhe ßoard nav in ils discrelion, vilh respecl of

214

anv share vhich is fuIIv paid up, on appIicalion in vriling signed lv lhe person regislered as
hoIder of lhe share and aulhenlicaled lv such evidence (if anv) as lhe ßoard nav, fron line lo
line, require as lo lhe idenlilv of lhe person signing lhe appIicalion and on receiving lhe
cerlificale (if anv) of lhe share: and lhe anounl of lhe slanp dulv on lhe varranl and such fee as
lhe ßoard nav, fron line lo line, require, issue a share varranl.

91. DcµnsItIng sharc warrant
(a) The learer of a share varranl nav al anv line deposil lhe varranl al lhe office of lhe
Conpanv and so Iong as lhe varranl renains so deposiled, lhe deposilor shaII have lhe
sane righl of signing a requisilion for caIIing a neeling of lhe Conpanv and of allending
and voling and exercising, lhe olher priviIeges of a nenler al anv neeling heId afler lhe
expirv of lvo cIear davs fron lhe line of deposil, as if his nane vere inserled in lhe
regisler of nenlers as lhe hoIder of lhe shares incIuded in lhe deposiled varranl.

(l) Nol nore lhan one person shaII le recognised as deposilor of lhe share varranl.

(c) The Conpanv shaII, on lvo davs´ vrillen nolice, relurn lhe deposiled share varranl lo lhe
deposilor.

92. PrIvI!cgcs and dIsabI!ItIcs nf hn!dcr nf sharc warrant
(a) Suljecl as herein olhervise expressIv provided, no person shaII, as learer of a share
varranl, sign a requisilion for caIIing neeling of lhe Conpanv or allend or vole or
exercise anv olher priviIege of a nenler al a neeling of lhe Conpanv or le enlilIed lo
receive anv nolice fron lhe Conpanv.

(l) The learer of a share varranl shaII le enlilIed in aII olher respecls lo lhe sane priviIeges
and advanlages as if he vas naned in lhe regisler of nenler as lhe hoIder of lhe shares
incIuded in lhe varranl and he shaII le deened lo le a nenler of lhe Conpanv in
respecl lhereof.

93. Bnard mav makc ru!cs fnr Issuc nf sharc warrants/cnuµnns
The ßoard nav, fron line lo line, nake ruIes as lo lhe lerns on vhich (if il shaII lhink fil) a
nev share varranl or coupon nav le issued lv vav of renevaI in case of defacenenl, Ioss or
deslruclion of lhe originaI.

GENERAL MEETING

94. Cnmµanv tn hn!d annua! gcncra! mcctIng cach vcar
The Conpanv shaII in each vear hoId in addilion lo anv olher neeling, a CeneraI Meeling as ils
AnnuaI CeneraI Meeling. Lverv AnnuaI CeneraI Meeling shaII le caIIed for al a line during
lusiness hours, on a dav lhal is nol a pulIic hoIidav and shaII le heId eilher al regislered office
of lhe Conpanv or al sone olher pIace vilhin lhe cilv, lovn or viIIage in vhich lhe regislered
office of lhe Conpanv is silualed, as lhe direclors nav delernine, and lhe nolice caIIing lhe
neeling shaII specifv al as lhe annuaI generaI neeling. Nol nore lhan fifleen nonlhs shaII
eIapse lelveen lhe dale of an annuaI generaI neeling and lhe nexl provided lhal lhe Conpanv
nav, vilh lhe sanclion of lhe Regislrar of Conpanies, exlend lhe dale of ils hoIding lhe annuaI
generaI neeling lv a period nol exceeding lhree nonlhs. The Conpanv nav in anv one AnnuaI
CeneraI Meeling fix lhe line for ils sulsequenl AnnuaI CeneraI Meeling. Lverv Menler of lhe
Conpanv shaII le enlilIed lo allend eilher in person or lv proxv and lhe Audilor of lhe
Conpanv shaII have lhe righl lo allend and lo le heard al anv CeneraI Meeling vhich he
allends on anv parl of lhe lusiness vhich concerns hin as Audilor.

215


95. 5tatcmcnt nf accnunts, ctc. tn bc µ!accd bcfnrc thc annua! gcncra! mcctIng
(a) Al everv AnnuaI CeneraI Meeling of lhe Conpanv lhere shaII le Iaid on lhe lalIe lhe
Direclors´ Reporl and Audiled Slalenenl of Accounls, Audilors' Reporl (if nol aIreadv
incorporaled in lhe Audiled Slalenenl of Accounls), lhe Iroxv Regisler vilh proxies and
lhe Regisler of Direclors' sharehoIdings vhich Ialler Regisler shaII renain open and
accessilIe during lhe conlinuance of lhe Meeling.

(l) The ßoard shaII cause lo le prepared lhe AnnuaI Lisl of Menlers, Sunnarv of Share
CapilaI, ßaIance Sheel and Irofil and Loss Accounl and forvard lhe sane lo lhe Regislrar
in accordance vilh Seclions 159, 161 and 22O of lhe Acl.

96. Extra-OrdInarv Gcncra! McctIng
(a) AII CeneraI Meelings olher lhan lhe AnnuaI CeneraI Meelings of lhe Conpanv shaII le
caIIed Lxlra-Ordinarv CeneraI Meelings.

(l) The Direclors nav, vhenever lhev lhink fil, convene an Lxlra-Ordinarv CeneraI Meeling
and lhev shaII on requisilion of lhe Menlers (suljecl lo lhe provisions of Seclion 169 of
lhe Acl), forlhvilh proceed lo convene Lxlra-Ordinarv CeneraI Meeling of lhe Conpanv.

97. RcquIsItInn nf Mcmbcrs tn statc Objccts nf McctIng
Anv vaIid requisilion so nade lv lhe Menlers nusl slale lhe oljecl or oljecls of lhe neeling
proposed lo le caIIed, and nusl le signed lv lhe requisilionsisls and le deposiled al lhe
office: provided lhal such requisilion nav consisl of severaI docunenls in Iike forn each
signed lv one or nore requisilionisls.

On receipl of requisilion, Direclors lo caII neeling and in defauIl requisilionisls nav do so
upon lhe receipl of anv such requisilion, lhe ßoard shaII forlhvilh caII an
Lxlraordinarv CeneraI Meeling: and if il does nol proceed vilhin lvenlv-one davs fron lhe
dale of lhe requisilion leing deposiled al lhe Office lo cause a neeling lo le caIIed on a dav
nol Ialer lhan forlv- five davs fron lhe dale of deposil of lhe requisilion, lhe
requisilionisls, or such of lheir nunler as represenl eilher a najorilv in vaIue of lhe paid-up
share capilaI heId lv aII of lhen or nol Iess lhan one-lenlh of such of lhe paid-up share capilaI
of lhe Conpanv as is referred lo in Seclion 169 (4) of lhe Acl, vhichever is Iess, nav lhenseIves
caII lhe neeling, lul in eilher case anv neeling so caIIed shaII le heId vilhin lhree nonlhs fron
lhe dale of deposil of lhe requisilion as aforesaid.

98. McctIng ca!!cd bv rcquIsItInnIsts
Anv neeling caIIed under lhe foregoing ArlicIes lv lhe requisilionisls shaII le caIIed in lhe
sane nanner, as nearIv as possilIe, as lhal in vhich neelings are lo le caIIed lv lhe ßoard.

99. NntIcc nf mcctIng:
(a) Anv CeneraI Meeling of lhe Conpanv, vhelher annuaI generaI neeling or exlraordinarv
generaI neeling, nav le caIIed lv giving nol Iess lhan lvenlv one (21) cIear davs´ nolice
in vriling or a nolice shorler lhan lvenlv one (21) davs if consenl lherelo is given lv lhe
Menlers in accordance vilh lhe provisions of Seclion 171 of lhe Acl.

(l) Lverv nolice of a Meeling of lhe Conpanv shaII specifv lhe pIace and lhe dav and hour of
lhe Meeling and shaII conlain a slalenenl of lhe lusiness lo le lransacled lhereal.

216

100. OmIssInn tn gIvc nntIcc nnt tn Inva!Idatc µrncccdIngs:
The accidenlaI onission lo give such nolice as aforesaid lo or non-receipl lhereof lv, anv
Menler or olher person lo vhon il shouId le given, shaII nol invaIidale lhe proceedings of
anv such Meeling.

101. Whcn a DIrcctnr nr anv twn Mcmbcrs mav ca!! an Extra OrdInarv Gcncra! McctIng
If al anv line lhere are nol vilhin India sufficienl Direclors capalIe of acling lo forn a quorun,
or if lhe nunler of Direclors le reduced in nunler lo Iess lhan lhe nininun nunler of
Direclors prescriled lv lhese ArlicIes and lhe conlinuing Direclors faiI or negIecl lo increase lhe
nunler of Direclors lo lhal nunler or lo convene a CeneraI Meeling, anv Direclor or anv lvo or
nore Menlers of lhe Conpanv hoIding nol Iess lhan one-lenlh of lhe lolaI paid up share capilaI
of lhe Conpanv nav caII for an Lxlra-Ordinarv CeneraI Meeling in lhe sane nanner as nearIv
as possilIe as lhal in vhich neeling nav le caIIed lv lhe Direclors.

CONDUCT OF GENERAL MEETING5

102. On!v busIncss mcntInncd In nntIcc tn bc transactcd
No generaI neeling, annuaI or exlraordinarv, shaII le conpelenl lo enler upon, discuss or
lransacl anv lusiness vhich has nol leen slaled in lhe nolice lv vhich il vas convened or
caIIed.

103. Qunrum nf mcctIng
(a) Save as olhervise provided in Seclion 174 of lhe Acl, a nininun of five nenlers presenl
in person shaII le lhe quorun. A lodv corporale, leing a nenler, shaII le deened lo le
personaIIv presenl if il is represenled in accordance vilh Seclion 187 of lhe Acl.

(l) No lusiness shaII le lransacled al anv generaI neeling, unIess a quorun or nenlers is
presenl al lhe line vhen lhe neeling proceeds lo lusiness.

104. If qunrum nnt µrcscnt whcn McctIng tn bc dIssn!vcd and whcn tn bc adjnurncd
If vilhin haIf an hour fron lhe line appoinled for hoIding a Meeling of lhe Conpanv, a
quorun is nol presenl, lhe neeling if caIIed lv or upon lhe requisilion of lhe Menlers shaII
sland dissoIved and in anv olher case lhe Meeling shaII sland, adjourned lo lhe sane dav in
lhe nexl veek or if lhal dav is a pulIic hoIidav unliI lhe nexl succeeding dav vhich is nol a
pulIic hoIidav, al lhe sane line and pIace or lo such olher dav and al such olher line and
pIace as lhe ßoard nav delernine. If al lhe adjournnenl neeling aIso, a quorun is nol
presenl vilhin haIf an hour fron lhe line appoinled for hoIding lhe Meeling, lhe Menlers
presenl shaII le a quorun and nav lransacl lhe lusiness for vhich lhe Meeling vas caIIed.

105. Rcsn!utInn µasscd at adjnurncd McctIng
Where a resoIulion is passed al an adjourned Meeling of lhe Conpanv, lhe resoIulion for aII
purposes is lrealed as having leen passed on lhe dale on vhich il vas in facl passed and shaII
nol le deened lo have leen passed on anv earIier dale.

106. ChaIrman nf mcctIng
(a) The Chairnan, if anv, of lhe ßoard shaII preside as Chairnan al everv generaI neeling of lhe
Conpanv.

(l) If lhere is no such Chairnan or if he is nol presenl vilhin fifleen ninules of lhe line
appoinled for hoIding lhe neeling or is unviIIing lo acl as Chairnan of lhe neeling, lhe
Direclors presenl shaII eIecl one of lheir nenlers lo le lhe Chairnan of lhe neeling.

217


(c) If al anv neeling no Direclor is viIIing lo acl as Chairnan or if no Direclor is presenl vilhin
15(fifleen) ninules of lhe appoinled for hoIding lhe neeling, nenlers presenl shaII choose
one of lheir nenlers lo le lhe Chairnan of lhe neeling.

107. BusIncss cnnfIncd tn c!cctInn nf chaIrman whI!st chaIr vacant
No lusiness shaII le discussed al anv generaI neeling excepl lhe eIeclion of a Chairnan,
vhiIsl lhe chair is vacanl.

108. ChaIrman mav adjnurn mcctIng wIth cnnscnt nf mcmbcrs
(a) The Chairnan nav vilh lhe consenl of anv neeling al vhich a quorun is presenl and shaII, if
so direcled lv lhe neeling, adjourn lhe neeling, fron line lo line and pIace lo pIace.

(l) No lusiness shaII le lransacled al anv adjourned neeling, olher lhan lhe lusiness Iefl
unfinished al lhe neeling fron vhich lhe adjournnenl look pIace.

(c) When a neeling is adjourned for lhirlv davs or nore, fresh nolice of lhe adjourned neeling
shaII le given as in lhe case of an originaI neeling.

(d) Save as aforesaid, il shaII nol le necessarv lo give anv nolice of anv adjournnenl or of lhe
lusiness lo le lransacled al an adjourned neeling.

109. Act fnr rcsn!utInn suffIcIcnt!v dnnc nr µasscd bv OrdInarv Rcsn!utInn un!css nthcrwIsc
rcquIrcd

Anv acl or resoIulion vhich, under lhe provisions of lhese arlicIes or lhe Acl, is pernilled or
required lo le done or passed lv lhe Conpanv in CeneraI Meeling, shaII le sufficienlIv so done
or passed if affecled lv an ordinarv resoIulion unIess eilher lhe Acl or lhe ArlicIes specificaIIv
require such acl lo le done or resoIulion lo le passed as a speciaI resoIulion.

110. CastIng vntc nf ChaIrman
In lhe case of an equaIilv of voles, vhelher on a shov of hands or on a poII, lhe Chairnan of lhe
neeling al vhich lhe shov of hands lakes pIaces or al vhich lhe poII is denanded, shaII le
enlilIed lo a second or casling vole.

111. Rcsn!utInn hnw carrIcd
Al anv CeneraI Meeling, a resoIulion pul lo vole shaII le decided on a shov on hands, unIess a
poII (lefore or on lhe decIaralion of lhe resuIl of lhe shov of hands) is denanded in accordance
vilh lhe provisions of lhe Acl. UnIess a poII is so denanded, a decIaralion lv lhe Chairnan lhal
such resoIulion has, on a shov of hands, leen carried unaninousIv, or lv parlicuIar najorilv,
or Iosl, and an enlrv lo lhal effecl in lhe looks conlaining lhe ninules of lhe proceedings of lhe
Conpanv shaII le concIusive evidence of lhe facl, vilhoul lhe requirenenl of anv proof of lhe
nunler or proporlion of lhe voles casl in favour of or againsl lhal resoIulion.

112. Pn!! tn bc takcn If dcmandcd
If a poII is duIv denanded, il shaII le laken in such nanner as lhe Chairnan direcls and lhe
resuIls of lhe poII shaII le deened lo le lhe decision of lhe neeling on lhe resoIulion in respecl
of vhich lhe poII vas denanded. Anv lusiness olher lhan lhal upon vhich a poII has leen
denanded, nav proceed, pending lhe laking of lhe poII.

218

Where a poII is lo le laken, lhe Chairnan of lhe Meeling shaII appoinl lvo scrulinizers lo
scrulinize lhe vole given on lhe poII and lo reporl lhereon lo hin. One of lhe scrulinizers so
appoinled shaII aIvavs le a Menler (nol leing an officer or enpIovee of lhe Conpanv) presenl
al lhe Meeling, provided such a Menler is avaiIalIe and viIIing lo le appoinled. The
Chairnan shaII have pover, al anv line lefore lhe resuIl of lhe poII is decIared, lo renove a
scrulinizer fron office and fiII vacancies in lhe office of lhe scrulinizer arising fron such
renovaI or fron anv olher cause.

113. Rcsn!utInn rcquIrIng 5µccIa! NntIcc
(a) Where under anv provisions of lhe Acl or in lhe arlicIes speciaI nolice is required of anv
resoIulion nolice of such inlenlion of inlenlion lo nove lhe resoIulion shaII le given lo lhe
Conpanv nol Iess lhan fourleen davs lefore lhe neeling al vhich il is lo le noved,
excIusive of lhe dav on vhich lhe nolice is served on vhich lhe nolice is served or deened
lo le served and lhe dale of neeling.

(l) The Conpanv shaII innedialeIv afler receipl of nolice of inlenlion lo nove anv resoIulion
as aforesaid give ils nenlers nolice of lhe resoIulion in lhe sane nanner as il gives lhe
nolice of lhe neeling or in case il is nol praclicalIe lhen nolice shaII le given eilher lv lhe
adverlisenenl in lhe nevspaper having an appropriale circuIalion or in anv olher
appropriale node suggesled lv ils arlicIes nol Iess lhan seven davs lefore lhe neeling.

VOTE5 OF MEMBER5

114. Numbcr nf vntcs tn whIch mcmbcr cntIt!cd
Suljecl lo lhe provisions of lhe Acl and lhese ArlicIes and vilhoul prejudice lo anv speciaI
priviIeges or reslriclions as lo voling for lhe line leing allached lo anv cIass of share for lhe
line leing forning parl of lhe CapilaI of lhe Conpanv, everv Menler of lhe Conpanv hoIding
anv equilv share capilaI and olhervise enlilIed lo vole shaII, on a shov of hands vhen presenl
in person (or leing a lodv corporale presenl lv a represenlalive duIv aulhorised) have one vole
and on a poII, vhen presenl in person (incIuding a lodv corporale lv a duIv aulhorised
represenlalive), or lv an agenl duIv aulhorised under a Iover of Allornev or lv proxv, his
voling righl shaII le in proporlion lo his share of lhe paid-up equilv share capilaI of lhe
Conpanv. Irovided hovever, if anv preference sharehoIder is presenl al anv neeling of lhe
Conpanv, (save as provided in cIause (l) of sul-seclion (2) of Seclion 87) he shaII have a righl
lo vole onIv on resoIulions lefore lhe Meeling vhich direclIv affecl lhe righls allached lo his
preference shares. A Menler is nol prohililed fron exercising his voling righls on lhe ground
lhal he has nol heId his Shares or inleresl in lhe Conpanv for anv specified period preceding
lhe dale on vhich lhe vole is laken.

115. Nn vntIng rIght If ca!!s nnt µaId
No nenler shaII le enlilIed lo vole eilher in person or lv proxv al anv generaI neeling or
Meeling of a cIass of share hoIders eilher upon a shov of hands or upon a poII unIess aII caIIs
and olher suns presenlIv pavalIe lv hin in respecl of shares in lhe Conpanv or in respecl of
shares on vhich lhe Conpanv has exercised anv righl of Iien, have leen paid.

116. VntIng bv jnInt hn!dcrs
In lhe case of joinl hoIders, lhe vole of lhe senior vho lenders a vole vhelher in persons or lv
proxv, shaII le accepled lo lhe excIusion of lhe voles of lhe olher joinl hoIders. Anv person
enlilIed under lhe Transnission of lheir shares/ lransfer anv Shares nav vole al anv CeneraI
Meeling in respecl lhereof in lhe sane nanner as if he vas lhe regislered hoIder of such Shares:
provided lhal al Ieasl forlv-eighl hours lefore lhe line of hoIding lhe Meeling or adjourned

219

Meeling, as lhe case nav le, al vhich he proposes lo vole, he shaII salisfv lhe Direclors of lhe
righl lo lransfer such Shares and give such indennilv (if anv) as lhe Direclors nav require
unIess lhe Direclors shaII have previousIv adnilled his righl lo vole al such Meeling in respecl
lhereof.

117. Vntcs nf mcmbcrs nf unsnund mInd/mInnrs
A nenler of unsound nind or in respecl of vhon an order has leen nade lv anv Courl
having jurisdiclion in Iunacv, nav vole, vhelher on a shov of hands or on a poII lv his
connillee or olher IegaI guardian, and anv such connillee or guardian nav on a poII, vole lv
proxv, provided lhal such evidence as lhe ßoard nav require of lhe aulhorilv of lhe person
cIaining lo vole shaII have leen deposiled al lhe office nol Iess lhan 24 hours lefore lhe line of
hoIding lhe neeling or adjourned neeling al vhich such person cIains lo vole on poII. If anv
Menler le a ninor, lhe voles in respecl of his share or shares shaII le lv his guardian or anv of
his guardians, il nore lhan one, lo le eIecled in case of dispule lv lhe Chairnan of lhe
neeling.

118. CastIng nf Vntcs bv mcmbcrs cntIt!cd tn mnrc than nnc vntc
On a poII, a Menler having nore lhan one vole, or ils proxv or olher person enlilIed lo vole for
such Menler need nol vole aII ils voles in lhe sane vav.

119. Vntcs In rcsµcct nf sharcs nf dcccascd & Insn!vcnt mcmbcr:
Anv person enlilIed lo lransfer anv share nav vole al anv CeneraI Meeling in respecl lhereof in
sane nanner as if he vere lhe regislered hoIder of such shares, provided lhal forlv-eighl hours
al Ieasl lefore lhe line of hoIding lhe Meeling or adjourned Meeling, as lhe case nav le, al
vhich he proposes lo vole he shaII salisfv lhe Direclors of his righl lo lransfer such shares and
give such indennilv (if anv) as lhe Direclors nav require or lhe Direclors shaII have previousIv
adnilled his righl lo vole al such Meeling in respecl lhereof.

120. ObjcctInn as tn thc va!IdItv nf vntc
(a) No oljeclion shaII le raised lo lhe quaIificalion of anv voler, excepl al lhe neeling or
adjourned neeling al vhich lhe vole oljecled lo is given or lendered and everv vole nol
disaIIoved al such neeling shaII le vaIid for aII purposes.

(l)Anv such oljeclion nade in due line shaII le referred lo lhe Chairnan of lhe neeling, vhose
decision lhereon shaII le finaI and concIusive.

121. Vntcs In µcrsnn nr bv µrnxv
Suljecl lo lhe provisions of lhese ArlicIes, voles nav le given eilher personaIIv or lv proxv.
A lodv corporale leing a Menler nav vole eilher lv a proxv or lv a represenlalive duIv
aulhorised in accordance vilh Seclion 187 of lhe Acl.

122. AµµnIntmcnt nf Prnxv
Lverv proxv (vhelher a Menler or nol) shaII le appoinled in vriling under lhe hand of lhe
appoinler or his allornev, or if such appoinler is a corporale lodv, lv a resoIulion of ils ßoard of
Direclors, or le signed lv an office or anv allornev duIv aulhorised lv il, and anv Connillee or
guardian nav appoinl such proxv. The proxv so appoinled shaII nol have lhe righl lo speak al
lhe neelings and shouId nol le enlilIed lo vole excepl on a poII.

123. Fnrm nf Instrumcnt nf µrnxv

22O

An inslrunenl appoinling a proxv shaII le eilher of lhe forns in ScheduIe IX lo lhe Acl or in a
forn as near lherelo as circunslances adnil.

124. DcµnsIt nf Instrumcnt nf µrnxv
The inslrunenl appoinling a proxv and lhe pover of allornev or olher aulhorilv, if anv under
vhich il is signed or a nolarv cerlified copv of lhal pover or aulhorilv shaII le deposiled al lhe
regislered office of lhe Conpanv, nol Iess lhan 48 hours lefore lhe line for hoIding lhe neeling
of adjourned neeling al vhich lhe person naned in lhe inslrunenl proposes lo vole, or in lhe
case of a poII, nol Iess lhan 24 hours lefore lhe line appoinled for lhe laking of lhe poII: and in
defauIl lhe inslrunenl of proxv shaII nol le lrealed vaIid.

125. Prnxv cIthcr fnr sµccIfIcd mcctIng nr fnr a µcrInd
An inslrunenl of proxv nav appoinl a proxv eilher for lhe purpose of a parlicuIar Meeling
specified in lhe inslrunenl and anv adjournnenl lhereof or il nav appoinl for lhe purpose of
everv Meeling of lhe Conpanv, or of everv Meeling lo le heId lefore a dale specified in lhe
inslrunenl and everv, adjournnenl of anv such Meeling.

126. Va!IdItv nf vntcs gIvcn bv Prnxv nntwIthstandIng dcath nf mcmbcr
A vole given in accordance vilh lhe lerns of an inslrunenl of proxv shaII le vaIid
nolvilhslanding lhe previous dealh of insanilv of lhe principaI or lhe revocalion of lhe proxv of
lhe aulhorilv under vhich lhe proxv are execuled or lhe pronoler of lhe shares in respecl of
vhich lhe proxv is given, if no inlinalion in vriling of such dealh: insanilv, revocalion or
lransfer shaII have leen received lv lhe Conpanv al ils office lefore connencenenl of lhe
neeling or adjourned neeling al vhich lhe proxv is used.

127. Nn µrnxv tn vntc nn a shnw nf hands
No proxv shaII le enlilIed lo vole lv a shov of hands.

128. Pnsta! ba!!nt
Suljecl lo, and in accordance vilh, lhe provisions of lhe Acl, lhe Conpanv nav, and in case of
resoIulions reIaling lo such nallers as lhe CenlraI Covernnenl nav, lv nolificalion, require lo
le conducled onIv lv IoslaI ßaIIol, shaII, gel such resoIulions passed lv neans of a IoslaI
ßaIIol, inslead of lransacling lhe lusiness in a CeneraI Meeling.

BOARD OF DIRECTOR5

129. Numbcr nf dIrcctnrs
The nunler of Direclors of lhe Conpanv shaII nol le Iess lhan lhree and nol nore lhan lveIve.

130. FIrst dIrcctnrs
The foIIoving shaII le lhe firsl direclors of lhe Conpanv:-

1. Ms Monica jain
2. Ms Rekha
3. Ms Varsha

131. RctIrcmcnt nf dIrcctnrs bv rntatInn:
Al everv AnnuaI CeneraI Meeling of lhe Conpanv one-lhird of such of lhe Direclors for lhe
line leing as are IialIe lo relire lv rolalion in accordance vilh lhe provisions of Seclion 255 of
lhe Acl or if lheir nunler is nol lhree or nuIlipIe of lhree, lhen lhe nunler nearesl lo one lhird
shaII relire fron office in accordance vilh lhe provisions of Seclions 256 of lhe Acl. The non-

221

reliring Direclors and Delenlure Direclors, if anv, shaII nol le suljecl lo relirenenl under lhis
cIause and shaII nol le laken inlo accounl in delernining lhe rolalion of relirenenl or lhe
nunler of Direclors lo relire.

142. RcmuncratInn tn dIrcctnrs:
(a) Suljecl lo lhe appIicalIe provisions of lhe Acl, Managing Direclor or Direclor vho is in lhe
vhoIe line enpIovnenl of lhe Conpanv nav le paid renuneralion eilher lv vav of a
nonlhIv pavnenl or al a specified percenlage of lhe nel profils of lhe Conpanv or parlIv
lv one vav and parlIv lv lhe olher.

(l) Suljecl lo lhe provisions of lhe Acl, a Direclor vho is neilher in lhe vhoIe-line
enpIovnenl nor a Managing Direclor nav le paid renuneralion eilher:

(i) lv vav of nonlhIv, quarlerIv or annuaI pavnenl vilh lhe approvaI of lhe CenlraI
Covernnenl: or

(ii) lv vav of connission if lhe Conpanv lv a speciaI resoIulion aulhorised such
pavnenl.

143. DIrcctnrs' sIttIng fccs:
The fee pavalIe lo a Direclor (nol incIuding a Managing or vhoIe-line Direclor, if anv) for
allending a Meeling of lhe ßoard or Connillee lhereof shaII le such sun as nav le prescriled
lv lhe CenlraI Covernnenl fron line lo line and approved lv lhe ßoard of Direclors or such
higher fees as nav le approved lv lhe nenlers in lhe CeneraI Meeling vilh lhe approvaI of
lhe CenlraI Covernnenl, vhere such fees pavalIe lo lhe Direclors for allending lhe neelings of
lhe ßoard or connillee lhereof, exceeds lhe anounl prescriled lv lhe CenlraI Covernnenl.

144. RcmuncratInn fnr cxtra scrvIccs rcndcrcd
Suljecl lo lhe provisions of Seclions 198, 269 read vilh scheduIe XIII, 3O9, 31O, 311 and 314 of
lhe Acl, if a Direclor le caIIed upon lo perforn anv exlra services or nake speciaI exerlions or
efforls (vhich expression shaII incIude vork done lv a Direclor as a nenler of anv connillee
forned lv lhe Direclors) lhe ßoard nav pav such Direclor speciaI renuneralion for such exlra
services or speciaI exerlions or efforls eilher lv vav of a fixed sun or lv percenlage of profil
olhervise and nav aIIov such Direclors al lhe cosl and expense of lhe Conpanv such faciIilies
or anenilies (such as renl free house, free nedicaI aid and free convevance) as lhe ßoard nav
delernine fron line lo line.

156. POWER5 OF BOARD OF DIRECTOR5
Suljecl lo lhe provisions of lhe Acl and lhese ArlicIes, lhe ßoard shaII le enlilIed lo exercise aII
such povers, and do aII such acls and lhings, as lhe Conpanv is aulhorised lo exercise and do:
provided lhal lhe ßoard shaII nol exercise anv pover or do anv acl or lhing vhich is direcled or
required vhelher lv lhe Acl or lv lhe Menorandun of Associalion or lhese ArlicIes or
olhervise, lo le exercised or done lv lhe Conpanv in a CeneraI Meeling: provided furlher lhal
in exercising anv such pover or doing anv such acl or lhing, lhe ßoard shaII le suljecl lo lhe
provisions conlained in lhal lehaIf in lhe Acl or in lhe Menorandun of Associalion or in lhese
ArlicIes or in anv reguIalions nol inconsislenl lherevilh duIv nade lhere under incIuding
reguIalions nade lv lhe Conpanv in a CeneraI Meeling.

157. Bnard mav dc!cgatc
Suljecl lo Seclions 292 and 293 of lhe Acl, lhe ßoard shaII have lhe righl lo deIegale anv of lheir
povers lo lhe Managing Direclor and such connillees of lhe ßoard, Direclors, Secrelarv,

222

nanagers, agenls or olher persons as lhev nav deen fil and nav al lheir ovn discrelion revoke
such povers. The ßoard nav aulhorise Direclors lo sul-deIegale lhe deIegaled povers.

158. Rcgu!atInn madc bv Cnmµanv sha!! nnt Inva!Idatc µrInr act nf bnard

No reguIalion nade lv lhe Conpanv in a CeneraI Meeling shaII invaIidale anv prior acl of lhe
ßoard vhich vouId have leen vaIid if such reguIalion had nol leen nade.

BORROWING POWER
159. Pnwcr tn bnrrnw
The ßoard nav, fron line lo line, and al ils discrelion, suljecl lo lhe provisions of Seclions
58A, 292, 293 of lhe Acl and of lhese ArlicIes, accepl deposils fron Menlers eilher in advance
of caIIs or olhervise and generaIIv raise or lorrov nonevs, eilher fron lhe Direclors, lheir
friends and reIalives or fron olhers for lhe purposes of lhe Conpanv and or secure lhe
pavnenl of anv such sun or suns of nonev, provided hovever, vhere lhe nonevs lo le
lorroved logelher vilh lhe nonevs aIreadv lorroved (aparl fron lhe lenporarv Ioans
ollained fron lhe Conpanv's lankers in lhe ordinarv course of lusiness) and renaining
oulslanding and un-discharged al lhal line exceed lhe aggregale of lhe paid up capilaI of lhe
Conpanv and ils free reserves (nol leing reserves sel aparl for anv specific purpose), lhe ßoard
shaII nol lorrov such nonev vilhoul lhe consenl of lhe Conpanv in a CeneraI Meeling lv an
ordinarv resoIulion.

160. Pavmcnt nr rcµavmcnt nf mnncvs bnrrnwcd:
The ßoard nav raise and secure lhe pavnenl of such sun or suns in such nanner and upon
such lerns and condilions in aII respecls as il lhinks fil, and in parlicuIar lv receiving deposils,
issue of londs, delenlures perpeluaI, redeenalIe, delenlure slock, or anv Share/delenlure of
lhe Conpanv or lv norlgage or charge or olher securilv upon aII or anv parl of lhe properlv or
underlaking of lhe Conpanv (lolh presenl and fulure), incIuding ils uncaIIed capilaI for lhe
line leing: provided lhal lhe ßoard shaII nol give anv oplion or righl lo anv person for naking
caIIs on lhe Menlers of lhe Conpanv in respecl of lhe anounl unpaid for lhe line leing on lhe
Shares heId lv lhen, vilhoul lhe previous sanclion of lhe Conpanv in a CeneraI Meeling.

161. Tcrms nf Issuc nf dcbcnturcs:
Anv delenlures, delenlure slock or olher securilies nav le issued al a discounl, preniun or
olhervise, nav le nade assignalIe free fron anv equilies lelveen lhe Conpanv and person lo
vhon lhe sane nav le issued and nav le issued on lhe condilion lhal lhev shaII le
converlilIe inlo shares of anv aulhorised denoninalion, and vilh priviIeges and condilions as
lo redenplion, surrender, dravings, aIIolnenl of shares, allending (lul nol voling) al generaI
neelings, appoinlnenl of Direclors and olhervise, provided lhal delenlures vilh lhe righl lo
aIIolnenl of or conversion inlo shares shaII nol le issued excepl vilh lhe sanclion of lhe
Conpanv in CeneraI neeling lv a SpeciaI ResoIulion.

162. RcgIstcr nf Mnrtgagcs, ctc. tn bc kcµt
The ßoard shaII cause a proper regisler lo le kepl in accordance vilh lhe provisions of
Seclion 143 of lhe Acl of aII norlgages, delenlures and charges specificaIIv affecling lhe
properlv of lhe Conpanv: and shaII cause lhe requirenenls of Seclions 118, 125, and 127 lo
144 (lolh incIusive) of lhe Acl, in lhal lehaIf lo le duIv conpIied vilh (vilhin lhe line
prescriled lv lhe said seclions or such exlensions lhereof as nav le pernilled lv lhe
Conpanv Lav ßoard or lhe Courl or lrilunaI or lhe Regislrar as lhe case nav le) so far as
lhev faiI lo le conpIied vilh lv lhe ßoard.

223

MANAGING DIRECTOR(5) AND WHOLE TIME DIRECTOR(5)

180. Pnwcr tn aµµnInt ManagIng DIrcctnr/Whn!c tImc DIrcctnr:
Suljecl lo provisions of Seclion 197A, 269 198, and 3O9 of lhe Acl, lhe ßoard of Direclors nav,
fron line lo line, appoinl one or nore of lheir lodv lo lhe office of Managing Direclors or
vhoIe line Direclors for a period nol exceeding 5(five) vears al a line and on such lerns and
condilions as lhe ßoard nav lhink fil and suljecl lo lhe lerns of anv agreenenl enlered inlo
vilh hin, nav revoke such appoinlnenl, and in naking such appoinlnenls lhe ßoard shaII
ensure conpIiance vilh lhe requirenenls of lhe Acl and shaII seek and ollain such approvaIs
as are prescriled lv lhe Acl, provided lhal a Direclor so appoinled, shaII nol le vhiIsl hoIding
such office, le suljecl lo relirenenl lv rolalion lul his appoinlnenl shaII le aulonalicaIIv
delernined if he ceases lo le a Direclor.

181. Pnwcrs nf ManagIng DIrcctnr/Whn!c tImc DIrcctnr:
The ßoard nav enlrusl and confer upon Managing Direclor/s or vhoIe line Direclor/s anv of
lhe povers of nanagenenl vhich vouId nol olhervise le exercisalIe lv hin upon such lerns
and condilions and vilh such reslriclions as lhe ßoard nav lhink fil, suljecl aIvavs lo lhe
superinlendence, conlroI and direclion of lhe ßoard and lhe ßoard nav, fron line lo line,
revoke, vilhdrav, aIler or varv aII or anv of such povers.

182. AµµnIntmcnt and µnwcrs nf Managcr
Suljecl lo lhe provisions of lhe Acl and lhese arlicIes, lhe ßoard nav, fron line lo line, appoinl
anv Manager (under Seclion 2(24) of lhe Acl) lo nanage lhe affairs of lhe Conpanv. The ßoard
nav fron line lo line enlrusl lo and confer upon a Manager such of lhe povers exercisalIe
under lhese ArlicIes lv lhe Direclors, as lhev nav lhink fil, and nav, confer such povers for
such line and lo le exercised for such oljecls and purposes, and upon such lerns and
condilions and vilh such reslriclions as lhev lhink expedienl.

183. PrnhIbItInn nf sImu!tancnus aµµnIntmcnt nf dIffcrcnt catcgnrIcs nf managcrIa! µcrsnnnc!
The Conpanv shaII nol appoinl or enpIov al lhe sane line nore lhan one of lhe foIIoving
calegories of nanageriaI personneI, naneIv:

(i) Managing Direclor, and
(ii) Manager
5ECRETARY

184. AµµnIntmcnt nf 5ccrctarv
Suljecl lo Seclion 383A of lhe Acl, a Secrelarv of lhe Conpanv nav le appoinled lv lhe ßoard
on such lerns, al such renuneralion and upon such condilions as il nav lhink fil, and anv
Secrelarv so appoinled nav le renoved lv lhe ßoard.

185. DIrcctnr mav bc aµµnIntcd as 5ccrctarv
A Direclor nav le appoinled as a Secrelarv.

186. 5amc µcrsnn cannnt act In bnth caµacItIcs fnr a µartIcu!ar act:
Anv provision in lhe Acl or lhese reguIalions requiring or aulhorising a lhing lo le done lv or
lo a Direclor and lhe Secrelarv shaII nol le salisfied lv ils leing done lv or lo lhe sane person
acling lolh as Direclor and as, or in pIace of lhe Secrelarv.

DIVIDEND5 AND RE5ERVE5

224

191. DIvIsInn nf µrnfIts
Suljecl lo lhe righls of persons, if anv, enlilIed lo Shares vilh speciaI righls as lo dividends, aII
dividends shaII le decIared and paid according lo lhe anounls paid or crediled as paid on lhe
Shares in respecl vhereof lhe dividend is paid lul if and so Iong as nolhing is paid upon anv of
Share in lhe Conpanv, dividends nav le decIared and paid according lo lhe anounls of lhe
Shares:

192. Cnmµanv mav dcc!arc dIvIdcnd In gcncra! mcctIng:
The Conpanv in CeneraI neeling nav decIare dividends lul no dividend shaII exceed lhe
anounl reconnended lv lhe ßoard.

193. DIvIdcnds nut nf µrnfIts nn!v
No dividend shaII le pavalIe excepl oul of profils of lhe Conpanv arrived al lhe nanner
provided for in Seclion 2O5 of lhe Acl.

194. IntcrIm dIvIdcnd:
The ßoard nav, fron line lo line, pav lo lhe nenlers such inlerin dividends as appear il lo
le juslified lv lhe profils lv lhe Conpanv.

195. CrcatInn nf rcscrvcs
a. The ßoard nav, lefore reconnending anv dividend, sel aside oul of lhe profils of lhe
Conpanv, such suns, as il nav lhink proper, as reserve or reserves vhich shaII al lhe
discrelion of lhe ßoard, le appIicalIe for anv of lhe purposes lo vhich lhe profils of lhe
Conpanv nav le properIv appIied, incIuding provision for neeling conlingencies or for
equaIizing dividends and pending such appIicalions nav al lhe Iike discrelion eilher le
enpIoved in lhe lusiness of lhe Conpanv or le invesled in such inveslnenls ( olher
lhan shares of lhe Conpanv) as lhe ßoard nav, fron line lo line, lhink fil.

l. The ßoard nav aIso carrv forvard anv profils vhich il nav lhink prudenl nol lo divide,
vilhoul selling lhen aside as a reserve.

196. CaµIta! µaId uµ In advancc at Intcrcst nnt tn carn dIvIdcnd
No anounl paid or crediled as paid on a share in advance of caIIs shaII le lrealed for lhe Where
CapilaI is paid in advance of caIIs, such CapilaI nav carrv inleresl lul shaII nol in respecl
lhereof confer a righl lo dividend or parlicipale in profils.

197. DIvIdcnd In µrnµnrtInn tn amnunt µaId uµ
AII dividends shaII le apporlioned and paid proporlionaleIv lo lhe anounls paid or crediled as
paid on lhe shares during anv porlion or porlions of lhe period in respecl of vhich lhe dividend
is paid lul if anv share is issued on lerns providing lhal il shaII rank for dividend as fron a
parlicuIar dale such share shaII rank for dividend accordingIv.

198. Dcbt mav bc dcductcd frnm dIvIdcnd
a. The Direclors nav relain anv dividends on vhich lhe Conpanv has a Iien and nav
appIv lhe sane in or lovards lhe salisfaclion of lhe dells, IialiIilies or engagenenls in
respecl of vhich lhe Iien exisls.

l. The ßoard of Direclors nav relain lhe dividend pavalIe upon Shares in respecl of vhich
anv person is, under lhe Transnission ArlicIe, enlilIed lo lecone a Menler or vhich
anv person under lhal ArlicIe is enlilIed lo lransfer unliI such person shaII lecone a
Menler or shaII duIv lransfer lhe sane.

225


199. Nn Mcmbcr tn rcccIvc dIvIdcnd whI!c Indcbtcd tn thc Cnmµanv and thc Cnmµanv's rIght In
rcsµcct thcrcnf
No Menler shaII le enlilIed lo receive pavnenl of anv inleresl or dividend or lonus in respecl
of his Share or Shares, vhiIsl anv nonev nav le due or oving fron hin lo lhe Conpanv in
respecl of such Share or Shares (or olhervise hovever eilher aIone of joinlIv vilh anv olher
person or persons) and lhe ßoard of Direclors nav deducl fron lhe inleresl or dividend lo anv
Menler aII such suns of nonev so due fron hin lo lhe Conpanv.

200. DIvIdcnd hnw rcmIttcd
Anv dividend, inleresl or olher nonevs pavalIe in cash in respecl of shares nav le paid lv
cheque or varranl senl lhrough lhe posl direcl lo lhe regislered address of lhe hoIder or in case
of joinl hoIders, lo lhe regislered address of lhal one of lhe joinl hoIders vho is firsl naned on
lhe regisler of nenlers, or lo such person and lo such address as lhe firsl naned hoIder or joinl
hoIders nav in vriling direcl. Lverv such cheque or varranl shaII le nade pavalIe lo lhe order
of lhe person, lo vhon il is senl. The Conpanv shaII nol le IialIe or responsilIe for anv cheque
or varranl or pav sIip or receipl Iosl in lransnission, for anv dividend Iosl lo lhe Menler or
person enlilIed lherelo lv lhe forged endorsenenl of anv dividend cheque or lhe frauduIenl
recoverv of lhe dividend lv anv olher neans. Irovided lhal lhe Conpanv can aIso pav lhe
dividend lv crediling il direclIv lo lhe lank accounl of lhe sharehoIders lhrough LIeclronic
fund lransfer svslen of lhe lanks or anv olher node vhich, in lhe opinion of lhe ßoard of
Direclors, is appropriale for pavnenl of dividend lo lhe sharehoIders.

201. DIvIdcnd, ctc tn jnInt hn!dcrs
Anv one of lvo or nore joinl hoIders of a share nav give effecluaI receipls for anv dividends,
lonus or olhers nonevs pavalIe in respecl of such share.

202. NntIcc nf dIvIdcnd
Nolice of anv dividend lhal nav have leen decIared shaII le given lo lhe persons enlilIed lo
share lherein in lhe nanner nenlioned in lhe Acl.

203. DIvIdcnd tn bc µaId wIthIn tImc rcquIrcd bv !aw
The Conpanv shaII pav lhe dividend, or send lhe varranl in respecl lhereof lo lhe sharehoIders
enlilIed lo lhe pavnenl of dividend, olher lhan lhe Menlers vho have vaived/forgone lheir
righl of receiving anv dividend decIared / lo le decIared lv lhe Conpanv for anv financiaI vear
vilhin such line as nav le required lv Iav fron lhe dale of lhe decIaralion unIess:-

(i) vhere lhe dividend couId nol le paid lv reason of lhe operalion on anv Iav: or

(ii) vhere a sharehoIder has given direclions regarding lhe pavnenl of lhe dividend and lhose
direclions cannol le conpIied vilh: or

(iii) vhere lhere is dispule regarding lhe righl lo receive lhe dividend: or

(iv) vhere lhe dividend has leen IavfuIIv adjusled lv lhe Conpanv againsl anv sun due lo il
fron sharehoIder: or

(v) vhere for anv olher reason, lhe faiIure lo pav lhe dividend or lo posl lhe varranl vilhin lhe
period aforesaid vas nol due lo anv defauIl on lhe parl of lhe Conpanv

204. DIvIdcnd nnt tn bcar Intcrcst

226

No dividend shaII lear inleresl againsl lhe Conpanv, irrespeclive of lhe reason for vhich il has
renained unpaid.

205. RIght tn dIvIdcnd µcndIng rcgIstratInn nf transfcr
A lransfer of Shares shaII nol pass lhe righls lo anv dividend decIared lhereon, lefore lhe
regislralion of lhe lransfer lakes effecl and lhe Shares are regislered in lhe nane of lhe
lransferee.

206. UnµaId nr unc!aImcd dIvIdcnd
(a) Where lhe Conpanv has decIared a dividend vhich has nol leen paid or cIained or lhe
dividend varranl in respecl lhereof has nol leen posled vilhin 3O davs fron lhe dale of
decIaralion lo anv sharehoIder enlilIed lo lhe pavnenl of lhe dividend, lhe conpanv shaII
lransfer lhe lolaI anounl of dividend, vhich renains unpaid or uncIained, vilhin 7 davs
afler lhe expirv of lhe said period of 3O davs, lo a speciaI accounl lo le opened lv lhe
Conpanv in lhal lehaIf in anv scheduIed lank, lo le caIIed ¨BharatIva G!nba! InfnmcdIa
LImItcd UnµaId DIvIdcnd Accnunt¨ and lransfer lo lhe said accounl, lhe lolaI anounl of
dividend vhich renains unpaid or in reIalion lo vhich no dividend varranl has leen
posled.

(l) Anv anounls lransferred lo lhe Unpaid Dividend accounl specified alove vhich renain
unpaid or uncIained for a period of 7 (seven) vears fron lhe dale on vhich lhev firsl
lecane due for pavnenl, shaII le lransferred lv lhe Conpanv lo a fund knovn as lhe
Inveslor Lducalion and Iroleclion Iund, lhe generaI revenue accounl of lhe CenlraI
Covernnenl eslalIished under Seclion 2O5C(1) of lhe Acl. A cIain lo anv nonev so
lransferred lo lhe Iund nav le preferred lo lhe CenlraI Covernnenl lv lhe sharehoIders lo
vhon lhe nonev is due.

(c) No uncIained or unpaid dividend shaII le forfeiled lv lhe ßoard lefore lhe cIain lecones
larred lv Iav.

207. 5ct nff nf ca!!s agaInst dIvIdcnd
Anv CeneraI Meeling decIaring a dividend nav on lhe reconnendalion of lhe Direclors nake a
caII on lhe Menlers of such anounl as lhe Meeling fixes lul so lhal lhe caII on each Menler
shaII nol exceed lhe dividend pavalIe lo hin, and so lhal lhe caII le nade pavalIe al lhe sane
line as lhe dividend, and lhe dividend nav, if so arranged lelveen lhe Conpanv and lhe
Menlers, le sel off againsl lhe caIIs.

208. DIvIdcnd In cash
No dividends shaII le pavalIe excepl in cash, provided lhal nolhing in lhese ArlicIes shaII le
deened lo prohilil lhe capilaIisalion of lhe profils or reserves of lhe Conpanv for lhe purpose
of issuing fuIIv paid up lonus Shares or paving up anv anounl for lhe line leing unpaid on
anv Shares heId lv Menlers of lhe Conpanv.

CAPITALI5ATION OF PROFIT5

209. CaµIta!IsatInn nf µrnfIts
(a) The Conpanv in CeneraI Meeling nav, upon lhe reconnendalion of lhe ßoard, resoIve:

(i) lhal is desiralIe lo capilaIise anv parl of lhe anounl for lhe line leing slanding lo lhe
credil of lhe Conpanv's reserve accounls or lo lhe credil of lhe profil and Ioss accounl
or olhervise avaiIalIe for dislrilulion, and

227


(ii) lhal such sun le accordingIv sel free for dislrilulion in lhe nanner specified in
cIause (l) anongsl lhe Menlers vho vouId have leen enlilIed lherelo, if dislriluled
lv vav of dividend and in lhe sane proporlion.

(l) The sun aforesaid shaII nol le paid in cash lul shaII le appIied, suljecl lo lhe provisions
conlained in cIause (c) eilher in or lovards:

(i) paving up anv anounl for lhe line leing unpaid on anv Shares heId lv such Menlers
respecliveIv: or

(ii) paving up in fuII unissued Shares of lhe Conpanv lo le aIIocaled and dislriluled,
crediled as fuIIv paid up, lo and anongsl Menlers in lhe proporlion aforesaid:, or

(iii) parlIv in lhe vav specified in sul cIause (i) and parlIv in lhal specified in sul cIause
(ii)

(c) A share preniun accounl and capilaI redenplion reserve accounl nav, for lhe purpose of
lhis ArlicIe, onIv le appIied in lhe paving up of unissued Shares lo le issued lo Menlers
of lhe Conpanv as fuIIv paid lonus shares.

210. Bnard tn gIvc cffcct
The ßoard shaII give effecl lo lhe resoIulion passed lv lhe Conpanv in pursuance of alove
ArlicIe.

211. FractInna! sharc ccrtIfIcatcs
(a) Whenever such a resoIulion as aforesaid shaII have leen passed, lhe ßoard shaII:

(i) nake aII approprialions and appIicalions of lhe undivided profils resoIved lo le
capilaIised lherelv and aII aIIolnenls and issues of fuIIv paid Shares: and

(ii) CeneraIIv do aII acls and lhings required lo give effecl lherelo.

(l) The ßoard shaII have fuII pover:

(i) lo nake such provision lv lhe issue of fraclionaI cash cerlificale or lv pavnenl in cash or
olhervise as il lhinks fil, in lhe case of Shares leconing dislrilulalIe in fraclions: aIso

(ii) lo aulhorise anv person lo enler, on lehaIf of aII lhe Menlers enlilIed lherelo, inlo an
agreenenl vilh lhe Conpanv providing for lhe aIIolnenl lo lhen respecliveIv, crediled
as fuIIv paid up, of anv furlher Shares lo vhich lhev nav le enlilIed upon such
capilaIisalion or (as lhe case nav require) for lhe pavnenl lv lhe Conpanv on lheir
lehaIf lv lhe appIicalion lhereof of lhe respeclive proporlions of lhe profils resoIved lo
le capilaIised of lhe anounls renaining unpaid on lheir exisling Shares.

(c) Anv agreenenl nade under such aulhorilv shaII le effeclive and linding on aII such
nenlers.

(d) Thal for lhe purpose of giving effecl lo anv resoIulion, under lhe preceding paragraph of
lhis ArlicIe, lhe Direclors nav give such direclions as nav le necessarv and sellIe anv

228

queslion or difficuIlies lhal nav arise in regard lo anv issue incIuding dislrilulion of nev
Shares and fraclionaI cerlificales as lhev lhink fil.

WINDING UP

235. DIstrIbutInn nf asscts:
If lhe Conpanv shaII le vound up, and lhe assels avaiIalIe for dislrilulion anong lhe
Menlers as such shaII le insufficienl lo repav lhe vhoIe of lhe paid up capilaI, such assels shaII
le dislriluled so lhal as nearIv as nav le lhe Iosses shaII le lorne lv lhe Menlers in lhe
proporlion lo lhe capilaI paid up or vhich oughl lo have leen paid up al lhe connencenenl of
lhe vinding up, on lhe Shares heId lv lhen respecliveIv, and if in lhe vinding up lhe assels
avaiIalIe for dislrilulion anong lhe Menlers shaII le nore lhan sufficienl lo repav lhe vhoIe
of lhe capilaI paid up al lhe connencenenl of lhe vinding up, lhe excess shaII le dislriluled
anongsl lhe Menlers in proporlion lo lhe capilaI al lhe connencenenl of lhe vinding up,
paid up or vhich oughl lo have leen paid up on lhe Shares heId lv lhen respecliveIv. ßul lhis
ArlicIe is lo le vilhoul prejudice lo lhe righls of lhe hoIders of Shares issued upon speciaI lerns
and condilions.

236. DIstrIbutInn In sµccIc nr In kInd
(a) If lhe Conpanv shaII le vound up, vhelher voIunlariIv or olhervise, lhe Liquidalor nav,
vilh lhe sanclion of a SpeciaI ResoIulion, divide anongsl lhe conlrilulories in specie or
kind, anv parl of lhe assels of lhe Conpanv and nav, vilh lhe Iike sanclion, vesl anv parl
of lhe assels of lhe Conpanv in lruslees upon such lrusls for lhe lenefil of lhe
conlrilulories or anv of lhen, as lhe Iiquidalor, vilh lhe Iike sanclion, shaII lhink fil.

(l) If lhoughl expedienl anv such division nav suljecl lo lhe provisions of lhe Acl le olhervise
lhan in accordance vilh lhe IegaI righls of lhe conlrilulions (excepl vhere unaIleralIv
fixed lv lhe Menorandun of Associalion and in parlicuIar anv cIass nav le given
preferenliaI or speciaI righls or nav le excIuded aIlogelher or in parl lul in case anv
division olhervise lhan in accordance vilh lhe IegaI righls of lhe conlrilulories, shaII le
delernined on anv conlrilulorv vho vouId le prejudiciaI lherelv shaII have a righl lo
dissenl and anciIIarv righls as if such delerninalion vere a SpeciaI ResoIulion passed
pursuanl lo Seclion 494 of lhe Acl.

(c) In case anv Shares lo le divided as aforesaid invoIve a IialiIilv lo caIIs or olhervise anv
person enlilIed under such division lo anv of lhe said Shares nav vilhin len davs afler lhe
passing of lhe SpeciaI ResoIulion lv nolice in vriling direcl lhe Liquidalor lo seII his
proporlion and pav hin lhe nel proceeds and lhe Liquidalor shaII, if praclicalIe acl
accordingIv.

237. RIght nf sharchn!dcrs In casc nf sa!c
A SpeciaI resoIulion sanclioning a saIe or anv olher Conpanv duIv passed pursuanl lo seclion
494 of lhe Acl nav suljecl lo lhe provisions of lhe Acl in lhe Iike nanner as aforesaid delernine
lhal anv shares or olher consideralion receivalIe lv lhe Iiquidalor le dislriluled anongsl lhe
nenlers olhervise lhan in accordance vilh lheir exisling righls and such delerninalion shaII
le linding upon aII lhe nenlers suljecl lo lhe righl of dissenl and consequenliaI righls
conferred lv lhe said seclion.

229

5ECTION X: MATERIAL CONTRACT5 AND DOCUMENT5 FOR IN5PECTION

The foIIoving conlracls (nol leing conlracls enlered inlo in lhe ordinarv course of lusiness carried on
lv lhe Conpanv or enlered inlo nore lhan lvo vears lefore lhe dale of lhis Drafl Red Herring
Irospeclus) vhich are or nav le deened naleriaI have leen enlered or are lo le enlered inlo lv lhe
Conpanv. These conlracls and aIso lhe docunenls for inspeclion referred lo hereunder, nav le
inspecled al lhe Corporale Office of our Conpanv silualed al ß-6O, Seclor-57, Noida-2O13O1, Ullar
Iradesh, India fron 11.OO AM lo 4.OO IM fron lhe dale of lhis Drafl Red Herring Irospeclus unliI lhe
dale of cIosure of lhe Issue.

MatcrIa! Cnntracts

1. Menorandun of Underslanding daled Seplenler 28, 2O1O signed lelveen our Conpanv and
AInondz CIolaI Securilies Liniled, lhe ßook Running Lead Manager lo lhe Issue.
2. Menorandun of Underslanding daled Seplenler 7, 2O1O signed lelveen our Conpanv and
Regislrar lo lhe Issue.
3. Copv of lhe Tri-parlile Agreenenl daled |-! lelveen NSDL, our Conpanv and Regislrars lo lhe
Issue.
4. Copv of lhe Tri-parlile Agreenenl daled |-! lelveen CDSL, our Conpanv and Regislrars lo lhe
Issue.

Dncumcnts fnr InsµcctInn

1. Menorandun and ArlicIes of Associalion of ßharaliva CIolaI Infonedia Liniled, as anended
fron line lo line.
2. Copv of resoIulion passed al ACM daled Augusl 27, 2O1O u/s 81(1A) aulhorizing lhe Issue of
Lquilv Shares.
3. Copies of Iellers addressed lo ßSL and NSL requesling for granl of 'in-principIe´ approvaI.
4. Copies of In-IrincipIe approvaIs received fron ßSL and NSL daled |-! and |-! respecliveIv.
5. Copies of AnnuaI Reporls of lhe Conpanv for lhe Iasl 5 financiaI vears i.e. IY 2OO5-O6, IY 2OO6-
O7, IY 2OO7-O8, IY 2OO8-O9 and IY 2OO9-1O.
6. Copv of Tax ßenefils Cerlificale issued lv Slalulorv Audilors of lhe Conpanv viz. M/s SNMC &
Co., Charlered Accounlanls, daled Ocloler 18, 2O1O.
7. Copv of Audilors´ Reporl lv Ieer Reviev Audilors of lhe Conpanv M/s K. Irasad & Co.,
Charlered Accounlanls for lhe period ApriI 1, 2O1O lo Iune 3O, 2O1O and for IY 2OO9-1O aIongvilh
reslaled financiaI slalenenls for lhe Iasl 5 financiaI vears ended March 31, 2O1O and for 3 nonlhs
period ended Iune 3O, 2O1O.
8. ResoIulions approving lhe presenl lerns of enpIovnenl and renuneralion lelveen our
Conpanv and our WhoIe line Direclors as approved lv our ßoard and our SharehoIders.
9. Copv of MoU daled Seplenler 1, 2OO9 and SuppIenenlarv MoU daled Iune 3, 2O1O.
1O. Copies of sanclion Ieller fron ßank in respecl of vhich repavnenl is lo le nade oul of Issue
proceeds.

23O

11. No Oljeclion Cerlificale fron The RovaI ßank of ScolIand in conneclion vilh proposed pulIic
issue of our Conpanv.
12. Consenl Iellers fron Direclors, ßook Running Lead Manager lo lhe Issue, Regislrar lo lhe Issue,
ßankers lo lhe Conpanv, Slalulorv Audilors, Ieer Reviev Audilors, LegaI Advisors lo lhe Issue
and Conpanv Secrelarv & ConpIiance Officer lo acl in lheir respeclive capacilies and for
incIusion of lheir nanes in lhis Drafl Red Herring Irospeclus.
13. Due DiIigence Cerlificale daled Novenler 6, 2O1O issued lv ßook Running Lead Manager lo lhe
Issue.
14. A copv of lhe SLßI finaI olservalion Ieller nunler |-! daled |-! received fron SLßI, Nev DeIhi in
respecl of lhe IniliaI IulIic Offering of ßharaliva CIolaI Infonedia Liniled.


231

DECLARATION

AII lhe reIevanl provisions of lhe Conpanies Acl, 1956, and lhe guideIines issued lv lhe Covernnenl
of India or lhe guideIines issued lv Securilies and Lxchange ßoard of India, eslalIished under
Seclion 3 of lhe Securilies and Lxchange ßoard of India Acl, 1992, as lhe case nav le, have leen
conpIied vilh and no slalenenl nade in lhis Drafl Red Herring Irospeclus is conlrarv lo lhe
provisions of lhe Conpanies Acl, lhe Securilies and Lxchange ßoard of India Acl, 1992 or ruIes nade
lhereunder or guideIines issued, as lhe case nav le. The Conpanv furlher cerlifies lhal aII slalenenls
in lhis Drafl Red Herring Irospeclus are lrue and correcl.

5IGNED BY ALL THE DIRECTOR5 OF BHARATIYA GLOBAL INFOMEDIA LIMITED

Mr. Rakcsh BhhatIa
Chairnan and Managing Direclor

Mrs. ArtI BhatIa
Non Lxeculive Non Independenl Direclor

Mr. 5anjav Kaµnnr
Non-Lxeculive Independenl Direclor

Mr. HarjIt 5Ingh Anand
Non Lxeculive Independenl Direclor

Mrs. Java MIsra
Non-Lxeculive Independenl Direclor

Mr. 5anjccv Kumar MItta!
Lxeculive Direclor - TechnicaI

Mr. AnI! Kaµnnrª
Non-Lxeculive Independenl Direclor
*Through duIv consliluled allornev Mrs. Iava Misra, Independenl Direclor signed on lehaIf of Mr. AniI
Kapoor.

5Igncd bv Managcr (FInancc)


Mr. Rajccv Kumar Agarwa!

Dale: Novenler 6, 2O1O
IIace: Noida, Ullar Iradesh

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