RED HERRING PROSPECTUS Dated August 24 ... - Globus Spirits

SECTION VII
OTHER REGULATORY AND STATUTORY DISCLOSURES
1. Authority for the Issue
The issue of Equity Shares by the Company has been authorised by the resolution of the
Board of Directors passed at their meeting held on April 2, 2009, which was subject to the
approval of shareholders through a special resolution to be passed pursuant to Section
81(1A) of the Companies Act. Subsequently, on May 29, 2009, the shareholders approved
the Issue at the Extra-Ordinary General Meeting of the Company held at New Delhi.
2. Prohibition by SEBI/RBI/Any other Authority
The Company, its directors, its promoters, Promoter Group, the Group Companies, persons
in control of the promoter companies, other companies with which the promoters/directors
are associated as directors or as promoters are not prohibited from accessing/operating the
capital markets or restrained from buying, selling or dealing in securities under any order or
direction passed by SEBI or any other authority.
Neither the Company nor its directors, associates, promoters, promoters Group companies
or relatives of the Promoters have been detained as wilful defaulter by the RBI or
government authorities. There are no violations of securities laws committed by any of them
in the past or pending against them.
3. Eligibility of the Company to enter the capital market
The Company is eligible for the Issue as per Clause 2.2.1 of the SEBI (DIP) Guidelines as
confirmed by the Auditors of The Company, M/s B.M. Chatrath & Co., Chartered
Accountants, dated August 1, 2009
.
1. The Company has net tangible assets of at least Rs. 3 crores in each of the preceding
three full years of which not more than 50% is held in monetary assets;
2. The Company has had a pre-Issue net worth of not less than Rs. 1 crore in each of the
three preceding full years;
3. The Company has had a track record of distributable profits as per Section 205 of
Companies Act, 1956 for at least three out of the immediately preceding five years;
4. The proposed Issue size would not exceed five times the pre-Issue net worth as per the
audited accounts for the year ended March 31, 2009;
5. The name of the Company was changed to Globus Spirits Ltd on January 23, 2007. It
does not represent any change in the business line or activity.
The distributable profits as per Section 205 of the Companies Act, net worth and net tangible
assets for the last five years are as under:
(Rs. in lakhs except % age of monetary assets)
For the year ended March 31
Particular 2005 2006 2007 2008 2009
Net Tangible Assets 1 1380.66 1930.07 3240.38 5469.64 6963.35
Monetary Assets 2 31.85 58.26 175.01 168.16 238.90
Monetary Assets as a % of
2.31 3.02 5.40 3.07
Net Tangible Assets
3.43
Net Worth 3 1159.43 1683.53 2549.26 4683.62 5976.98
Distributable Profits 4 23.94 523.88 865.52 1264.16 1293.15
Notes:
1 - Net Tangible Assets is defined as the sum of fixed assets (including capital work in
progress and excluding revaluation reserves), trade investments, current assets
(excluding deferred tax assets) less current liabilities (excluding deferred tax liabilities
and long term liabilities).
2 - Monetary assets comprise of cash and bank balances, public deposit account with the
Government.
3- Net worth has been defined as the aggregate of equity share capital and reserves,
excluding miscellaneous expenditures, if any.
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