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

K
GENERAL CORPORATE PURPOSES:
The long-term goal of the Company is to expand its operations in the Industrial Alcohol
segment comprising Rectified Spirit, Extra- Neutral Alcohol, Country Liquor and India Made
Foreign Liquor (IMFL). The Company is continuously looking for opportunities to grow and
the management is continuously identifying and evaluating opportunities. The Company
intends to use part of the net proceeds towards such growth plans and opportunities.
The Company intends to deploy the proceeds of this Issue aggregating to Rs. [■] lakhs for
General Corporate Purposes including but not limited to strategic initiatives, entering into
strategic alliances, brand building exercise, strengthening of the market capabilities,
partnerships, acquisitions, developing vendors and ancillaries, future projects and meeting
exigencies which the Company in the ordinary course may not foresee etc.
As on date of this Red Herring Prospectus, the Company has not entered into any letter of
intent or any other commitment for any such acquisition/investments or definitive
commitment for any such strategic initiatives and acquisitions. The Board of Directors of the
Company will review various opportunities from time to time. In accordance with the policies
set up by the Board, the Company proposes to retain flexibility in applying the remaining Net
Proceeds for general corporate purposes, and also have flexibility in utilizing Issue proceeds
earmarked for general corporate purposes.
UNDERTAKING BY THE ISSUER COMPANY:
Pursuant to Clause 2.8 of the SEBI (Disclosure and Investor Protection) Guidelines, 2000, the
Company has made firm arrangements for the stated Means of Finance as follows:
(Rs. In lakhs)
Total
A Project cost as appraised by SBI 8928
B Public Issue Expenses [■]
C General Corporate Purposes [■]
D Total Means of finance required [■]
I Amount to be raised through Public Issue [■]
II Term Loans from Banks 1200
III Internal Accruals [■]
The Company hereby confirms that firm arrangements of finance through verifiable means
towards 75% of the stated Means of Finance, excluding the amount to be raised through the
proposed public issue have been made.
IMPLEMENTATION SCHEDULE:
The installation of several production units along with the construction of utilities and services
requires coordination for procurement of equipment, designing the areas and equipment
foundations, award of all contracts and supervision of all construction jobs at plant site.
The Schedule is as follows:
Schedule of Implementation – Time-wise (as estimated by the Company)
SL.
NO.
PROJECT PARTICULARS COMMENCEMENT COMPLETION
1. Installation of a Multi-Pressure Distillation Plant to
produce quality Extra Neutral Alcohol (ENA) of
35,000 Litres per day from both Molasses and Grain
at Behror Unit in Rajasthan.
2. Installation of a Multi-Pressure Distillation Plant,
including Slurry mixing and Liquefaction,
saccharification-cum-Fermentation along with
May, 2007
March, 2010
May 2007 March, 2010
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