Annexure XIV Continued… - Edelweiss

• Mr. Rudra Sen Sindhu and Mr. Vir Sen Sindhu, Directors of our Company, are also directors and
members in Indus Portfolio Private Limited (“IPPL”).
• Mr. Vrit Pal Sindhu, a Director of our Company, is a member in IPPL.
• Mr. Chandan Das Arha, a Director of our Company, is also a director on the board of Anand Rathi
Financial Services Limited.
• Mr. Surinder Singh, a Director of our Company, is also a director of SME Credit Rating Agency Limited.
IPPL, a member of Delhi Stock Exchange Limited, BSE and NSE is engaged in the securities related business
and has obtained the necessary registrations for the conduct of its business. Mr. Rudra Sen Sindhu and Mr. Vir
Sen Sindhu, Directors of the Company are also directors of the IPPL. An inquiry was conducted by Delhi
Stock Exchange Limited into the trading in scrip of Kinetic Capital Services Limited (‘Kinetic’) and Shubh
International Limited (‘Shubh’), wherein it was observed that IPPL had dealt with an unregistered broker in
respect of the trading of the scrips of Kintetic and Shubh and failed to exercise due skill, care and diligence in
the conduct of its business. IPPL had requested for a lenient view to be taken in the matter and SEBI, while
taking a lenient view, by way of its order dated November 29, 2001 warned IPPL to be careful in the future.
Mr. Charan Das Arha, an independent Director of our Company, is a director on the board of Anand Rathi
Financial Services Limited, a company registered with SEBI. On February 7, 2011 SEBI vide its adjudiccaiton
order no. SRP/JP/AO:173/2011 imposed a penalty of ` 0.6 million on Anand Rathi Financial Services Limited
for the alleged usage of its terminal by certain person at an unauthorized location.
Further, except as disclosed in the section “Outstanding Litigation and Material Developments” on page 307
of this Draft Red Herring Prospectus, SEBI has not initiated any action against the entities associated with the
securities market and with which our Directors are associated.
The listing of securities of our Company has never been refused at any time by any stock exchange in India.
Prohibition by RBI
Our Company, our Directors, our Subsidiaries, our Promoters, Promoter Group, Group Companies relatives of
Promoters and the companies with which our Directors are associated as directors or promoters have not been
declared as wilful defaulters by the RBI or any other governmental authority and there has been no violation of
any securities law committed by any of them in the past and no such proceedings are currently pending against
any of them except as given in respect of one of our independent Directors under the chapter “Outstanding and
Litigations and Material Developments” at page 307 of this Draft Red Herring Prospectus.
Eligibility for the Issue
Our Company is eligible for the Issue in accordance with Regulation 26(1) of the ICDR Regulations as
explained under the eligibility criteria calculated in accordance with financial statements under Indian GAAP:
Our Company has net tangible assets of at least ` 30 million in each of the preceding three full years (of 12
months each), of which not more than 50% are held in monetary assets;
Our Company has a track record of distributable profits in accordance with Section 205 of the Companies Act,
for at least three out of the immediately preceding five years;
Our Company has a net worth of at least ` 10 million in each of the three preceding full years (of 12 months
each);
The pre-Issue net worth of the Company, based on the audited balance sheet as at March 31, 2010 is `
11,729.26 million and five times such pre-Issue net worth is ` 58,646.30 million.
The aggregate of the proposed Issue and all previous issues made in the same financial years in terms of the
Issue size is not expected to exceed five times the pre-Issue net worth of our Company; and
Our Company has not changed its name in the last one year.
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