gayatri projects limited - Edelweiss

GAYATRI PROJECTS LIMITEDDividendsIf the Company has distributable profits then on the recommendation ofthe Board of the Company, net profits of the Company shall be distributedto the Shareholders as dividend subject to compliance of all applicablelaws in proportion of their respective shareholding.TerminationThe Agreement will automatically terminate without furher action on thepart of any party on the earliest to occur of (i) the dissolution or liquidationof the Company; (ii) any party acquiring ownership of 100% of the shares,or (iii) the unanimous agreement of parties. Upon such termination, no partyshall have any further obligations under this agreement except suchobligations as have accrued as of the date of such termination or by theirexpress terms survive the expiration or earlier termination of thisAgreement.The details of the project cost and means of finance of the SPV (as estimated by IDFC) are as under:Project CostRs. in lakhsMeans of FinanceEPC Cost 46000Design & Supervision costs 500Insurance during construction 200Contingencies 1400IDC and financing costs 4600Other prelim / pre-op costs 800Total Projects cost 53500Equity 9400DebtIDFC 7500Punjab National Bank* 12500Bank of Baroda 5000India Infrastructure Finance Company Limited 1050035500Subordinated Debt – Sanctioned by IDFC 3000NHAI Grant 5600Total Means of Finance 53500* Though sanction from Punjab National Bank is for Rs 15000 lakhs however financial closure has beendone at Rs. 12500 lakhs only.The SPV has declared financial closure on August 30, 2006. Out of total Equity capital for the SPV our shareat 40% comes to Rs. 3760 Lakhs, out of which we have already contributed Rs. 3000 lakhs which were metout of internal accruals at different intervals.As per our estimate we intend to use Rs. 2000.00 Lakhs from the proceeds of this Offer, which will form partof the share capital for the SPV. Out of Rs. 2000 lakhs, Rs. 1227.63 lakhs have already been invested in theSPV. Future dividend proposed by the SPV is not assured to us.28