gayatri projects limited - Edelweiss

2. Repayment of DebtWe have entered into various financing arrangements with number of banks and financial institutions. Thesearrangements include fund-based facilities (in the form of term loans and working capital facilities) aggregating toRs. 19,564 lakhs as on August 22, 2006. As on August 22, 2006, the amount outstanding from the Company underthese facilities was Rs. 16,426.78 lakhs. Details of the amount outstandings have been provided in the table below:(Rs. In Lakhs)Sr. No. Bank/ Financial Institution/ Lender Amount sanctioned Amount OutstandingAs on Aug 22, 2006A. Term Loans1. Bank of Baroda 1,585.00 1,009.182. Canara Bank 1,500.00 1,515.003. Syndicate Bank 2,800.00 2,681.524. Corporation Bank 750.00 306.30Total Term Loans 6,635.00 5512.00B. Working Capital Limits1. Bank of Baroda, Khairatabad 7,355.00 7,234.422. Canara Bank, Somajiguda 2,550.00 2,579.003. Syndicate Bank, NS Road 500.00 507.734. Corporation Bank, Vizag 355.00 358.306. Indian Overseas Bank 2,169.00 235.33Total Working Capital Limits 12,929 10,914.78Aggregate (A+B) 19,564 16,426.78The Company intends to utilize the proceeds of the Fresh Issue towards repayment of its fund-based facilities. TheCompany will expect to repay approximately Rs. 500 lakhs to Rs. 1000 lakhs and give preference to repaying itshigh cost debt first. We might have to pay prepament penalties at the time of prepayment of these debts. We willtake these provisions into consideration in prepaying these debts from the proceeds of the fresh Issue. In the eventof any shortfall in using the net proceeds of the Fresh Issue as described in the objects of the Offer, the Companywill reduce the amount of prepayment of debt. In the event of any surplus, the management, in accordance with thepolicies established by the Board, will have flexibility in applying such surplus towards prepayment of debt.3. Offer ExpensesThe Company intends to use Rs. 232.87 lakhs from the proceeds of the Fresh Issue for Offer Expenses. The Offerrelated expenses includes issue management fees, selling commission, distribution expenses, legal fees, fees toadvisors, stationery costs, advertising expenses, despository fees and listing fees payable to the Stock Exchanges,among others. The total expenses for this Offer are estimated at approximately Rs. 684.92 Lakhs, details of whichare as under:(Rs. In Lakhs)Activity% of Total Offer SizeLead Management, underwriting & selling commission 3.00%Registrars fees 0.04%Printing & Distribution of Offer Stationery 2.00%Advertising and Marketing expenses 1.79%Other expenses include legal fees, depository, etc. 1.18%Total 8.01%29