gayatri projects limited - Edelweiss

GAYATRI PROJECTS LIMITEDPursuant to Share Purchase Agreement dated March 27, 2006 the offer expenses shall be shared between theCompany and the Selling Shareholder in the ratio of 34.48% and 65.52% respectively.SCHEDULE OF IMPLEMENTATION/PROPOSED DEPLOYMENT OF FUNDSWe will not receive any proceeds of the Offer for Sale by the Selling Shareholders. We intend to use the net proceeds forproject related investment, repayment of debt and for meeting Offer expenses.Activity Funds Deployed Proposed Deployment Totaltill date of Fund (Rs. in lakhs)(Rs. in lakhs)July-Oct., 2006(Rs. in lakhs)Investment in SPV 1227.63 772.37 2,000.00Repayment of Debt Nil 717.13 717.13Offer Expenses 31.38 201.49 232.87Total 1259.01 1690.99 2950.00Funds Deployed till date and the sources of its deploymentThe expenditure incurred in respect of public offer upto August 31, 2006 as certified by the Company’s Statutory Auditor,M/s C.B. Mouli & Associates, pursuant to their certificate dated September 01, 2006 was Rs. 1259.01 lakhs, as given in thetable below:Deployment of FundsAmount (Rs. In lakhs)Public Issue Expenses 31.38Investment in Special Purpose Vehicle (SPV) company forexecution BOT/BOOT Project 1227.63Total 1259.01Sources of FundsInternal Accruals 1259.01Total 1259.01Interim Use of ProceedsThe Company’s management, in accordance with the policies established by the Board, will have flexibility in deploying theproceeds received from the Fresh Issue. Pending utilization of the proceeds out of the Fresh Issue for the purposes describedabove, we intend to temporarily deposit the amount in a Scheduled Commercial Bank as Fixed Deposit or temporarily deploythe funds in working capital loan accounts. Such investments would be in accordance with the investment policies approvedby the Board from time to time.Monitoring of Utilisation of FundsThe appointment of monitoring agency was not required in accordance with Clause 8.17 of SEBI (DIP) Guidelines 2000.However, we have appointed Bank of Baroda as monitoring agency for the purpose of monitoring the utilization of Issueproceeds. We will disclose the utilization of proceeds of the fresh issue under a separate head in our Company’s balancesheet for fiscal 2007 clearly specifying the purpose for which such proceeds have been utilized. We, in our balance sheet forfiscal 2007, provide details, if any, in relation to all such proceeds of the fresh issue that have not been utilized thereby alsoindicating investments, if any, of such unutilized proceeds of the fresh issue.No part of the fresh Issue proceeds, will be paid by the Company, as consideration to Promoters, Directors, Company’s Keymanagerial personals or companies promoted by the promoters except in usual course of business.30