COX AND KINGS (INDIA) LIMITED - Securities and Exchange Board ...

on our finance plans. Some of our Issue proceeds will be utilized for the repayment of debt.
We have not entered into definitive agreements to utilize our Issue proceeds. Further, we propose to use Rs.1500 Mn
i.e. [?] % of our Issue proceeds for acquisitions and other strategic initiatives. As of the date of this Draft Red Herring
Prospectus, we have identified potential targets and are in negotiations with them. However, we have not yet entered
into any definitive/contractual commitment for any acquisition, investment or joint venture. We also intend to utilize
part of the Issue Proceeds, i.e. Rs.500 Mn for our new corporate office in Mumbai and Rs.100 Mn for expansion of our
office in Delhi, for which again though we are in the process of identifying suitable premises we have not yet finalized
on the same. We have also estimated investments in our subsidiaries to the extent of Rs.625 Mn towards their working
capital needs due to increased business and capital expenditures for setting up new centers for visa processing. We have
not entered into any definitive agreements for these expenditures as on the date of this DRHP. However, pending use of
the funds for these purposes, we intend to invest the funds in high quality, interest/dividend bearing liquid instruments,
including deposits with banks.
As on the date of this Draft Red Herring Prospectus, we have not incurred any expenses towards the aforementioned
objects. The aforementioned fund requirements are based on internal management estimates and on the basis of
quotations obtained, wherever possible, and have not been appraised by any bank or financial institution. These are
based on current conditions and are subject to change in light of changes in external circumstances or costs or in other
financial conditions, business strategy, etc. With increase in costs, our actual deployment of funds may exceed our
estimates and may cause us an additional burden on our finance plans. Some portion of our Issue proceeds would be
utilized towards repayment of our existing debt that is to the tune of Rs.1296 Mn, [?] % of our Issue proceeds. However,
we believe our repayment of interest bearing debt will help us to reduce our ‘Interest and Finance Charges’ and will
improve our net earnings in the future. Further, it will help us to improve our ability to leverage equity for our future
needs towards any of our existing operations and towards newer opportunities that we may identify. For further details
please refer chapter titled “Objects of the Issue” on page 36 of this Draft Red Herring Prospectus.
13. There are 15 trademark applications pending with the Trademark office for registration including our recently
changed corporate logo. Our success depends on our trademarks and proprietary rights and any failure to protect
our intellectual property rights may adversely affect our competitive position.
Our Company’s business might be affected due to our failure to protect our existing and future intellectual property
rights. Our Company owns various intellectual property rights, and in particular, trademarks, which are fundamental to
our brand and we believe the strength of our brand gives us a competitive advantage. We use our intellectual property
rights to protect the goodwill of our brand, promote our brand name recognition, enhance our competitiveness and
otherwise support our business goals and objectives.
Though majority of our current trademarks are registered, 15 of our trademarks are pending registration and renewals
as of the date of this Draft Red Herring Prospectus. We have changed our corporate logo for which we have made an
application for registration with the Trademarks Office. Further, Opposition Cases have been filed with the Trademark
Registry against registering our mark as a trademark. Any delay or refusal to register these trademarks could adversely
affect our business. We cannot guarantee that all the pending applications will be decided in the favour of our
Company. If any of our trademarks are not registered it can allow any person to use a deceptively similar mark and
market its product which could be similar to the products offered by us. Such infringement will hamper our business as
prospective clients may go to such user of mark and our revenues may decrease. For more details please refer to the
heading “Intellectual Property” on page 92 of this Draft Red Herring Prospectus.
14. We currently require 16 regulatory approvals or licenses in the ordinary course of business and the failure to obtain
them in a timely manner or at all may adversely affect our operations.
We currently require 16 approvals, licenses, registrations and permissions for operating our business, some of which
may have expired or are due to expire and for which we have either made or are in the process of making an application
for obtaining the approval or its renewal. If we fail to obtain any of these approvals or licenses, or renewals thereof, in a
timely manner or at all, our business could be adversely affected. For the list of licenses which are pending renewal,
please see the chapter entitled “Government and Other Approvals” beginning on page 316 of this Draft Red Herring
Prospectus.
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