KAMDHENU ISPAT LIMITED - Securities and Exchange Board of India

OBJECTS OF THE ISSUE
The proceeds from the Issue of shares are intended to be deployed for:
a. To meet the working capital requirements;
b. To meet the cost of self owned corporate office
c. To meet the expenditure on lease deposits and miscellaneous fixed assets for setting up stock yards;
d. To meet the expenses of this issue.
The other object of the issue is to get the shares listed on the Stock Exchange(s) and to provide liquidity to our
existing investors.
The main objects clause of the Memorandum of Association of the Company enables the Company to undertake the
existing activities and the activities for which the funds are being raised by the Company, through the Issue.
Fund Requirements:
Particulars Amount (Rs. Lacs)
Working Capital Requirements 2888.15
Setting up of Corporate Office 250.00
Lease Deposits & Miscellaneous Fixed Assets for Stock Yards 59.00
Expenses of the Issue 180.00
Total Funds Requirements
Means of Finance:
3377.15
Particulars Amount (Rs. Lacs)
Initial Public Offering 3200.00
Internal Accruals 177.15
Total Funds 3377.15
In case of shortfall, if any, the same shall be further met out of internal accruals. Excess money, if any, will be utilized
for general corporate purpose including but not restricted to repayment of loans. The project has not been appraised
by external agencies and as such all the fund requirements are based on management estimates.
Appraisal
The project has not been appraised by any external agency and as such all the funds requirements are based on
management estimates.
a. Working Capital Requirements:
The working capital requirement has been calculated on the basis of additional working capital required as on March 31 2007.
Our working capital requirements as on March 31, 2007 would be as follows:
Working Capital Calculation:
Particulars Qty. MT Amount 31st March, 2007
in Rs. (Rs. in Lacs)
A. MATERIALS AT VARIOUS STOCK YARDS- 18 DAYS STOCKS –M/T 6000 6,000.00
B. RATE PER M/T (IN RUPEES) 22,090
C. VALUE (AT COST) (A x B) 1,325.40
D. SUNDRY DEBTORS – EQUIVALENT TO 21 DAYS SALES 1,562.75
E. TOTAL CURRENT ASSETS (C + D) 2,888.15
F. LESS : SUNDRY CREDITORS —
G. TOTAL (E - F) 2,888.15
Note: All materials will be purchased on the basis of Cash against delivery; therefore Sundry Creditors will be Nil.
All the above projections are based on management estimate
b. Expenditure on Corporate Office :
The expenditure on self owned corporate office, is estimated to cost Rs. 250.00 lacs and includes cost of land and
building appurtenant thereto and cost of soft furnishing and required infrastructure facilities. Our company is in the
process of identifying suitable site / premises for the same, although we have identified two sites we have not
finalized any site / premises for the said purposes.
23