KAMDHENU ISPAT LIMITED - Securities and Exchange Board of India

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k. Under Section 54 F of the Income Tax Act, 1961 long term capital gains ( in cases not covered under section 10(38) of The Act, ) arising to an individual or Hindu Undivided Family ( HUF ) on transfer of shares of the company will be exempt from capital gain tax subject to other conditions, if the net consideration from such shares are used for purchase of residential house property within a period of one year before and two year after the date on which the transfer took place or for construction of residential house property within a period of three years after the date of transfer. l. Under Section 112 of the Income Tax Act, 1961 and other relevant provisions of the Act, Long Term Capital gins ( i. .e is shares are held for a period exceeding 12 months ) ( incase not covered under section 10(38) of the Act,) arising on transfer of shares in the Company, shall taxed at the rate of 20 % ( Plus applicable surcharge and education Cess ) after indexation as provided in the second provision to section 48 . The amount of such tax should however, be limited to 10 % ( plus applicable surcharge and education cess ) without indexation, at the option to the shareholder, if the transfer is made after listing of shares. (C) FOREIGN INSTITUTIONAL INVESTORS: a. In terms of section 10(34) of the Income tax Act, 1961, any income by way of dividends referred to in section 115 – O ( i.e. dividends declared, distributed or paid on or after 1 April, 2003 ) received on the shares of the company is exempted from the tax. b. In our opinion, the equity Share under this offer document constitute eligible shares and the benefit, as stated above, would be available provided the above conditions are complied with. c. The income by way of short term capital gains or long term capital gains (not covered under section 10(38) of the Act) realized by FIIs on Sales of shares in the company would be taxed at the following rates as per section 115 AD of the Income Tax Act, 1961. _ Short Term Capital Gains – 30 % (Plus Applicable Surcharge and Education Cess ) _ Long Term Capital Gains - 10 % Plus Applicable Surcharge and Education Cess (Without Cost Indexation and protection against Foreign Exchange Fluctuation. (Shares held in a company could be considered as a long term capital asset provided they are held for a period exceeding 12 months ) d. Under Section 54 EC of the Income Tax Act, 1961, and subject to the conditions and to the extent specified therein, long-term capital gains ( in cases not covered under section 10(38) of the Act,) arising on the transfer of shares of the Company will be exempt from Capital gains tax if the capital gain are invested within a period of 6 months after the date of such transfer for a period of at least 3 years in bonds issued by (a) National Bank for Agriculture and Rural development established under section 3 of the National bank for Agriculture and Rural Development Act, 1981. (b) National Highway Authority of India constituted under section 3 of the National Highway Authority of India Act, 1988. (c) Rural Electrification Corporation Limited, the company formed and registered under the Companies Act, 1956. (d) National Housing Bank established under section 3(1) of the National Housing Bank Act, 1987; and (e) Small Industries Development Bank of India established under section 3(1) of the Small Industries Development Bank of India Act, 1989. e. Under Section 54 ED of the Income Tax Act, 1961 and subject to the conditions and to the extent specified therein, long term capital gains ( in cases not covered under section 10(38) of the Act, ) on the transfer of shares of the company, as and when it is listed will be exempted from capital gains tax if the capital gain are invested in shares of an Indian Company forming part of an eligible public issue, within a period of 6 months after the date of such transfer and held for a period of at least one year. Eligible public issue means issue of equity shares which satisfies the following conditions, namely – (a) the issue is made by a public company formed and registered in India. (b) the Shares forming part of the issue are offered for subscription to the public. Subject to certain conditions laid down in Section 115AD of the Income Tax Act, Foreign Institutional Investors will be charged to tax at 20% (plus Surcharge and Education Cess as applicable) on dividend from shares of the Company, at 10% (plus Surcharge as applicable) on the Long Term Capital Gains arising from the transfer of the shares of the Company and at 30% (plus surcharge as applicable) on Short Term Capital Gains arising from the transfer of the shares of the Company. 30
Benefit available to Mutual Funds In case of a shareholder being a mutual fund as per the provisions of section 10(23)(d) of the Income tax act,1961 any income of mutual funds registered under the Securities an Exchange Board of India Act,1992 or regulations made thre under , mutual funds set up by public sector banks or public financial institutions and mutual funds authorised by the Reserve Bank of India would be exempt from Income Tax, subject to the conditions as the Central Government may by notification in the official gazette specify in this behalf. Benefit available to Venture Capital Companies/Funds In case of a shareholder being a Venture Capital Companies/Funds as per the provisions of section 10(23)(FB) of the Income tax act,1961 any income of Venture Capital Companies/Funds registered with the Securities an Exchange Board of India Act,1992 , would exempt from income tax , subject to the conditions specified. II. UNDER WEALTH TAX ACT, 1957: The member of the company will not be liable to pay any Wealth Tax in respect of Shares held by them sincethe same are not covered under the definition of “ASSETS” under section 2 (EA) of the Wealth Tax Act, 1957. III. UNDER GIFT TAX ACT, 1958: With effect from 1st October 1998 no gift tax shall be levied on gift of shares of the Company. NOTES: 1. All the above benefits are as per the Current Tax Law as amended by the Finance Act, 2005. 2. The stated benefits will be available only to the sole/first named holder in case the shares are held by joint holders. 3. In respect if Non-residents, the tax rates and the consequent taxation mentioned above shall be further subject to any benefits available under the Double Taxation Agreements, if any, between India and the Country in which the Nonresident has fiscal domicile. 4. In view of the individual nature of tax consequences, each investor is advised to consult his / her own tax advisor with respect to specific tax consequences of his / her participation in the scheme. For S.Singhal & Co. Chartered Accountants Partner (R.K.Gupta) Place : Bhiwadi Dated: 23.09.2005 31
Page 1 and 2: KAMDHENU ISPAT LIMITED DRAFT PROSPE
Page 3 and 4: DEFINITIONS AND ABBREVIATIONS Gener
Page 5 and 6: Abbreviations Abbreviation Full For
Page 7 and 8: RISK FACTORS An investment in equit
Page 9 and 10: mentioned under Class 1 to 42 cover
Page 11 and 12: (b) Any disruption/ discontinuance
Page 13 and 14: affect our operating results. We ar
Page 15 and 16: The central and state tax scheme in
Page 17 and 18: SUMMARY The following summary is qu
Page 19 and 20: THE ISSUE Equity Shares offered by
Page 21 and 22: of the Stabilisation Period allot,
Page 23 and 24: For the year ended August March Mar
Page 25 and 26: LEGAL ADVISOR TO THE ISSUE Luthra &
Page 27 and 28: 2. Capital Buildup: The existing sh
Page 29 and 30: B. Promoter Group 1. Saurabh Agarwa
Page 31 and 32: Sl. Name of Date of Consid- No. of
Page 33 and 34: Sl. Name of Date of Consid- No. of
Page 35 and 36: 7. The Pre-issue and Post-issue sha
Page 37 and 38: (b) Our top ten shareholders and sh
Page 39 and 40: OBJECTS OF THE ISSUE The proceeds f
Page 41 and 42: BASIS FOR ISSUE PRICE QUALITATIVE F
Page 43 and 44: STATEMENT OF TAX BENEFITS The Compa
Page 45: loss, such long -term capital loss
Page 49 and 50: Restrictions in external trade, bot
Page 51 and 52: to compete with the likes of China,
Page 53 and 54: III. Flat Products Flat products in
Page 55 and 56: · In China and other Asian countri
Page 57 and 58: BUSINESS OVERVIEW Kamdhenu Ispat Li
Page 59 and 60: PROCESS PROCESS FLOW CHART FOR PROD
Page 61 and 62: POWER The Company sources Power fro
Page 63 and 64: The sponge iron is one of the raw m
Page 65 and 66: We help them to get right people to
Page 67 and 68: 23. A.S. CEMENT INDUSTRIES, Patiala
Page 69 and 70: PROPERTY A. Properties owned by the
Page 71 and 72: S No. 6. 7. 8. Date & Tenure Name &
Page 73 and 74: OUR INDEBTEDNESS Sr. No 1 Lender &
Page 75 and 76: Main Objects The main objects of th
Page 77 and 78: OUR MANAGEMENT As per the Articles
Page 79 and 80: C. MR. SUNIL KUMAR AGARWAL Designat
Page 81 and 82: Company Secretary Secretarial & Leg
Page 83 and 84: PROMOTERS OUR PROMOTERS MR. SATISH
Page 85 and 86: 2. and accessories, automobile part
Page 87 and 88: The Board of Directors Kamdhenu Isp
Page 89 and 90: Annexure - II Statement of Assets a
Page 91 and 92: 7 The company is manufacturing CTD/
Page 93 and 94: Annexure - VII Performance Ratios:
Page 95 and 96: Principal Terms of Sanctioned Loans
Page 97 and 98:
Financial Statements of Group Compa
Page 99 and 100:
The Board of Directors of the Compa
Page 101 and 102:
List of Shareholders as on 30.9.200
Page 103 and 104:
MANAGEMENT’S DISCUSSION AND ANALY
Page 105 and 106:
DEPRECIATION Depreciation on fixed
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of excise duty was 8% thereafter up
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Administrative and Other Expenses W
Page 111 and 112:
Cost Of Goods Traded In The company
Page 113 and 114:
Information required as per clause
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SL. NO. 5 6 7 8 9 10 11 12 ASSESSME
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3.2 CENTRAL EXCISE Commissioner of
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4.2 M/s. Kamdhenu Ispat Limited vs.
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II Outstanding litigations involvin
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Sales Tax ASSESSMENT YEAR PARTICULA
Page 125 and 126:
11. The Company has obtained consen
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BEHALF AND TOWARDS THIS PURPOSE, TH
Page 129 and 130:
Public Issue expenses are estimated
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ISSUE INFORMATION Terms of the Issu
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Applications by Hindu Undivided Fam
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Payment Instructions 1. Payments sh
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5. Investors can contact the Compli
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for public subscription and the bal
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POWER TO MODIFY RIGHT 11. (i) If at
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without any deduction or allowance
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there be no such Chairman or if at
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69. The Director shall not be requi
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fit and any such appointment may (i
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present and entitled to vote there
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MATERIAL CONTRACTS AND DOCUMENTS FO
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DECLARATION All the relevant provis
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KAMDHENU ISPAT LIMITED - Securities and Exchange Board of India

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