KAMDHENU ISPAT LIMITED - Securities and Exchange Board of India

mentioned under Class 1 to 42 covering items of Schedule IV of the Trade Mark Act,1999 . The registration is pending
with the Registering Authority. The Company is adhering to policy of using the “kamdhenu” brand not only in respect of
Steel bars and Cement but also in respect of other Building materials and products which the Company may deal in the
future. At present company has started using “Kamdhenu” trade mark in respect of POP and SS Pipes in addition to
Cement & Steel Bars. The Company has developed and implemented Franchisee Model in respect of Steel Bars,
Cement, POP and SS Pipes. Other products are also in pipeline. Pending registration we may have lesser recourse to
initiate legal proceeding to protect our Brand. This may lead dilution in our Brand in respect of the respective products.
We have received notices of opposition with respect to some of the applications seeking registration of certain trademarks
in specified product category which are being suitably replied/defended.
Our success with our Brand depends, in part on our ability to protect and defend our current and future intellectual
property rights relating to Brand/Trademark. If we f ail to protect our intellectual property, competititors may manufacture,
and market products under brands similar to our brands which may have an adverse effect on the goodwill of our brand.
The Objects of the Issue for which funds are being raised has not been appraised by any Bank or Financial
Institution
In the absence of any appraisal by any bank or financial institution for the funds required by us, the deployment of the
funds raised through the issue as stated in the section titled “ Objects of the Issue” are as per estimates approved by
Board of Directors. The funds being raised through the issue are proposed to be used for setting up stock yards and
working capital requirement. The premises in respect of some of these stock yards have not been identified. In absence
of any monitoring agency, the deployment of funds is entirely at the discretion of the management.
Our expansion plans are subject to the risk of cost and time overruns.
Our plan for expansion of operations as referred to in the section titled “Objects of the Issue” on page ___ of this
Prospectus contains project costs and implementation schedules estimated by us. We intend to apply the net
proceeds of the Issue to broad base our operations by setting up stock yards at strategic locations. Our expansion
plans have not been appraised by any financial institution. Our expansion plans are subject to a number of
contingencies, changes in laws and regulations, governmental action, delays in obtaining permits or approvals,
accidents, natural calamities, terrorist activity and other factors, many of which may be beyond our control.
Although we have taken steps to complete the expansion plan within parameters estimated by us, we cannot
assure you that the actual costs incurred , time taken for implementation of these plans will not vary from our
estimated parameters.
Our future acqusitions and alliances may not be successful
Further Part of our growth strategy includes pursuing strategic acquisitions and alliances. We cannot assure you
that we will be able to consummate acquisitions or alliances in the future on terms acceptable to us, or at all. In
addition, we cannot assure you that the integration of any future acquisitions will be successful or that the expected
strategic benefits of any future acquisitions or alliances will be realised. Acquisitions or alliances may involve a
number of special risks, including, but not limited to:
adverse short-term effects on our reported operating results;
diversion of management’s attention;
difficulties assimilating and integrating the operations of the acquired company with our own; and unanticipated
liabilities or contingencies relating to the acquired company.
As of the date of this Prospectus, we have not signed any letter of intent or entered into any definitive commitment
or agreement for any material acquisition, strategic alliance or strategic investment other than mentioned in the
Prospectus.
We have in the last 12 months issued Equity Shares as Bonus Shares by Capitalizing our Free Reserves.
Date of Allotment No. of Face Value Issue Price Conside- Value Date on
Shares (Rs.) (Rs.) ration (Rs) which fully
paid-up
29/09/2004 15,20,000 10/- — Bonus Shares 1,52,00,000 29/09/2004
in ratio of 2:5
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