sejal architectural glass limited - Securities and Exchange Board of ...

May 21, 2007. Premium
Amount Rs.
6,760.66
Restrictive Covenants
Pursuant to our Secured Loans
119
and personal accident
cover. Car Insured-
Mahindra Bolero.
As of September 30, 2007, our Company has an outstanding secured loans aggregating Rs.
6365.03 Lacs from different lenders, including against fixed assets and machinery as primary/
collateral security as provided below:
Sr.
No.
Name of Bank Sanctioned
Amount
Rs. in Lacs
Amount
outstanding as
on September
30, 2007
1 State Bank of Patiala 11164.00 4406.94
2 State Bank of Mysore 5,000.00 0.00
3 Indian Overseas Bank 3,000.00 356.75
4 Punjab National Bank 5,000.00 591.75
5 Punjab and Sind Bank 2,500.00 297.02
6 Axis Bank Limited 900.00 109.11
7 Bank of India 2,500.00 296.71
8 State Bank of Saurashtra 2,500.00 297.32
9 State Bank of Indore 3,500.00 0.00
10 ICICI Bank 18.69 9.43
Total 36,082.69 6365.03
In respect of various agreements entered into by our Company with the lenders, we are bound
by certain restrictive covenants. A majority of these covenants, are specific to the conduct of
our Company in relation to the hypothecated assets under those agreements, and those
covenants asset-specific. Other than the asset-specific covenants, as per the loan agreements,
we require written consent from the lenders in relation to certain actions/matters, amongst
others, including entering into any scheme of amalgamation or merger/ demerger/
reconstruction, declaration of any dividends if there are any arrears in making any payment of
amount(s) due to our lender(s), not to change/ vary our constitution, not to make any changes
to the general nature or scope of the business from that carried on by our Company,
prepayment of the outstanding principal amount of the facility on full or in part before the due
date, among others.
Some of the asset-specific covenants in our loan agreements are as follows, and we cannot,
without the prior written consent of our lender(s) concerned:
1. To sell/pledge/hypothecate/mortgage/assign/securitize or otherwise deal with assets
mortgaged to the Bank.
2. To create any charge on the existing or future assets for repayment of term loan.
3. To undertake or permit any merger, takeover
4. Formulate any scheme of amalgamation or reconstruction;
5. To open current account or avail any additional banking facility without concurrence of the
consortium.
6. Promoters to pledge their shares as security till the time IPO proceeds are brought in
We have obtained the approvals for the Issue from all lenders from whom we require approvals
under the respective loan documents: