SCHEDULE II - Matters to be specified in prospectus and reports to be set out therein - Companies Act, 1956

SCHEDULE II [See sections 44(2)(a) and 56] Matters to be specified in prospectus and reports to be set out therein [1] [Part I I. General information (a) Name and address of registered office of the company. (b) (i) Consent of the Central Government for the present issue and declaration of the Central Government about non-responsibility for financial soundness or correctness of statements. (ii) Letter of intent/industrial licence and declaration of the Central Government about non-responsibility for financial soundness or correctness of statements. (c) Names of regional stock exchange and other stock exchanges where application made for listing of present issue. (d) Provisions of sub-section (1) of section 68A of the Companies Act, relating to punishment for fictitious applications. (e) Statement/declaration about refund of the issue if minimum subscription of 90% is not received within 90 days from closure of the issue. (f) Declaration about the issue of allotment letters/refunds within a period of 10 weeks and interest in case of any delay in refund at the prescribed rate under section 73(2)/(2A). (g) Date of opening of the issue. * Date of closing of the issue. * Date of earliest closing of the issue. (h) Name and address of auditors and lead managers. (i) Name and address of trustee under debenture trust deed (in case of debenture issue). (j) Whether rating from Crisil or any rating agency has been obtained for the proposed debenture/preference shares issue. * If no rating has been obtained, this should be answered as "No". * If "Yes" the rating should be indicated. (k) Underwriting of the issue. * (Names and addresses of the underwriters and the amount underwritten by them.) * (Declaration by board of directors that the underwriters have sufficient resources to discharge their respective obligations.) [2] [(l) a statement by the board of directors stating that (i) all monies received out of issue of shares or debentures to public shall be transferred to a separate bank account other than the bank account referred to in sub-section (3) of section 73; (ii) details of all monies utilised out of issue referred to in sub-item (i) shall be disclosed under an appropriate separate head in the Balance Sheet of the company indicating the purpose for which such monies had been utilised; and (iii) details of all unutilised monies out of issue of shares or debentures, if any, referred to in sub-item (i) shall be disclosed under an appropriate separate head in the Balance Sheet of the company indicating the form in which such unutilised monies have been invested.] II. Capital structure of the company (a) Authorised, issued, subscribed and paid-up capital. (b) Size of present issue giving separately reservation for preferential allotment to promoters and others. (c) Paid-up capital (i) after the present issue (ii) after conversion of debentures (if applicable) III. Terms of the present issue (a) Terms of payments. (b) Rights of the instrument holders. (c) How to apply availability of forms, prospectus and mode of payment. (d) Any special tax benefits for company and its shareholders. IV. Particulars of the issue (a) Objects. (b) Project cost. (c) Means of financing (including contribution of promoters) V. Company, management and project (a) History and main objects and present business of the company. (b) Subsidiary(ies) of the company, if any. (For financial data, refer to auditor's report in Part II). (c) Promoters and their background. (d) Names, addresses and occupation of manager, managing director and other directors including nominee-directors, whole-time directors (giving their directorships in other companies). (e) Location of project. (f) Plant and machinery, technology, process, etc. (g) Collaboration, any performance guarantee or assistance in marketing by the collaborators. (h) Infrastructure facilities for raw materials and utilities like water, electricity, etc. (i) Schedule of implementation of the project and progress made so far, giving details of land acquisition, civil works, installation of plant and machinery, trial production, date of commercial production, etc. (j) The products: (i) Nature of the product(s) consumer/industrial and end-users. (ii) Approach to marketing and proposed marketing set up. (iii) Export possibilities and export obligations, if any (in case of a company providing any "service" particulars, as applicable, be furnished). (k) Future prospects expected capacity utilisation during the first three years from the date of commencement of production, and the expected year when the company would be able to earn cash profits and net profits. Stock market data for shares/debentures of the company (high/low price) in each of the last three years and monthly high/low during the last six months (where applicable). VI. Following particulars in regard to the company and other listed companies under the same management within the meaning of section 370(1B), which made any capital issue during the last three years: * Name of the company * Year of issue * Type of issue * (Public/rights/composite) * Amount of issue * Date of closure of issue * Date of completion of delivery of share/debenture certificates. * Date of completion of the project, where object of the issue was financing of a project * Rate of dividend paid VII. (a) Outstanding litigation pertaining to (i) matters likely to affect operation and finances of the company including disputed tax liabilities of any nature; and (ii) criminal prosecution launched against the company and the directors for alleged offences under the enactments specified in paragraph 1 of Part I of Schedule XIII to the Companies Act, 1956. (b) Particulars of default, if any, in meeting statutory dues, institutional dues, and towards instrument holders like debentures, fixed deposits, and arrears on cumulative preference shares, etc. (also give the same particulars about the companies promoted by the same private promoters and listed on stock exchanges). (c) Any material development after the date of the latest balance sheet and its impact on performance and prospects of the company. VIII. Management perception of risk factors (e.g., sensitivity to foreign exchange rate fluctuations, difficulty in availability of raw materials or in marketing of products, cost/time overrun, etc.). Part II A. General information 1. Consent of directors, auditors, solicitors/advocates, managers to the issue, Registrar of issue, bankers to the company, bankers to the issue and experts. 2. Expert opinion obtained, if any. 3. Change, if any, in directors and auditors during the last three years, and reasons thereof. 4. Authority for the issue and details of resolution passed for the issue. 5. Procedure and time schedule for allotment and issue of certificates. 6. Names and addresses of the company secretary, legal adviser, lead managers, co-managers, auditors, bankers to the company, bankers to the issue and brokers to the issue. B. Financial information Reports to be set out 1. A report by the auditors of the company with respect to (a) profits and losses and assets and liabilities, in accordance with sub-clause (2) or (3) of this clause, as the case may require; and (b) the rates of the dividends, if any, paid by the company in respect of each class of shares in the company for each of the five financial years immediately preceding the issue of the prospectus, giving particulars of each class of shares on which such dividends have been paid and particulars of the cases in which no dividends have been paid in respect of any class of shares for any of those years, and, if no accounts have been made up in respect of any part of the period of five years ending on a date of three months before the issue of the prospectus, containing a statement of that fact (and accompanied by a statement of the accounts of the company in respect of that part of the said period up to a date not earlier than six months of the date of issue of prospectus indicating the profit or loss for that period and the assets and liabilities position as at the end of that period together with a certificate from the auditors that such accounts have been examined and found correct by them. The said statement may indicate the nature of provision or adjustments made or are yet to be made). 2. If the company has no subsidiaries, the report shall (a) so far as regards profits and losses, deal with the profits or losses of the company (distinguishing items of a non-recurring nature) for each of the five financial years immediately preceding the issue of the prospectus; and (b) so far as regards assets and liabilities, deal with the assets and liabilities of the company at the last date to which the accounts of the company were made up. 3. If the company has subsidiaries the report shall (a) so far as regards profits and losses, deal separately with the company's profits or losses as provided by sub-clause (2) and in addition deal either (i) as a whole with the combined profits or losses of its subsidiaries so far as they concern members of the company; or (ii) individually with the profits or losses of each subsidiary, so far as they concern members of the company; or, instead of dealing separately with the company's profits or losses deal as a whole with the profits or losses of the company, and, so far as they concern members of the company, with the combined profits or losses of its subsidiaries; and (b) so far as regards assets and liabilities, deal separately with the company's assets and liabilities as provided by sub-clause (2) and in addition, deal either: (i) as a whole with the combined assets and liabilities of its subsidiaries, with or without the company's assets and liabilities, or (ii) individually with the assets and liabilities of each subsidiary; 4. If the proceeds, or any part of the proceeds, of the issue of the shares or debentures are or is to be applied directly or indirectly (i) in the purchase of any business; or (ii) in the purchase of an interest in any business and by reason of that purchase, or anything to be done in consequence thereof, or in connection therewith; the company will become entitled to an interest as respects either the capital or profits and losses or both, in such business exceeding fifty per cent, thereof; a report made by accountants (who shall be named in the prospectus) upon (a) the profits or losses of the business for each of the five financial years immediately preceding the issue of the prospectus; and (b) the assets and liabilities of the business at the last date to which the accounts of the business were made up, being a date not more than one hundred and twenty days before the date of the issue of the prospectus. ( a ) the proceeds, or any part of the proceeds, of the issue of the shares or debentures are or is to be applied directly or indirectly in any manner resulting in the acquisition by the company of shares in any other body corporate; and ( b ) by reason of that acquisition or anything to be done in consequence thereof or in connection therewith, that body corporate will become a subsidiary of the company; a report made by accountants (who shall be named in the prospectus) upon ( i ) the profits or losses of the other body corporate for each of the five financial years immediately preceding the issue of the prospectus; and ( ii ) the assets and liabilities of the other body corporate at the last date to which its accounts were made up. ( ii ) The said report shall ( a ) indicate how the profits or losses of the other body corporate dealt with by the report would, in respect of the shares to be acquired, have concerned members of the company and what allowance would have fallen to be made, in relation to assets and liabilities so dealt with for holders of other shares, if the company had at all material times held the shares to be acquired; and 2 ( b ) where the other body corporate as subsidiaries deal with the profits or losses and the assets and liabilities of the body corporate and its subsidiaries in the manner provided by sub-clause (2) above in relation to the company and its subsidiaries. 6. Principal terms of loan and assets charged as security. C. Statutory and other information 1. Minimum subscription 2. Expenses of the issue giving separately fee payable to: ____ (a) Advisers. (b) Registrars to the issue. (c) Managers to the issue. (d) Trustees for the debenture holders. 3. Underwriting commission and brokerage 4. Previous issue for cash 5. Previous public or rights issue, if any: (during last five years) (a) Date of allotment: Closing date Date of refunds: Date of listing on the stock exchange: (b) If the issue(s) at premium or discount and the amount thereof. (c) The amount paid or payable by way of premium, if any, on each share which had been issued within the two years preceding the date of the prospectus or is to be issued, stating the dates or proposed dates of issue and, where some shares have been or are to be issued at a premium and other shares of the same class at a lower premium, or at par or at a discount, the reasons for the differentiation and how many premiums received have been or are to be disposed of. 6. Commission or brokerage on previous issue. 7. Issue of shares otherwise than for cash. 8. Debentures and redeemable preference shares and other instruments issued by the company outstanding as on the date of prospectus and terms of issue. 9. Option to subscribe. [3] [9A. The details of option to subscribe for securities to be dealt with in a depository.] 10. Purchase of property: (i) As respects any property to which this clause applies (a) the names, addresses, descriptions and occupations of the vendors; (b) the amount paid or payable in cash, shares or debentures to the vendor and, where there is more than one separate vendor, or the company is a sub-purchaser, the amount so paid or payable to each vendor, specifying separately the amount, if any, paid or payable for goodwill; (c) the nature of the title or interest in such property acquired or to be acquired by the company; (d) short particulars of every transaction relating to the property completed within the two preceding years, in which any vendor of the property to the company or any person who is, or was at the time of the transaction, a promoter, or a director or proposed director of the company had any interest, direct or indirect, specifying the date of the transaction and the name of such promoter, director or proposed director and stating the amount payable by or to such vendor, promoter, director or proposed director in respect of the transaction. (ii) The property to which sub-clause (i) applies is a property purchased or acquired by the company or proposed to be purchased or acquired, which is to be paid for wholly or partly out of the proceeds of the issue offered for subscription by the prospectus or the purchase or acquisition of which has not been completed at the date of issue of the prospectus, other than property (a) the contract for the purchase or acquisition whereof was entered into in the ordinary course of the company's business, the contract not being made in contemplation of the issue nor the issue in consequence of the contract; or (b) as respects which the amount of the purchase money is not material. (iii) For the purpose of this clause, where a vendor is a firm, the members of the firm shall not be treated as separate vendors. (iv) If the company proposes to acquire a business which has been carried on for less than three years, the length of time during which the business has been carried on. 11. (i) Details of directors, proposed directors, whole-time directors, their remuneration, appointment and remuneration of managing directors, interest of directors, their borrowing powers and qualification shares. Any amount or benefit paid or given within the two preceding years or intended to be paid or given to any promoter or officer and consideration for payment of giving of the benefit. (ii) The dates, parties to, and general nature of (a) every contract appointing or fixing the remuneration of a managing director or manager whenever entered into, that is to say, whether within or more than, two years before the date of the prospectus; (b) every other material contract, not being a contract entered into in the ordinary course of the business carried on or intended to be carried on by the company or a contract entered into more than two years before the date of the prospectus. A reasonable time and place at which any such contract or a copy thereof may be inspected. (iii) Full particulars of the nature and extent of the interest, if any, of every director or promoter (a) in the promotion of the company; or (b) in any property acquired by the company within two years of the date of the prospectus or proposed to be acquired by it. Where the interest of such a director or promoter consists in being a member of a firm or company, the nature and extent of the interest of the firm or company, with a statement of all sums paid or agreed to be paid to him or to the firm or company in cash or shares or otherwise by any person either to induce him to become, or to qualify him as, a director, or otherwise for services rendered by him or by the firm or company, in connection with the promotion or formation of the company. 12. Rights of members regarding voting, dividend, lien on shares and the process for modification of such rights and forfeiture of shares. 13. Restrictions, if any, on transfer and transmission of shares/debentures and on their consolidation/splitting. 14. Revaluation of assets, if any (during last five years). 15. Material contracts and inspection of documents, e.g. A. Material contracts. B. Documents. C. Time and place at which the contracts together with documents will be available for inspection from the date of prospectus until the date of closing of the subscription list. Part III Provisions applying to Parts I and II of the Schedule 16. Every person shall, for the purpose of this Schedule, be deemed to be a vendor who has entered into any contract, absolute or conditional, for the sale or purchase or for any option of purchase, of any property to be acquired by the company, in any case where (a) the purchase money is not fully paid at the date of the issue of the prospectus; (b) the purchase money is to be paid or satisfied, wholly or in part, out of the proceeds of the issue offered for subscription by the prospectus; (c) the contract depends for its validity or fulfillment on the result of that issue. 17. Where any property to be acquired by the company is to be taken on lease, this Schedule have effect as if the expression "vendor" included the lessor, the expression "purchase money" included the consideration for the lease, and the expression "sub-purchaser" included a sub-lessee. 18. If in the case of a company which has been carrying on business, or of a business which has been carried on for less than five financial years, the accounts of the company or business have only been made up in respect of four such years, three such years, two such years or one such year, Part II of this Schedule shall have effect as if references to four financial years, three financial years, two financial years or one financial year, as the case may be, were substituted for references to five financial years. 19. Where the five financial years immediately preceding the issue of prospectus which are referred to in Part II of this Schedule or in this part cover a period of less than five years, references to the said five financial years in either Part shall have effect as if references to a number of financial years the aggregate period covered by which is not less than five years immediately preceding the issue of the prospectus were substituted for references to the five financial years aforesaid. 20. Any report required by Part II of this Schedule shall either (a) indicate by way of note any adjustments as respects the figures of any profits or losses or assets and liabilities dealt with by the report which appear to the persons making the report necessary; or (b) make those adjustments and indicate that adjustments have been made. 21. Any report by accountants required by Part II of this Schedule (a) shall be made by accountants qualified under this Act for appointment as auditors of the company; and (b) shall not be made by any accountant who is an officer or servant, or a partner or in the employment of an officer or servant, of the company or of the company's subsidiary or holding company or of a subsidiary of the company's holding company. For the purposes of this clause, the expression "officer" shall include a proposed director but not an auditor. 22. Inspection of documents: Reasonable time and place at which copies of all balance sheets and profit and loss accounts, if any, on which the report of the auditors is based, and material contracts and other documents may be inspected. Note : Term "year" wherever used herein earlier, means financial year. [4] [Declaration: That all the relevant provisions of the Companies Act, 1956, and the guidelines issued by the Government or the guidelines issued by the Securities and Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992, as the case may be, have been complied with and no statement made in prospectus is contrary to the provisions of the Companies Act, 1956 or the Securities and Exchange Board of India Act, 1992 or rules made thereunder or guidelines issued, as the case may be.] Place: Signatures of directors] Date: ------------------------------------ Notes: [1] Substituted by Notification No. SO 666(E), dated 3-10-1991. [2] Inserted by Notification No. GSR 265(E), dated 15-5-1997. [3] Inserted by the Depositories Act, 1996, w.r.e.f. 20-9-1995. [4] Substituted by Notification No. GSR 650(E), dated 17-9-2002.