Everonnlof by Skil

7/27/2019 Everonnlof by Skil

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LETTER OF OFFERTHIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION

This leer ofoffer (Leer of Offer) is sent to you as a shareholder(s) of Everonn Educaton Limited (Shareholders). If you require any clarificatons about the acton to be taken, you may

consult your stock broker or investment consultant or the Manager/Registrar to the Offer. In case you have recently sold your shares in Everonn Educaton Limited, please hand over this Leer of

Offer and the accompanying Form of Acceptance cum Acknowledgement, Form of Withdrawal and Transfer Deeds to the member of the stock exchange through whom the said sale was effected.

CASH OFFER BY

SKIL Infrastructure Limited (the Acquirer)Registered Office: SKIL House, 209 Bank Street Cross Lane, Fort, Mumbai 400 02 3, Maharashtra, India, (Tel. No. 022 6619 9000, Fax No. 022 2269 6023)

along with

SKIL Knowledge Cites Private LimitedRegistered Office: 13/14, Khetan Bhavan, 198, Jamshedji Tata Road, Churchgate, Mumbai 400 020, Maharashtra, India, (Tel. No. 022 6715 8000, Fax No. 022 6715 8 099)

(referred to as the person actng in concert (PAC))

TO ACQUIRE UP TO 3,944,080 FULLY PAID UP EQUITY SHARES OF FACE VALUE OF RS 10 REPRESENTING 20% OF THE EMERGING VOTING CAPITAL (OFFER) OF

Everonn Educaton Limited (Target Company)Registered office: No. 82, IV Avenue, Ashok Nagar, Chennai 600 083, Tel : 044-2371 8202-03/ 2471 5356-59; Facsimile: 044-2471 7845

AT Rs. 587.01/- (Rupeesfive hundred eighty seven and one paisa only) PER FULLY PAID UP EQUITY SHARE OF FACE VALUE OF RS 10 (SHARE) PURSUANT TO THE SECURITIES AND EXCHANGE

BOARD OF INDIA (SUBSTANTIAL ACQUISITION OF SHARES AND TAKEOVERS) REGULATIONS, 1997 AND SUBSEQUENT AMENDMENTS THERETO (THE SEBI (SAST) REGULATIONS)

ATTENTION:

1. This Offer is being made by the Acquirer along with the PAC pursuant to and in accordance with the provisions of Regulatons 10 and 12 and other applicable provisions of the SEBI(SAST) Regulatons.

2. This Offer is not a conditonal offer and is not subject to a minimum level of acceptance by the Shareholders of the Target Company.3. This Offer is not a compettve bid.4. The Offer is subject to the receipt of the approval from the Reserve Bank of India (RBI) under the Foreign Exchange Management Act, 1999 and/or the rules and regulatons

framed thereunder for acquiring shares from Non-Resident Indians who validly tender their shares under this Offer. The Acquirer and the PAC have filed an applicaton on

September 14, 2010 with RBI for approval to acquire Shares from non-resident persons pursuant to the O ffer. Following the applicaton the Acquirer and PAC have responded to

certain queries raised by the RBI. The approval is presently awaited. To the best of knowledge and belief of the Acquirer and PAC, as of the date of this Leer of Offer, there are no

other statutory approvals required. The Offer would be subject to all other statutory approvals that may become applicable at a later date before the closure of the Offer.

5. Shareholders who have accepted the Offer by tendering the requisite documents, in accordance with the terms of the Public Announcement / Le er of Offer, can withdraw thesame up to 3 working days prior to the date of closure of the Offer. Requests for such withdrawals should reach the Registrar to the Offer or their collecton centres on or before

4 pm on Wednesday, 24 November, 2010.

6. Acquirer and PAC are permied to increase the Offer Price and/ or the number of Shares proposed to be acquired by the Acquirer and/ or PAC. Such upward revision made inaccordance with Regulaton 26 of the SEBI (SAST) Regulatons will not be later than Thursday, 18 November, 2010, which is 7 working days prior to the date of closure of the Offer(i.e. Saturday, 27 November, 2010). If the Offer Price is revised upward, such revised price will be payable to all the Shareholders of the Target Company who have accepted the

Offer and submied their Shares at any tme during the Offer period to the extent their Shares have been verified and accepted by the Acquirer and/or PAC. In the event of such

revision a public announcement will be made in the same newspapers where the original Public Announcement appeared (mentoned in paragraph 2.2.1 of this Leer ofOffer).

7. The Acquirer and PAC may withdraw the Offer in accordance with the conditons specified in Regulaton 27 of the SEBI (SAST) Regulatons. In the event of such withdrawal the samewould be notfied by way of a public announcement in the same newspapers in which the Public Announcement was published.

8. There has been no compettve bid.9. If there is a compettve bid(s): (i) the public offers under all the subsistng bids shall close on the same date; and (ii) as the Offer Price cannot be revised during 7 working days

prior to the closing date of the offers/bids, it would, therefore, be in the interest of Shareholders to wait tll the commencement of that period to know the final offer price of

each bid and tender their acceptance accordingly.

10. The Public Announcement, this Leer of Offer, Form of Acceptance cum Acknowledgment and Form of Withdrawal is also available on the website of the Securi tes andExchange Board of India (SEBI) www.sebi.gov.in . A copy of the Form of Acceptance cum Acknowledgment can also be obtained from the Registrar to the Offer commencing on

the date of the dispatch of the Leer of Offer. All future correspondence, if any, should be addressed to the Registrar to the Offer at the address mentoned below.

MANAGER TO THE OFFER

Edelweiss Capital Limited14

thFloor, Express Towers

Nariman Point, Mumbai 400 021, India

Tel: +9122 4086 3535; Fax: +9122 4086 3610

E-mail:[email protected]

SEBI Regn: INM0000010650

Contact Person: Ms. Dipt Samant/Ms. Neetu Ranka

REGISTRAR TO THE OFFER

Plot nos. 17-24, Vi

al Rao NagarMadhapur, Hyderabad 500 081.

Tel: (91)-40-44655000/ 23420815-23

Fax: +91-040-2343 1551 | E-mail: [email protected] |Website: hp://karisma.karvy.com

SEBI Registraton Number: INR000000221

Contact Person: Mr. Murali Krishna

OFFER OPENING DATE: Monday, November 08, 2010 OFFER CLOSING DATE: Saturday, November 27, 2010

Original Schedule Revised ScheduleActvity

Date Day Date Day

Public Announcement Date 22 July, 2010 Thursday 22 July, 2010 Thursday

Specified Date* 30 July, 2010 Friday 30 July, 2010 Friday

Last date for compettve bid 12 August, 2010 Thursday 12 August, 2010 Thursday

Date by which Leer of Offer will be dispatched to the shareholders 31 August, 2010 Tuesday 04 November, 2010 Thursday

Offer Opening Date 09 September, 2010 Thursday 08 November, 2010 Monday

Last date for revising the Offer Price/ number of shares 17 September, 2010 Friday 18 November, 2010 Thursday

Last date for withdrawing acceptances from the Offer by the

shareholder

23 September, 2010 Thursday 24 November, 2010 Wednesday

Offer Closing Date 28 September, 2010 Tuesday 27 November, 2010 Saturday

Last date of communicatng of rejecton/ acceptance and payment of

consideraton for accepted tenders/return of unaccepted shares

12 October, 2010 Tuesday 11 December, 2010 Saturday

* Specified Date is only for the purpose of determining the names of the Shareholders of the Target Company as on such date to whom this Leer of Offer would be sent. All Shareholders (registered

or unregistered), except the Acquirer and PAC, who own the Shares of the Target Company are eligible to partcipate in the Offer anytme before the closure of the Offer.


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1 RISKFACTORSI. RiskFactorsrelatingtotheAcquirerandPAC

(i) TheAcquirerandPAC cannotprovideanyassurancewithrespecttothe market price ofthe Sharesof the

TargetCompanybefore,duringoraftertheOfferandeachofthemexpresslydisclaimanyresponsibilityor

obligationofanykind(exceptasrequiredbyapplicablelaw)withrespecttoanydecisionbyanyShareholder

onwhethertoparticipateornottoparticipateintheOffer.

(ii) TheAcquirerandPACmakenoassurancewithrespecttothecontinuationofthepasttrendinthefinancial

performanceoftheTargetCompany.

II. RiskFactorsassociatedwiththeOffer(i) TheOffer issubjecttotheAcquirerandPACobtainingallnecessaryapprovals includingtheapprovalfrom

RBIundertheForeignExchange ManagementAct,1999,asamendedfromtimetotimeandtherulesand

regulationsmadethereunder.TheAcquirerandthePAChavefiled anapplicationonSeptember14, 2010

with RBI for approval to acquire Shares from nonresident persons pursuant to the Offer. Following the

application the Acquirer and PAC have responded to certain queries raised by the RBI. The approval is

presentlyawaited.

(ii) Intheeventofregulatoryapprovalsnotbeingreceivedinatimelymannerorthereisanylitigation leading

to

a

stay

on

the

Offer,

or

SEBI

instructing

that

the

Offer

should

not

proceed,

the

Offer

process

may

be

delayedbeyondthescheduleindicatedinthisLetterofOffer.Consequently,thepaymentofconsiderationto

theShareholdersoftheTargetCompanywhoseShareshavebeenacceptedintheOfferaswellasthereturn

oftheSharesnotacceptedbytheAcquirerand/orPACmaybedelayed.

(iii) Incaseofdelay inreceiptofthestatutoryapproval(s)SEBIhasthepowertograntanextensionoftimeto

theAcquirerand/orPACforpaymentofconsiderationtotheShareholdersoftheTargetCompany,subject

totheAcquirerand/orPACagreeingtopay interestforthedelayedperiodasdirectedbySEBI intermsof

Regulation22(12)oftheSEBI(SAST)Regulations.

(iv) Further, Shareholders should note that after the last date of withdrawal i.e. Wednesday, 24 November,

2010, Shareholders who have lodged their Shares would not be able to withdraw their Shares even if the

acceptanceof

Shares

under

the

Offer

and

dispatch

of

consideration

gets

delayed.

The

tendered

Shares

and

documents would be held by the Registrar to the Offer, till the process of acceptance of tenders and the

paymentofconsiderationiscompleted.TheShareholderswillnotbeabletotradeinsuchShareswhichare

inthecustodyoftheRegistrartotheOffer.

(v) In the event of oversubscription in the Offer, the acceptance of the Shares tendered will be on a

proportionate basis in accordance with Regulation 21(6) of the SEBI (SAST) Regulations and will be

contingentonthe levelofsubscriptionandhencethere isnocertaintythatalltheSharestenderedbythe

ShareholdersintheOfferwillbeaccepted.

(vi) TheAcquirer,PACandtheManagertotheOfferacceptnoresponsibilityforthestatementsmadeotherwise

thaninthePublicAnnouncementorthisLetterofOfferorintheadvertisementoranymaterialsissuedbyor

atthe

instance

of

the

Acquirer,

PAC

and

the

Manger

to

the

Offer,

and

any

person

placing

reliance

on

any

othersourceofinformationwouldbedoingsoatitsownrisk.

III. Risksrelatedtothetransaction(i) TheOfferissubjecttocompletionrisksaswouldbeapplicabletosimilartransactions.

(ii) The transaction is subject to the terms of the Investment Agreement (as defined below) entered into

betweentheTargetCompany,theAcquirerandpromotersoftheTargetCompany.Inaccordancewiththe

InvestmentAgreement,thetransactionshallbecompleteduponfulfilmentofcertainconditionsprecedent

agreedbetweenthepartiestotheInvestmentAgreement.


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TheriskfactorssetforthabovearenotintendedtocoveracompleteanalysisofallrisksasperceivedinrelationtotheOffer

orinassociationwiththeAcquirerandPAC,butareonlyindicative.Theydonotrelatetothepresentorfuturebusinessor

operations of the Target Company or any other related matters, and are neither exhaustive nor intended to constitute a

complete analysisoftherisks involved in the participationbyaShareholder intheOffer. TheShareholders are advisedto

consulttheirstockbroker,investmentconsultantortaxadvisor,ifany,forfurtherriskswithrespecttotheirparticipationin

theOffer

CURRENCYOFPRESENTATION

InthisLetterofOffer,allreferencestoINRaretotheIndianNationalRupees.

InthisLetterofOffer,anydiscrepancyinanytablebetweenthetotalandsumsofamountslistedareduetoroundingoff.


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INDEX

Sr.

No.Subject Page

1. DisclaimerClause 3

2. DetailsoftheOffer 3

3. BackgroundoftheAcquirerandPAC 9

4. OptionintermsofRegulation21(2) 31

5. BackgroundoftheTargetCompany 31

6. OfferPriceandFinancialArrangements 44

7. Termsand

Conditions

of

the

Offer

49

8. ProcedureforacceptanceandsettlementoftheOffer 52

9. Documentsforinspection 61

10. Declaration 63


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DEFINITIONS

UnlessthecontextotherwiseindicatesorrequiresinLetterofOffer,thefollowingtermshave

themeaningsgivenbelow.

Acquirer SKILInfrastructureLimited,acompanyregisteredunderthe

CompaniesAct,

1956

Board BoardofdirectorsoftheTargetCompany

Act CompaniesAct,1956

BSE BombayStockExchangeLimited

CDSL CentralDepositaryServices(India)Limited

DraftLetterofOffer Draftletterofofferdated4August2010filedwithSEBI

DC DirectCredit

DP DepositoryParticipant

NECS NationalElectronicClearingServices

EmergingVoting

Capital

Shallhavethemeaningassignedtoitinparagraph5.6

EscrowAccount Shallhavethemeaningassignedtoitinparagraph6.2.2

OfferEscrow

AgreementShall

have

the

meaning

assigned

to

it

in

paragraph

6.2.2

FEMA ForeignExchangeManagementAct,1999

FormofAcceptance

/FOA

FormofAcceptancecumAcknowledgement

Investment

Agreement

Investment agreement dated 21 July, 2010 and amendment

agreement dated 29 October, 2010 to the investment

agreement entered into between the Acquirer, the Target

Company and its promoters and promoter group to issue and

allot to the Acquirer 4,000,000 optionally convertible

debentures having a face value of Rs.520.87/ each, on a

preferentialallotmentbasis.

Letterof

Offer

This

Letter

of

Offer

dated

29

October,

2010

ListingAgreements ThelistingagreemententeredintowithNSEandBSE,bythe

TargetCompany.

Manager/Manager

totheOffer/

MerchantBanker

EdelweissCapitalLimited

NEFT NationalElectronicFundsTransfer

NSDL NationalSecuritiesDepositoryLimited

NSE NationalStockExchangeofIndiaLimited

NRI NonResidentIndians

OCB OverseasCorporateBodies

OCDs 4,000,000optionallyconvertibledebentureshavingafacevalue

ofRs.520.87/

each

issued

on

preferential

basis,

pursuant

to

InvestmentAgreementdated21July,2010

Offer This mandatory offer being made by the Acquirer along with

PACtoacquireupto3,944,080Shares,representingupto20%

oftheEmergingVotingCapitaloftheTargetCompanyataprice

ofRs.587.01/ (Rupeesfivehundredeightysevenandonepaisa

only) perfully paid upShare,payable incash as setout inthis


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LetterofOffer

OfferPrice Rs. 587.01/ (Rupees five hundred eighty seven and one paisa

only) per fully paid up Share of face value of Rs. 10 each in

termsofRegulation20 oftheSEBI(SAST)Regulations

OfferShares Up to 3,944,080 fully paid up Shares of Rs. 10/ each,

representing 20% of the Emerging Voting Capital of the Target

Company

to

be

acquired

from

the

public

Shareholders

of

theTargetCompanyattheOfferPrice,payableincash

OMR OmaniRial

PAC SKIL Knowledge Cities Private Limited, a company registered

undertheCompaniesAct,1956

Personseligibleto

participateinOffer

AllShareholders(exceptthePACandpartiestotheInvestment

Agreement), whose names appear in the register of

Shareholders on the Specified Date and also persons who own

SharesanytimepriortotheclosureoftheOffer,whetherornot

they are registered Shareholders, are eligible to participate in

theOffer

Preferential

Allotment

Preferential allotment of the OCDs of the face value of Rs.

520.87/

each,for

cash

at

the

price

of

Rs.

520.87

per

OCD,

to

theAcquirer

Public

Announcement/

PA

Public Announcement as appeared in the newspapers on 22

July 2010 made by the Manager to the Offer on behalf of the

AcquirerandPACwhichwaspublishedintheFinancialExpress,

Jansatta,MakkalKuralandNavshakti

RBI ReserveBankofIndia

Registrar/Registrar

totheOffer

KarvyComputersharePrivateLimited

RTGS RealTimeGrossSettlement

SEBI SecuritiesandExchangeBoardofIndia

SEBI(SAST)

Regulations

Securities and Exchange Board of India (Substantial Acquisition

of

Shares

and

Takeovers)

Regulations,

1997,

and

subsequent

amendmentsthereto

SEBIAct SecuritiesandExchangeBoardofIndiaAct,1992

SGD SingaporeDollar

Share(s) Fully paid up equity share(s) of the Target Company, having a

facevalueofRs.10/ each

Shareholder(s) Allowners(registeredorunregistered)ofShares

SpecifiedDate Friday,30July2010

TargetCompany EveronnEducationLimited

TCC TaxClearanceCertificate

AlltheinformationunlessotherwisespecificallystatedinthisLetterofOfferareuptoandasof

dateof

Public

Announcement.


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1 DISCLAIMERASREQUIRED,ACOPYOFTHEDRAFTLETTEROFOFFERHASBEENSUBMITTEDTOSEBI.ITISTO

BE DISTINCTLY UNDERSTOOD THAT FILING OF THE DRAFT LETTER OF OFFER WITH SEBI

SHOULDNOTINANYWAYBEDEEMEDORCONSTRUEDTHATTHESAMEHASBEENCLEARED,

VETTEDOR

APPROVED

BY

SEBI.

THE

DRAFT

LETTER

OF

OFFER

HAS

BEEN

SUBMITTED

TO

SEBI

FORALIMITEDPURPOSEOFOVERSEEINGWHETHERTHEDISCLOSURESCONTAINEDTHEREIN

AREGENERALLYADEQUATEANDARE INCONFORMITYWITHTHESEBI (SAST)REGULATIONS.

THISREQUIREMENTISTOFACILITATETHESHAREHOLDERSOFEVERONNEDUCATIONLIMITED

TOTAKEAN INFORMEDDECISIONWITHREGARDTOTHEOFFER.SEBIDOESNOTTAKEANY

RESPONSIBILITY EITHER FOR FINANCIAL SOUNDNESS OF THE ACQUIRER OR PAC OR THE

TARGETCOMPANYWHOSESHARES/CONTROLAREPROPOSEDTOBEACQUIREDORFORTHE

CORRECTNESSOFTHESTATEMENTSMADEOROPINIONSEXPRESSEDINTHELETTEROFOFFER.

IT SHOULD ALSO BE CLEARLY UNDERSTOOD THAT WHILE THE ACQUIRER AND PAC ARE

PRIMARILY RESPONSIBLE FOR THE CORRECTNESS, ADEQUACY AND DISCLOSURE OF ALL

RELEVANT INFORMATION IN THIS LETTER OF OFFER, THE MANAGER TO THE OFFER IS

EXPECTED TO EXERCISE DUE DILIGENCE TO ENSURE THAT THE ACQUIRER AND PAC DULY

DISCHARGES

THEIR

RESPONSIBILITIES

ADEQUATELY.

IN

THIS

BEHALF,

AND

TOWARDS

THIS

PURPOSE, THEMANAGER EDELWEISS CAPITAL LIMITED HAS SUBMITTED A DUEDILIGENCE

CERTIFICATE DATED 4 AUGUST, 2010 TO SEBI IN ACCORDANCE WITH THE SEBI (SAST)

REGULATIONS. THE FILINGOF THE LETTEROFOFFERDOESNOT, HOWEVER,ABSOLVE THE

ACQUIRERANDPACFROMTHEREQUIREMENTOFOBTAININGSUCHSTATUTORYCLEARANCES

ASMAYBEREQUIREDFORTHEPURPOSEOFTHEOFFER.

2 DETAILSOFTHEOFFER2.1 BackgroundtotheOffer

2.1.1 TheAcquirertothisopenoffer(Offer)isSKILInfrastructureLimitedandthePACto

this Offer is SKIL Knowledge Cities Private Limited. The Offer is being made under

Regulations10and12oftheSEBI(SAST)Regulationspursuanttothefollowing:

a) TheAcquirerhasenteredintoaninvestmentagreementdated21July,2010andamendment agreement dated October 29, 2010 (together hereinafter referred

toasInvestmentAgreement)withtheTargetCompanyandcertainpromoters

andpromotergroupoftheTargetCompanytosubscribeto40,00,000optionally

convertible debentures having a face value of Rs.520.87/ each (OCDs) on a

preferential allotment basis, subject to receipt of requisite approvals and

fulfillment of conditions precedent to closing set forth in the Investment

Agreement. Assuming full conversion of the OCDs, the Acquirer will acquire

4,000,000 Shares at Rs. 520.87/ each of the Target Company (Shares)

representing20.28%oftheEmergingVotingCapital(ascalculated inparagraph

5.6of

this

Letter

of

Offer)

of

the

Target

Company,

at

the

price

of

Rs.520.87/

(Rupeesfivehundredtwentyandeightysevenpaiseonly)perShareaggregating

to Rs.208,34,80,000/ (Rupees Two hundred eight crores thirty four lacs and

eighty thousand only). The OCDs shall necessarily be redeemed or converted

intoSharesatanytimepriortotheexpiryof15(fifteen)daysfromthedateof

closure of Offer in accordance with Regulation 22(5) of the SEBI (SAST)

Regulations.


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b) AsperthetermsoftheInvestmentAgreement,theAcquirershallalsobecomeacopromoter(alongwiththeexistingpromoters)oftheTargetCompanyhaving

certain management and other rights resulting into control over the Target

Company.

2.1.2 In view of the above stated intention of the Acquirer to (i) acquire upto 40,00,000

SharesoftheTargetCompany(representing20.28%oftheEmergingVotingCapital

of

the

Target

Company)

assuming

full

conversion

of

the

OCDs

as

described

in

paragraph5.6above; and (ii) acquire controlpursuanttocertainmanagementand

control rights conferred under the Investment Agreement and as described in

paragraph 2.1.1 above, there would be a substantial acquisition of shares and

changeincontroloftheTargetCompany.HencethepresentOfferisbeingmadeby

theAcquirerunderRegulations10and12oftheSEBI(SAST)Regulations.

2.1.3 TheboardofdirectorsoftheTargetCompany(Board)intheirmeetingheldon19

July,2010dulyauthorisedthepreferentialallotmentoftheOCDsofthefacevalue

of Rs. 520.87/ each for cash at the price of Rs. 520.87 per OCD, to the Acquirer

(Preferential Allotment). Shareholders of the Target Company at the Extra

OrdinaryGeneralMeetingheldonAugust18,2010haveapprovedthePreferential

Allotmentto

the

Acquirer

in

accordance

with

the

provisions

of

the

Section

81(1A)

of

theCompaniesAct,1956andotherapplicableprovisions.ThePreferentialAllotment

shall be in accordance with the provisions of, amongst others, Securities and

ExchangeBoardofIndia(IssueofCapitalandDisclosureRequirements)Regulations,

2009 (SEBI ICDRRegulations). The Board of the Target Company in its meeting

heldonAugust31,2010allottedtheOCDinfavouroftheAcquirer.

2.1.4 The Acquirer and PAC hereby make this Offer to the Shareholders of the Target

Company(otherthanthePACandpartiestotheInvestmentAgreement)toacquire

up to 3,944,080 Shares of the Target Company of the face value of Rs 10/ each

being 20% of the Emerging Voting Capital of the Target Company at a price of Rs.

587.01/ (Rupees five hundred eighty seven and one paisa only) per Share (Offer

Price)payable

in

cash,

in accordance

with

the

SEBI

(SAST)

Regulations

and

subject

to the terms and conditions mentioned in the Public Announcement and in this

letterofofferthatwillbecirculatedtotheShareholdersinaccordancewiththeSEBI

(SAST)Regulations(theLetterofOffer).

2.1.5 ThedetailsofAcquirer,TargetCompanyandcertainpromotersandpromotergroup

of the Target Company, being the parties to the Investment Agreement are as

follows:

NameofParty Nature

EveronnEducationLimited TargetCompany

SKILInfrastructureLimited Investor/Copromoter/Acquirer

i.Sarvotham

P

ii.KishoreP

iii.JayaPadamanabhan

iv.PKPadmanabhan

v.CelebrateIndiaTourismLimited

vi.KeerthiKishore

vii.JansiKishore

Promotersand

promoter

group


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2.1.6 SalientfeaturesoftheInvestmentAgreementareasfollows:

a) The Acquirer has agreed to subscribe to the OCDs. The OCDs shall, at the

soleoptionoftheAcquirer,beconvertibleintoSharesatanytimeduringthe

conversionperiod.TheOCDswillbeconvertedintosuchnumberofShares,

such that post the conversion the aggregate shareholding of the Acquirer

and/or

PAC

(including

all

Shares

acquired

bythe

Acquirer

and/or

the

PAC

pursuant to this Offer) does not exceed 40,00,000 Shares which will

constitute20.28%oftheEmergingVotingCapital.

b) TheAcquirersobligationtosubscribetotheOCDs issubjecttofulfillment/

satisfaction of certain conditions precedent set forth in the Investment

Agreement.

c) The parties have agreed to deposit subscription consideration in the

designatedbankaccount,whichshallbeanolienaccount.

d) The Target Company has agreed and undertaken not to utilize the

subscription consideration or any part thereof until conversion and/or

redemptionofalloftheOCDs.

e) The Target Company has agreed and undertaken to extend such co

operationasmayberequiredbytheAcquirer, includingbutnot limitedto,

provisionofsuchinformationasmayberequiredundertheOfferprocess.

f) The existing promoters and promoter group of the Target Company haveagreednottotransfertheirshareholdingintheTargetCompanyforaperiod

of3(three)yearsfromthedateofconversionoftheOCDs,saveandexcept

300,000SharesheldbypromotersoftheTargetCompany.g) TheAcquirerhasagreedtobecomecopromoteroftheTargetCompanyand

shallhavetherighttoappointonenonexecutivedirectorandnominatetwo

permanentinviteestotheBoardoftheTargetCompany.Suchnonexecutive

directorwill

not

retire

by

rotation

and

shall

be

appointed

in

accordance

with

theSEBI(SAST)Regulations.

h) The parties have agreed to grant certain affirmative voting rights to the

Acquirerwhichshallbeavailableandexercisableonlyafterappointmentof

the director nominated by the Acquirer on the earlier of (i) completion of

theOffer;and(ii)depositof100%oftheOfferconsiderationintotheEscrow

Account.

i) The Acquirer and the promoters of the Target Company have agreed to

certain interserights includingtransferrestrictions,rightof firstoffer,tag

alongright,andcircumstancesunderwhichtherightswillterminate.

j) TheexistingpromotersoftheTargetCompanyhaveundertakencertainnon

compete

and

nonsolicitation

undertakings

in

so

far

as

it

relates

to

the

businessoftheTargetCompany.

k) The Shares, after conversion of OCDs are subject to lockin in accordance

with the provisions of the SEBI ICDR Regulations. The Acquirer has

undertakenthat itshallcomplywiththerequirementsof lockin inrelation

totheSharesafterconversionofOCDs.


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6

2.1.7 Neither of the Acquirer, PAC or the Target Company has been prohibited by SEBI

from dealing in securities, in terms of direction issued under section 11B or any

otherregulationsmadeundertheSecuritiesandExchangeBoardofIndiaAct,1992

andsubsequentamendmentsthereto.

2.1.8 Ason

date

of

the

Public

Announcement

and

this

Letter

of

Offer,

the

Acquirer

and

the

PACdonothaveanyrepresentativeontheboardofdirectorstheTargetCompany.

However, the Acquirer shall have the right to appoint one non executive director

andnominatetwopermanent inviteestotheBoardoftheTargetCompany,under

the terms of the Investment Agreement, in accordance with the SEBI (SAST)

Regulations. Thepartiesto the Investment Agreementhave agreedtoappoint Mr.

NikhilGandhiupontheearlierof(i)completionoftheOfferinaccordancewiththe

SEBI(SAST)Regulations;and(ii)depositof100%oftheOfferconsiderationintothe

EscrowAccount.

2.2 DetailsoftheproposedOffer

2.2.1

The

Public

Announcement

for

the

Offer

appeared

on

22

July,

2010

in

the

following

newspapers,inaccordancewithRegulation15oftheSEBI(SAST)Regulations.

Publications Editions Language

TheFinancialExpress Alleditions English

Jansatta Alleditions Hindi

MakkalKural Chennaiedition Tamil

Navshakti Mumbaiedition Marathi

(ThePublicAnnouncementisalsoavailableattheSEBIwebsite:www.sebi.gov.in)

2.2.2 The Offer is being made by the Acquirer and PAC to all the Shareholders of the

TargetCompany

(other

than

the

PAC

and

parties

to

the

Investment

Agreement)

as

a

result of the proposed acquisition of (i) upto 40,00,000 Shares of the Target

Company (representing 20.28% of the Emerging Voting Capital of the Target

Company)uponconversionoftheOCDsasdescribedinparagraph2.1.1above;and

(ii)acquirecontrolovertheTargetCompany inthemannerdescribed inparagraph

2.1.1 and 2.1.2 above. In view of the above, the Offer is a mandatory Offer under

regulation10andregulation12oftheSEBI(SAST)Regulations.

2.2.3 TheAcquirerandthePACaremakinganOffertoacquireupto39,44,080Sharesof

thefacevalueofRs.10each,being20%oftheEmergingVotingCapitaloftheTarget

Company in terms of Regulation 21(1)oftheSEBI (SAST) Regulations, at a price of

Rs.587.01/ (Rupeesfivehundredeightysevenandonepaisaonly)perfullypaidup

Share

payable

in

cash,

subject

to

the

terms

and

conditions

set

out

in

this

Public

AnnouncementandthisLetterofOffer.

2.2.4 ForthepurposeofthisOffer,SKILKnowledgeCitiesPrivateLimited(i.e.thePAC) is

theperson acting inconcertwiththeAcquirerfor thepurposeofthe Offer,within

the meaning of regulation 2(1)(e) of the SEBI (SAST) Regulations. Apart from the

PAC,therearenootherpersonsactinginconcertforthepurposeofthisOffer.


11/76

7

2.2.5 TherearenopartlypaidupSharesintheTargetCompanyasondateofthisLetterof

Offer.

2.2.6 Thisisnotacompetitivebid.AsofthedateofthisLetterofOffer,therehavebeen

nocompetitivebids

2.2.7 This

Offer

is

not

a

conditional

offer

and

is

not

subject

to

a

minimum

level

ofacceptancebytheShareholdersoftheTargetCompany i.e.subjecttothetermsof

the Offer, the Acquirer and the PAC will acquire all Shares of the Target Company

thatarevalidlytenderedbytheShareholders.IncasethenumberofSharesvalidly

tendered in the Offer is more than the Shares to be acquired in the Offer, the

acquisition of Shares from each Shareholder will be, as per the provisions of

Regulation 21(6) of the SEBI (SAST) Regulations, on a proportionate basis. Further,

thereisnodifferentialpricing.

2.2.8 Otherthanasstated inthisLetterofOffer,the Acquirer andthePAChaveneither

acquired nor have been allotted any Shares of the Target Company in the last 12

monthsfromthedateofPublicAnnouncement.

2.2.9 Therehavebeennoacquisition(s)ofSharesoftheTargetCompanybytheAcquirer,

orthePACafterthedateofthePublicAnnouncementtillthedateoftheLetterof

Offer.

2.2.10 Shares that are subject to any charge, lien or encumbrance, any court order/any

other attachment/dispute are liable to be rejected in the Offer. Applications in

respect of Shares of the Target Company that are subject matter of litigation

wherein the Shareholders of the Target Company may be prohibited from

transferring the Shares during the pendency of the said litigation are liable to be

rejected ifthedirections/ordersregardingtheseSharesarenotreceivedtogether

withtheSharestenderedundertheOffer.TheAcquirerand/orPACwillacquirethe

Sharestogetherwithallrightsattachedthereto,includingtherightstoalldividends,

bonus and rights subsequently declared. The tender by any Shareholder of any

Shares in the Offer must be absolute, unconditional and unqualified. Lockedin

shares acquired in Offer will be subject to thecontinuation of lockin remaining in

the hands of Acquirer and/or PAC, in accordance with applicable SEBI Regulations

andguidelines.

2.2.11 TheManagertotheOfferdoesnotholdanySharesintheTargetCompanyasatthe

date of Public Announcement. The Manager to the Offer will not deal with the

Shares of the Target Company until the expiry of fifteen days from the date of

closureoftheOfferi.e.November27,2010.

2.3 Objectsoftheacquisition/Offerandfutureplans

2.3.1 The Offer is being made in compliance with Regulations 10 and 12 and other

applicable provisions of SEBI (SAST) Regulations, for the purpose of substantial

acquisition of shares and voting rights, accompanied with change in control and

managementoftheTargetCompany,assetoutinparagraphs2.1.1and2.1.2above,

thereby enabling the Acquirer to exercisejoint control over the Target Company

(along with the existing promoters). The Acquirer will seek appointment of one


12/76

8

director and two permanent invitees on the Board of the Target Company, in

accordancewiththeprovisionscontainedintheInvestmentAgreement,Companies

Act,1956,SEBI(SAST)Regulationsandotherapplicablelaws.

2.3.2 The Acquirer and the PAC would support the existing business of the Target

Company.TheAcquirerwouldbecomethecopromoteroftheTargetCompanyand

intendsto

develop

the

existing

business

of

the

Target

Company

and

strengthen

its

position in the industry. The strategicjoint control over the Target Company will

allowtheAcquirertoestablishitselfintheeducationsector.

2.3.3 As on the date of the Public Announcement, the Acquirer and/or the PAC do not

have any plans to make any major change to the existing line of business of the

Target Company or its subsidiaries or to dispose off or otherwise encumber any

assetsoftheTargetCompany inthenext24months,exceptintheordinarycourse

of business. The Board of the Target Company shall take appropriate decisions in

these matters in the ordinary course of business of the Target Company or to the

extent required for the purpose of restructuring,joint venture, rationalization of

assets,investmentsorliabilitiesoftheTargetCompanyforcommercialreasons,and

operational

efficiencies

and

on

account

of

regulatory

approvals.

2.3.4 Other than as aforesaid, the Acquirer and PAC undertake that they shall not sell,

dispose of or otherwise encumber any substantial asset of the Target Company

withoutthepriorapprovaloftheShareholdersoftheTargetCompany.


13/76

0

122

0

00

3456789676672 8676!"#$#%&

2 '()*+),-./..+*+/+:;+;+/+,E+--+-./+:N,;=+E/,C+


14/76

10

3.1.6 TheshareholdingpatternoftheAcquirerasonthedateofPublicAnnouncement

isasfollows:

NameoftheEquityShareholder Numberofequityshares %ofissuedcapital

Promoters/PromoterGroup

NikhilP.

Gandhi

4,763

Negligible

RupaliB.Gandhi 9,526 Negligible

BhaveshP.Gandhi 4,763 Negligible

PratapraiGandhi 433,433 0.17

NehaGandhi 4,763 0

Nikhil P. Gandhi, Bhavesh P. Gandhi

JointHolders*

15,12,17,247 59.28

MontanaInfrastructureLimited 9,11,87,635 35.75

TotalI 24,28,62,130 95.27

FII/MutualFunds/FIs/Banks

M2N2PartnersLimited 2,523,880 0.99

TotalII 2,523,880 0.99

Public/Others

AshwiniInfrastructurePrivateLimited 94,96,615 3.72

AbhayKumarPandey 15,500 0.01

MadanLalNarula 13,885 0.01

TotalIII 95,26,000 3.74

Total(I+II+III) 254,912,010 100

*NikhilGandhiandBhaveshGandhiarepartnersinMetropolitanIndustries,apartnershipfirmwhich

holdsthesharesoftheAcquirer

NameofthePreferenceShareholder Numberof preference

shares*

%shareholding

Promoters

NA


AshokaInvestmentHoldingsLimited 15,385 76.93

Ambadevi

Mauritius

Holding

Limited

4,615

23.08

Public/Others

NA

Total 20,000 100.00

*FacevalueofpreferencesharesisRs1,00,000pershare


15/76

11

3.1.7 TheAcquirerbeingaholdingcompanyforvariousprojectsderivesincomemainlyfromprojectdevelopment feesbydeveloping its variousprojects,dividend andcapital gain as&when such project is divested.Hence theAcquirer does haveregular sources of income from project development activities. The financialhighlightsof theAcquirer for the yearsendedMarch31,2007,March31,2008and,March31,2009andtheelevenmonthperiodendedFebruary28,2010areasfollows:

(Rs.InLacsunlessotherwisespecified,exceptpersharedata)

Profit&LossStatementAudited

YearendedMarch31,

2007

AuditedYearended

March31,2008

AuditedYearended

March31,2009

Reviewedelevenmonthsended

February28,2010

DividendIncomeandProfitonSaleofInvestments 150.11 534.04 61.34 0.72IncomefromProjectDevelopments

1007.50 2166.61 473.00 483.00OtherIncome 609.53 308.08 (9.35) 91.52TotalIncome 1767.14 3008.73 524.99 575.24TotalExpenditure 868.63 770.63 211.73 166.23ProfitBeforeExceptionalitem,Depreciation,Interest&Tax

898.51 2238.10 313.26 409.01

ExceptionalIncome NIL NIL NIL NILProfitBeforeDepreciation,Interest&Tax 898.51 2238.10 313.26 409.01Depreciation 128.08 117.64 136.24 107.63Interest(net) 293.64 1370.43 22.00 15.37ProfitBeforeTax 476.79 750.03 155.02 286.01ProvisionforTax 120.00 102.00 25.00 44.08ProfitAfterTax 356.79 648.03 130.02 241.93

BalanceSheetStatementAudited

YearendedMarch31,

2007

AuditedYearended

March31,2008

AuditedYearended

March31,2009

Reviewedelevenmonths

endedFebruary28,

2010SourcesoffundsPaidupsharecapital 25238.81 25238.81 25491.20 25491.20PreferenceShareCapital NIL NIL 20000.00 20000.00ReservesandSurplus 22532.27 22632.46 24046.60 24288.53Networth(Note1) 47771.08 47871.27 69537.80 69779.73Securedloans 6022.49 5307.36 11416.85 176.81


16/76

12

BalanceSheetStatement

Audited

Yearended

March31,

2007

AuditedYear

ended

March31,

2008

AuditedYear

ended

March31,2009

Reviewed

elevenmonths

ended

February28,

2010

Unsecuredloans

2293.02

2293.02

NIL

21926.14

Deferredtaxliability NIL NIL NIL NIL

Total 56086.59 55471.65 80954.65 91882.68

Usesoffunds

Netfixedassets 487.99 461.64 506.55 456.63

Investments 14064.40 30934.05 47436.32 49913.30

Netcurrentassets 41534.20 24075.96 33011.78 41512.75

Total 56086.59 55471.65 80954.65 91882.68

OtherFinancialDataAudited

Year

ended

March31,

2007

Audited

Year

ended

March31,

2008

AuditedYear

ended

March31,2009

Reviewed

elevenmonths

endedFebruary

28,2010

Dividend(%) NIL NIL NIL NIL

EarningPerShare*(Rs.) 0.14 0.26 0.05 0.09

ReturnonNetworth**

(%)

0.75 1.35 0.19 0.35

BookValuePerShare***

(Rs.)

18.93 18.97 19.43 19.53

Source Asper certificate dated 19July 2010,provided by statutory auditor of theAcquirer (Bharat Shah &

Associates,Chartered

Accountant,

Membership

no.

32281)

*EarningPerShare=ProfitAfterTax/No.OfEquityshares.

**ReturnonNetworth=ProfitAfterTax/NetworthX100

***BookValuePerShare=(NetWorthPreferenceShareCapital)/No.OfEquityShare

Note1:

Networth = Paid up equity share capital + Preference share capital + Reserve and Surplus; where,

ReserveandSurplus=ReserveandSurplusMiscellaneousExpenditure.

3.1.8 Primaryreasons for the increase in total revenues and net profitof theAcquirer

areasunder:

YearEnded

March

2009

compared

to

Year

Ended

March

2008

a) IncomefromOperationsThe Acquirers primary revenue/gains are mainly out of its investments in

various infrastructure projects being developed by it and subsequent

strategic/other divestments of these projects from time to time. Its total


17/76

13

revenues had reduced to Rs.524.99 lacs in fiscal year ended March 2009 as

compared to Rs.3,008.73 lacs attained during March 2008. The reduction in

gross revenues is primarily attributed to the decline in project development

income from Rs. 2,166.61 lacs in March 2008 to Rs. 473 lacs in March 2009

duetocompletionofprojectsunderdevelopmentinfiscal2008.

b) Profitafter

Tax

TheAcquirersprofitaftertaxhasreducedtoRs.130.02lacsduringthefiscal

year ended March 2009 as against Rs. 648.03 lacs achieved during March

2008. This reduction in profit is on account of lower project development

revenuereceivedastheprojectsundertakenwerecompletedinfiscal2008.

YearEndedMarch2008comparedtoYearEndedMarch2007

a) IncomefromOperationsThe gross earnings of the Acquirer grew to Rs. 3008.73 lacs during the year

ended

March

2008

as

compared

to

Rs.

1767.14

lacs

made

during

March

2007

onaccountofsustainedgrowthinprojectdevelopmentactivitiesduetowhich

project development revenues increased from Rs. 1007.50 lacs in fiscal year

endedMarch2007toRs.2166.61lacsinfiscalyearendedMarch2008.

b) ProfitAfterTaxTheprofitaftertaxoftheAcquirerforthefiscalyearendedMarch2008,stood

atRs.648.03 lacsascomparedtoRs.356.79 lacsmadeduringthefiscalyear

endedMarch2007duetosustainedgrowth inprojectdevelopmentrevenue

leadingtoimprovementintheperformanceduringthefiscalyear2008.

3.1.9 SignificantAccountingPolicies:

a) BasisofpreparationoffinancialstatementsThe Financial Statements are prepared under the historical cost convention,

onanaccrualbasisofaccounting.

b) FixedassetsandDepreciationFixedAssetsarestatedatcostofacquisition includingexpenses incidentalto

theiracquisition.

Depreciationonfixedassetsisprovidedonthewrittendownvaluemethodat

theratesprescribedinScheduleXIVtotheCompaniesAct,1956.

c) InvestmentsLongterm investments are stated at cost of acquisition including expenses

incidentaltotheiracquisition.Diminutioninvalueoflongterminvestmentsis

recognised if the diminution is considered permanent. Interest relating to


18/76

14

direct acquisition of investments is capitalised and treated as cost of

acquisitionoftheinvestment.

d) StockintradeStockintrade is valued at the yearend at the lower of cost and fair market

value.

e) RevenuerecognitionRevenue from service transactions is recognised as and when the service is

rendered.

f) RetirementbenefitsCompanyscontributiontotheRegionalProvidentFund isprovidedfor inthe

yearinwhichcontributionisdue.

g)Miscellaneous

expenditure

Preliminaryexpensesareamortisedoveraperiodof10years.

h) TaxationCurrenttax

Current tax provision is made annually based on the tax liability computed

after considering tax allowances and exemption using current tax rates in

accordancewiththeprovisionsoftheIncomeTaxAct,1961.

Deferredtax

The Company provides for deferred tax in accordance with the Accounting

Standard22 Accounting for Taxes on Income, issued by The Institute of

Chartered Accountants of India. Deferred tax assets arising on account of

unabsorbed depreciation or carry forward losses are recognized only when

there isavirtualcertaintysupportedbyconvincingevidencethatsuchassets

willberealized.

3.1.10 AsonFebruary28, 2010,thecontingent liabilities and otherfinancialobligations

oftheAcquirer areasunder:

AsonFebruary28,2010

(Rs. lacs)

(a)

Corporate

guarantees

given

on

behalf

of

Associated

concerns4,05,130.00

(b)ClaimsforIncomeTaxnotAcknowledgedbythe

company

119.14

(Source:CertificateforBharatShah&Associates,CharteredAccountants,dated19July2010)


19/76

15

3.1.11 The names, addresses, experience andqualificationsofthe board of directors of

theAcquirerasondateofPublicAnnouncementareasfollows:

Nameofthe

Director

Designation

&

Appointment

Date

Director

Identification

Number

(DIN)

Qualification ResidentialAddress

Mr.NikhilP.

Gandhi

Executive

Chairman

October08,

1990

00030560 Bachelorof

Commerce

21,SagarVilla,38,

BhulabhaiDesai

Road,Mumbai

400026

Mr.Bhavesh

P.Gandhi

Vice

Chairman

April17,1999

00030623 Bachelorof

Commerce

NewBreachCandy

CoOpSocLtd,D/4

4thFloor,70C

BhulabhaiDesai

Road,Mumbai

400026

Mr.

P

Krishnamurthy Director

January22,

2005

00013565

Chartered

Accountant 1401/1402,

Vinayak

Angan,Old

PrabhdeviRoad,

Worli,Mumbai

400025

Mr.BPMisra Director

March05,

2009

01822448 I.A.S.(Retd) 57,UnitIII,Poorvi

Marg,VasantVihar,

NewDelhi,110057

Delhi

CommodoreV

GHonnavar

Director

October08,

1990

00032105 Graduate

fromthe

National

Defence

Academy

14,Shantivan,1st

FloorRamKrishna

MissionRoad,Khar

(West),Mumbai

400052

Mr.APrasad Director

January22,

2005

00274125 Graduatein

Economics&

I.R.A.S.

(Retd.),

704/705,Sahara

Apartments,Sector

6,PlotNo.11,

Dwarka,NewDelhi

110075

Mr.KRoyPaul Director

January01,

2010

002863821 Graduatein

Engineering,

I.A.S.(Retd)

C II/69,Moti

Bagh I,NewDelhi

110021

Mr.Santosh

Senapati

Nominee

Director

April21,2008

00076219 Bachelor's

Degreein

Mining

Machinery&

MBA

FlatNo.34.NCPA

Apartments,Dorabji

TataRoad,Nariman

Point,Mumbai

400021


20/76

16

DetailsofexperienceofDirectorsoftheBoardoftheAcquirer

1. Mr. Nikhil P. Gandhi serves as chairman of SKIL Infrastructure group andExecutiveChairmanoftheAcquirer.Heisafirstgenerationentrepreneurwith

business interest in marine equipments, marine engineering and

infrastructure. Mr. Gandhi has approximately 27 years of experience as an

entrepreneur

of

various

infrastructure

development

projects.

Under

hisleadership,the first privateport in India was set up through Gujarat Pipavav

PortLimited.HewasnominatedasatrusteeoftheMumbaiPortTrustontwo

occasions. In 1990, he received the Best Young Entrepreneurs award from

the Ministry of Chemicals and Petrochemicals, Government of India and in

2001, he was conferred the Great Son of Soil award by the All India

ConferenceofIntellectuals.

2. Mr.BhaveshP.GandhiservesasViceChairmanoftheAcquirer.Hisexpertiseon each domain that the Acquirer enters, and his attention to detail are the

qualities that ensure that each project that the Acquirer undertakes is

implemented smoothly and professionally.He has approximately 26 years of

experience

as

an

entrepreneur

and

expertise

in

infrastructure

development

projects.

3. Mr. P. Krishnamurthy, prior to joining SKIL group had served as ViceChairman, JM Morgan Stanley. A Chartered Accountant from Kolkata, Mr.

Krishnamurthyhasanexperienceofnearly34yearsincorporatemanagement

andstrategy,restructuring,mergers&acquisitions,internationalbusinessand

joint ventures, financial management & banking. His expertise includes

managing and supervising business units in India and abroad at the highest

levels.He is an integral partoftheSKIL Infrastructuregroup andcontributes

significantlytopolicydevelopmentandfinancing.

4. Mr.B.P.MisrabelongstotheUnionTerritoriesCadreoftheIAS.Inhispriorassignment, he has represented India as Executive Director in the

International Monetary Fund (IMF) at Washington DC. Besides India, he has

alsorepresentedBangladesh,BhutanandSriLankaattheIMFBoard.Priorto

hisassignmentwithIMF,hedidastintintheUnionMinistryofFinanceinitially

as Additional Secretary and then as Special Secretary. He was nominated to

theLICBoardbytheFinanceMinister.HewasaDirectorintheBoardofDelhi

Metro.

5. Commodore V. G. Honnavar is highly experienced, with 33 years of NavalService and about 27 years in the private sector. Cmde. Honnavar was

awarded the Ati Vishisht Seva Medal for rendering meritorious and

distinguished service to the Indian Navy. With his experience in training and

logistics,hehasbeenakeyfigureintheSKILGroupsince1980.

6. Mr.A. Prasad, I.R.A.S. (Retd.), completed his post graduation in Economicsfrom the Delhi School of Economics and then joined the Indian Railway

Accounts Service in 1963. He has been closely associated with the countrys

industrialsector.InhiscapacityasMember(Finance)andexofficioSecretary

to the Government in the Dept. of Telecommunications (Ministry of


21/76

17

Communications), Mr. Prasad has played a proactive role in restructuring /

liberalizationexercises inthetelecomsector.Hewasalsoactively involved in

raising resources for Public Sector Companies in the telecom sector in the

internationalcapitalmarkets.Heplaysakeenroleinguidingandshapingthe

growthpoliciesoftheSKILGroup.

7. Mr.K.RoyPauljoined the Indian Administrative Service in 1967 and servedthe State Government of Bihar and the Government of India in variouscapacities. In his long government service spanning 37 years he held various

seniorpositionsincludingSecretarytoGovernmentofIndia intheMinistryof

Civil Aviation and Chairman, Air India, Special Secretary and Additional

Secretary in the Ministry of Environment & Forests, Joint Secretary in the

DepartmentofInformationTechnology,DirectorandDeputySecretary inthe

Ministry of Commerce and Principal Secretary to the State Government of

Bihar inthe Departmentsof Industries and Urban development. Hewas also

thefirstChairmanoftheNationalCoastalZoneManagementAuthority.After

his retirement from the Indian Administrative Service in 2004, he was

appointed Member of the Union Public Service Commission, a constitutional

authority

equated

with

the

Election

Commission

of

India

and

the

Supreme

CourtofIndia.

8. Mr.SantoshSenapatiservesontheBoardofDirectorsasNomineeDirectorofAIG. He is Managing Director of AIG and leading a team of professionals in

AIG's private equity business franchise in India. Prior tojoining AIG, he was

with Jardine Fleming India Securities Ltd. and ABN Amro Bank He has a

Bachelor's Degree in Mining Machinery from the Indian School of Mines,

Dhanbad, and an MBA Degree from the Indian Institute of Management,

Ahmedabad. Mr. Senapati has an experience of 23 years in the field of

management.

3.1.12 ThedetailsofthecompaniespromotedbytheAcquirerareasfollows:

1. GujaratPositraPortCompanyLimited(GPPCL):

Gujarat Positra Port Company Limited was incorporated on July 22, 1998. It

received its certificate of commencement of business on August 7, 1998.

GPPCL is established for the purpose of construction and development of

ports. Ithasyettocommencebusiness. Itsregisteredofficeislocatedat905,

906,SakarII,EllisBridgeCorner,EllisBridge,Ahmedabad380006,Gujarat


22/76

18

FinancialPerformance

The audited financial results of Gujarat Positra Port Company Limited for the

lastthreeyearsaresummarizedbelow:

(Rs.inlacs,unlessotherwisestated)

March

31,2007

March

31,2008

March

31,2009

Income/Sales

Profit/(Loss)aftertax

Equitysharecapital 5.00 7374.18 8316.06

Reserveandsurplus(excludingrevaluation

reserve)(1)

4.42 4.421417.23

Earnings pershare(Rs.)

Netassetvalueorbookvaluepershare(Rs.)(2)

18.24 10.01 11.70

(1) Netofmiscellaneousexpenditurenotwrittenoff.

(2) FacevalueofeachequityshareisRs.10.

GPPCLhasnotbecomeasickcompanywithinthemeaningofSICAnorisit

subjecttoawindinguporderorpetition.

2. SKILHimachalInfrastructureandTourismLimited(SHITL);

SKIL Himachal Infrastructure and Tourism Limited was incorporated on

December16,2005and itreceivedcertificateofcommencementofbusiness

on 27 October 2006. SHITL was established to carry on the business of

infrastructureandtourismrelatedactivities. Itsregisteredofficeislocatedat

C11 Qutub Institutional Area, New Delhi 110 016. The company is yet to

commencebusiness.


The audited financial results of SHITL for the last three years are summarized

below:(Rs.inlacs,unlessotherwisestated)

March31,2007 March31,2008 March31,2009

Income/Sales



Reserveandsurplus

(excludingrevaluation

reserve)

(1)

Earnings pershare(Rs.)

Miscellaneous

Expenditure 0.39

33.91 33.91

Netassetvalueorbook

valuepershare(Rs.)(2)

9.22

(57.81) 9.93




23/76

19

SHITLhasnotbecomeasickcompanywithinthemeaningofSICAnorisit


3. PoseidonInfrastructureLimited(PIL);

PILwas

incorporated

on

January

20,

1998

as

Pipavav

LNG

and

Power

Limited.

With effect from July 9, 1998 the name of the company was changed to

Gujarat Pipavav LNG Company Limited and subsequently to Poseidon

Infrastructure Limited on February 25, 2002. The company was incorporated

for the purpose of setting up of Liquefied Natural Gas (LNG) import and

regasification terminals. Subsequently, the company relinquished its

developmentrightsinfavourofBritishGas.Subsequentto2002,thecompany

changedthenatureof itsbusinesstoinfrastructuredevelopmentandrelated

activities. Its registered office is located at 905, 906, Sakar II, Ellis Bridge

Corner, Ellis Bridge, Ahmedabad 380 006, Gujarat. It has yet to commence

business.

Financial

Performance

The audited financial results of PIL for the last three years are summarized

below:


March31,2007 March31,2008 March31,2009

Income/Sales



Reserveandsurplus


reserve)(1)

Earnings pershare

(Rs.)

Miscellaneous

Expenditure1.54 1.72

1.80

Netassetvalueorbook


6.91 6.566.40


(2) FacevalueofeachequityshareisRs.10

PILhasnotbecomeasickcompanywithinthemeaningofSICA.

PILmade

an

application

under

the

Easy

Exit

Scheme

(EES),

2010

on

31

August

2010 for the striking off the name of PIL from the registrar of companies

undersection560oftheCompaniesAct,1956.Theapplicationispendingwith

therelevantRegistrarofCompanies.


24/76

20

4. UrbanInfrastructureHoldingsPrivateLimited(UIHPL)

UIHPLwas incorporatedonJune 28,2005asSKILSEZ InfrastructureHoldings

PrivateLimited.With effectfrom March 22, 2006,thename of thecompany

was changed to Urban Infrastructure Holdings Private Limited. The company

was

established

to

carry

on

the

business

of

infrastructure

facilities

andservices including cities, towns, roads, ports, airports, airways, railways,

tramways, mass rapid transport systems, cargo movement and management

systems, industrial estates, residential houses, green parks, relating port

infrastructure environmental protection and pollution control, transport,

public utilities, municipal services, clearing house agency and stevedoring

services and creation of infrastructure facilities and services including

telecommunication, cell services, satellite communication and networking.

The registered office of the company is located at Jai Centre, 1st

Floor, 34 P.

DMelloRoad,OppositeRedGate,Mumbai400009.


The audited financial resultsof UIHPL for the last threeyears are summarized

below:


FortheperiodendedMarch31,

2007 2008 2009

Income/Sales 1281.8 1252.3 1019.9

Profit(Loss)afterTax (133.9) 344.2 (1528.2)

Equitysharecapital 6215.5 10,001.0 35474.3

Reservesandsurplus

(excluding

revaluation

reserves)(1)

401.0 712.9 (815.2)

Earningspershare

(Rs.)(2)

(0.22) 0.42 (0.49)

Netassetvalueor

bookvaluepershare

(Rs.)(2)

10.64 10.71 9.77



UIHPLhasnotbecomeasickcompanywithinthemeaningofSICAnorisit

subjectto

a

winding

up

order

or

petition

5. HorizonCountryWideLogisticsLimited(HCWL)

HCWL was incorporated on June 7, 2007 as Nhava Seva Distriparks Limited.

WitheffectfromOctober17,2007,itsnamewaschangedtoHorizonCountry

Wide Logistics Limited. It received its Certificate for Commencement of


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21

BusinessonJuly27,2007.HCWLwasestablishedforthepurposeofcarrying

onalltypeofinfrastructureprojects,facilitiesorworksforlogisticsprojectand

relatedinfrastructure.Ithasyettocommencebusiness.Itsregisteredofficeis

located at 13/14, Khetan Bhavan, 198, Jamshedji Tata Road, Churchgate,

Mumbai400020.


The audited financialresults of HCWL for the last two years are summarized

below:


March

31,2008

March

31,2009

Income/Sales 79.34 2768.01

Profit/(Loss)aftertax 10.16 63.89

Equitysharecapital 7034.50 13640.97

Reserveandsurplus(excludingrevaluationreserve)

(1)

10.16 6034.11

Earnings pershare(Rs.) 0.02 0.06

Netassetvalueorbookvaluepershare(Rs.)(2)

10.01 14.42



HCWLhasnotbecomeasickcompanywithinthemeaningofSICAnorisit


6. SKILKarnatakaSEZLimited(SKSL)

SKILKarnatakaSEZLimitedwasincorporatedon31August,2007videcertification

of incorporation bearing CIN U45200MH2007PLC173683, issued by the Registrar

of Companies, Maharashtra, at Mumbai. SKSL received its certificate for

commencement of business on November 15, 2007 from the Registrar of

Companies, Maharashtra, at Mumbai. SKSL was established for promoting,

developing, building, creating, supplying, operating, owning, contracting,

organisingallkindofSpecialEconomicZoneandinfrastructureprojects,facilities,

works and services. It has yet to commence business. Its registered office is

locatedatSKILHouse,209,BankStreetCrossLane,Fort,Mumbai400023,India.


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22


TheauditedfinancialresultsofSKILKarnatakaSEZLimitedforthelasttwoyearsare

summarizedbelow:

(Rs.inLacsunlessotherwisestated)

Fortheperiodended31March

2008 2009

Income/Sales NA NA

Profit(Loss)afterTax NA NA


Reservesandsurplus(excluding

revaluationreserves)(1)

NANA

Earningspershare(Rs.)(2)

NA NA

Netassetvalueorbookvalueper

share(Rs.)(2)

8.758.75



SKSL has not become a sick company within the meaning of the Sick Industrial

Companies(SpecialProvisions)Act,1985(SICA)nor is itsubjecttoawindingup

orderorpetition.

7. SKILAdvanceSystemsPrivateLimited(SASPL)

SKIL Advance Systems Private Limited was incorporated on September 24, 2009

videCertificationofIncorporationbearingCINU74900MH2009PTC196016, issued

by the Registrar of Companies, Maharashtra, at Mumbai as Stupendous

InfrastructurePrivateLimited(SIPL).WitheffectfromMarch05,2010thename

waschangedtoSKILAdvanceSystemsPrivateLimited.SASPLwas incorporated

for the purpose of carrying on the business of scientific, technical and other

research and development activities. It has yet to commence business. The

registered office of SASPL is located at SKIL House, 209 Bank Street Cross Lane,

Fort,Mumbai400023.


NoauditedfinancialsofSASPLareavailablepostitsincorporation.

SASPL has not become a sick company within the meaning of the Sick Industrial

Companies (Special Provisions) Act, 1985 (SICA) nor it subject to awindingup

orderorpetition.

8. SKILShipyardHoldingsPrivateLimited(SSHPL)

SKILShipyardHoldingsPrivateLimitedwas incorporatedonAugust16,2005vide

certification of incorporation bearing CIN U45203MH2005PTC155377, issued by

the RegistrarofCompanies, Maharashtra,at Mumbai.SSHPL wasestablished for

the purpose ofcarryingon business ofpromoting,developing, building,creating,

operating, owning, contracting, organising all kind of infrastructure facilities and


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23

services. It hasyet to commence business. Its registeredOffice is located at SKIL

House,209,BankStreetCrossLane,Fort,Mumbai400023.


TheauditedfinancialresultsofSKIL Shipyard Holdings Private Limited forthe last

threeyears

are

summarized

below:



2007 2008 2009

Income/Sales NA NA NA

Profit(Loss)afterTax NA NA NA


Reservesandsurplus


reserves)(1)

NA NA NA

Earningspershare(Rs.)

(2)

NA NA NA

Netassetvalueorbook


7.70 6.605.30



SSHPL has not become a sick company within the meaning of the Sick Industrial


orderorpetition.

9. SKILHimachal

Waknaghat

SEZ

Private

Limited

(SHWSPL)

SKIL Himachal Waknaghat SEZ Private Limited was incorporated on August 27,

2007 vide Certification of Incorporation bearing CIN U45400MH2007PTC173506,

issued by the Registrar of Companies, Maharashtra, at Mumbai. SHWSPL was

incorporated for the purpose of carrying on business of tourism and leisure

projects and special economic zone focus on tourism and leisure projects. It has

yet to commence business. The registered office of SHWSPL is located at 13/14,

KhetanBhavan,198,JamshedjiTataRoad,Churchgate,Mumbai400020.


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The audited financial results of SKIL Himachal Waknaghat SEZ Private Limited for

thelasttwoyearsaresummarizedbelow:



2008 2009

Income/Sales NA NA





NA NA


NA NA


share(Rs.)8.75

8.75



SHWSPLhasnotbecomeasickcompanywithinthemeaningoftheSickIndustrial


orderorpetition.

10. SKILAdvanceEnergyPrivateLimited(SAEPL)

SKILAdvanceEnergyPrivateLimitedwasincorporatedonSeptember24,2009vide

Certification of Incorporation bearing CIN U45400MH2009PTC195998, issued by

the Registrar of Companies, Maharashtra, at Mumbai as Protuberant

InfrastructurePrivate

Limited.

With

the

effect

from

March

05,

2010

the

name

of

SAEPL was changed to SKIL Advance Energy Private Limited. SAEPL was

incorporated for carrying on the business of transmitting, manufacturing,

supplying,generating,distributing,anddealinginelectricityandallformofenergy

and power generated by any source. It has yet to commence business. The

registered office of SAEPL is located at SKIL House, 209 Bank Street Cross Lane,

Fort,Mumbai400023.


NoauditedfinancialsofSAEPLareavailablepostitsincorporation.

SAEPLhas

not

become

a

sick

company

within

the

meaning

of

the

Sick

Industrial


orderorpetition.


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25

11. SKIL(Singapore)Pte.Ltd.(SSPL)

SKIL (Singapore) Pte. Ltd. was incorporated on November 30, 2007 under

registration number 200722209Z in Singapore under the relevant Singapore

legislation. SSPL is established for the purpose of carrying on business of

development,

construction

and

operation

of

infrastructure

project,

mines

andmineralsinSouthEastAsia.Ithasyettocommencebusiness.Its registeredoffice

ofSSPLislocatedat10,JalanBeasr,#1105,SimLimTower,Singapore208787.


TheauditedfinancialresultsofSKIL(Singapore)Pte.Ltd.fortheyearended2009is

summarizedbelow:


2009

InRupeesinlacs InSGD

Income/Sales NA NA


Equitysharecapital 56.05 163322*



NA NA


NA NA

Netassetvalueorbookvalue

pershare(Rs.)(2)

(0.58) (0.017)


(2) FacevalueofeachequityshareisSGD1

*IncludesSGD163320shareapplicationmoney

(1SGD=Rs.34.32ason31March2009,Source:oanda.com)

12. KaranjaTerminal

and

Logistics

Private

Limited

(KTLPL)

KaranjaTerminalandLogisticsPrivateLimitedwasincorporatedonMay14,2010

videCertificationofIncorporationbearingCINU63090MH2010PTC203226, issued

bytheRegistrarofCompanies,Maharashtra,atMumbai.KTLPL isestablishedfor

the purpose of carrying on business of building, hiring, owning, transferring or

otherwise dealing with ports, shipyards,jetties, harbours, docks, ship breaking,

ship building etc. at any port in India or elsewhere. It has yet to commence

business.TheregisteredofficeofKTLPL is locatedat13/14,Khetan Bhavan,198,

JamshedjiTataRoad,Churchgate,Mumbai400020.


NoauditedfinancilasofKTLPLareavailablepostitsincorporation.

KTLPL has not become a sick company within the meaning of the Sick Industrial


orderorpetition.


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26

13. PipavavShipyardLimited(PSL)

PipavavShipyardLimited wasincorporated onOctober17,1997videCertification

of Incorporation bearing registration number 0433193 of 19971998, issued by

the Registrar of Companies, Gujarat, Dadra and Nagar Haveli, at Ahmedabad as

PipavavShipDismantlingandEngineeringLimited.PSLreceiveditsCertificatefor

Commencementof

Business

from

the

Registrar

of

Companies,

Gujarat,

Dadra

and

NagarHaveli,atAhmedabadonDecember2,1997.OnApril29,2005,videFresh

Certificate of Incorporation on Change of Name issued by the Registrar of

Companies, Gujarat, Dadra and Nagar Haveli, at Ahmedabad, the name Pipavav

ShipyardLimitedwasadopted.TheCINofPSLisU35110GJ1997PLC033193.

PSL currently operates Pipavav shipyard, located on the west coast of India

adjacenttomajorsealanesbetweenthePersianGulfandAsia.Pipavavshipyardis

capable of ship construction and repairs for a wide range of vessels of different

sizes and types, including naval vessels and coast guard vessels, as well as the

fabrication and construction of products such as offshore platforms, rigs,jackets

and vessels (but excluding subsea pipelines) for oil and gas companies. Its

Registered

Office

is

located

at

Pipavav

Port,

Post

Ucchaya,

Via

Rajula,

Rajula

365

560, Gujarat and Corporate Office SKIL House, 209 Bank Street Cross Lane, Fort,

Mumbai400023


TheauditedfinancialresultsofPipavavShipyardLimitedforthelastthreeyearsare

summarizedbelow:


FortheperiodendedMarch

31,

2008 2009 2010

Income/Sales 2774.9 6177.8 6,9688.9

Profit(Loss)afterTax 485.9 492.4 (4882.0)

Equitysharecapital 5,7969.3 5,8034.8 6,6579.8



6,7074.9 6,7472.8 10,3650.0


(0.10) 0.08 (0.82)


share(Rs.)(2)

21.51 21.63 24.81



PSL has not become a sick company within the meaning of the Sick Industrial


orderorpetition.TheEquitySharesofPSLarelistedonBSEandNSE.


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14. SKILStrategicDeterrenceSystemsPrivateLimited(SSDSPL)

SKILStrategicDeterrenceSystemsPrivateLimitedwasincorporatedonOctober4,

2010 vide Certification of Incorporation bearing CIN U74999MH2010PTC208594,

issued by the Registrar of Companies, Maharashtra, at Mumbai. SSDSPL is

established for the purpose of carrying on business including designing,

developing,

and

manufacturing

of

arms

and

ammunitions

used

for

defence,internalsecurityandpersonalsecurity.SSDSPLisawhollyownedsubsidiaryofour

Companysinceitsincorporation.Ithasyettocommencebusiness.Theregistered

office of SSDSPL is located at SKIL House, 209, Bank Street Cross Lane, Fort,

Mumbai400023.


NoauditedfinancialsofSSDSPLareavailablepostitsincorporation.

SSDSPL has not become a sick company within the meaning of the SICAnor is it


15. SoharFreeZoneLLC

SoharFreeZoneLLC(SFZ)wasestablishedonMay30,2009andregisteredwith

theMinistryofCommerceandIndustry,SultanateofOmanonMay27,2009,vide

commercial registration number 1/07017/4. Sohar Free Zone LLC was

incorporatedforthepurposeofcarryingonthebusinesstodevelopandmanage

SoharSpecialEconomicZoneandotherancillaryactivities.


TheauditedfinancialresultsofSFZforthelastyeararesummarizedbelow:

FortheperiodendedDecember

31,2009

InRupeesinlacs,

unlessotherwise

stated*

InOMR

Income/Sales 5.01 4010

Profit(Loss)afterTax (301.70) (241358)

Equitysharecapital 625.00 500000



(301.70) (241358)


NA NA

Net

asset

value

or

book

value

pershare(Rs.)(2)

65

0.52

*Conversionrate1OMR=Rs.125

SFZhasnotbecomeasickcompanywithinthemeaningofSICAnorisitsubjecttoawinding

uporderorpetition.


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3.1.13 TheequitysharesoftheAcquirerarenotlistedonanystockexchanges.

3.1.14 TheAcquirerhasnotbeenprohibitedbySEBIfromdealing insecurities, interms

ofdirectionsissuedundersection11BoftheSEBIAct,1992asamendedorunder

anyotherregulationmadeundertheSEBIAct.

3.1.15 AstheAcquirerdoes notholdSharesoftheTargetCompanyandhasneverheld

SharesoftheTargetCompanyinthepast,theprovisionsofchapterIIoftheSEBI

(SAST)RegulationsarenotapplicabletoSKILwithrespecttotheTargetCompany.

3.1.16 ComplianceOfficer:

Ms.SwetaShah,SKILHouse,209,BankStreetCrossLane,Fort,Mumbai400023,

Tel.No.02266199000,FaxNo.02222696023.

3.2 SKILKnowledgeCitiesPrivateLimited(PAC)

3.2.1

The

PAC

was

incorporated

as

a

private

limited

company

on

2

April,

2007

under

the

CompaniesAct,1956.Itsregisteredofficeislocatedat13/14,KhetanBhavan,198,

JamshedjiTataRoad,Churchgate,Mumbai400020,Maharashtra,India,Tel.No.

02267158000,FaxNo.02267158099.

3.2.2 ThePAChasbeenpromotedbyMr.R.K.Vijayan.

3.2.3 The PAC is established for the purpose of carrying on the business of imparting

training inallfieldsofknowledgebasededucation.ThemainobjectofthePAC is

to carry on business of parting knowledge by establishing institutions, education

centers, training centers, computer centers, research centers, university for

advancement of knowledge, information technology, engineering, electronics,

technical, medicine, agriculture, management whether general, professional,

vocational,technicalorotherwise andto acquire,establish,promote,andrunor

otherwise mange such centers for imparting training in all fields of knowledge

basededucation.

3.2.4 TherearenocompaniespromotedbyPAC.

3.2.5 AsondateofPublicAnnouncement,sharecapitalofthePACconsistsofthepaid

upandsubscribedequitycapitalofRs.6.00lacsconsistingof60,000fullypaidup

equityshareseachofafacevalueofRs.10.

3.2.6 TheshareholdingpatternofthePACason31July,2010isfollows:

Nameof

the

Shareholder

Numberof

equity

shares

%of

issued

capital

Promoters

Mr.R.K.Vijayan 27,500 45.83%

TotalI 27,500 45.83%



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29

NA

Public/Others

SKILInfrastructureLimited 5,000 8.33%

Mr.NileshMehta 27,500 45.83%

TotalII 32,500 54.16%

Total(I+II) 60,000 100%

3.2.7 ThefinancialinformationofthePACisasfollows:

Since the company has not yet commenced its business, Profit & Loss account

statementhasnotbeenprepared.

(AmountinRs.lacsunlessotherwisespecified,exceptpersharedata)

BalanceSheet

Statement

AuditedYearended

March31,2008

AuditedYearended

March31,2009

Reviewedeleven

monthsended

February28,2010

Sourcesoffunds

Paidup

share

capital

6.00

6.00

6.00

PreferenceShareCapital NIL NIL NIL

ReservesandSurplus NIL NIL NIL

Networth(Note1) 4.74 4.63 4.62

Securedloans NIL NIL NIL

Unsecuredloans NIL NIL NIL

Deferredtaxliability NIL NIL NIL

Total 4.74 4.63 4.62

Usesoffunds

Netfixedassets NIL NIL NIL

Investments NIL NIL NIL

Netcurrentassets 4.74 4.63 4.62

Total 4.74 4.63 4.62

OtherFinancialData

AuditedYearended

March31,2008

AuditedYearended

March31,2009

Reviewedeleven

monthsended

February28,2010

Dividend(%) NIL NIL NIL

EarningPerShare*(Rs.) NIL NIL NIL

Returnon

Networth**

(%)N.A.

N.A.

N.A.

BookValuePer

Share***(Rs.)

7.90 7.72 7.70

*EarningPerShare=ProfitAfterTax/No.Ofequityshares.

**ReturnonNetworth=ProfitAfterTax/NetworthX100

***BookValuePerShare=(NetWorthPreferenceShareCapital)/No.Ofequityshare


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Note: 1 NetworthisarrivedafterdeductingmiscellaneousExpenditurefromPaidupShareCapital.

Source Aspercertificatedated19July2010,providedbystatutoryauditorofthePAC(BharatShah&

Associates,CharteredAccountant,Membershipno.32281)

3.2.8 Primaryreasonsfortherise/fallinthenetprofitofthePACareasunder:

As the PAC has not yet commenced its operations, theprofit and loss account

statementhas

not

yet

been

prepared.

3.2.9 SignificantAccountingPolicies:

Miscellaneousexpenditure

Miscellaneous expenditure comprises preliminary expenditure incurred in

connection with the formation of the Company and non operative Expenses.

These expenses shall be written off when the project is ready to commence

commercialoperations.

3.2.10 As on February 28, 2010, there are no contingent liabilities of the PAC. (Source:

Certificatefor

Bharat

Shah

&

Associates,

Chartered

Accountants,

dated

19

July

2010)

3.2.11 Thenames, addresses,experience and qualificationsofthe BoardofDirectorsof

thePACareasbelow.

Nameofthe

Director

Designation&

Appointment

Date

Director

Identification

Number(DIN)

QualificationResidential

Address

Mr.R.K.

Vijayan

Director

2April,2007

00286513 B.Com,

CAIIB

78/13,Brindaban

Society,

Majiwade,Thane

(West),Mumbai

400601

Mr.Nilesh

Mehta

Additional

Director

12July2010

02101502 ACS

AICWA

BCOM

1101/A,Vastu

Riddhi,Pumo

House,Andheri,

Mumbai,

Maharashtra,

India400093

DetailsofexperienceofDirectorsoftheBoardofthePAC

1. Mr. R. K. Vijayan is an experienced banker turned key commercial andfinancial functionary of the SKIL group since June 2001. He is a commerce

graduate with banking professional qualification having thirty years of

experienceinbankingpriortojoiningtheSKILgroup.

2. Mr. Nilesh Mehta is a post graduate in commerce and he is an associatememberoftheInstituteofCost&WorkAccountantsofIndiaandtheInstitute

ofCompanySecretariesofIndia.Hehaswideexperienceinthefieldoffinance

andcorporatelaws.


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3.2.12 TheequitysharesofthePACarenotlistedonanystockexchanges.

3.2.13 The PAC has not been prohibited by SEBI from dealing in securities, in terms of

directions issued under section 11B of the SEBI Act, 1992 as amended or under

anyotherregulationmadeundertheSEBIAct

3.2.14 Asthe

PAC

does

not

hold

Shares

of

the

Target

Company

and

has

never

held

Shares

oftheTargetCompany inthepast,theprovisionsofchapterIIoftheSEBI(SAST)

RegulationsarenotapplicabletothePACwithrespecttotheTargetCompany.

4 OPTIONINTERMSOFREGULATION21(2)If, pursuantto thisOffer,the public shareholding is foundto be reducedbelowtheminimum

level required as per the listing agreement entered intoby the Target Company with the BSE

and NSE, (the Listing Agreements), as a result of acquisition of Shares under (i) the

PreferentialAllotment;and/or(ii)anyacquisitionofshares fromopenmarket;and/or(iii)the

Offer, the Acquirer and PAC shall take necessary steps to facilitate compliance of the Target

CompanywiththerelevantprovisionsoftheListingAgreementandnotificationoftheCentral

Government

dated

June

4,

2010

amending

the

Securities

Contracts

(Regulation)

Rules,

1957

withinthetimestipulatedtherein.

5 BACKGROUNDOFTHETARGETCOMPANY EVERONNEDUCATIONLIMITEDNote:TheinformationprovidedinrelationtotheTargetCompany,itspromoterandpromoter

groupasprovidedinthisLetterofOfferandAnnexuresfiledwithSEBIhasbeeninsertedbased

oninformationreceivedfromtheTargetCompany,itspromoterandpromotergroupandalso

frominformationavailablefrompublicavailablesources.

5.1 The Target Company was incorporated as a public limited company on 19 April, 2000 as

Everonn Systems India Limited under the Companies Act, 1956 and commenced its

businessundercertificateofcommencementofbusinessdated24April2000.Thenameofthe Target Company was changed to Everonn Education Limitedvide fresh certificate of

incorporationdated19August2009toreflectthechangeintheprimarybusinessfocusof

theTargetCompany.

5.2 TheregisteredofficeoftheTargetCompanywasshiftedfromOoty,TamilnadutoChennai,

Tamilnadu on 30December, 2005videa fresh certificate of registration of the Company

Law Board under Section 16(3) of the Companies Act, 1956 and is presently situated at

No. 82, IVAvenue,AshokNagar,Chennai 600 083,Tel : 044 2471535659;Facsimile:

04424717845.ThecorporateofficeofTargetCompanyissituatedatEveronnHouse,Plot

No:9699,IndustrialEstate,Perungudi,Chennai600096,Tel:04442968400;Facsimile:

04442968488.

5.3 The Target Company is currently engaged in the business of education and training

offering satelliteenabled learning and providing a blend of traditional and digitized

contenttotheschools,collegesandretailsegments.ThishashelpedtheTargetCompany

toofferqualityeducationtostudentseven inthemostremotepartsofIndia.TheTarget

Company has 8492 learning centres across 27 states. The Target Company also provides

education and training solutions through satellite based Very Small Aperture Terminal


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32

(VSAT)technologytovariousschools,collegesandlearningcentresacrossIndia.

5.4 The authorised share capital of the Target Company as on the date of the Public

Announcement was Rs. 200,000,000 divided into 20,000,000 Shares and the issued and

paidupsharecapitaloftheTargetCompanyasonthedateofPublicAnnouncementisRs.

15,12,04,000 (Rupees Fifteen crores twelve lacs and four thousand only) divided into

15,120,400Shares.

The

Board

of

the

Target

Company

has

passed

resolution

dated

19

July,

2010 approvingthe increase in authorizedsharecapitalofthe Target Company from Rs.

200,000,000 divided into 20,000,000 Shares to Rs. 250,000,000 divided into 25,000,000

Shareswhichissubjecttoshareholdersapprovalinthegeneralmeeting.

5.5 There are no partly paidup shares or securities convertible into Shares of the Target

Company,exceptthefollowing:

(i) 600,000 warrants allotted to some of the promoters of the Target Company,

convertibleattheoptionoftheholder intoone ShareatRs.430.45perwarrant

and optionally convertible in one or more tranches before the maturity date, 10

February, 2012. If the holder exercises its right of conversion in full, 600,000

Shareswouldbeissuedtotheholder;

(ii) zero coupon fully convertible debentures of Rs. 10,40,00,000 allotted on

preferentialbasistononpromoters,namelyHTMediaLimited,convertibleatthe

optionoftheholderintoequivalentnumberofSharesattherateofoneSharefor

everyzerocouponfullyconvertibledebenture,convertibleafter30daysfromthe

relevantdatebutbeforeexpiryof18monthsfromthedateofallotment,inoneor

more tranches. The relevant date for calculation of pricing for the fully

convertibledebenturesis31March2011;

(iii) zero coupon fully convertible debentures of Rs 2,28,00,000 allotted on

preferential basis to non promoters, namely DB Corp Limited, convertible at the

optionoftheholderintoequivalentnumberofSharesattherateofoneSharefor

everyzerocouponfullyconvertibledebenture,convertibleafter30daysfromthe

relevantdate

but

before

expiry

of

18

months

from

the

date

of

allotment,

in

one

or

more tranches. The relevant date for calculation of pricing for the fully

convertibledebenturesis30November2011;

(iv) 40,00,000 OCDs having a face value of Rs. 520.87/ each, aggregating to

Rs.208,34,80,000/ (Rupees Two hundred and eight crores, thirty four lacs and

eightythousandonly)andoptionallyconvertiblebeforethematuritydate, inthe

monthofFebruary2012allottedtoAcquirer.IftheoutstandingOCDsholder, i.e.

the Acquirer exercises its right of conversion in full, 40,00,000 Shares would be

issuedtotheAcquirer.


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5.6 The Emerging Voting Capital of the Target Company as on date of the Public

Announcementhasbeencalculatedasunder:

Particulars Issued,subscribed

andpaidupshares

Votingrights %of

Outstanding

shares

%ofVoting

rights

Fullypaidupequity

capital

15,120,400 15,120,400 100% 100%

Partlypaidupshare

capital

NIL NIL NIL NIL

Total 15,120,400 15,120,400 100% 100%

EMERGINGVOTINGCAPITAL(ReferNote1) No.ofShares

FullypaidupcapitalasondateofPublicAnnouncement 15,120,400

Add:Preferential Issueof600000warrantsmadetosomeofthe

Promotersdueforconversionby10February,2012.Assumingfull

conversionof

warrants

into

Shares

(Refer

Note

2)

600,000

Add: Preferential issue of OCDs made to Acquirer Assuming full

conversion,SharestobeissuedonconversionofOCDsatpriceof

Rs.520.87/

4,000,000

EMERGINGVOTINGCAPITAL 19,720,400

Note:

1. EmergingVotingCapitaloftheTargetCompanyexcludesthefollowing:Pursuanttotheapprovalbytheshareholdersintheannualgeneralmeetingheldon27July,2010,

BoardoftheTargetCompanyinitsmeetingheldon11August,2010hasallotted zerocouponfully

convertibledebenturesofRs.10,40,00,000/ andRs.2,28,00,000/ (FCDs)onpreferentialbasisto

Everonnlof by Skil

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