only for limited circulation to the members of aibi due diligence manual.pdf · merchant bankers...

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Only for Limited Circulation to the Members of AIBI

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ASSOCIATION OF INVESTMENT BANKERS OF INDIA

505 – 506, Dalamal Chambers, 5th Floor,29, New Marine Lines, Mumbai 400 020

Phone: +91-22-2209-6947 E Mail: [email protected]

Website: www.aibi.org.in

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Dear Members,

We are glad to inform you that your Association, in its endeavour to continuously assist you in your business activities and establish best practices for the industry, has prepared a Due Diligence Manual which can be used as an indicative guide for diligence standards for public offerings.

We are all aware of the importance and critical role of due diligence and the consequent disclosure, to all classes of investors (institutional or retail) globally, in making their investment decisions. We therefore hope this manual will establish a high and uniform standard of diligence across the industry and thereby enhance the credibility of the Issuer and the investment banking community.

We have adopted a detailed consultative approach in preparing this manual which included interactions amongst AIBI members, interactions and insights from domestic and international legal experts specialising in securities law. The manual has built on the prevailing practices of due diligence and sought to bring it on par with global benchmarks to the extent practicable.

We acknowledge the contributions from all the members of AIBI,their representatives on the Due Diligence Committee and the AIBI secretariat for their persistent efforts in this compilation.

We would like place on record our acknowledgement and appreciation of the efforts by the team at Amarchand & Mangaldas & Suresh A. Shroff & Co. in sparing their valuable time and without whose efforts this compilation would have been incomplete.

We solicit your continued support in making your Association a truly pro-active Association.

With best regards

Board of Directors

Association of Investment Bankers of India

August 2012

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Table Of Contents

Contents

Preface 2

Introduction 3

Annexure A List Of Documents For Review In A Public Offering 10

1. Issue –Related Information 10

2. Capital Structure 13

3. Objects Of The Issue 16

4. Industry 22

5. Business 24

6. History And Certain Incorporation Matters 26

7. Management 27

8. Promoters, Promoter Group And Group Companies 30

9. Financial Information 34

10. Litigation 36

11. Government Approvals 42

12. Basis of Allotment 43

13. Anchor Portion 47

Annexure B Indicative Retention List Of Information/Documents In A Public Offering

48

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Disclaimer

This Manual is intended only to be an indicative guide for diligence standards and retention of documents in respect of public offerings and rights issues in India. Diligence standards in respect of certain chapters such as Business, Risk Factors, etc., could differ substantially depending on factors including the industry to which the issuer company (“Issuer”) belongs and the dynamics of its business operations. Further depending on the types of offering (Initial Public Offerings, Follow-on Public Offerings, etc.), the regulatory requirements and disclosure may differ. It is recognized that the due diligence process employed in connection with any particular public offering in India may vary from situation to situation, and the appropriate diligence procedures will need to be determined by the parties in light of, among other things, the relevant Issuer and the type of transaction.

The Manual does not have the force of law nor is it otherwise legally binding on members of the Association of Investment Bankers of India (“AIBI”).

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PREFACE

The Indian fi nancial markets have been through a continuous process of transformation since economic liberalization was introduced in 1991. Post the formation of the Securities and Exchange Board of India (“SEBI”) in 1992, the Indian capital markets have seen landmark systemic changes and now rank at par with many developed jurisdictions in terms of infrastructure, processes and policies. This applies equally to activities in primary as well as secondary capital markets.

Merchant Bankers (as defi ned in the Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992, as amended -the “Merchant Bankers Regulations”) are required to act with integrity and fairness and comply with the Code of Conduct for Merchant Bankers as set out in the Merchant Bankers Regulations (the “Code of Conduct”). This requires Lead Managers to develop a fair understanding of various facets of an Issuer’s business and operations which can enable the drafting of appropriate disclosures in offer documents (the “Offer Document(s)”) to facilitate informed investment decisions being made by an investor.

This Manual is an endeavour at setting out certain guiding principles for diligence and record keeping which Lead Managers are expected to follow while performing their role as lead managers (the “Lead Manager(s)”) in terms of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended (the “ICDR Regulations”), for the purpose of public offerings. The disclosure based regime and the resultant due diligence process is a complex, dynamic and evolving. The Manual has been framed to serve as a guide to Lead Managers while conducting due diligence for making appropriate disclosures in the Offer Documents and retention of documents. It should however be noted that each Issuer and transaction has its own unique requirements which are specifi c to its business and accordingly, the due diligence exercise for each transaction and Issuer needs to be customised. Each intermediary needs to be cognizant of the dynamic nature of due diligence and recognise that this manual is indicative in nature and strict compliance with this manual may not be adequate in certain or all cases or required in other cases. While this manual attempts to lay down due diligence standards, there could be methods other than those mentioned in this manual through which reasonable due diligence could be conducted.

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INTRODUCTION

1. Regulatory framework and scope of due diligence

1.1 The Code of Conduct requires a Lead Manager, amongst other things, to exercise due diligence, ensure proper care and exercise independent professional judgment. Further, it requires a Lead Manager to ensure that adequate disclosures are made to potential investors in a timely manner in accordance with the applicable regulations and guidelines so as to enable them to make a balanced and informed investment decision. An amendment to the Lead Managers Regulations dated August 16, 2011 requires Lead Managers to maintain records and documents pertaining to due diligence exercised in pre-issue and post-issue matters for a minimum period of fi ve years. The ICDR Regulations require that Offer Documents should contain all material disclosures, which are true and adequate to enable prospective investors to take an informed decision. Furthermore, the ICDR Regulations require due diligence certifi cates to be issued by the Lead Managers at various stages of the transaction.

1.2 Whilst the regulatory framework does not specifi cally defi ne what constitutes due diligence, as a matter of practice, the objective of due diligence is to collect information about the Issuer that helps the Lead Manager draft as well as assess disclosures that are made in the Offer Document. It is pertinent to understand that while the Lead Manager continues to be responsible for due diligence, external expert assistance is necessary. Whilst under the Code of Conduct, the Lead Managers are required to demonstrate that all reasonable steps were taken to exercise due diligence and ensure adequate disclosures were made to potential investors, they should have the fl exibility regarding the manner in which the due diligence exercise is conducted as they may not possess the expertise with respect to certain aspects of due diligence, such as technical, legal and accounting matters.

1.3 In terms of the ICDR Regulations, the Lead Managers are required to submit due diligence certifi cate(s) to SEBI at various stages of a transaction and the formats for such certifi cates have been provided in the ICDR Regulations. An examination of the format of the due diligence certifi cate provides clarity of expectations from the Lead Manager, to a certain extent, and can act as guiding principles for the diligence to be exercised. On the basis of the same, the scope of due diligence should cover the following aspects:

(i) Reliance on the Issuer: The diligence exercise should include discussions with the Issuer in addition to review of documents sought by the Lead Manager. The due diligence process recognizes that the Lead Manager will conduct the due diligence exercise for which the Issuer shall provide the necessary information and discuss the issues identifi ed by the Lead Managers.

(ii) Examination of facts based on documents: A Lead Manager is required to examine various documents provided by the Issuer to understand the various aspect of the business (es) which have been identifi ed for disclosure in the Offer

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Document. A review and examination of such documents provided by an Issuer, consequently disclosure of the same adequately in the Offer Documents should be construed as adequate diligence.

(iii) Independent review: The expectation is for Lead Managers to independently review all documents and information provided by the Issuer. In this respect, please see Annexure A for a “List of Documents for Review in a Public Offering”. It would be pertinent to note the following points:

• In conducting a due diligence exercise, it may not always be appropriate for a Lead Manager to accept the accuracy and completeness of all information given by the Issuer. To the extent reasonable and where appropriate, Lead Managers should carry out or request advisers or experts to carry out, check and verifi cations on information provided by the Issuer.

• If reasonably appropriate, Lead Managers should also consider conducting interviews (by way of questionnaires or calls) with key employees of the Issuer and its material subsidiaries, key customers or suppliers (where practicable). Other independent verifi cation exercises include site visits and independent background checks on the Issuer, promoters, its group companies, directors and management, through websites such as www.sebi.gov.in, www.mca.gov.in, www.watchoutinvestor.com, www.cibil.com, list of willful defaulters on the RBI website (www.rbi.org.in) as well as the NSE, BSE website for a list of persons/entities debarred from accessing the capital markets or for listed companies where trading is suspended (www.nseindia.com, www.bseindia.com).

In order to facilitate the due diligence process, the Lead Managers, with the assistance of the legal advisers, should brief or arrange for the Issuer’s legal adviser to brief, the Issuer, its directors and management on their responsibilities and liabilities in connection with the Issue, including but not limited to those set out under the Companies Act, the ICDR Regulations and the listing agreement with stock exchanges, with special emphasis on the need for the Issuer to extend full cooperation and for independence in the check and verifi cation process. For more details on this process, please see section 6 below.

It is important not to confuse due diligence with investigation and to understand that the scope of due diligence is to carry out review of information and an independent examination of facts and documents provided by the Issuer, to such extent as practicable and reasonable, which assists in review and drafting disclosures for the Offer Documents such that there are no material omissions or mis-statements and to enable prospective investors to make an informed investment decision. In this context, it is pertinent to draw reference to a landmark pronouncement of the Securities Appellate Tribunal which states that “a Lead Manager is required to employ reasonable skill and care but he is not required to begin with suspicion and to proceed in a manner of trying to detect a fraud or lie unless such information excites

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his suspicion or ought to excite his suspicion as a professional man of reasonable competence.”1

2. Due Diligence Procedure

A Lead Manager is expected to carry out the following procedures to demonstrate that it had no reasonable ground to believe and did not believe that there were material misstatements or omissions (in light of the circumstances under which they were made) in the Offer Documents which could have had an impact on an investment decision:

(i) Develop a fair understanding of business activities and the associated risks;

(ii) Have detailed discussions with the management and key customers, suppliers (where practicable) and the Issuer’s auditors with respect to the business and associated risks and fi nancial reporting statements;

(iii) Identify procedures such that disclosures in the Offer Documents that are material to an investment decision are backed by appropriate documentation, such as corporate and secretarial records or certifi cates of the Issuer or third parties and independent third party reports; and

(iv) Inform the Issuer that it may be required to provide documents that have been reviewed for an Issue, post completion of the Issue in instances of receipt of clarifi cations or questions from SEBI or other regulatory agencies or other persons.

3. Role of external parties in the due diligence process

3.1 During the due diligence process, the Lead Manager and the Issuer are assisted by external agencies such as legal counsels, statutory auditors and specialized industry experts, if required. The legal counsel may assist the Lead Manager in carrying out legal due diligence, assisting the Issuer in the preparation of the Offer Documents in compliance with ICDR Regulations, the Companies Act, 1956, as amended (the “Companies Act”) and other applicable laws and advising the Lead Managers and the Issuer on legal matters relating to the offering. In addition, the legal counsels also issue legal opinions in relation to the issue to the Lead Managers. The statutory auditors of the Issuer also provide their reports on the fi nancial information included in the Offer Documents and other relevant certifi cations pertaining to the issue including “comfort letters” for fi nancial information included in the Offer Documents. In case the Issuer belongs to any specialized industry (like oil or gas or mining business) or has a project which requires technical expertise, independent expert(s) may be appointed and their reports (like reserve reports or appraisal or feasibility report for a project) be procured. The report may then be disclosed in the Offer Documents for investor information and the report shall be made available as a material document

1 In the matter of Imperial Corporate Finance & Services Pvt. Ltd., Mumbai (Appeal No.56/2003 before the Securities Appellate Tribunal).

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for inspection. The independent expert(s) whose report is disclosed in the Offer Documents is typically named as an “expert” in Offer Documents in terms of the Companies Act. However, the Lead Managers continue to be responsible for such disclosures to the extent that the Code of Conduct requires the Lead Managers to exercise independent professional judgment with respect to the same.

3.2 The Lead Manager should advise the Issuer on appointment of appropriately qualifi ed and experienced advisers and experts. When the Lead Manager seeks to rely on the advisers and/or experts in respect of areas beyond its expertise, the Lead Manager (together with the Issuer) should satisfy itself that such reliance is reasonable in the circumstances. The Lead Manager should, as far as practicable, be involved in the appointment and selection of advisers and experts. Where such advisers or experts have already been engaged prior to the Lead Manager’s involvement, the Lead Manager should nonetheless consider the suitability of those advisers and experts and advise the Issuer accordingly.

3.3 While relying upon the work of experts, the Lead Manager should take reasonable care that appropriate enquiries are made to ascertain the work performed and procedures carried out by them. The Lead Manager can also obtain (where necessary) relevant certifi cations / comforts from these external parties. Any qualifi cations in an expert’s report must be discussed with the Issuer to understand the related risks which should be disclosed in the Offer Document.

3.4 Whilst, certain aspects of the due diligence process are assisted to by legal advisers, experts and other intermediaries, Lead Managers should remain responsible for the conduct of reasonable due diligence and appropriateness of disclosure in the Offer Documents.

4. “Expertised” vs. “non–expertised” contents of the Offer Document

Based on the above (i.e., work performed by external parties), and in line with international practices, the Offer Documents contains “expertised” and “non-expertised” portions. In relation to the “expertised” portion, e.g., the fi nancial statements and the technical reports etc., the Lead Managers should be able to rely on the reports / information / certifi cations provided for disclosure purposes. The Lead Managers should endeavour to satisfy themselves that it is reasonable to rely on the information provided by the “expert” including:

(i) the competence of the expert – qualifi cations, experience and affi liations, if any, resources;

(ii) scope of the work to be undertaken by the expert being appropriate to the report/ opinion / certifi cate required;

(iii) report / opinion / certifi cate being consistent with information being reviewed or may be known to the Lead Managers (publicly or during the course of interaction with the Issuer) and in accordance with industry practice; and

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(iv) the expert’s independence from the Issuer, its promoters and its affi liates.

5. Concept of Materiality

5.1 The concept of materiality is crucial to the effi cacy of securities laws. Materiality analysis serves a dual function in the disclosure process. Firstly, materiality analysis shapes the content of mandatory disclosure required under securities laws. Secondly, materiality analysis shapes the content of clarifying disclosure; information not expressly mandated by disclosure requirements needs to be disclosed only if it is material and necessary to ensure that there is no misstatement or omission of a material fact (in light of the circumstances under which they were made) in the Offer Documents. Therefore, materiality analysis pervades a number of aspects of a securities regulation regime.

5.2 Regulation 57(1) of the ICDR Regulations stipulates that the Offer Document shall contain all material disclosures which are true and adequate so as to enable the applicants to take an informed investment decision. In addition, the ICDR Regulations contain various references to materiality, especially in relation to disclosures. The Companies Act does not specifi cally provide a materiality threshold. The ICDR Regulations provides limited guidance as to the factors that could be considered for determining materiality in the context of public offerings. Also, the adequacy of disclosures in terms of materiality is brought to test when any query or complaint or litigation is initiated by an external party or any report in the media is published. In general, jurisprudence in most developed capital markets indicates that qualitative and quantitative factors are both important to determine materiality. For example, in the U.S., there is judicial precedent to the effect that a material fact is one to which there is substantial likelihood that a reasonable investor would attach importance in making a decision because the fact would signifi cantly alter the “total mix” of available information.

5.3 The determination of materiality must be an objective exercise undertaken by the Lead Manager, in consultation and discussions with the Issuer and other intermediaries/advisors such as legal counsels and auditors, and shall depend on the quantitative as well as qualitative factors relevant to each Issuer.

5.4 The Lead Manager shall, in consultation with legal counsel, endeavour to document the basis of determining materiality thresholds and in doing so, it shall endeavour to ensure that the scope of materiality covers items which may materially and adversely affect the business operations or fi nancial condition of the Issuer and its subsidiaries, taken as a whole. The process for documenting the basis for determining materiality for the purposes of disclosures in the Offer Document can also serve as a due diligence defence for the Lead Manager.

6. Indicative key steps to make due diligence more effective

As the due diligence exercise depends primarily on information being made available by the Issuer, the Lead Manager must endeavour to educate the management of

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the Issuer about the requirement for complete and accurate disclosures in the Offer Document and the potential risk and liability arising out of omission or inadequacy of such disclosures. The following steps may be taken to make the due diligence process more effective.

6.1 Set the groundwork early

(i) Discuss with the Issuer about the scope and importance of due diligence exercise early in the offering process;

(ii) Request Issuer to designate an offi cer of or team who will serve as the main contact person for due diligence at the Issuer;

(iii) Make the Issuer aware that due diligence by the Lead Managers is an essential part of the offering process and request for a person be designated for this exercise until the listing;

(iv) Provide a due diligence request list early in the process; the request list should be prepared in consultation with legal counsel and should be supplemented as required;

(v) Meetings with key business heads should be organised with periodic follow-ups to receive relevant and updated information.

6.2 Allot suffi cient time for due diligence

When discussing the timetable with the Issuer, allot suffi cient time for conducting due diligence.

6.3 Be informed

Stay apprised of material business updates and issues throughout the offering process to permit adequate due diligence on such issues.

6.4 Raise legal or business issues early in the process

Raise material legal or business issues with the Issuer as soon as the Lead Manager become aware of them to ensure timely and satisfactory redressal.

6.5 Management / auditors’ due diligence, site visits and third party calls

(i) The Lead Managers should conduct and supervise the due diligence process, from management due diligence sessions to site visits to calls with auditors, signifi cant customers, suppliers, lenders and other third parties, where applicable;

(ii) Documentation of the site visit.

6.6 Monitor the process

Monitor the status of the due diligence process during the course of the offering to ensure that the Issuer is cooperating adequately and that the Lead Manager has

9


suffi cient access to relevant records and personnel to complete an adequate and timely due diligence exercise.

6.7 Be aware of critical dates

The due diligence process should largely be completed prior to the initial fi ling of the draft Offer Document with SEBI. Given the dynamic nature of businesses, the due diligence process will, of course, continue after the initial fi ling until the listing of the shares. Bring down due diligence sessions/calls should be arranged prior to signifi cant activity milestones such as the fi ling of Offer Documents with the Registrar of Companies and allotment of shares.

7. Key due diligence documentation records

7.1 The Lead Managers should retain various issue-related documents for the following key reasons:

(i) These documents constitute evidence that due diligence has been conducted as well as compliance with regulatory requirements for maintaining due diligence records; and

(ii) These documents are likely to be the fi rst information that a plaintiff or a regulator would request to see in case of litigation or investigation, as applicable.

7.2 The Lead Manager should maintain a due diligence fi le containing certain minimum documentation. For details of the documents that may be maintained, please see Annexure B on “List of Documents for Retention”.

8. Standards of Record-keeping

8.1 Form

In the current environment, electronic copies (in lieu of hard copies) of the due diligence documents should be acceptable and Issuer confi rmations that these are “true and certifi ed” copies, for such documents should not be mandatory.

8.2 Client confi dentiality

It may not be possible to retain documents which are commercially sensitive to the business of the Issuer. Typically in such cases, the documents may be reviewed by the Lead Managers and the legal counsel at the Issuer’s premises and copies may not be retained. However, a list of such documents have been reviewed could be maintained.

9. Summing up

It must be clearly understood that due diligence is the backbone of any primary market offering. The risk that the Lead Manager runs for any lapse in conducting due diligence is not restricted only to any regulatory action but extends to reputational risk with the investors (institutional as well as retail) and prospective clients (Issuers).

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Onl

y fo

r Lim

ited

Circ

ulat

ion

to th

e M

embe

rs o

f AIB

I

AN

NEX

UR

E A

LIST

OF

DO

CU

MEN

TS F

OR

REV

IEW

IN A

PU

BLI

C O

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The

follo

win

g lis

t set

s ou

t cer

tain

doc

umen

ts w

hich

sho

uld

be c

onsi

dere

d fo

r rev

iew

whe

n co

nduc

ting

a du

e di

ligen

ce e

xerc

ise

for a

pu

blic

offe

r (“Is

sue”

). Th

is d

ocum

ent l

ist i

s pu

rely

illu

stra

tive

and

does

not

atte

mpt

to in

clud

e an

y in

dust

ry, s

ecto

r or t

rans

actio

n sp

ecifi

c in

form

atio

n. T

his

list m

ay re

quire

mod

ifi ca

tions

bas

ed o

n sp

ecifi

c tra

nsac

tion

circ

umst

ance

s.P

leas

e no

te th

at in

this

Che

cklis

t: (a

) “Is

suer

” mea

ns is

suer

com

pany

;(b

) “S

ubsi

diar

ies”

and

“Joi

nt V

entu

re” m

eans

the

subs

idia

ries

and

join

t ven

ture

s of

the

Issu

er;

(c)

“Pro

mot

er” a

nd “P

rom

oter

Gro

up” h

as s

uch

mea

ning

as

prov

ided

in th

e IC

DR

Reg

ulat

ions

;(d

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roup

Com

pani

es” m

eans

com

pani

es, fi

rms,

ven

ture

s, e

tc p

rom

oted

by

the

prom

oter

s of

the

Issu

er, i

rres

pect

ive

of w

heth

er th

ese

are

cove

red

unde

r Sec

tion

370

(1B

) of t

he C

ompa

nies

Act

, 195

6 (“

Com

pani

es A

ct”)

; and

(e)

“Offe

r D

ocum

ents

” m

eans

col

lect

ivel

y th

e re

leva

nt o

ffer

docu

men

ts in

clud

ing

the

Dra

ft R

ed H

errin

g P

rosp

ectu

s (“D

RH

P”)/

Dra

ft Le

tter o

f Offe

r (“D

LOF”

), th

e R

ed H

errin

g P

rosp

ectu

s (“

RH

P”) a

nd th

e P

rosp

ectu

s/ L

ette

r of O

ffer (

“LO

F”).

Man

ner o

f dili

genc

eD

ocum

ents

to b

e re

view

ed a

nd B

asis

of D

ue D

ilige

nce

Exte

rnal

/ th

ird p

arty

re

view

1. IS

SUE

–REL

ATED

INFO

RM

ATIO

ND

ilige

nce

of

elig

ibili

ty

is

a m

ix

of

fi nan

cial

ana

lysi

s, f

actu

al d

ata

revi

ew

and

inde

pend

ent

asse

ssm

ent

of d

ata

avai

labl

e w

ith t

he I

ssue

r an

d pu

blic

ly

avai

labl

e in

form

atio

n

For e

ligib

ility

requ

irem

ents

und

er R

egul

atio

n 4(

2):

1.

Cer

tifi c

atio

n fro

m t

he I

ssue

r, pr

omot

ers

of t

he I

ssue

r, pr

omot

er g

roup

, di

rect

ors

and

pers

ons

in c

ontro

l of

the

Issu

er in

rel

atio

n to

the

elig

ibili

ty c

riter

ia in

ter

ms

of t

he

Sec

uriti

es a

nd E

xcha

nge

Boa

rd o

f Ind

ia (I

ssue

of C

apita

l an

d D

iscl

osur

e R

equi

rem

ents

) R

egul

atio

ns,

2009

, as

am

ende

d (“

ICD

R R

egul

atio

ns”)

. 2.

C

opy

of a

gree

men

ts w

ith N

SD

L / C

DS

L.

Web

site

che

cks

and

revi

ew o

f pub

licly

ava

ilabl

e in

form

atio

n.

11

Onl

y fo

r Lim

ited

Circ

ulat

ion

to th

e M

embe

rs o

f AIB

I

Man

ner o

f dili

genc

eD

ocum

ents

to b

e re

view

ed a

nd B

asis

of D

ue D

ilige

nce

Exte

rnal

/ th

ird p

arty

re

view

3.

San

ctio

n le

tter(

s) f

rom

len

ders

, if

appl

icab

le,

appr

aisa

l re

ports

and

dep

loym

ent c

ertifi

cat

es is

sued

by

a C

harte

red

Acc

ount

ant

incl

udin

g m

anag

emen

t ce

rtifi c

ate

for

cost

of

pro

ject

to

asce

rtain

fi rm

arr

ange

men

ts o

f fi n

ance

as

requ

ired

unde

r R

egul

atio

n 4(

2) (

g),

if ap

prai

sal r

epor

t is

no

t ava

ilabl

e. F

or e

ligib

ility

requ

irem

ents

und

er R

egul

atio

n 26

: 1.

A

udite

d Fi

nanc

ial

Sta

tem

ents

of

Issu

er f

or l

ast

5 ye

ars

(sta

ndal

one

and

cons

olid

ated

). 2.

W

here

the

Issu

er h

olds

mor

e th

an 5

0% o

f its

net

tang

ible

as

sets

as

mon

etar

y as

sets

, the

n an

und

erta

king

from

the

Issu

er, a

nd/ o

r an

y ag

reem

ents

, reg

ardi

ng c

omm

itmen

ts

for

utili

zatio

n of

suc

h m

onet

ary

asse

ts i

n bu

sine

ss o

r pr

ojec

t. 3.

Fr

esh

Cer

tifi c

ate

of In

corp

orat

ion,

evi

denc

ing

a ch

ange

of

nam

e of

Issu

er w

here

ver a

pplic

able

. 4.

A

Cha

rtere

d A

ccou

ntan

t’s (

“CA

”) c

ertifi

cat

e on

fi n

anci

al

elig

ibili

ty c

riter

ia (s

peci

fi ed

unde

r Reg

ulat

ion

26(1

)) b

ased

on

sta

ndal

one

and

cons

olid

ated

acc

ount

s.

5.

IPO

Gra

ding

Rep

ort (

at R

HP

fi lin

g).

Fo

r el

igib

ility

req

uire

men

ts u

nder

Reg

ulat

ion

26(5

) an

d (6

) in

conn

ectio

n w

ith c

onve

rtibl

e se

curit

ies

and

secu

ritie

s of

fere

d in

an

offe

r for

sal

e, s

ee C

apita

l Stru

ctur

e be

low

.

12

Onl

y fo

r Lim

ited

Circ

ulat

ion

to th

e M

embe

rs o

f AIB

I

Man

ner o

f dili

genc

eD

ocum

ents

to b

e re

view

ed a

nd B

asis

of D

ue D

ilige

nce

Exte

rnal

/ th

ird p

arty

re

view

6.

In c

ase

of a

n of

fer f

or s

ale

of e

xist

ing

shar

es, d

ocum

ents

in

rel

atio

n of

iss

uanc

e of

suc

h sh

ares

and

allo

tmen

t re

gist

ers,

tran

sfer

reg

iste

rs D

emat

sta

tem

ent a

nd s

ellin

g sh

areh

olde

r cer

tifi c

ate

confi

rmin

g th

at th

ese

shar

es w

ere

held

for m

ore

than

one

yea

r by

the

selle

r.R

esol

utio

ns a

nd A

ppro

vals

1.

Cer

tifi e

d tru

e co

py o

f the

ext

ract

of t

he r

esol

utio

n of

the

Boa

rd o

f D

irect

ors

auth

oriz

ing

the

Issu

e an

d se

ekin

g ap

prov

al o

f th

e sh

areh

olde

rs b

y co

nven

ing

a ge

nera

l m

eetin

g as

wel

l as

the

certi

fi ed

true

copy

of t

he e

xtra

ct o

f th

e re

solu

tion

of t

he s

hare

hold

ers

auth

oriz

ing

the

Issu

e al

ong

with

del

egat

ion

of a

utho

rity

to a

boa

rd c

omm

ittee

.2.

B

oard

an

d S

hare

hold

ers

appr

oval

fo

r in

crea

se

in

auth

oris

ed c

apita

l, w

here

nec

essa

ry.

3.

App

rova

l of t

he B

oard

or a

com

mitt

ee th

ereo

f for

the

each

of

the

Offe

r Doc

umen

ts to

be

fi led

with

SE

BI a

nd th

e R

oC,

as a

ppro

pria

te.

4.

Boa

rd a

nd s

hare

hold

er a

ppro

val f

or in

crea

sing

bor

row

ing

pow

er a

nd c

reat

ing

a ch

arge

on

asse

ts, a

s ap

plic

able

for

debe

ntur

e is

suan

ce.

5.

App

licat

ions

for

and

in-

prin

cipl

e ap

prov

als

from

eac

h of

the

sto

ck e

xcha

nges

on

whi

ch t

he e

quity

sha

res

are

prop

osed

to b

e lis

ted.

13

Onl

y fo

r Lim

ited

Circ

ulat

ion

to th

e M

embe

rs o

f AIB

I

Man

ner o

f dili

genc

eD

ocum

ents

to b

e re

view

ed a

nd B

asis

of D

ue D

ilige

nce

Exte

rnal

/ th

ird p

arty

re

view

6.

Fina

l lis

ting

and

tradi

ng a

ppro

vals

from

eac

h of

the

stoc

k ex

chan

ges

on w

hich

the

equi

ty s

hare

s ar

e pr

opos

ed to

be

liste

d.7.

A

ppro

val

from

reg

ulat

ory

auth

oriti

es s

uch

as F

IPB

/RB

I w

here

app

licab

le.

8.

App

rova

l fro

m le

nder

s w

here

the

cove

nant

s of

agr

eem

ents

re

quire

s se

ekin

g th

eir a

ppro

val.

9.

Req

uisi

te a

ppro

val f

rom

the

selli

ng s

hare

hold

er in

cas

e of

an

Offe

r for

Sal

e.10

. App

rova

l fro

m t

he C

ompe

titio

n C

omm

issi

on o

f In

dia,

if

appl

icab

le.

2. C

API

TAL

STR

UC

TUR

ED

ue

dilig

ence

of

ca

pita

l st

ruct

ure

com

pris

es

of

revi

ew

of

corp

orat

e re

cord

s of

the

Iss

uer,

revi

ew o

f da

ta

furn

ishe

d by

th

e Is

suer

, ob

tain

ing

man

agem

ent,

prom

oter

and

pro

mot

er

grou

p in

form

atio

n an

d ce

rtifi c

ates

and

ce

rtain

ext

erna

l ch

ecks

for

reg

ulat

ory

com

plia

nces

.

1.

Cop

y of

the

Mem

oran

dum

of

Ass

ocia

tion,

for

det

ails

in

clud

ing

any

chan

ges

to th

e au

thor

ized

cap

ital.

2.

Rev

iew

of a

nnua

l rep

orts

and

oth

er fi

lings

suc

h as

oth

er

dire

ctor

ship

s of

eac

h di

rect

or to

iden

tify

the

cons

titut

ion

of P

rom

oter

Gro

up.

3.

All

fi lin

gs w

ith R

oC/

Sto

ck E

xcha

nges

rel

ated

to

the

allo

tmen

t of s

hare

s si

nce

the

ince

ptio

n of

the

com

pany

.4.

P

rom

oter

gro

up c

onst

itutio

n ce

rtifi e

d by

pro

mot

er(s

).

1.

Web

site

ch

eck

– pu

blic

ly

avai

labl

e in

form

atio

n on

th

e M

inis

try

of

Cor

pora

te

Affa

irs w

ebsi

tes.

2.

Rev

iew

of

fi l

ings

w

ith

RoC

an

d S

tock

ex

chan

ges.

14

Onl

y fo

r Lim

ited

Circ

ulat

ion

to th

e M

embe

rs o

f AIB

I

Man

ner o

f dili

genc

eD

ocum

ents

to b

e re

view

ed a

nd B

asis

of D

ue D

ilige

nce

Exte

rnal

/ th

ird p

arty

re

view

Rev

iew

that

the

shar

es (i

nclu

ding

bon

us

and

thos

e is

sued

fo

r co

nsid

erat

ion

othe

r th

an

cash

) co

nsid

ered

fo

r m

inim

um p

rom

oter

s’ c

ontri

butio

n ar

e el

igib

le in

ter

ms

of I

CD

R R

egul

atio

ns.

Che

ck

if th

ere

are

any

outs

tand

ing

conv

ertib

le s

ecur

ities

and

ens

ure

they

ar

e co

nver

ted

in

acco

rdan

ce

with

IC

DR

R

egul

atio

ns

and

appr

opria

te

disc

losu

res

are

mad

e in

the

DR

HP.

5.

Und

erta

king

fro

m

prom

oter

s re

gard

ing

prom

oter

s’

cont

ribut

ion

and

lock

-in. I

f app

licab

le, r

evie

w o

f doc

umen

ts

rega

rdin

g ar

rang

emen

ts th

at h

ave

been

mad

e to

ens

ure

that

the

equ

ity s

hare

s co

ntrib

uted

tow

ards

pro

mot

ers’

co

ntrib

utio

n ar

e el

igib

le t

here

for

at l

east

one

day

prio

r to

the

Bid

/ Is

sue

Ope

ning

Dat

e. T

his

may

inc

lude

CA

certi

fi cat

e re

gard

ing

prom

oter

s’ c

ontri

butio

n in

esc

row

a/

c, if

app

licab

le.

6.

Fina

l sc

hem

e of

arr

ange

men

t al

ong

with

cou

rt or

der

purs

uant

to w

hich

sha

res

have

bee

n al

lotte

d.7.

E

SO

P S

chem

e.8.

A

gree

men

t fo

r pl

edge

of

shar

es,

if an

y, b

y pr

omot

er(s

) an

d pr

omot

er g

roup

. In

case

ple

dge

is w

ithdr

awn

for t

he

purp

ose

of th

e pu

blic

issu

e a

confi

rmat

ion

from

the

lend

er

in re

latio

n to

suc

h a

with

draw

al.

9.

Pre

viou

s O

ffer D

ocum

ents

, if a

ny, f

or d

etai

ls o

f any

issu

e w

ithin

the

last

2 y

ears

. 10

. In

the

even

t of a

n of

fer

for

sale

, con

fi rm

atio

ns fr

om th

e se

lling

sha

reho

lder

rega

rdin

g th

e el

igib

ility

of t

he s

ale

of

offe

r for

sal

e sh

ares

. 11

. C

A ce

rtifi c

ate

for

reva

luat

ion

of a

sset

s, E

SO

P sc

hem

e co

mpl

ianc

e an

d av

erag

e co

st o

f acq

uisi

tion

by p

rom

oter

s.12

. C

ertifi

cat

ion

from

the

Issu

er a

bout

the

shar

es e

xem

pted

fro

m L

ock

in (h

eld

by F

VC

I) an

d on

the

Issu

er’s

inte

ntio

n/co

nsid

erat

ion

to a

lter c

apita

l stru

ctur

e fo

r a p

erio

d of

six

m

onth

s af

ter i

ssue

ope

ning

dat

e.

15

Onl

y fo

r Lim

ited

Circ

ulat

ion

to th

e M

embe

rs o

f AIB

I

Man

ner o

f dili

genc

eD

ocum

ents

to b

e re

view

ed a

nd B

asis

of D

ue D

ilige

nce

Exte

rnal

/ th

ird p

arty

re

view

13.

Und

erta

king

fro

m p

rom

oter

s /

prom

oter

gro

up n

ot t

o su

bscr

ibe

unde

r the

issu

e.14

. B

oard

/ c

omm

ittee

and

sha

reho

lder

s’ m

inut

es f

or l

ast

fi ve

year

s (a

nd s

peci

fi cal

ly f

or a

ll sh

are

capi

tal r

elat

ed

mat

ters

).15

. R

egis

ter

of m

embe

rs o

r de

posi

tary

sta

tem

ent

show

ing

list o

f mem

bers

.

Con

fi rm

atio

ns f

rom

oth

er L

ead

Man

ager

s, i

f an

y, o

n de

tails

of s

hare

s he

ld b

y th

em o

r th

eir

asso

ciat

es in

the

Issu

er.

16.

Reg

iste

r of t

rans

fer a

nd in

form

atio

n of

pur

chas

e an

d sa

le

by P

rom

oter

, Pro

mot

er G

roup

and

dire

ctor

s in

the

last

six

m

onth

s be

fore

fi lin

g th

e O

ffer

Doc

umen

t an

d th

erea

fter

till l

istin

g in

clud

ing

deta

ils o

f any

fi na

ncin

g ar

rang

emen

t fo

r th

e sa

me

and

confi

rmat

ions

fro

m t

he r

espe

ctiv

e P

rom

oter

, Pro

mot

er G

roup

and

dire

ctor

and

the

Issu

er.

17.

Rel

evan

t cer

tifi c

ates

to c

onfi r

m th

at n

o di

rect

or

indi

rect

arr

ange

men

ts h

ave

been

mad

e by

Pro

mot

ers,

G

roup

Com

pani

es, a

ssoc

iate

s, d

irect

ors

and

Issu

er to

su

bscr

ibe

to th

e sh

ares

in th

e pu

blic

issu

e or

buy

back

sh

ares

from

any

per

son

subs

crib

ing

in th

e pu

blic

issu

e.18

. A

confi

rmat

ion

from

the

issu

er th

at th

e re

leva

nt

regu

latio

ns h

ave

been

com

plie

d w

ith in

all

past

issu

es.

19.

Lock

in c

onfi r

mat

ion

from

Pro

mot

ers.

20

. D

ocum

ent r

elat

ing

to a

ll pr

evio

us is

suan

ces

by th

e co

mpa

ny a

nd a

con

fi rm

atio

n fro

m th

e is

suer

that

Sec

tion

67 o

f the

Com

pani

es A

ct, 1

956

was

com

plie

d w

ith fo

r ea

ch is

suan

ce.

16

Onl

y fo

r Lim

ited

Circ

ulat

ion

to th

e M

embe

rs o

f AIB

I

Man

ner o

f dili

genc

eD

ocum

ents

to b

e re

view

ed a

nd B

asis

of D

ue D

ilige

nce

Exte

rnal

/ th

ird p

arty

re

view

3. O

BJE

CTS

OF

THE

ISSU

ED

ilige

nce

is c

ondu

cted

in th

e fo

llow

ing

man

ner:

1.

The

aggr

egat

e qu

antu

m o

f fu

nds

prop

osed

to b

e ra

ised

is e

xam

ined

in

vie

w o

f th

e fu

nd r

equi

rem

ents

of

the

Iss

uer

and

the

prop

osed

di

lutio

n w

hich

the

Issu

er w

ishe

s to

un

derta

ke th

roug

h th

e Is

sue.

2.

The

purp

ose

for

whi

ch f

unds

are

re

quire

d ar

e as

sess

ed i

n vi

ew o

f th

e gr

owth

stra

tegi

es o

f the

Issu

er

as

elab

orat

ed

in

the

busi

ness

se

ctio

n.

The

diffe

rent

kin

ds o

f do

cum

ents

tha

t sh

ould

be

revi

ewed

de

pend

upo

n th

e ob

ject

s of

the

issu

e. T

hese

cou

ld in

clud

e th

e fo

llow

ing:

1.

Obj

ects

of

th

e is

sue

are

purc

hase

of

eq

uipm

ent,

mac

hine

ry o

r fur

nitu

re a

nd fi

xtur

esVa

lid q

uota

tions

from

sup

plie

rs /

cont

ract

ors

sub

ject

to

the

follo

win

g:In

si

tuat

ions

w

here

it

is

com

mer

cial

ly

sens

itive

to

m

entio

n na

mes

of t

he s

uppl

iers

/ co

ntra

ctor

s, th

e da

tes

and

othe

r rel

evan

t det

ails

suc

h as

the

pric

e qu

oted

are

di

sclo

sed

in th

e O

ffer D

ocum

ent.

Whe

re q

uota

tions

are

not

obt

aine

d, a

vaila

ble

pric

e lis

ts

of s

uppl

iers

whe

re a

vaila

ble

may

be

used

. In

case

sim

ilar

equi

pmen

ts h

ave

been

pur

chas

ed in

rece

nt p

ast,

curr

ent

cost

est

imat

es m

ay b

e ba

sed

on p

ast e

xper

ienc

e.

2.

Obj

ects

of t

he is

sue

are

cons

truct

ion

of p

roje

cts

App

rais

al r

epor

ts s

houl

d be

rev

iew

ed a

nd r

etai

ned,

w

here

pos

sibl

e, a

nd th

e de

tails

of t

he c

osts

are

dis

clos

ed

in t

he O

ffer

Doc

umen

t on

the

bas

is o

f th

e ap

prai

sal

repo

rt.

1.

App

rais

al

repo

rt by

in

depe

nden

t ag

ency

, in

ca

se

of

appr

aise

d pr

ojec

ts.

2.

Whe

re

appr

aisa

l is

no

t do

ne,

third

pa

rty

repo

rts

such

as

te

chni

cal

cons

ulta

nts

or

arch

itect

s or

a

civi

l en

gine

erin

g co

nsul

tant

s re

port

or

a te

chni

cal

expe

rts

repo

rt m

ay b

e re

view

ed

and

disc

lose

d af

ter

obta

inin

g th

eir

cons

ent

for

nam

e an

d di

sclo

sure

.

17

Onl

y fo

r Lim

ited

Circ

ulat

ion

to th

e M

embe

rs o

f AIB

I

Man

ner o

f dili

genc

eD

ocum

ents

to b

e re

view

ed a

nd B

asis

of D

ue D

ilige

nce

Exte

rnal

/ th

ird p

arty

re

view

3.

Rev

iew

th

e pu

rpos

e fo

r w

hich

fu

nds

are

need

ed a

nd th

e qu

antu

m

of fu

nds

requ

ired

for e

ach

purp

ose.

4.

Exa

min

e th

e sc

hedu

le

of

depl

oym

ent o

f the

fund

s pr

opos

ed

to b

e ra

ised

, as

pro

vide

d by

the

Is

suer

and

dis

cuss

the

inte

rim u

se

of p

roce

eds

with

the

Issu

er.

5.

Vario

us c

ompo

nent

s of

pro

pose

d ex

pend

iture

in e

ach

of th

e ob

ject

s of

th

e is

sue

are

iden

tifi e

d an

d ba

cked

up

by d

ocum

enta

tion

from

in

depe

nden

t th

ird

parti

es

such

as

sup

plie

rs,

arch

itect

s an

d C

As,

an

y ag

reem

ent

or m

emor

andu

m

of u

nder

stan

ding

or

man

agem

ent

estim

ates

, as

the

case

may

be.

In th

e ab

senc

e of

any

app

rais

al re

ports

or a

n in

depe

nden

t co

nsul

tant

s re

port

rela

ted

to th

e pr

ojec

ts, t

he d

iscl

osur

es

in t

he O

ffer

Doc

umen

ts a

re b

ased

on

man

agem

ent

estim

ates

and

ben

ch m

arke

d w

ith p

ast

expe

rienc

e if

any.

Sui

tabl

e di

sclo

sure

s ar

e to

be

incl

uded

in th

e O

ffer

Doc

umen

t to

indi

cate

that

the

proj

ecte

d co

sts

are

base

d on

man

agem

ent e

stim

ates

and

are

sub

ject

to re

visi

ons,

in

clud

ing

by w

ay o

f ris

k fa

ctor

. A

ny d

efi n

itive

agr

eem

ents

ent

ered

int

o by

the

Iss

uer

shou

ld b

e re

view

ed a

nd s

uita

bly

disc

lose

d in

the

Offe

r D

ocum

ent.

In th

e ab

senc

e of

any

defi

niti

ve a

gree

men

ts,

the

risk

eman

atin

g th

eref

rom

is d

iscl

osed

in t

he O

ffer

Doc

umen

t. 3.

O

bjec

ts o

f th

e is

sue

are

fund

ing

the

wor

king

cap

ital

requ

irem

ents

M

anag

emen

t ce

rtifi c

atio

n of

th

e Is

suer

’s

proj

ecte

d w

orki

ng

capi

tal

requ

irem

ents

. C

heck

th

e ba

sis

for

man

agem

ent e

stim

atio

n. O

btai

n C

A ce

rtifi c

ate

prov

idin

g w

orki

ng c

apita

l bre

ak u

p fo

r la

st t

wo

year

s al

ong

with

re

leva

nt ra

tios.

W

here

ava

ilabl

e ba

nks

asse

ssm

ent

of w

orki

ng c

apita

l re

quire

men

t may

be

revi

ewed

and

use

d fo

r di

sclo

sure

. R

equi

rem

ent

for

addi

tiona

l w

orki

ng c

apita

l sh

ould

be

revi

ewed

and

util

isat

ion

of e

xist

ing

limits

sho

uld

be

exam

ined

.

3.

Sep

arat

e ce

rtifi c

ates

an

d qu

otat

ions

fro

m

third

pa

rties

as

sp

ecifi

ed in

the

fi rst

and

se

cond

col

umns

(to

the

exte

nt

poss

ible

).

In

case

req

uire

d, c

onse

nt

of s

uch

third

par

ties

to

the

disc

losu

re

of

the

info

rmat

ion

in th

e O

ffer

Doc

umen

ts

may

al

so

obta

ined

.4.

S

ite

visi

ts

to

keyp

roje

cts

prop

osed

to

be

exec

uted

as

per

the

obje

cts.

How

ever

, w

here

th

e ob

ject

s in

clud

e se

tting

up

si

mila

r pr

ojec

ts

in

mul

tiple

lo

catio

n lik

e re

tail

stor

es, v

isit

to k

ey

loca

tions

whe

re s

ome

wor

k ha

s co

mm

ence

d is

reco

mm

ende

d.

18

Onl

y fo

r Lim

ited

Circ

ulat

ion

to th

e M

embe

rs o

f AIB

I

Man

ner o

f dili

genc

eD

ocum

ents

to b

e re

view

ed a

nd B

asis

of D

ue D

ilige

nce

Exte

rnal

/ th

ird p

arty

re

view

6.

Exp

endi

ture

al

read

y in

curr

ed

on a

ny o

bjec

t is

bac

ked

up b

y ce

rtifi c

atio

n fro

m a

CA

.7.

M

eans

of

fi nan

ce is

exa

min

ed.

In

the

even

t th

at t

he o

bjec

ts a

re n

ot

entir

ely

fund

ed t

hrou

gh t

he i

ssue

an

d id

entifi

abl

e in

tern

al a

ccru

als,

to

con

fi rm

that

at l

east

75%

of t

he

amou

nt t

hat

is n

ot b

eing

fun

ded

from

th

e Is

sue

and

iden

tifi a

ble

inte

rnal

ac

crua

ls

is

fi rm

ly

tied

up t

hrou

gh a

loa

n or

a s

anct

ion

lette

r fro

m a

ban

k or

a fi

nan

cial

in

stitu

tion.

8.

Che

ck i

f th

ere

are

any

exis

ting

/ an

ticip

ated

mat

eria

l tra

nsac

tions

in

resp

ect

of u

se o

f Is

sue

proc

eeds

w

ith p

rom

oter

s /

dire

ctor

s /

key

man

ager

ial

pers

onne

l (“

KM

Ps”

) /

grou

p co

mpa

nies

/ as

soci

ates

, and

re

view

the

disc

losu

res

in th

e O

ffer

Doc

umen

t.

4.

Obj

ects

of t

he is

sue

is in

vest

men

t in

a S

ubsi

diar

y or

a

Join

t ven

ture

Afte

r de

term

inin

g w

heth

er t

he in

vest

men

t w

ould

be

in

the

form

of d

ebt o

r equ

ity, a

ny a

gree

men

ts a

nd/ o

r oth

er

docu

men

ts a

lread

y ex

ecut

ed in

rela

tion

to th

e in

vest

men

t sh

ould

be

revi

ewed

(to

dete

rmin

e, a

mon

gst o

ther

thin

gs,

if an

y di

vide

nd a

re a

ssur

ed o

r spe

cial

righ

ts p

rovi

ded

by

the

Issu

er) a

nd d

iscl

osed

in th

e O

ffer D

ocum

ent.

The

deta

ils o

f util

isat

ion

of fu

nds

in th

e su

bsid

iary

and

JV

sho

uld

be e

xam

ined

and

dis

clos

ed i

n th

e O

ffer

Doc

umen

t.5.

O

bjec

ts o

f the

issu

e is

acq

uisi

tion

of a

Sub

sidi

ary

or a

Jo

int v

entu

re

In t

he e

vent

tha

t ob

ject

s ar

e us

ed f

or a

cqui

sitio

n of

a

Sub

sidi

ary

or in

vest

ing

in a

bus

ines

s du

e to

whi

ch th

e Is

suer

wou

ld b

ecom

e en

title

d to

mor

e th

an 5

0% t

he

capi

tal

or p

rofi t

and

los

ses,

the

n a

repo

rt pr

epar

ed

by a

acc

ount

ant

(who

sha

ll be

nam

ed i

n th

e O

ffer

Doc

umen

t) on

suc

h S

ubsi

diar

y’s/

bus

ines

s’ p

rofi t

and

lo

ss fo

r the

last

5 y

ears

and

ass

ets

and

liabi

litie

s fo

r the

sp

ecifi

ed p

erio

ds a

re o

btai

ned

and

disc

lose

d in

the

Offe

r D

ocum

ent a

s re

quire

d un

der t

he IC

DR

Reg

ulat

ions

. 6.

O

bjec

ts o

f the

issu

e is

bra

nd b

uild

ing

This

is

prim

arily

ba

sed

on m

anag

emen

t es

timat

es.

How

ever

, in

the

eve

nt t

hat

such

bra

nd p

rom

otio

n is

in

cont

inua

tion

of p

ast p

ract

ices

follo

wed

by

the

Issu

er, a

ny

past

agr

eem

ents

and

his

toric

al e

xpen

ditu

re s

houl

d be

re

view

ed.

19

Onl

y fo

r Lim

ited

Circ

ulat

ion

to th

e M

embe

rs o

f AIB

I

Man

ner o

f dili

genc

eD

ocum

ents

to b

e re

view

ed a

nd B

asis

of D

ue D

ilige

nce

Exte

rnal

/ th

ird p

arty

re

view

9.

If th

e fu

nds

prop

osed

to b

e ra

ised

un

der

the

issu

e sh

all b

e in

vest

ed

tow

ards

the

stat

ed o

bjec

ts th

roug

h a

Sub

sidi

ary

or J

oint

Ven

ture

of t

he

Issu

er, d

iscu

ss th

e pr

opos

ed fo

rm

of i

nves

tmen

t in

suc

h S

ubsi

diar

y an

d th

e po

ssib

le b

enefi

ts a

ccru

ing

to t

he I

ssue

r fro

m t

he s

ame

and

revi

ew

the

othe

r re

quire

men

ts

unde

r the

ICD

R R

egul

atio

ns.

10.

Rev

iew

th

at

gene

ral

corp

orat

e pu

rpos

es d

oes

not

exce

ed 2

5%

of

the

tota

l pr

ocee

ds

from

th

e pr

opos

ed i

ssue

, el

se a

sep

arat

e ris

k fa

ctor

sha

ll be

requ

ired.

11.

In

case

th

e pr

ojec

t ha

s be

en

appr

aise

d,

the

appr

aisa

l re

port

form

s th

e ba

sis

of d

iscl

osur

e.

In th

e ev

ent t

hat s

uch

bran

d pr

omot

ion

is to

com

men

ce

by u

tilis

atio

n of

issu

e pr

ocee

ds, a

ny a

gree

men

ts e

nter

ed

into

for

bra

nd p

rom

otio

n w

ith c

eleb

ritie

s, a

dver

tisin

g ag

enci

es o

r ot

her

agen

cies

sho

uld

be r

evie

wed

to

dete

rmin

e th

e es

timat

ed e

xpen

ditu

re.

7.

Obj

ects

of

the

issu

e is

rep

aym

ent

or p

repa

ymen

t of

lo

ans

The

loan

do

cum

ents

pe

rtain

ing

to

loan

s id

entifi

ed

for

repa

ymen

t/pre

-pay

men

t sh

ould

be

re

view

ed.

A ce

rtifi c

ate

is p

rovi

ded

by a

CA

and

such

cer

tifi c

ate

is

relie

d up

on f

or t

he o

utst

andi

ng a

mou

nts,

util

isat

ion

of

the

loan

am

ount

and

con

fi rm

atio

n th

at th

e lo

an is

bei

ng

utili

zed

for t

he p

urpo

se it

was

gra

nted

.8.

O

bjec

ts o

f the

issu

e is

to a

cqui

re id

entifi

ed

land

Agr

eem

ents

/ M

OU

ent

ered

into

with

the

sel

ler

shou

ld

be re

view

ed.

Title

dee

ds o

f the

land

pro

pose

d to

be

acqu

ired

or ti

tle

repo

rts is

sued

by

a le

gal c

ouns

el s

houl

d be

rev

iew

ed.

Dis

clos

e if

it is

a r

elat

ed p

arty

tran

sact

ion

or a

dire

ctor

is

inte

rest

ed.

Land

use

sho

uld

be r

evie

wed

and

whe

re t

here

is

a ne

ed to

cha

nge

the

use

of la

nd th

e st

atus

of o

btai

ning

th

e ap

prov

al f

or s

uch

chan

ge m

ust

be r

evie

wed

and

di

sclo

sed.

Cer

tifi c

atio

n re

gard

ing

amou

nt, i

f any

, pai

d to

war

ds th

e ac

quis

ition

is

obta

ined

fro

m a

cha

rtere

d ac

coun

tant

/ st

atut

ory

audi

tor.

20

Onl

y fo

r Lim

ited

Circ

ulat

ion

to th

e M

embe

rs o

f AIB

I

Man

ner o

f dili

genc

eD

ocum

ents

to b

e re

view

ed a

nd B

asis

of D

ue D

ilige

nce

Exte

rnal

/ th

ird p

arty

re

view

9.

Obj

ects

of

the

issu

e is

to

acqu

ire u

nide

ntifi

ed la

nd o

r un

derta

ke in

vest

men

ts in

uni

dent

ifi ed

com

pani

es

The

requ

irem

ents

are

bas

ed o

n m

anag

emen

t est

imat

es,

whi

ch s

houl

d be

rev

iew

ed.

Third

par

ty c

onfi r

mat

ions

sh

ould

be

obta

ined

whe

reve

r pos

sibl

e.

Suc

h es

timat

es,

whe

re in

form

atio

n is

ava

ilabl

e, m

ay b

e be

nchm

arke

d w

ith

the

goin

g ra

te a

t su

ch lo

calit

ies

base

d on

inde

pend

ent

real

est

ate

cons

ulta

nt re

ports

.10

. In

cas

e of

Issu

es b

y ba

nks

and

NB

FCs

whe

re th

e ob

ject

s of

the

issu

e is

to im

prov

e th

e C

apita

l Ade

quac

y R

atio

s/S

olve

ncy

Rat

ios

so a

s to

ena

ble

the

bank

/NB

FC to

gro

w

thei

r le

ndin

g bu

sine

ss o

n th

e ba

sis

of im

prov

ed r

atio

s.

Thes

e re

quire

men

ts a

re b

ased

on

calc

ulat

ions

and

es

timat

es p

repa

red

by th

e m

anag

emen

t. N

o do

cum

ents

ar

e re

view

ed a

s su

ch fo

r thi

s pu

rpos

e.11

. O

ther

mis

cella

neou

s do

cum

enta

tion

a.

In c

ases

whe

re q

uota

tion

from

ind

epen

dent

thi

rd

parti

es a

re n

ot a

vaila

ble

due

to t

he n

atur

e of

the

ob

ject

, in

tern

al m

anag

emen

t es

timat

es a

re r

elie

d up

on, d

uly

certi

fi ed

by a

n au

thor

ised

sig

nato

ry o

f the

Is

suer

.b.

C

ertifi

cat

ion

from

a C

A re

gard

ing

any

fund

s th

at

have

bee

n al

read

y de

ploy

ed t

owar

ds t

he o

bjec

ts

of t

he i

ssue

. Th

e ce

rtifi c

ate

shou

ld a

mon

gst

othe

r th

ings

cer

tify

the

sour

ce o

f fun

ds w

hich

hav

e al

read

y be

en d

eplo

yed

in th

e pr

ojec

t.

21

Onl

y fo

r Lim

ited

Circ

ulat

ion

to th

e M

embe

rs o

f AIB

I

Man

ner o

f dili

genc

eD

ocum

ents

to b

e re

view

ed a

nd B

asis

of D

ue D

ilige

nce

Exte

rnal

/ th

ird p

arty

re

view

c.

Doc

umen

ts in

sup

port

of fi

rm a

rran

gem

ent o

f fun

ds

thro

ugh

verifi

abl

e m

eans

tow

ards

75%

of t

he fu

nds

for p

roje

ct w

hich

are

not

bei

ng ra

ised

thro

ugh

Issu

e.

Suc

h do

cum

ents

, whi

ch s

houl

d be

revi

ewed

incl

ude:

(i)

Fina

l san

ctio

n le

tter i

ssue

d by

, or l

oan

agre

emen

t en

tere

d in

to w

ith, a

ban

k or

a fi

nanc

ial in

stitu

tion.

(ii)

In th

e ev

ent o

f ina

bilit

y of

the

Issu

er to

obt

ain

fi rm

fi n

anci

ng f

rom

ban

ks o

r fi n

anci

al i

nstit

utio

ns,

lega

lly e

nfor

ceab

le u

nder

taki

ng/ g

uara

ntee

from

th

e pr

omot

ers

of th

e Is

suer

to m

eet t

he fu

ndin

g ga

p is

obt

aine

d, a

long

with

cer

tifi c

ates

fro

m a

C

A ce

rtify

ing

the

mea

sura

ble

unen

cum

bere

d ne

t wor

th o

f the

pro

mot

ers.

d.

App

rais

al R

epor

t pre

pare

d by

Inde

pend

ent A

genc

y fo

r the

pro

ject

(if a

ny).

e.

In r

elat

ion

to t

he s

ched

ule

of i

mpl

emen

tatio

n th

e fo

llow

ing

shou

ld b

e re

view

ed, a

s ap

plic

able

:(i)

D

ocum

ents

in re

spec

t of a

cqui

sitio

n of

land

. (ii

) A

rchi

tect

’s c

ertifi

cat

e on

civ

il w

orks

.(ii

i) P

lant

Man

ager

’s c

ertifi

cat

e on

ins

talla

tion

of

Pla

nt &

Mac

hine

ry.

(iv)

The

estim

ated

co

mpl

etio

n da

te

is

typi

cally

ba

sed

on m

anag

emen

t est

imat

es.

W

here

a c

ompa

ny o

r bu

sine

sses

is p

ropo

sed

to b

e ac

quire

d th

roug

h th

e Is

sue

proc

eeds

, the

agr

eem

ent

to a

cqui

re n

eeds

to

be e

xam

ined

and

key

cla

uses

di

sclo

sed.

C

heck

for

any

int

entio

ns t

o ob

tain

brid

ge l

oans

/ in

term

itten

t fun

ding

and

dis

clos

e th

e sa

me.

22

Onl

y fo

r Lim

ited

Circ

ulat

ion

to th

e M

embe

rs o

f AIB

I

Man

ner o

f dili

genc

eD

ocum

ents

to b

e re

view

ed a

nd B

asis

of D

ue D

ilige

nce

Exte

rnal

/ th

ird p

arty

re

view

4. IN

DU

STRY

Onc

e th

e re

leva

nt i

ndus

try s

ecto

r of

th

e Is

suer

is

iden

tifi e

d th

e fo

llow

ing

dilig

ence

step

s are

typi

cally

und

erta

ken:

1.

A se

arch

is

unde

rtake

n w

ith t

he

help

of

the

Issu

er t

o id

entif

y al

l th

e re

leva

nt s

ourc

es f

rom

whe

re

fact

ual

and

curr

ent

info

rmat

ion

rela

ting

to t

he i

ndus

try i

nclu

ding

, de

man

d an

d su

pply

co

nditi

ons,

gl

obal

sce

nario

, mar

ket t

rend

s, k

ey

grow

th

driv

ers,

in

dust

ry

outlo

ok

etc.

can

be

extra

cted

.2.

In

a s

cena

rio w

here

the

Iss

uer

is

prop

osin

g to

inve

st t

he p

roce

eds

of t

he i

ssue

in

a ne

w i

ndus

try

verti

cal,

the

indu

stry

dyn

amic

s of

su

ch s

ecto

r ar

e at

tem

pted

to

be

high

light

ed.

3.

In

case

w

here

th

e Is

suer

ha

s bu

sine

sses

ac

ross

di

vers

ifi ed

se

ctor

s, a

brie

f ov

ervi

ew is

giv

en

for

each

sec

tor

whe

re t

he I

ssue

r ha

s m

ater

ial o

pera

tions

.

1.

Cop

y of

rele

vant

ext

ract

of t

he In

dust

ry re

port(

s).

2.

Prin

t out

of t

he d

ata

take

n fro

m v

ario

us w

ebsi

tes.

3.

Cop

y of

rele

vant

ext

ract

of t

he In

dust

ry jo

urna

l, m

agaz

ine,

ne

wsl

ette

r.4.

C

onse

nt

from

th

e pu

blis

her

or

copy

right

ho

lder

, as

ap

plic

able

, in

case

repr

oduc

ing

info

rmat

ion

from

a s

ourc

e re

quire

s th

e pu

blis

her’s

con

sent

.

23

Onl

y fo

r Lim

ited

Circ

ulat

ion

to th

e M

embe

rs o

f AIB

I

Man

ner o

f dili

genc

eD

ocum

ents

to b

e re

view

ed a

nd B

asis

of D

ue D

ilige

nce

Exte

rnal

/ th

ird p

arty

re

view

4.

Thru

st i

s la

id o

n th

e in

form

atio

n av

aila

ble

on

the

web

site

s of

go

vern

men

t bo

dies

, in

depe

nden

t ag

enci

es,

indu

stry

as

soci

atio

ns

etc.

Add

ition

ally,

sec

toria

l re

ports

ar

e al

so r

elie

d up

on f

or s

ourc

ing

info

rmat

ion

subj

ect

to t

he t

erm

s an

d co

nditi

ons

of th

e us

age

of th

e re

port.

5.

Late

st p

ublic

atio

ns o

f the

indu

stry

sp

ecifi

c jo

urna

l, m

agaz

ine,

ne

wsl

ette

r ar

e al

so o

btai

ned

from

th

e Is

suer

.6.

In

cas

e of

sec

tors

whi

ch a

re n

ot

wid

ely

cove

red,

rel

ianc

e is

pla

ced

on th

e in

-hou

se re

sear

ch p

rovi

ded

by th

e Is

suer

.7.

S

omet

imes

th

e Is

suer

al

so

enga

ges

orga

niza

tions

lik

e C

RIS

IL to

pro

vide

indu

stry

spe

cifi c

re

ports

for

inc

lusi

on i

n th

e O

ffer

Doc

umen

t.

24

Onl

y fo

r Lim

ited

Circ

ulat

ion

to th

e M

embe

rs o

f AIB

I

Man

ner o

f dili

genc

eD

ocum

ents

to b

e re

view

ed a

nd B

asis

of D

ue D

ilige

nce

Exte

rnal

/ th

ird p

arty

re

view

5. B

USI

NES

SD

ue d

ilige

nce

of t

he b

usin

ess

of t

he

Issu

er

requ

ires

unde

rsta

ndin

g th

e va

rious

bus

ines

s se

gmen

ts i

n w

hich

th

e Is

suer

ope

rate

s an

d re

view

of

the

rele

vant

inf

orm

atio

n pe

rtain

ing

to t

he

oper

atio

ns o

f the

Issu

er.

1.

Typi

cally

, a

kick

-off

mee

ting

is

orga

nize

d w

here

in

the

Issu

er

give

s an

ove

rall

pers

pect

ive

abou

t am

ong

othe

r th

ings

its

bus

ines

s op

erat

ions

. Th

e m

issi

on

and

visi

on o

f the

Issu

er is

sha

red.

The

bu

sine

ss s

trate

gy,

stre

ngth

s an

d th

e ch

alle

nges

face

d by

the

Issu

er

are

disc

usse

d.2.

In

spec

tion

of

sam

ple

faci

litie

s of

the

Iss

uer,

if po

ssib

le,

i.e.

the

proj

ect

site

, fa

ctor

y lo

catio

n,

regi

ster

ed/c

orpo

rate

of

fi ce

etc.

m

ay a

lso

be u

nder

take

n fo

r bet

ter

unde

rsta

ndin

g of

th

e bu

sine

ss

oper

atio

ns.

1.

List

of p

roje

ct c

ompl

etio

n ce

rtifi c

ates

, if a

ny.

2.

Issu

er /

Cha

rtere

d A

ccou

ntan

t cer

tifi c

atio

n on

the

orde

r bo

ok p

ositi

on.

3.

Issu

er c

ertifi

cat

ion

of it

s to

tal n

umbe

r of e

mpl

oyee

s.4.

C

onse

nt o

f the

third

par

ty i.

e. c

usto

mer

, sup

plie

r etc

. for

di

sclo

sure

in th

e O

ffer D

ocum

ents

, if r

equi

red.

5.

List

of m

ater

ial r

egio

nal /

bra

nch

offi c

es /

man

ufac

turin

g un

its o

f the

Issu

er a

nd it

s S

ubsi

diar

ies.

6.

For

real

es

tate

co

mpa

nies

, an

ar

chite

ct’s

ce

rtifi c

ate

perta

inin

g to

the

land

res

erve

s/de

velo

pabl

e or

sal

eabl

e ar

eas

as r

equi

red

unde

r th

e fo

rmat

pre

scrib

ed b

y th

e S

EB

I in

the

erst

whi

le A

nnex

ure

V o

f the

SE

BI s

tand

ard

obse

rvat

ions

and

rel

evan

t do

cum

ents

to

back

-up

the

Ann

exur

e V

dis

clos

ures

. 7.

Li

st o

f mat

eria

l pro

duct

s m

anuf

actu

red,

sup

plie

d or

sol

d by

the

Issu

er.

8.

CA

/Aud

itor

certi

fi cat

ion

with

res

pect

to

data

/num

bers

/fa

ctua

l po

ints

in

the

sect

ion

on t

he b

asis

of

the

MIS

m

aint

aine

d by

the

Iss

uer.

Nor

mal

ly t

his

will

be

cove

red

in th

e co

mfo

rt le

tter,

if no

t in

com

fort

lette

r, pl

ease

als

o ob

tain

bac

k-up

/ Iss

uer c

onfi r

mat

ion,

as

appr

opria

te.

9.

Doc

umen

ts p

erta

inin

g to

the

reg

iste

red

and/

or

the

corp

orat

e of

fi ces

of t

he Is

suer

.10

. B

oard

min

utes

and

bus

ines

s pl

ans,

if a

ny.

11.

Key

agr

eem

ents

in re

latio

n to

the

busi

ness

of t

he Is

suer

.

Issu

er w

ebsi

te /

fi lin

gs w

ith

the

Sto

ck

Exc

hang

es

in

case

of a

list

ed Is

suer

.S

ite v

isits

to k

ey in

stal

latio

ns

of th

e is

suer

.

25

Onl

y fo

r Lim

ited

Circ

ulat

ion

to th

e M

embe

rs o

f AIB

I

Man

ner o

f dili

genc

eD

ocum

ents

to b

e re

view

ed a

nd B

asis

of D

ue D

ilige

nce

Exte

rnal

/ th

ird p

arty

re

view

3.

Mee

tings

ar

e or

gani

zed

with

th

e ke

y fu

nctio

nal

man

ager

ial

pers

onne

l to

get a

n in

sigh

t of t

he

prod

uct/s

ervi

ce, t

he m

anuf

actu

ring

proc

ess,

ca

paci

ty

utili

zatio

n,

sour

cing

of

raw

mat

eria

l, se

lling

an

d di

strib

utio

n,

com

petit

ion,

m

arke

t sha

re e

tc.

4.

Dra

fting

ses

sion

s w

ith th

e Is

suer

’s

man

agem

ent

are

orga

nize

d to

re

view

the

dis

clos

ure

in t

he O

ffer

Doc

umen

ts.

5.

Add

ition

ally,

if

cons

ider

ed

nece

ssar

y di

ligen

ce c

alls

are

don

e w

ith m

ajor

cus

tom

ers

/ sup

plie

rs to

un

ders

tand

if th

ere

are

any

maj

or

conc

erns

/ ris

ks.

12.

Mat

eria

l doc

umen

ts re

late

d to

any

gra

nts

or ta

x in

cent

ives

re

ceiv

ed b

y th

e Is

suer

from

any

gov

ernm

enta

l aut

horit

y in

resp

ect o

f the

Issu

er.

13.

Sch

edul

e of

insu

ranc

e po

licie

s an

d re

view

of i

nsur

ance

po

licie

s on

a s

ampl

e ba

sis.

Any

dire

ctor

s an

d of

fi cer

s’ o

r ke

y m

an in

sura

nce

mai

ntai

ned

by th

e Is

suer

.14

. R

evie

w

of

all

mat

eria

l do

cum

ents

re

latin

g to

m

ajor

ac

quis

ition

s or

dis

posi

tions

, or,

prop

osed

acq

uisi

tions

or

disp

ositi

ons,

by

the

Issu

er.

15.

Doc

umen

ts p

erta

inin

g to

all

mat

eria

l tra

dem

arks

, ser

vice

m

arks

, tra

de n

ames

, bra

nds

and

copy

right

s of

the

Issu

er

and

thei

r dat

e of

app

licat

ion

or re

gist

ratio

n, to

the

exte

nt

appl

icab

le.

In a

dditi

on,

a sc

hedu

le o

f al

l tra

dem

arks

, se

rvic

e m

arks

, tra

de n

ames

, br

ands

and

cop

yrig

hts

shou

ld b

e pr

ovid

ed b

y th

e Is

suer

for r

evie

w.

16.

Sam

ple

prod

uct b

roch

ures

, if a

vaila

ble.

17.

Det

ails

of

an

y ag

reem

ent

or

arra

ngem

ent

(or

any

judg

men

t or

rulin

g) w

hich

res

trict

s th

e Is

suer

’s a

bilit

y to

co

mpe

te a

nyw

here

in t

he w

orld

and

of

any

notifi

cat

ion

or re

gist

ratio

n or

not

ifi ca

tion

unde

r the

rele

vant

dom

estic

le

gisl

atio

n.18

. In

tern

al p

olic

y do

cum

ents

like

risk

man

agem

ent,

HR

, IS

O

Man

uals

and

cor

pora

te s

ocia

l res

pons

ibili

ty p

olic

y, if

any

.19

. S

HE

– S

afet

y, H

ealth

& E

nviro

nmen

t pol

icy,

if a

ny.

20.

Any

per

form

ance

gua

rant

ees

give

n by

the

Issu

er.

21.

Any

exp

ort o

blig

atio

ns o

f the

Issu

er.

26

Onl

y fo

r Lim

ited

Circ

ulat

ion

to th

e M

embe

rs o

f AIB

I

Man

ner o

f dili

genc

eD

ocum

ents

to b

e re

view

ed a

nd B

asis

of D

ue D

ilige

nce

Exte

rnal

/ th

ird p

arty

re

view

22.

Cer

tifi c

ates

gr

ante

d by

th

e re

leva

nt

auth

oriti

es

in

conn

ectio

n w

ith th

e m

ore

impo

rtant

trad

emar

ks (s

uch

as

the

nam

e of

the

Iss

uer)

and

oth

er in

telle

ctua

l pro

perty

do

cum

ents

mat

eria

l to

the

Issu

er’s

bus

ines

s.23

. Tr

ade

unio

n or

set

tlem

ent

agre

emen

ts i

nclu

ding

pas

t di

sput

es if

any

.24

. D

ocum

ents

on

any

colla

bora

tions

, st

rate

gic

partn

ersh

ip

or

fi nan

cial

as

sist

ance

ag

reem

ents

, in

clud

ing

shar

e pu

rcha

se a

gree

men

t with

priv

ate

equi

ty.

6. H

ISTO

RY A

ND

CER

TAIN

INC

OR

POR

ATIO

N M

ATTE

RS

Dili

genc

e is

con

duct

ed b

y re

view

ing

the

reco

rds

of th

e Is

suer

(as

men

tione

d in

th

e ad

join

ing

colu

mn)

, and

by

enga

ging

in

dis

cuss

ions

with

the

pro

mot

ers

and

seni

or m

anag

emen

t of

the

Iss

uer

and

taki

ng a

ppro

pria

te c

ertifi

cat

es fr

om th

e Is

suer

for

the

inf

orm

atio

n or

rec

ords

, w

hich

m

ay

be

not

avai

labl

e bu

t is

re

quire

d to

be

disc

lose

d.

1.

Cer

tifi c

ate

of

inco

rpor

atio

n an

d ce

rtifi c

ate

of

com

men

cem

ent o

f bus

ines

s of

the

Issu

er, i

f app

licab

le.

2.

Mem

oran

dum

& A

rticl

es o

f Ass

ocia

tion

of th

e Is

suer

. 3.

Fi

lings

don

e by

the

Issu

er w

ith th

e R

oC/b

oard

app

rova

ls

in r

espe

ct o

f th

e la

st c

hang

e in

the

Mem

oran

dum

of

Ass

ocia

tion,

last

cha

nge

in r

egis

tere

d of

fi ce,

cha

nge

in

nam

e, c

hang

e in

sta

tus,

etc

.4.

A

nnua

l re

ports

an

d pr

evio

us

offe

r do

cum

ents

, if

appl

icab

le in

the

last

fi ve

yea

rs5.

S

chem

e do

cum

ents

an

d fi n

al

Hig

h C

ourt

orde

rs

in

resp

ect

of

the

past

m

erge

rs,

amal

gam

atio

ns

or

sche

mes

of

arra

ngem

ents

inv

olvi

ng t

he I

ssue

r, in

the

la

st te

n ye

ars.

Exi

stin

g sh

areh

olde

rs’ a

nd J

oint

Ven

ture

ag

reem

ents

with

resp

ect t

o th

e Is

suer

, if a

ny.

6.

Mat

eria

l bus

ines

s co

ntra

cts

(not

bei

ng c

ontra

cts

ente

red

in th

e or

dina

ry c

ours

e of

bus

ines

s) d

urin

g th

e la

st tw

o ye

ars,

that

are

incl

uded

in th

e m

ater

ial c

ontra

cts

sect

ion

of th

e O

ffer D

ocum

ent.

Web

site

che

cks:

(a)

MC

A w

ebsi

te

for

inco

rpor

atio

n / c

hang

e of

nam

e /

regi

ster

ed

addr

ess

etc.

(b)

Inte

rnet

se

arch

fo

r pa

st

new

s ar

ticle

s fe

atur

ing

Issu

er,

hold

ing

com

pany

and

S

ubsi

diar

y /

Join

t Ve

ntur

e C

ompa

nies

an

d qu

estio

ning

th

e Is

suer

on

the

sear

ch

resu

lts (

if no

t al

read

y di

sclo

sed)

;

27

Onl

y fo

r Lim

ited

Circ

ulat

ion

to th

e M

embe

rs o

f AIB

I

Man

ner o

f dili

genc

eD

ocum

ents

to b

e re

view

ed a

nd B

asis

of D

ue D

ilige

nce

Exte

rnal

/ th

ird p

arty

re

view

7.

Bac

k up

doc

umen

ts o

r m

anag

emen

t co

nfi rm

atio

n in

re

spec

t of k

ey e

vent

s, a

war

ds, e

tc.

8.

Con

fi rm

atio

n/ba

ckup

do

cum

ents

in

re

spec

t of

re

-sc

hedu

ling

of b

orro

win

gs o

f the

Issu

er, w

here

app

licab

le.

9.

Con

fi rm

atio

ns fr

om th

e Is

suer

on

any

time/

cost

ove

rrun

s in

set

ting

up p

roje

cts

and

any

strik

es, l

ock

outs

, etc

.10

. C

ertifi

cat

es fr

om e

ach

Sub

sidi

ary/

Joi

nt V

entu

re Is

suer

ce

rtify

ing

its d

iscl

osur

es in

the

sect

ion.

Cop

ies

of M

oAs,

A

oAs

and

Ann

ual R

epor

ts o

f all

subs

idia

ries.

11.

Ext

ract

s of

sta

tuto

ry re

gist

ers

mai

ntai

ned

by th

e Is

suer

.12

. M

inut

es

of

the

mee

ting

of

the

boar

d (in

clud

ing

com

mitt

ees)

and

sha

reho

lder

s of

mat

eria

l Sub

sidi

arie

s.

In c

ase

of a

cqui

sitio

n of

any

list

ed I

ssue

r, co

mpl

ianc

e w

ith th

e ta

keov

er/in

side

r reg

ulat

ions

.13

. D

ocum

ents

rel

atin

g to

gua

rant

ees,

if a

ny, g

iven

to th

ird

parti

es b

y th

e pr

omot

ers

offe

ring

thei

r sh

ares

in

the

prop

osed

offe

r for

sal

e.

(c)

Rev

iew

of

ot

her

web

site

s an

d/

or

data

base

s,

such

as

th

ose

the

Res

erve

B

ank

of

Indi

a an

d re

gist

ries

cove

ring

Indi

an

com

pani

es

(suc

h as

w

ww

.w

atc

ho

uti

nve

sto

rs.

com

)(d

) Fi

lings

don

e w

ith s

tock

ex

chan

ge, i

f app

licab

le

in th

e la

st fi

ve y

ears

(e)

Cal

ls

and

mee

tings

w

ith

key

supp

liers

an

d cl

ient

s w

here

ap

plic

able

.

7. M

AN

AG

EMEN

TD

ue d

ilige

nce

of m

anag

emen

t req

uire

s re

view

of

in

form

atio

n pe

rtain

ing

to

dire

ctor

s an

d K

MP

s fro

m th

e re

cord

s of

Is

suer

, und

erta

king

s obt

aine

d fro

m su

ch

indi

vidu

als

and

certa

in

inde

pend

ent

chec

ks a

s al

l th

e da

ta r

equi

red

for

disc

losu

re in

the

Offe

r D

ocum

ent

may

no

t be

read

ily a

vaila

ble

with

the

Issu

er.

The

iden

tifi c

atio

n of

the

KM

Ps

is d

one

by th

e Is

suer

.

1.

Cer

tifi c

ates

/sel

f-atte

sted

CV

s fro

m D

irect

ors/

KM

Ps

for

thei

r pro

fi le,

oth

er d

irect

orsh

ips

and

othe

r det

ails

.2.

S

tand

ard

certi

fi cat

es

prov

idin

g de

clar

atio

ns

and

confi

rmat

ions

is

sued

by

di

rect

ors

and

Form

32

fo

r th

e ap

poin

tmen

t of

the

cur

rent

dire

ctor

s an

d fo

r th

e re

sign

atio

n of

the

dire

ctor

s w

ho h

ave

resi

gned

in th

e la

st

thre

e ye

ars.

1.

Web

site

ch

ecks

–

Sto

ck

Exc

hang

es,

RoC

, or

ot

her

web

site

s co

verin

g co

mpa

nies

su

ch

as

wa

tch

ou

tin

vest

ors

.co

m,

new

s ar

ticle

s to

th

e ex

tent

ap

plic

able

an

d av

aila

ble.

28

Onl

y fo

r Lim

ited

Circ

ulat

ion

to th

e M

embe

rs o

f AIB

I

Man

ner o

f dili

genc

eD

ocum

ents

to b

e re

view

ed a

nd B

asis

of D

ue D

ilige

nce

Exte

rnal

/ th

ird p

arty

re

view

3.

Boa

rd/S

hare

hold

ers

reso

lutio

ns

for

appo

intm

ent

of

the

curr

ent

dire

ctor

s, t

heir

term

and

rem

uner

atio

n; a

ny

serv

ice

cont

ract

s or

ag

reem

ents

w

ith

the

dire

ctor

s,

espe

cial

ly e

xecu

tive

dire

ctor

s.

4.

Issu

er c

ertifi

cat

e fo

r Man

agem

ent O

rgan

isat

ion

Stru

ctur

e.5.

Is

suer

cer

tifi c

ate

listin

g ou

t KM

Ps.

Typ

ical

ly e

very

div

isio

n he

ad s

uch

as h

ead

of o

pera

tions

, mar

ketin

g, fi

nanc

e, e

tc

and

abov

e sh

ould

at l

east

be

clas

sifi e

d as

KM

Ps.

6.

Issu

er c

ertifi

cat

e fo

r rem

uner

atio

n pa

id to

key

man

ager

ial

pers

onne

l. 7.

Is

suer

cer

tifi c

ate

for

chan

ges

in d

irect

ors

and

KM

Ps

alon

g w

ith re

ason

s fo

r cha

nge.

8.

C

ertifi

cat

e fro

m th

e di

rect

ors

rega

rdin

g cu

rren

t and

pas

t di

rect

orsh

ip(s

) in

lis

ted

com

pani

es w

hich

hav

e be

en

or w

ere

delis

ted

or w

hose

sha

res

have

bee

n or

wer

e su

spen

ded

from

bei

ng tr

aded

, if a

ny, a

s re

quire

d un

der

the

ICD

R R

egul

atio

ns.

9.

Cop

ies

of d

ocum

ents

rel

atin

g to

any

arr

ange

men

t or

un

ders

tand

ing

with

m

ajor

sh

areh

olde

rs,

cust

omer

s,

supp

liers

or o

ther

s, p

ursu

ant t

o w

hich

any

of t

he d

irect

ors

or k

ey m

anag

eria

l per

sonn

el, w

as s

elec

ted

as a

dire

ctor

or

mem

ber o

f sen

ior m

anag

emen

t.10

. C

orpo

rate

Gov

erna

nce

Cer

tifi c

ate

from

Sta

tuto

ry A

udito

r / P

ract

icin

g C

ompa

ny S

ecre

tary

.

2.

Not

ifi ca

tion

to

stoc

k ex

chan

ges

of c

hang

e in

di

rect

ors

if ap

plic

able

.

29

Onl

y fo

r Lim

ited

Circ

ulat

ion

to th

e M

embe

rs o

f AIB

I

Man

ner o

f dili

genc

eD

ocum

ents

to b

e re

view

ed a

nd B

asis

of D

ue D

ilige

nce

Exte

rnal

/ th

ird p

arty

re

view

11.

Cer

tifi c

ate

from

Iss

uer

on l

oans

giv

en t

o em

ploy

ees

if an

y/ a

ny s

uch

polic

y.

12.

Boa

rd m

inut

es f

or la

st t

wo

year

s to

iden

tify

inte

rest

of

dire

ctor

s or

any

fi rm

or

a co

mpa

ny,

in w

hich

dire

ctor

is

a m

embe

r; in

any

pro

perty

acq

uire

d by

the

Issu

er w

ithin

la

st tw

o ye

ars.

13.

Rel

ated

pa

rty

trans

actio

ns

stat

emen

t in

fi n

anci

al

stat

emen

ts a

nd R

egis

ter o

f Con

tract

s un

der s

ectio

n 30

1 of

Com

pani

es A

ct to

iden

tify

over

all i

nter

ests

of d

irect

ors.

14.

Reg

iste

r of

Mem

bers

or

regi

stra

r st

atem

ent t

o ch

eck

for

shar

es h

eld

by D

irect

ors

and

KM

Ps.

15.

Rev

iew

of

the

boar

d re

solu

tions

for

any

bon

us/b

enefi

t sh

arin

g pl

an fo

r the

dire

ctor

s/K

MP.

16

. M

inut

es o

f var

ious

com

mitt

ees

of th

e bo

ard,

for l

ast fi

ve

year

s.17

. S

ervi

ce

agre

emen

ts

with

K

MP

s w

ould

ne

ed

to

be

revi

ewed

on

a sa

mpl

e ba

sis.

In

mos

t ca

ses,

the

Iss

uer

wou

ld h

ave

a st

anda

rd fo

rm o

f agr

eem

ent i

t ent

ers

into

w

ith it

s K

MP

with

cha

nges

re s

alar

y, b

onus

es, e

tc.

18.

Form

24A

A fo

r th

e ot

her

dire

ctor

ship

s of

the

cur

rent

di

rect

ors.

30

Onl

y fo

r Lim

ited

Circ

ulat

ion

to th

e M

embe

rs o

f AIB

I

Man

ner o

f dili

genc

eD

ocum

ents

to b

e re

view

ed a

nd B

asis

of D

ue D

ilige

nce

Exte

rnal

/ th

ird p

arty

re

view

8. P

RO

MO

TER

S, P

RO

MO

TER

GR

OU

P A

ND

GR

OU

P C

OM

PAN

IES

Due

dili

genc

e of

pro

mot

ers,

pro

mot

er

grou

p an

d G

roup

C

ompa

nies

is

co

mm

ence

d th

roug

h di

scus

sion

s w

ith

the

Issu

er’s

of

fi cia

ls

to

iden

tify

the

maj

ority

sha

reho

lder

s (in

divi

dual

s an

d co

rpor

ate)

an

d th

e ke

y in

divi

dual

s dr

ivin

g th

e bu

sine

ss.

1.

The

crite

ria

for

bein

g id

entifi

ed

as p

rom

oter

s ar

e pr

ovid

ed i

n th

e IC

DR

Reg

ulat

ions

, whi

ch in

clud

es

cont

rol e

ither

thro

ugh

shar

ehol

ding

or

bus

ines

s in

volv

emen

t. 2.

In

ad

ditio

n to

th

e ab

ove,

th

e ag

reem

ents

and

reg

ulat

ory

fi lin

gs

whe

re

prom

oter

s ha

ve

been

id

entifi

ed

as s

uch

by t

he I

ssue

r in

the

pas

t sh

ould

be

revi

ewed

. B

ased

on

this

revi

ew, w

heth

er a

ny

pers

ons

/ ent

ities

1.

Sel

f cer

tifi e

d de

clar

atio

ns fr

om th

e re

spec

tive

prom

oter

s for

th

e ed

ucat

iona

l qua

lifi c

atio

ns, e

xper

ienc

e, s

hare

hold

ing,

ro

le i

n Is

suer

, ot

her

dire

ctor

ship

s, l

itiga

tion

and

key

iden

tifi c

atio

n do

cum

ents

and

var

ious

oth

er c

onfi r

mat

ions

re

quire

d un

der

the

ICD

R R

egul

atio

ns,

base

d on

whi

ch

disc

losu

res

are

mad

e in

the

Offe

r Doc

umen

t.2.

C

ertifi

cat

es c

onfi r

min

g th

e co

nstit

utio

n of

the

pro

mot

er

grou

p an

d th

e G

roup

Com

pani

es;

shar

ehol

ding

, bo

ard

of d

irect

ors

of t

he c

orpo

rate

pro

mot

ers

and

the

Gro

up

Com

pani

es, l

itiga

tion,

dis

asso

ciat

ion

by th

e pr

omot

ers

in

the

last

3 y

ears

and

var

ious

oth

er c

onfi r

mat

ions

requ

ired

unde

r the

ICD

R R

egul

atio

ns, b

ased

on

whi

ch d

iscl

osur

es

are

mad

e in

the

Offe

r Doc

umen

t in

rela

tion

to p

rom

oter

s,

prom

oter

gro

up a

nd G

roup

Com

pani

es.

3.

Cer

tifi c

ates

fro

m

prom

oter

gr

oup

mem

bers

fo

r co

nfi rm

atio

ns

requ

ired

unde

r th

e IC

DR

R

egul

atio

ns,

base

d on

whi

ch d

iscl

osur

es a

re m

ade

in t

he O

ffer

Doc

umen

t.4.

N

on-c

ompe

te a

gree

men

t, if

appl

icab

le.

5.

Fam

ily s

ettle

men

t agr

eem

ent,

if an

y.6.

M

oA a

nd A

oA o

f th

e co

rpor

ate

prom

oter

s an

d G

roup

C

ompa

nies

.7.

A

nnua

l re

ports

of

th

e P

rom

oter

s an

d th

e G

roup

C

ompa

nies

who

se

fi nan

cial

in

form

atio

n ha

s be

en

disc

lose

d in

the

offe

r doc

umen

t for

the

past

3 y

ears

.

1.

Rev

iew

of

w

ebsi

tes

cove

ring

Indi

an

com

pani

es

(like

w

atc

ho

uti

nve

sto

rs.

com

, C

IBIL

, R

BI,

SE

BI,

NS

E a

nd t

he

BS

E),

to d

eter

min

e an

y co

ncer

ns

rega

rdin

g th

e P

rom

oter

s,

Gro

up

Com

pani

es

and

Pro

mot

er

Gro

up

entit

ies.

2.

Rev

iew

of

ap

prov

als

and

appl

icat

ion

with

an

y ot

her

regu

lato

r to

id

entif

y pr

omot

ers

men

tione

d th

erei

n an

d fo

r co

nsid

erin

g th

ese

entit

ies

as

prom

oter

/pr

omot

er g

roup

for

the

issu

e.

31

Onl

y fo

r Lim

ited

Circ

ulat

ion

to th

e M

embe

rs o

f AIB

I

Man

ner o

f dili

genc

eD

ocum

ents

to b

e re

view

ed a

nd B

asis

of D

ue D

ilige

nce

Exte

rnal

/ th

ird p

arty

re

view

id

entifi

ed

as p

rom

oter

s in

the

past

, sh

ould

be

cons

ider

ed a

s pr

omot

ers

of

the

Issu

er

for

the

purp

oses

of

the

issu

e in

the

con

text

of

the

defi n

ition

in th

e IC

DR

Reg

ulat

ions

.3.

B

ased

on

th

e id

entifi

cat

ion

of

prom

oter

s as

det

aile

d ab

ove,

the

Is

suer

, bas

ed o

n th

e re

quire

men

ts

unde

r IC

DR

Reg

ulat

ions

exp

lain

ed

by t

he L

ead

Man

ager

s, i

dent

ifi es

th

e fo

llow

ing

• P

rom

oter

• P

rom

oter

gro

up

4.

For

indi

vidu

al

prom

oter

s,

the

requ

isite

det

ails

in a

ccor

danc

e w

ith

the

prov

isio

n of

ICD

R R

egul

atio

ns

are

soug

ht,

such

as

ed

ucat

iona

l qu

alifi

catio

ns,

expe

rienc

e,

key

iden

tifi c

atio

n do

cum

ents

an

d ot

her

dire

ctor

ship

s ar

e pr

ovid

ed

by t

he I

ssue

r an

d ce

rtifi e

d by

the

re

spec

tive

prom

oter

s.5.

Fo

r co

rpor

ate

prom

oter

s, d

etai

ls

such

as

thei

r his

tory

, sha

reho

ldin

g pa

ttern

, bo

ard

of

dire

ctor

s an

d ch

ange

in c

ontro

l of t

he P

rom

oter

co

mpa

ny

in t

he l

ast

thre

e ye

ars

are

soug

ht t

hrou

gh c

ertifi

cat

es.

If lis

ted,

add

ition

al d

iscl

osur

es

8.

Agr

eem

ents

and

reg

ulat

ory

fi lin

gs w

here

the

prom

oter

s ha

ve b

een

iden

tifi e

d as

suc

h by

the

Issu

er in

the

past

.9.

A

gree

men

ts

with

la

rge

inve

stor

s lik

e pr

ivat

e eq

uity

in

vest

ors

to

asce

rtain

co

ntro

l cl

ause

s fo

r th

em

to

be

incl

uded

as

pr

omot

er/p

rom

oter

gr

oup

or

amen

d ag

reem

ent

to d

rop

such

cla

uses

to

excl

ude

inve

stor

s fro

m p

rom

oter

/pro

mot

er g

roup

.

32

Onl

y fo

r Lim

ited

Circ

ulat

ion

to th

e M

embe

rs o

f AIB

I

Man

ner o

f dili

genc

eD

ocum

ents

to b

e re

view

ed a

nd B

asis

of D

ue D

ilige

nce

Exte

rnal

/ th

ird p

arty

re

view

(s

hare

pr

ice,

pr

omis

e vs

. pe

rform

ance

etc

.) ar

e di

scus

sed.

If

the

prom

oter

s ar

e co

rpor

ate

entit

ies,

then

the

“nat

ural

per

sons

” in

con

trol o

f the

cor

pora

te p

rom

oter

or

per

sons

who

are

on

the

boar

d of

di

rect

ors

of th

e co

rpor

ate

prom

oter

of

th

e Is

suer

’s

prom

oter

ar

e id

entifi

ed.

6.

Cer

tain

det

ails

suc

h as

the

fi nan

cial

in

form

atio

n re

gard

ing

the

top

5 G

roup

C

ompa

nies

(if

lis

ted,

on

th

e ba

sis

of m

arke

t ca

pita

lizat

ion

and

if un

liste

d, o

n th

e ba

sis

of

turn

over

), lo

ss-m

akin

g G

roup

C

ompa

nies

, the

neg

ativ

e ne

t wor

th

Gro

up C

ompa

nies

, def

unct

Gro

up

Com

pani

es o

r G

roup

Com

pani

es

unde

r w

indi

ng u

p ar

e pr

ovid

ed b

y th

e re

spec

tive

Gro

up

Com

pany

th

roug

h th

e Is

suer

. The

nam

e an

d ty

pe o

f or

gani

zatio

n; b

usin

ess

of

the

Gro

up C

ompa

ny,

the

inte

rest

of

pro

mot

er o

f th

e Is

suer

in s

uch

Gro

up

Com

pany

an

d va

rious

co

nfi rm

atio

ns

that

ar

e re

quire

d un

der

the

ICD

R R

egul

atio

ns a

re

prov

ided

for a

ll G

roup

Com

pani

es.

33

Onl

y fo

r Lim

ited

Circ

ulat

ion

to th

e M

embe

rs o

f AIB

I

Man

ner o

f dili

genc

eD

ocum

ents

to b

e re

view

ed a

nd B

asis

of D

ue D

ilige

nce

Exte

rnal

/ th

ird p

arty

re

view

7.

Ano

ther

asp

ect

to b

e di

scus

sed

with

the

man

agem

ent o

f the

Issu

er

is t

he c

onfl i

ct o

f in

tere

st/c

omm

on

purs

uit

of t

he I

ssue

r w

ith a

ny o

f th

e G

roup

Com

pani

es o

r ent

ities

in

whi

ch p

rom

oter

s ar

e in

tere

sted

.8.

Le

ad

Man

ager

s al

so

disc

uss

if th

e pr

omot

ers

have

dis

asso

ciat

ed

from

any

com

pany

in

the

last

3

year

s an

d re

ason

s fo

r th

e sa

me

and

obta

in

certi

fi cat

ions

to

th

is

effe

ct.

9.

Lead

Man

ager

s al

so d

iscu

ss t

he

natu

re a

nd e

xten

t of

the

int

eres

t of

ev

ery

prom

oter

an

d G

roup

C

ompa

ny i

nclu

ding

in

prom

otio

n of

the

Issu

er, i

n th

e la

nd a

cqui

red

by th

e Is

suer

in th

e la

st tw

o ye

ars

or

in

any

trans

actio

n su

ch

as

acqu

isiti

on o

f lan

d, c

onst

ruct

ion

of

build

ing

or s

uppl

y of

mac

hine

ry.

In

add

ition

, th

e Is

suer

con

fi rm

s,

and

prov

ides

de

tails

, if

any,

re

gard

ing

any

paym

ent o

f ben

efi ts

to

pro

mot

ers

or p

rom

oter

gro

up

durin

g th

e la

st tw

o ye

ars.

Mat

eria

l re

late

d pa

rty tr

ansa

ctio

ns b

etw

een

the

Issu

er a

nd th

e

34

Onl

y fo

r Lim

ited

Circ

ulat

ion

to th

e M

embe

rs o

f AIB

I

Man

ner o

f dili

genc

eD

ocum

ents

to b

e re

view

ed a

nd B

asis

of D

ue D

ilige

nce

Exte

rnal

/ th

ird p

arty

re

view

G

roup

C

ompa

nies

ar

e al

so

disc

usse

d w

ith th

e Is

suer

and

the

Lead

M

anag

er

may

re

ques

t fo

r fu

rther

det

ails

in th

is re

spec

t.10

. Fo

r di

sclo

sure

rel

atin

g to

Gro

up

Com

pani

es,

certi

fi cat

es

are

obta

ined

fro

m

each

G

roup

C

ompa

ny o

r the

pro

mot

ers.

9. F

INA

NC

IAL

INFO

RM

ATIO

NFo

r the

Issu

er:

1.

Aud

itors

’ re

port

on

fi nan

cial

st

atem

ents

as

requ

ired

unde

r th

e IC

DR

regu

latio

ns2.

D

ilige

nce

sess

ions

w

ith

Man

agem

ent

and

audi

tors

(s

tatu

tory

an

d in

tern

al)

alon

g w

ith

lega

l co

unse

ls

to

disc

uss

any

issu

es r

elat

ed to

the

fi nan

cial

st

atem

ents

3.

Fo

r va

rious

m

atte

rs

such

as

de

term

inin

g ex

perie

nce

and

inde

pend

ence

of

audi

tors

, sc

ope

of

audi

t, in

tern

al

cont

rols

an

d ac

coun

ting

polic

ies,

dili

genc

e ca

lls

are

done

with

the

audi

tors

1.

Aud

itors

’ rep

ort.

2.

Pee

r re

view

cer

tifi c

ate

of a

udito

rs a

nd c

onfi r

mat

ion

that

th

e sa

me

is v

alid

.3.

M

anag

emen

t con

fi rm

atio

ns o

n ce

rtain

issu

es.

4.

Aud

itor’s

repo

rt on

sta

tem

ent o

f tax

ben

efi ts

.5.

C

omfo

rt le

tters

.6.

R

evie

w

of

min

utes

of

au

dit

com

mitt

ee

/ bo

ard

/ sh

areh

olde

rs m

eetin

g fo

r the

last

thre

e ye

ars.

If pr

o fo

rma

fi nan

cial

st

atem

ents

are

req

uire

d to

be

in

clud

ed,

plea

se

note

th

at t

here

is

no g

uida

nce

unde

r In

dian

GA

AP

on t

he

prep

arat

ion

of

prof

orm

as.

Acc

ordi

ngly,

th

e au

dito

rs

may

ne

ed

guid

ance

fro

m

the

Lead

M

anag

er

and

inte

rnat

iona

l cou

nsel

on

the

follo

win

g:•

Sta

ndar

ds

for

prof

orm

as u

nder

IFR

S,

US

GA

AP

etc.

;•

Con

tent

of

th

e ex

amin

atio

n re

port;

an

d•

Foot

note

s to

the

pro

- fo

rma

fi nan

cial

s.

35

Onl

y fo

r Lim

ited

Circ

ulat

ion

to th

e M

embe

rs o

f AIB

I

Man

ner o

f dili

genc

eD

ocum

ents

to b

e re

view

ed a

nd B

asis

of D

ue D

ilige

nce

Exte

rnal

/ th

ird p

arty

re

view

For G

roup

Com

pani

es:

Rel

ianc

e on

ce

rtifi c

ates

fro

m

the

prom

oter

s an

d th

e G

roup

Com

pani

es

who

se fi

nan

cial

s ar

e di

sclo

sed

in t

he

Offe

r Doc

umen

t

1.

Issu

er/ p

rom

oter

to p

rovi

de a

list

of a

ll gr

oup

com

pani

es.

2.

Pro

mot

er’s

/ Is

suer

’s

certi

fi cat

ion

on

top

fi ve

Gro

up

Com

pani

es

(bas

ed

on

mar

ket

cap

or

turn

over

, as

ap

plic

able

) an

d ot

her

com

pani

es f

or w

hom

fi n

anci

als

need

to b

e in

clud

ed (s

ick

com

pani

es, n

egat

ive

netw

orth

, co

mpa

nies

un

der

win

ding

up

pe

titio

ns,

loss

m

akin

g G

roup

C

ompa

nies

(fo

r th

e la

st

thre

e ye

ars)

). Th

e fi n

anci

al in

form

atio

n to

be

disc

lose

d m

ay b

e ce

rtifi e

d by

th

e re

leva

nt G

roup

Com

pany

.3.

La

st th

ree

year

ann

ual r

epor

ts a

nd in

corp

orat

ion

docu

men

ts

of t

op fi

ve

Gro

up C

ompa

nies

(ba

sed

on m

arke

t ca

p or

tu

rnov

er,

as a

pplic

able

) an

d ot

her

com

pani

es f

or w

hom

fi n

anci

als

need

to

be i

nclu

ded

(sic

k co

mpa

nies

, ne

gativ

e ne

twor

th, c

ompa

nies

und

er w

indi

ng u

p pe

titio

ns, l

oss

mak

ing

Gro

up C

ompa

nies

(for

the

last

thre

e ye

ars)

), to

be

revi

ewed

.M

anag

emen

t’s

Dis

cuss

ion

and

Ana

lysi

s of

Fin

anci

al C

ondi

tion

and

Res

ults

of O

pera

tions

:D

ilige

nce

sess

ions

with

Man

agem

ent

and

audi

tors

alo

ng w

ith le

gal c

ouns

els

to d

iscu

ss th

e fi n

anci

al s

tate

men

ts

1.

Circ

le u

ps b

y st

atut

ory

audi

tors

for

min

g pa

rt of

the

co

mfo

rt le

tter

and

man

agem

ent d

iscu

ssio

n/co

nfi rm

atio

n fo

r fi g

ures

for w

hich

circ

le-u

ps c

anno

t be

obta

ined

.2.

A

nnua

l rep

orts

, in

the

case

of a

list

ed Is

suer

.

Fina

ncia

l Ind

ebte

dnes

s:A

sche

dule

of

ou

tsta

ndin

g fi n

anci

al

inde

bted

ness

is p

repa

red

by th

e Is

suer

an

d su

ch s

ched

ule

toge

ther

with

the

su

ppor

ting

docu

men

ts is

revi

ewed

.

1.

Exa

min

e co

mpl

ianc

e un

der

the

loan

agr

eem

ents

and

fi n

anci

al c

oven

ants

con

tain

ed th

erei

n.2.

Is

sue

rela

ted

cons

ent f

rom

the

lend

ers,

if re

quire

d.3.

C

opie

s of

loa

n ag

reem

ents

, sa

nctio

n le

tters

, w

aive

r le

tters

, sec

urity

doc

umen

ts, d

ocum

ents

rela

ted

to b

onds

is

sued

and

out

stan

ding

.4.

R

egis

ter o

f cha

rges

36

Onl

y fo

r Lim

ited

Circ

ulat

ion

to th

e M

embe

rs o

f AIB

I

Man

ner o

f dili

genc

eD

ocum

ents

to b

e re

view

ed a

nd B

asis

of D

ue D

ilige

nce

Exte

rnal

/ th

ird p

arty

re

view

Oth

er1.

W

here

the

Obj

ects

of t

he Is

sue

is a

n id

entifi

ed

acqu

isiti

on,

last

fi v

e ye

ars

fi nan

cial

sta

tem

ents

of

the

com

pany

/bu

sine

ss b

eing

acq

uire

d al

ong

with

the

im

pact

on

the

issu

er

2.

Aud

itors

to c

ircle

up

all fi

nan

cial

info

rmat

ion

in th

e of

fer

docu

men

t to

con

fi rm

its

accu

racy

and

ens

ure

that

the

y ar

e ba

sed

out o

f aud

ited

fi nan

cial

s.10

. LIT

IGAT

ION

Dili

genc

e pr

oces

s in

resp

ect o

f liti

gatio

n is

und

erta

ken

by t

he L

ead

Man

ager

s w

ith t

he a

ssis

tanc

e of

lega

l cou

nsel

s.

The

due

dilig

ence

pro

cess

follo

wed

with

re

spec

t to

litig

atio

n va

ries

acco

rdin

g to

th

e pa

rties

with

res

pect

to

who

m t

he

litig

atio

n is

to b

e di

sclo

sed

in th

e O

ffer

Doc

umen

t. Th

e va

rious

due

dili

genc

e ap

proa

ches

ado

pted

are

as

follo

ws:

1.

Litig

atio

n in

volv

ing

the

Issu

er a

nd

its S

ubsi

diar

ies

• D

ilige

nce

proc

ess c

omm

ence

s w

ith a

mee

ting

with

Iss

uer’s

or

its

S

ubsi

diar

ies’

of

fi cia

ls

resp

onsi

ble

for l

egal

mat

ters

1.

MIS

/ s

umm

ariz

ed t

able

of

lega

l ca

ses

invo

lvin

g th

e Is

suer

to b

e pr

ovid

ed b

y th

e Is

suer

and

cer

tifi e

d by

lega

l he

ad o

r any

sen

ior m

anag

emen

t per

sonn

el.

2.

Cer

tifi c

atio

ns

prov

ided

by

th

e pr

omot

ers,

D

irect

ors,

Is

suer

, G

roup

C

ompa

nies

, S

ubsi

diar

ies

and

Join

t Ve

ntur

es

(if t

he li

tigat

ion

invo

lvin

g th

e Jo

int

Vent

ure

is

mat

eria

l) in

resp

ect o

f the

litig

atio

ns.

3.

Ext

ract

of

last

ord

ers

etc.

of

mat

eria

l lit

igat

ion

agai

nst

the

Issu

er, S

ubsi

diar

ies,

JV

and

oth

er c

ases

whi

ch c

ould

ha

ve a

mat

eria

lly a

dver

se e

ffect

on

the

posi

tion

of t

he

Issu

er a

re to

be

revi

ewed

.

In r

espe

ct o

f di

ligen

ce f

or

litig

atio

n, th

ere

is lit

tle s

cope

fo

r ex

tern

al

revi

ew.

The

star

ting

poin

t of

di

ligen

ce

is

the

MIS

/sum

mar

ized

in

form

atio

n pr

ovid

ed b

y th

e Is

suer

w

hich

is

fo

llow

ed

by d

ue d

ilige

nce

of l

egal

do

cum

ents

pro

vide

d by

the

Issu

er in

the

data

room

.

37

Onl

y fo

r Lim

ited

Circ

ulat

ion

to th

e M

embe

rs o

f AIB

I

Man

ner o

f dili

genc

eD

ocum

ents

to b

e re

view

ed a

nd B

asis

of D

ue D

ilige

nce

Exte

rnal

/ th

ird p

arty

re

view

• A

chec

klis

t of l

egal

info

rmat

ion

as

requ

ired

in

acco

rdan

ce

with

IC

DR

R

egul

atio

ns

is

shar

ed w

ith th

e Is

suer

and

the

Issu

er i

s re

quire

d to

pro

vide

an

in

tern

al

man

agem

ent

info

rmat

ion

stat

emen

t (“

MIS

”)

/ su

mm

ariz

ed

tabl

e of

all

the

case

s un

der v

ario

us

cate

goriz

atio

ns s

uch

as:

(a)

Litig

atio

ns b

y an

d ag

ains

t the

Is

suer

and

its

Sub

sidi

arie

s.(b

) C

ateg

oris

atio

n by

ty

pe

of

litig

atio

n su

ch

as

crim

inal

, ci

vil,

cons

umer

, ta

x,

trade

m

ark

disp

utes

, le

gal

notic

es

issu

ed

to

the

Issu

er

and

arbi

tratio

n pr

ocee

ding

s. T

his

is n

ot a

n ex

haus

tive

list

and

can

vary

fro

m

com

pany

to

co

mpa

ny,

indu

stry

to

indu

stry

an

d ge

ogra

phic

loca

tion

of th

e pr

ojec

ts.

(c)

Litig

atio

n in

volv

ing

any

othe

r co

mpa

ny

who

se

outc

ome

coul

d ha

ve a

mat

eria

l adv

erse

ef

fect

on

the

Issu

er.

4.

Cas

e pa

pers

of a

ll the

litig

atio

ns (i

nclu

ding

pas

t pen

altie

s)

rela

ting

to th

e Is

suer

and

Sub

sidi

arie

s as

requ

ired

to b

e di

sclo

sed

unde

r th

e IC

DR

Reg

ulat

ions

and

pro

vide

d by

th

e Is

suer

in th

e da

ta ro

om.

5.

In c

ases

whe

re a

mat

eria

lity

thre

shol

d is

est

ablis

hed

abov

e w

hich

all

litig

atio

ns a

re i

ndiv

idua

lly d

iscl

osed

, ca

se p

aper

s of

all

such

litig

atio

ns a

bove

the

mat

eria

lity

thre

shol

ds s

houl

d be

revi

ewed

. 6.

In

res

pect

of a

larg

e nu

mbe

r of

sim

ilar

case

s w

hich

are

co

mbi

ned

for d

iscl

osur

e pu

rpos

e, c

ase

pape

rs fo

r som

e lit

igat

ion

shou

ld b

e re

view

ed o

n a

sam

ple

basi

s.

38

Onl

y fo

r Lim

ited

Circ

ulat

ion

to th

e M

embe

rs o

f AIB

I

Man

ner o

f dili

genc

eD

ocum

ents

to b

e re

view

ed a

nd B

asis

of D

ue D

ilige

nce

Exte

rnal

/ th

ird p

arty

re

view

• M

IS

/ su

mm

ariz

ed

tabl

e pr

oduc

ed

by

the

Issu

er

is

exam

ined

, the

litig

atio

n w

hich

co

uld

mat

eria

lly a

nd a

dver

sely

af

fect

the

Issu

er a

re id

entifi

ed

and

then

a d

ue d

ilige

nce

of th

e ca

se p

aper

s re

latin

g to

suc

h id

entifi

ed

litig

atio

n is

car

ried

out.

In t

he e

vent

doc

umen

ts

rela

ting

to a

ny l

itiga

tion

are

in

vern

acul

ar

lang

uage

, th

e Is

suer

als

o pr

ovid

es e

ither

the

trans

late

d co

pies

of r

evie

w o

r in

cas

e th

e tra

nsla

ted

pape

rs

are

not

avai

labl

e,

sum

mar

y of

th

e m

atte

r pr

epar

ed

by

the

loca

l law

yer

hand

ling

the

mat

ter.

• If

requ

ired,

m

eetin

gs

/ co

nfer

ence

ca

lls

are

also

he

ld w

ith th

e re

spec

tive

lega

l co

unse

ls /

in-h

ouse

cou

nsel

s of

the

Issu

er w

ho a

re h

andl

ing

thes

e ca

ses.

• D

epen

ding

on

th

e si

ze

of

the

Issu

er

and

the

num

ber

of

litig

atio

n,

a m

ater

ialit

y th

resh

old

/ cut

off

may

be

fi xed

an

d al

l the

litig

atio

n

39

Onl

y fo

r Lim

ited

Circ

ulat

ion

to th

e M

embe

rs o

f AIB

I

Man

ner o

f dili

genc

eD

ocum

ents

to b

e re

view

ed a

nd B

asis

of D

ue D

ilige

nce

Exte

rnal

/ th

ird p

arty

re

view

pr

ocee

ding

s ab

ove

such

th

resh

old

are

disc

lose

d se

para

tely

and

the

rem

aini

ng

litig

atio

n m

atte

rs

whi

ch

are

of a

sim

ilar

natu

re a

nd

indi

vidu

ally

do

no

t im

pose

“m

ater

ial”

fi nan

cial

and

oth

er

liabi

lity

on t

he

Is

suer

a

re

com

bine

d fo

r th

e pu

rpos

es

of

disc

losu

re.

The

case

pa

pers

of

the

litig

atio

n th

at

are

com

bine

d to

geth

er

are

verifi

ed

on a

sam

ple

basi

s.•

The

litig

atio

n se

ctio

n so

dr

afte

d is

re

view

ed

by

the

Issu

er’s

offi

cial

s in

cha

rge

of

lega

l fu

nctio

n an

d a

draf

ting

sess

ion

is c

ondu

cted

whe

reby

di

scus

sion

s ar

e he

ld a

nd t

he

disc

losu

res

are

fi nal

ized

.2.

Li

tigat

ion

invo

lvin

g th

e pr

omot

ers

of th

e Is

suer

• A

chec

klis

t of l

egal

info

rmat

ion

as

requ

ired

in

acco

rdan

ce

with

IC

DR

R

egul

atio

ns

is

shar

ed w

ith th

e Is

suer

and

the

Issu

er i

s re

quire

d to

pro

vide

th

e de

tails

of,

and

docu

men

ts

perta

inin

g to

, al

l the

litig

atio

n in

volv

ing

the

prom

oter

s.

40

Onl

y fo

r Lim

ited

Circ

ulat

ion

to th

e M

embe

rs o

f AIB

I

Man

ner o

f dili

genc

eD

ocum

ents

to b

e re

view

ed a

nd B

asis

of D

ue D

ilige

nce

Exte

rnal

/ th

ird p

arty

re

view

• Th

e su

mm

ary

tabl

e pr

ovid

ed

by t

he I

ssue

r is

rev

iew

ed b

y th

e le

gal c

ouns

els

and

furth

er

requ

irem

ents

, suc

h as

que

ries

or d

ocum

ents

, are

pro

vide

d to

th

e Is

suer

.•

Bas

ed o

n th

e lis

t of

litig

atio

n an

d ce

rtifi c

atio

ns

prov

ided

, th

e di

sclo

sure

s fo

r th

e O

ffer

Doc

umen

t are

dra

fted.

•

The

disc

losu

res

are

fi nal

ised

af

ter

disc

ussi

ons

with

th

e re

leva

nt

offi c

ials

of

th

e pr

omot

ers

or t

he I

ssue

r, as

th

e ca

se m

ay b

e.3.

Li

tigat

ion

invo

lvin

g th

e D

irect

ors

of

the

Issu

er•

Cer

tifi c

atio

n on

di

sclo

sure

s is

obt

aine

d fro

m e

ach

of t

he

Dire

ctor

s.

Sub

sequ

ent

to

revi

ew o

f th

e di

sclo

sure

s in

th

e ce

rtifi c

ate,

an

y fu

rther

ex

plan

atio

ns

and

deta

ils

requ

ired

are

obta

ined

fro

m

each

of

th

e D

irect

ors

for

the

disc

losu

res

in t

he O

ffer

Doc

umen

t.

41

Onl

y fo

r Lim

ited

Circ

ulat

ion

to th

e M

embe

rs o

f AIB

I

Man

ner o

f dili

genc

eD

ocum

ents

to b

e re

view

ed a

nd B

asis

of D

ue D

ilige

nce

Exte

rnal

/ th

ird p

arty

re

view

4.

Litig

atio

n in

volv

ing

the

Gro

up

Com

pani

es o

f the

Issu

er•

Cer

tifi c

atio

n on

di

sclo

sure

s is

ob

tain

ed

from

ea

ch

of

the

Gro

up

Com

pani

es.

Sub

sequ

ent

to r

evie

w o

f th

e di

sclo

sure

s in

the

cer

tifi c

ate,

an

y fu

rther

exp

lana

tions

and

de

tails

req

uire

d ar

e ob

tain

ed

from

eac

h of

the

Dire

ctor

s fo

r th

e di

sclo

sure

s in

the

Offe

r D

ocum

ent.

5.

The

disc

losu

res

as fi

nal

ized

are

ce

rtifi e

d by

the

rel

evan

t co

mpa

ny

on

thei

r re

spec

tive

lette

rhea

ds

and

they

pro

vide

an

unde

rtaki

ng

to u

pdat

e an

y fu

rther

upd

ates

to

the

Lead

Man

ager

s til

l th

e lis

ting

of t

he s

hare

s. T

he I

ssue

r sh

ould

im

med

iate

ly

info

rm

the

Lead

M

anag

ers

abou

t any

dev

elop

men

t on

any

dis

clos

ed l

itiga

tion

mat

ter

or a

ny n

ew li

tigat

ion.

42

Onl

y fo

r Lim

ited

Circ

ulat

ion

to th

e M

embe

rs o

f AIB

I

Man

ner o

f dili

genc

eD

ocum

ents

to b

e re

view

ed a

nd B

asis

of D

ue D

ilige

nce

Exte

rnal

/ th

ird p

arty

re

view

11. G

OVE

RN

MEN

T A

PPR

OVA

LS1.

D

ilige

nce

is

star

ted

by

way

of

di

scus

sion

s w

ith th

e m

anag

emen

t of

the

Issu

er a

nd le

gal c

ouns

els

to

unde

rsta

nd t

he v

ario

us a

ppro

vals

w

hich

are

req

uire

d by

the

Iss

uer

unde

r va

rious

la

ws

to

run

its

busi

ness

, in

clud

ing

nece

ssar

y ap

prov

als

rela

ted

to n

ew p

roje

cts

bein

g se

t up

as s

tate

d in

obj

ects

of

the

issu

e se

ctio

n.2.

A

ll m

ater

ial g

over

nmen

t app

rova

ls

are

prov

ided

and

rev

iew

ed.

The

Issu

er is

als

o re

quire

d to

pro

vide

co

pies

of

appr

oval

s th

at a

re n

ot

mat

eria

l on

sam

ple

basi

s, f

or i

ts

bran

ch, p

lant

, loc

atio

n or

offi

ce, a

s ap

plic

able

. 3.

Th

e Le

ad

Man

ager

s w

ith

the

help

of

lega

l cou

nsel

rev

iew

suc

h ap

prov

als

and

chec

k th

eir

valid

ity.

For

expi

red

appr

oval

s, t

he I

ssue

r is

req

uire

d to

mak

e ap

plic

atio

ns

for

rene

wal

s an

d if

the

rene

wed

ap

prov

al i

s no

t re

ceiv

ed b

y th

e fi l

ing

of th

e D

RH

P, th

en a

ppro

pria

te

disc

losu

re is

mad

e in

thi

s se

ctio

n an

d th

e se

ctio

n on

ris

k fa

ctor

s. In

th

e ev

ent d

ocum

ents

rela

ting

1.

App

rova

ls f

or r

unni

ng t

he b

usin

ess

of t

he I

ssue

r w

hich

ar

e m

ater

ial

in r

espe

ct o

f th

e bu

sine

ss o

f th

e Is

suer

. Ty

pica

lly th

ese

are

appr

oval

s m

ater

ial f

or th

e fu

nctio

ning

of

the

Issu

er a

nd c

arry

ing

out i

ts b

usin

ess

activ

ities

.2.

C

orpo

rate

A

ppro

vals

an

d R

egis

tratio

ns

rela

ted

to

the

Issu

er s

uch

as C

ertifi

cat

e of

Inc

orpo

ratio

n, P

AN

N

o.

Ser

vice

Ta

x R

egis

tratio

n,

Sal

es

Tax

&

Exc

ise

Reg

istra

tions

, etc

.3.

Va

rious

st

atut

ory

and

gove

rnm

ent

appr

oval

s fo

r th

e br

anch

es / f

acili

ties /

offi

ces o

f the

Issu

er o

n a

sam

ple

basi

s,

such

as

appr

oval

s un

der l

ocal

Sho

ps a

nd E

stab

lishm

ents

A

cts,

Sta

ndar

ds o

f Wei

ghts

and

Mea

sure

s A

ct, a

ppro

vals

of

Ele

ctric

ity B

oard

s, e

nviro

nmen

tal a

ppro

vals

etc

. (th

is

list i

s no

t exh

aust

ive

and

varie

s ac

cord

ing

to th

e st

ates

in

whi

ch th

e Is

suer

ope

rate

s).

4.

App

rova

ls r

equi

red

for

impl

emen

ting

the

proj

ects

for

w

hich

fund

s ar

e be

ing

rais

ed a

s pe

r the

Obj

ects

incl

udin

g st

atus

of t

hose

in th

e pr

oces

s of

bei

ng o

btai

ned.

43

Onl

y fo

r Lim

ited

Circ

ulat

ion

to th

e M

embe

rs o

f AIB

I

Man

ner o

f dili

genc

eD

ocum

ents

to b

e re

view

ed a

nd B

asis

of D

ue D

ilige

nce

Exte

rnal

/ th

ird p

arty

re

view

to

any

app

rova

l are

in v

erna

cula

r la

ngua

ge,

the

Issu

er

also

pr

ovid

es

the

trans

late

d co

pies

fo

r re

view

. A

ppro

vals

re

quire

d w

ith r

espe

ct t

o pr

ojec

ts,

incl

udin

g th

ose

unde

rtake

n by

the

Iss

uer’s

S

ubsi

diar

ies,

for

whi

ch f

unds

are

pr

opos

ed to

be

rais

ed a

re u

sual

ly

disc

lose

d pr

ojec

t wis

e. If

any

criti

cal

appr

oval

has

bee

n ap

plie

d fo

r bu

t no

t obt

aine

d or

a m

ater

ial a

ppro

val

has

not

been

app

lied

for

(due

to

reas

ons

such

as

the

fi lin

g of

the

ap

plic

atio

n be

ing

cont

inge

nt o

n th

e co

mpl

etio

n of

cer

tain

mile

ston

es),

then

ne

cess

ary

disc

losu

res

are

mad

e in

this

resp

ect.

12. B

ASI

S O

F A

LLO

TMEN

TM

anne

r of d

ilige

nce

Doc

umen

ts to

be

revi

ewed

and

Bas

is o

f Due

Dili

genc

eEx

tern

al/o

ther

revi

ewD

ilige

nce

com

pris

es o

f su

perv

isio

n of

in

term

edia

ries,

inc

ludi

ng t

he R

TI a

nd

Ban

kers

to th

e is

sue

and

inde

pend

ently

ch

ecki

ng/v

erify

ing

on a

sam

ple

basi

s th

e al

lotm

ent fi

les,

rej

ectio

n, c

olle

ctio

n an

d re

fund

s.

Bef

ore

Allo

tmen

t1.

P

re –

issu

e ad

verti

sem

ent a

fter

regi

ster

ing

the

RH

P w

ith

regi

stra

r of c

ompa

nies

.2.

P

ricin

g re

solu

tion

and

pric

ing

adve

rtise

men

t.3

Con

solid

ated

bid

fi le

(N

SE

and

BS

E)

from

the

RTI

, one

da

y af

ter i

ssue

clo

sure

afte

r the

cor

rect

ions

allo

wed

hav

e be

en c

arrie

d ou

t.4.

Li

st o

f em

ploy

ees

(in c

ase

of a

lloca

tion

to e

mpl

oyee

s).

On

a ca

se t

o ca

se b

asis

en

gagi

ng e

xter

nal

fi rm

s to

re

view

wor

k ca

rrie

d ou

t by

th

e R

TI.

The

wor

k ca

rrie

d ou

t by

th

ese

agen

cies

in

clud

es p

rovi

ding

a p

ost-

issu

e re

port

whi

ch in

clud

es

revi

ew o

f tec

hnic

al re

ject

ion

case

s, re

conc

iliat

ion

of to

tal

colle

ctio

n, r

efun

ds a

s w

ell

as re

cord

s of

sha

re c

redi

ts.

44

Onl

y fo

r Lim

ited

Circ

ulat

ion

to th

e M

embe

rs o

f AIB

I

Man

ner o

f dili

genc

eD

ocum

ents

to b

e re

view

ed a

nd B

asis

of D

ue D

ilige

nce

Exte

rnal

/ th

ird p

arty

re

view

5.

Pro

pose

d A

llotm

ent F

ile fr

om th

e R

TI, a

long

with

repo

rts

givi

ng d

etai

ls o

f tec

hnic

al re

ject

ion

case

s, in

clud

ing:

• sa

me

bene

fi cia

ry a

ccou

nt,

• ap

plic

ants

with

sam

e PA

N,

• ap

plic

ants

with

out P

AN

. 6.

C

opie

s of

all P

rovi

sion

al C

ertifi

cat

es a

nd F

inal

Cer

tifi c

ates

fro

m th

e B

anke

rs to

the

Issu

e an

d th

e S

CS

Bs.

7.

A

llotm

ent

File

(ac

tual

ly u

sed

for

allo

tmen

t an

d cr

edit

of

shar

es. R

egis

trar t

o pr

ovid

e up

date

d fi l

e w

ith re

visi

ons

if an

y, w

ith re

ason

s).

8.

Rej

ectio

n Fi

le c

onta

inin

g de

tails

of t

he a

pplic

ants

den

ied

allo

tmen

t with

reas

ons

ther

eof.

9.

Mee

ting

with

the

reg

istra

r to

dra

w o

ut t

he b

asis

of

allo

tmen

t, di

scus

sion

and

doc

umen

tatio

n of

pro

cedu

res

follo

wed

by

the

RTI

, allo

tmen

t, re

ject

ions

, spe

cial

cas

es,

if an

y an

d ot

her r

elat

ed m

atte

rs.

10.

Bas

is o

f allo

tmen

t giv

ing

the

allo

tmen

t det

ails

in v

ario

us

cate

gorie

s in

clud

ing

QIB

, HN

I, re

tail,

em

ploy

ee e

tc.

11.

Sam

ple

chec

k of

the

allo

tmen

t an

d re

ject

ion

fi le

and

reco

ncili

ng t

he b

asis

of

allo

tmen

t w

ith t

he f

unds

and

ap

plic

atio

ns re

ceiv

ed.

12.

Lette

r fro

m R

TI a

ddre

ssed

to L

ead

Man

ager

s re

gard

ing

the

deta

ils th

ey h

ave

verifi

ed

with

the

depo

sito

ries

(NS

DL/

CD

SL)

pur

suan

t to

SE

BI l

ette

r dat

ed J

une

12, 2

007.

13.

Rev

iew

of

de

mog

raph

ic

deta

ils

dow

nloa

ded

from

de

posi

torie

s.

45

Onl

y fo

r Lim

ited

Circ

ulat

ion

to th

e M

embe

rs o

f AIB

I

Man

ner o

f dili

genc

eD

ocum

ents

to b

e re

view

ed a

nd B

asis

of D

ue D

ilige

nce

Exte

rnal

/ th

ird p

arty

re

view

14.

Cop

y of

Cer

tifi c

ate

from

the

RTI

abo

ut th

e va

lidat

ion

of

the

elec

troni

c bi

d de

tails

with

the

depo

sito

ry’s

reco

rds

for

DP

ID, c

lient

ID a

nd P

AN

.15

. Fi

nal m

inut

es s

ubm

itted

to D

SE

alo

ng w

ith th

e ba

sis

of

allo

tmen

t to

be fi

naliz

ed a

long

with

the

desi

gnat

ed S

tock

E

xcha

nge.

16.

Man

agem

ent

and

audi

tors

dis

cuss

ion

and

certi

fi cat

ions

fo

r an

y m

ater

ial

deve

lopm

ents

pos

t R

HP

& p

ost

the

Pro

spec

tus.

Post

Allo

tmen

t17

. C

opy

of b

asis

of a

llotm

ent a

dver

tisem

ent.

18.

Issu

er

Boa

rd/

Com

mitt

ee

reso

lutio

n fo

r al

lotm

ent

of

shar

es.

19.

Ref

und

File

.20

. C

ertifi

cat

e fro

m R

TI fo

r cre

dit o

f sec

uriti

es a

nd d

ispa

tch

of

refu

nds

with

in th

e sp

ecifi

ed ti

me

perio

d.21

. C

ertifi

cat

e fro

m d

epos

itorie

s fo

r cr

edit

of s

ecur

ities

and

lo

ck-in

of s

ecur

ities

.22

. Fo

rmat

of C

AN

and

con

fi rm

atio

n of

dis

patc

h of

CA

N.

23.

Form

at o

f EC

S in

timat

ion/

refu

nd o

rder

s.24

. C

ertifi

cat

e fro

m s

tatu

tory

aud

itors

/pra

ctic

ing

char

tere

d ac

coun

tant

/ pr

actic

ing

com

pany

sec

reta

ry s

tatin

g th

at

allo

tmen

t ha

s be

en m

ade

as p

er t

he b

asis

of

allo

tmen

t ap

prov

ed b

y th

e D

esig

nate

d S

tock

Exc

hang

e an

d lo

ck-in

of

pre

issu

e sh

are

capi

tal f

or 1

/3 y

ears

.

46

Onl

y fo

r Lim

ited

Circ

ulat

ion

to th

e M

embe

rs o

f AIB

I

Man

ner o

f dili

genc

eD

ocum

ents

to b

e re

view

ed a

nd B

asis

of D

ue D

ilige

nce

Exte

rnal

/ th

ird p

arty

re

view

25.

Cer

tifi c

ate

from

sta

tuto

ry a

udito

rs/p

ract

icin

g ch

arte

red

acco

unta

nt/

prac

ticin

g co

mpa

ny s

ecre

tary

sta

ting

that

al

lotm

ent o

f sha

res

from

the

empl

oyee

s’ q

uota

has

bee

n m

ade

to p

erm

anen

t/reg

ular

em

ploy

ees

of t

he c

ompa

ny

and

of t

he p

rom

oter

com

pani

es,

as o

n th

e da

te o

f th

e op

enin

g of

the

publ

ic is

sue

and

who

are

ent

itled

to s

uch

allo

tmen

t. 26

. D

istri

butio

n sc

hedu

le.

27.

Sha

reho

ldin

g pa

ttern

of

the

Issu

er –

pre

-issu

e, f

or t

he

Issu

e an

d po

st a

llotm

ent.

28.

Ret

urn

refu

nds

thro

ugh

EC

S/p

hysi

cal

mod

e an

d st

eps

take

n by

Reg

istra

r to

addr

ess

the

sam

e.29

. Tr

ansf

er i

nstru

ctio

ns f

or t

rans

fer

of f

unds

fro

m E

scro

w

Acc

ount

/SC

SB

to

P

ublic

Is

sue

acco

unt

and

refu

nd

acco

unt.

30.

Tran

sfer

inst

ruct

ions

for t

rans

fer o

f fun

ds fr

om th

e P

ublic

Is

sue

acco

unt t

o Is

suer

acc

ount

.31

. P

erio

dic

upda

tes

on

natu

re

and

stat

us

of

inve

stor

gr

ieva

nces

.Po

st-is

sue

mon

itorin

g re

port

s32

. In

itial

pos

t-iss

ue m

onito

ring

repo

rt (3

-day

rep

ort)

from

R

TI.

33.

Fina

l pos

t-iss

ue m

onito

ring

repo

rt fro

m R

TI.

34.

Cer

tifi c

ate

from

ref

und

bank

er(s

) th

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48


ANNEXURE B

INDICATIVE RETENTION LIST OF INFORMATION/DOCUMENTSIN A PUBLIC OFFERING

The following list sets out certain information/documents which can be considered for retention in relation to a public offering (“Issue”). This list is purely illustrative and does not attempt to indicate industry, sector or transaction specifi c information and documents. Accordingly, this list may require modifi cations based on specifi c transaction requirements.

Please note that in this Checklist:

(a) “Issuer” means issuer company;

(b) “Subsidiaries” and “Joint Venture” means the subsidiaries and joint ventures of the Issuer;

(c) “Promoter” and “Promoter Group” has such meaning as provided in the ICDR Regulations;

(d) “Group Companies” means companies, fi rms, ventures, etc promoted by the promoters of the Issuer, irrespective of whether these are covered under Section 370 (1B) of the Companies Act, 1956 (“Companies Act”); and

(e) “Offer Documents” means collectively the relevant offer documents including the Draft Red Herring Prospectus (“DRHP”)/ Draft Letter of Offer (“DLOF”), the Red Herring Prospectus (“RHP”) and the Prospectus/ Letter of Offer (“LOF”).

S. No.

Name of Information/Documents

Corporate and statutory documents1. Copies of Memorandum of Association (“MoA”), the Articles of Association (“AoA”),

Certifi cate of Incorporation (and for change in name, if any) and Certifi cate of Commencement of Business of the Issuer and its material subsidiaries.

2. Copies of the annual reports for the past fi ve years of the Issuer and its material subsidiaries.Issue-related corporate, regulatory and stock-exchange approvals and correspondence 3. Certifi ed true copy of the extract of the resolution of the Board of Directors and shareholders’

resolution authorizing the Issue under Section 81(1A) of the Companies Act.4. For eligibility requirements under Regulation 26(1) of the SEBI (ICDR) Regulation, where

applicable:• Where the Issuer holds more than 50% of its net tangible assets as monetary assets,

then an undertaking from the Issuer, and/ or any agreements, regarding utilization of such monetary assets in business or project.

• Fresh certifi cate of incorporation, wherever applicable. • CA certifi cate for fi nancial eligibility criteria (specifi ed under Regulation 26(1)) based on

standalone and consolidated accounts. • IPO Grading Report, at RHP fi ling.

49


S. No.


5. Certifi ed true copy of the approval of the Board or Committee resolution approving each of the Offer Documents to be fi led with SEBI and the RoC, as appropriate.

6. Copies of other regulatory applications and the related approvals including approvals from the Foreign Investment Promotion Board, RBI, if any and other regulatory authorities.

7. Copies of correspondence with SEBI, the stock exchanges and other regulatory bodies with respect to the proposed public issue by the Issuer, including copies of the interim and fi nal observations from SEBI and the responses to these observations.

8. Copies of cover letter for applications for and copies of in-principle approval received from each of the stock exchanges on which the equity shares are proposed to be listed.

9. Copies of fi nal listing and trading approvals received from each of the stock exchanges on which the equity shares are proposed to be listed.

Issue-related agreements, certifi cates, letters10. Agreements relating to the Issue:

(i) Copy of agreements between the Issuer, the depositories, i.e., NSDL and CDSL and the Registrar;

(ii) Copy of the Issue Agreement between the Issuer and the Book Running Lead Managers (“BRLMs”) and selling shareholders (if any);

(iii) Copy of the Agreement between the Issuer and the Registrar to the Issue and selling shareholders, (if any);

(iv) Copy of the escrow agreement between the Issuer, the BRLMs, the Syndicate members, the Registrar to the Issue and the Escrow Collection Banks;

(v) Copy of the syndicate agreement between the BRLMs, the syndicate members, the Issuer, and selling shareholders, (if any);

(vi) Copy of the underwriting agreement between the Issuer, the underwriters and selling shareholders, (if any);

(vii) Copy of stabilization agreement (if applicable) between the Issuer, Green Shoe Lender and Stabilization Agent; and

(viii) Copy of agreement between the Issuer and the advertising/media & PR agency. 11. Executed set of standard certifi cates received by BRLMs from the Issuer, its directors, its

subsidiaries, promoters, promoter group and group companies and selling shareholders, as applicable, at various stages of the Issue.

12. • Engagement letters appointing the BRLMs;• Arrangement letter, if any, between the BRLMs and the auditors; • Relevant certifi cates from selling shareholders; • Copies of consent letters from directors, BRLMs, Bankers to the Issuer, Legal Counsels,

Auditors, Registrar to the Issue, Escrow Bankers, and experts to the Issue and selling shareholders and appraising agency, if any;

• Filing certifi cates and legal opinion of the domestic counsel/(s) and international counsel/(s) to the transaction, as applicable.

• Consent letters from lenders, as applicable, to the Issue in respect of the Issue.• Third party consents (publishers of industry reports, key customers etc) utilized for the

purpose of any disclosures in the offer documents.

50


S. No.


13. Certifi cate in relation to complaints/comments received on the DRHP within 21 days from the date of fi ling the DRHP.

14. Compliance certifi cate for the period between date of fi ling DRHP and date of closure of the issue in respect of news reports about the Issuer.

15. Credit rating, if any, obtained during the last three years by the Issuer, including rationale.16. Relevant documents in relation to selection of the anchor investors in an issue. Offer Document Disclosures17. Certifi cates confi rming the following:

• Confi rmation that the Issuer, its directors, Subsidiaries, promoters, promoter group, entities with which Issuer’s directors are associated as directors and persons in control of promoters have not been prohibited from accessing or operating in the capital market or dealing in securities under any Order or direction passed by SEBI.

• Details of current and past directorship(s) of the Directors, during the last fi ve years preceding the date of fi ling of the DRHP with SEBI, in listed companies whose shares have been or were suspended from being traded on the BSE or NSE.

• Details of current and past directorship(s) of the Directors, in listed companies which have been or were delisted from the stock exchange(s).

18. Objects of the Issue:• With respect to each object/ project, back-up documents from the Issuer, for requirements

of funds and means of fi nance with year-wise breakup of utilization, if applicable. Further, back-up documents for means and sources of fi nancing of funds already deployed – i.e. whether through internal accruals, etc.

• Appraisal report by independent agency, in case of appraised projects. • Confi rmation from the Issuer that fi rm arrangements of fi nance (loan agreements or fi nal

sanction letters) through verifi able means towards 75% of the stated means of fi nance excluding the amount to be raised through the proposed Issue have been made.

• Certifi cate from a Chartered Accountant with respect to “deployment of funds” that has already been made by the Issuer in a project for which funds are being raised in the IPO. The certifi cate should amongst other things certify the source of funds which have already been deployed in the project.

• For repayment or prepayment of loans: Certifi cate/confi rmation from a CA for outstanding amounts, utilization of the loan amount and confi rmation that the loan was utilized for the purpose it was granted.

• In case objects of the issue is to acquire land: Certifi cation regarding amount, if any, paid towards acquisition is obtained from a Chartered Accountants/Statutory Auditors.

• In cases where quotation from independent third parties are not available due to the nature of the object, internal management estimates are relied upon, duly certifi ed by an authorised signatory of the Issuer.

51


S. No.


19. Capital Structure:• Certifi cate from the Issuer on the average cost of acquisition of equity shares held by the

promoter.• Undertaking from the promoters regarding promoters’ contribution and lock-in. If

applicable, review of documents regarding arrangements that have been made to ensure that the equity shares included in the promoters’ contribution are subscribed for atleast one day prior to the Bid/Issue Opening Date. This may include CA certifi cate regarding promoters’ contribution in escrow account, if applicable.

• Final scheme of arrangement along with court order pursuant to which shares have been allotted.

• In an offer for sale, confi rmations from the selling shareholders regarding the eligibility of the sale of offer for sale shares.

• CA certifi cate for revaluation of assets and ESOP scheme compliance. • Certifi cation in relation to shares exempted from lock in (like the shares held by FVCI)

and on the issuer’s intention/consideration to alter capital structure for a period of six months after issue opening date.

• Undertaking from promoters, promoter group not to subscribe under the issue. 20. Promoter and Promoter Group:

• Standard certifi cates from Promoters and Promoter Group.• Certifi cate from the Issuer for identifi cation of the promoters, promoter group and group

companies. • Copies of relevant documents in relation to any action initiated by any regulatory authority

(such as the RBI or SEBI) against the Promoter and any Promoter group or group company. Consent letter from the promoter/(s) for the lock-in of promoter’s contribution and pre-Issue shareholding for specifi ed mandatory periods.

21. Business-related:• Industry data and/or reports for Business and Industry related information disclosed

in the offer document (includes relevant extract of the industry report, data taken from various websites, extract of industry journal, magazine, newsletter, consent of publisher, copyright holder in case reproducing information from source requires consent)

• List of material business agreements of the Issuer and material subsidiaries, where applicable;

• List for major suppliers, vendors, customers of the Issuer and material subsidiaries, as applicable;

• List for major properties of the Issuer, such as branches, offi ces, manufacturing plants, operating centres etc;

• List of major intellectual property owned or licensed by the Issuer and the material subsidiaries;

• List of insurance policies and any directors and offi cer’s or key man insurance maintained by the Issuer ;

• Order book position of the Issuer;

52


S. No.


• Report of experts, where relevant; • Issuer certifi cation on total number of employees;• CA, Auditor certifi cation with respect to data/numbers/factual points in the section on the

basis of the internal accounting records maintained by the Issuer. Usually this will be in the comfort letter, if not, please also obtain back-up/Issuer confi rmation, as appropriate;

• Copies of industry specifi c certifi cates and reports.22. History and Certain Corporate Matters:

• Certifi cate by the Issuer for the major events and milestones in the history of the Issuer; • Copies of documents for any awards, recognitions and quality standard certifi cations

received by the Issuer and disclosed in the Offer Document; and• List of material shareholders arrangements, joint venture agreements of the Issuer and

material subsidiaries, as applicable.23. Management:

• Certifi ed true copy of resolutions of the Board and shareholders, and Form 32 for the appointment of current directors.

• Back-up for brief profi les, other directorships and details of directors and key managerial personnel (“KMP”) (such as certifi cates, self attested CVs).

• Back-up documents for the remuneration of the directors and KMPs as well as the terms and conditions of their appointment.

• Corporate governance certifi cate from the statutory auditor/practicing company secretary. • Certifi cate from Issuer on loans given to employees if any such policy. • Issuer certifi cate for management organization structure.• Issuer certifi cate for changes in directors and KMPs in the last three years.

24. Approvals and Licenses:List of all material approvals, licenses obtained and applications made, including applications for renewal.

25. Outstanding Litigation:• MIS of all material litigation pending, above the agreed thresholds, by and against the

Issuer (including each of its subsidiaries) which includes names of the parties, the value of the claim, where applicable a brief description of the nature of the claim and the status of the proceedings, should be maintained, certifi ed by the legal head or senior management personnel.

• MIS and copies of relevant documents of any regulatory action (current or in past) taken by the RBI/ SEBI/ stock exchanges or any other regulator against the Issuer.

• MIS of pending proceedings, defaults, etc. in respect of companies/fi rms/ventures with which the Promoters were associated in the past but are no longer associated in case their name(s) continues to be associated with such proceedings.

Please note that relevant back-up documents with respect to any securities litigation, in particular any litigation initiated by SEBI against the Issuer, Director, Promoters or Group companies should be reviewed and maintained.

53


S. No.


26. Indebtedness:• Management confi rmation regarding compliance under the loan agreements and

fi nancial covenants contained therein.Auditor deliverables27. Comfort letters issued by the auditors at the DRHP, RHP and Prospectus stage (including

the bring down comfort letter on allotment of the shares).28. Signed copy of the audit report along with the fi nancial statements and annexures for the

relevant fi nancial years.29. Signed copy of the ‘Statement of Tax Benefi ts’.30. Certifi cation of accounting related disclosures in the Offer Documents like differences in

IFRS and IGAAP.Records of calls/meeting minutes 31. Calls, meetings involving the Management and the transaction team:

• Response of the Issuer to all due diligence checklists circulated by the counsels, where practicable, and details of the independent diligence checks undertaken by the Lead Managers.

• Details of travel to the Issuer’s offi ces and minutes, records of kick-off meetings, drafting sessions, diligence meetings as well as for site visits to manufacturing plants or operating centres.

• Minutes of auditor diligence calls at various stages of the transaction, including maintaining records of due diligence questionnaire, checklists and responses.

54


S. No.


32. Post-issue related documents:• Certifi ed true copy of Board/ Committee resolutions for pricing and allotment of shares.• Copy of pricing / basis of allotment advertisement.• Copies of Provisional Certifi cates and Final Certifi cates from the bankers to the Issue

and the SCSBs, as applicable. • Allotment File (actually used for allotment and credit of shares. Registrar will provide

updated fi le with revisions if any).• Basis of allotment giving the allotment details in various categories including QIB, HNI,

retail, employee etc.• Minutes of discussions while fi nalizing the Basis of allotment.• Letter from RTA addressed to Lead Managers regarding the details they have verifi ed

with the depositories (NSDL/ CDSL) pursuant to SEBI letter dated June 12, 2007.• Certifi cate from RTA for credit of securities and dispatch of refunds within the specifi ed

time period.• Copy of visit report with RTA. • Certifi cate from depositories for credit of securities and lock-in of securities.• Certifi cate from statutory auditors/practicing chartered accountant/ practicing company

secretary stating that allotment has been made as per the basis of allotment approved by the Designated Stock Exchange and lock-in of pre-issue share capital for 1/3 years.

• Initial post-issue report (3-day report) and the Final post-issue report.• Copies of statutory advertisements issued at – Filing of DRHP, Pre-issue advertisement,

Issue Opening, Basis of Allotment, announcement of Price Band and Pricing

55


About AIBI

AIBI is a voluntary associa� on of Investment Bankers in the country. It was formed in 1990’s at the ini� a� ve of Indian Capital Markets regulatory body, SEBI. All Merchant Bankers, registered with SEBI are eligible to be members of AIBI. AIBI is India’s only associa� on represen� ng the investment banking industry.

On January 21, 2012 the name of the Associa� on was changed to “Associa� on of Investment Bankers of India”to encompass all the ac� vi� es carried out by the Investment Bankers other than Issue Management.

Currently, there are fi � y nine members of the associa� on.

AIBI-in a new direc� on:

AIBI is now reinven� ng itself. AIBI strives to be an objec� ve Industry body with a credible ac� on plan. AIBI balances its role as an industry body with its role of an infl uencer so that there is never any confl ict of interest for the members and ensure that its ac� vi� es are not confi ned to selected few but are available and are benefi cial to all members.

AIBI is represented, through its Chairman, on SEBI’s Primary Market Advisory Commi� ee, a forum that provides an opportunity to present the industry’s viewpoint on various issues. In the last one year AIBI has made signifi cant strides in enhancing its capabili� es. We have been working closely with SEBI in the recent � mes in improving the effi ciencies of the Indian Capital Markets.

AIBI has a dedicated website (www.aibi.org.in) ,and plans to make this website content rich to showcase our industry