June 30, 2021 for Eligible Equity Shareholders Only ASIAN
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Draft Letter of Offer Dated: June 30, 2021 For Eligible Equity Shareholders Only ASIAN TEA AND EXPORTS LIMITED Asian Tea and Exports Limited was originally incorporated on February 11, 1987 as “Sita Plantation Private Limited” having its registered office at 4A, Pollock Street, Kolkata-700001, West Bengal, India, under the provisions of the Companies Act, 1956 bearing Certificate of Incorporation No. 41876 of 1987 issued by the Registrar of Companies, Kolkata, West Bengal. The company was converted into Public Limited Company vide a fresh Certificate of Incorporation consequent on change of name dated March 09, 1994 in the name of “Sita Plantation Limited”. Subsequently name of the company has been changed to “Asian Tea and Exports Limited” vide a fresh Certificate of Incorporation pursuant to change of name dated April 11, 1994 issued by the Registrar of Companies, Kolkata, West Bengal. The current Corporate Identification Number of the company is L24219WB1987PLC041876. Registered & Corporate office: Sikkim Commerce House, 5th Floor, 4/1 Middleton Street, Kolkata, West Bengal – 700071, India Contact Person: Ms. Rashi Nagori, Company Secretary & Compliance Officer; Tel No: 033 – 40063601 E-Mail ID: [email protected]; Website: www.asianteaexports.com; CIN: L24219WB1987PLC041876 OUR PROMOTERS: (I) Mr. HARIRAM GARG AND (II) Mr. SUNIL GARG NEITHER OUR COMPANY OR ANY OF OUR PROMOTERS OR DIRECTORS ARE WILLFUL DEFAULTERS. FOR PRIVATE CIRCULATION TO THE ELIGIBLE EQUITY SHAREHOLDERS OF OUR COMPANY THE ISSUE ISSUE OF UPTO [●] PARTLY PAID UP EQUITY SHARES WITH A FACE VALUE OF ₹10/- EACH OF OUR COMPANY FOR CASH AT AN ISSUE PRICE OF ₹[●]/- PER EQUITY SHARE INCLUDING A SHARE PREMIUM OF ₹[●]/- PER EQUITY SHARE (“RIGHTS EQUITY SHARE”) FOR AN AGGREGATE AMOUNT NOT EXCEEDING ₹15.00 CRORES ON A RIGHTS BASIS TO THE ELIGIBLE EQUITY SHAREHOLDERS OF OUR COMPANY IN THE RATIO OF [●] RIGHTS EQUITY SHARE(S) FOR EVERY [●] FULLY PAID-UP EQUITY SHARE(S) HELD BY THE ELIGIBLE EQUITY SHAREHOLDERS ON THE RECORD DATE, THAT IS ON [●] (THE “ISSUE”). THE ISSUE PRICE FOR THE RIGHTS EQUITY SHARES IS [●] TIMES THE FACE VALUE OF THE EQUITY SHARES. FOR FURTHER DETAILS, SEE “TERMS OF THE ISSUE” ON BEGINNING ON PAGE 151 OF THIS DRAFT LETTER OF OFFER. PAYMENT METHOD FOR RIGHT ISSUE Amount Payable per Right Equity Shares Face Value (₹) Premium (₹) Total (₹) On Application [●] [●] [●] One or more subsequent Call(s) as determined by our Board at its sole discretion, from time to time [●] [●] [●] Total [●] [●] [●] GENERAL RISKS Investment in equity and equity related securities involve a degree of risk and investors should not invest any funds in this offer unless they can afford to take the risk with such investment. Investors are advised to read the Risk Factors carefully before taking an investment decision in this offering. For taking an investment decision, investors shall rely on their own examination of the issuer and the offer including the risks involved. The Right Equity Shares being offered in this issue have not been recommended or approved by the Securities and Exchange Board of India (“SEBI”) nor does SEBI guarantee the accuracy or adequacy of this document. Specific attention of investors is invited to the statement of “Risk factors” beginning on page no. 16 under the section “General Risks” of this Draft Letter of Offer. ISSUER’S ABSOLUTE RESPONSIBILITY The issuer, having made all reasonable inquiries, accepts responsibility for and confirms that this Draft Letter of Offer contains all information with regard to the issuer and the issue, which is material in the context of the issue, and that the information contained in the Draft Letter of Offer is true and correct in all material aspects and is not misleading in any material respect, that the opinions and intentions expressed herein are honestly held and that there are no other facts, the omission of which make this document as a whole or any of such information or the expression of any such opinions or intentions misleading in any material respect. LISTING The existing Equity Shares of our Company are listed on BSE Limited (“BSE”) and The Calcutta Stock Exchange Limited (“CSE”). Our Company has received “in-principle” approvals from BSE for listing of the Right Equity Shares to be allotted in this Issue pursuant to letter dated [●]. The in-principle approval from CSE is not required as CSE is a regional stock exchange. For the purpose of this issue, BSE shall be the Designated Stock Exchange. LEAD MANAGER TO THE ISSUE REGISTRAR TO THE ISSUE REGISTRAR TO THE COMPANY FINSHORE MANAGEMENT SERVICES LTD CAMEO CORPORATE SERVICES LTD S.K. INFOSOLUTIONS PRIVATE LTD Anandlok”, Block-A, 2nd Floor, Room No. 207, 227 "Subramanian Building", No. 1, Club House D/42, Katju Nagar, Ground Floor, Katju Nagar A.J.C Bose Road, Kolkata-700020, West Bengal Road, Chennai - 600 002, India Bazar, Jadavpur, Kolkata, West Bengal - 700032 Telephone: 033 – 22895101 Tel No: +91-44-28460390 Telephone: 033 – 24120027 / 24120029 Email: [email protected] Fax No: +91-44-28460129 Email: [email protected] Website: www.finshoregroup.com Email: [email protected] Website: www.skcinfo.com Investor Grievance: [email protected] Contact Person: Ms. K Sreepriya Investor Grievance: [email protected] Contact Person: Mr. S. Ramakrishna Iyengar Website: www.cameoindia.com Contact Person: Mr. Dilip Bhattacharya SEBI Registration No: INM000012185 SEBI Registration Number: INR000003753 SEBI Registration No: INR000003886 CIN No: U74900WB2011PLC169377 CIN No: U67120TN1998PLC041613 CIN No: U72300WB1999PTC090120 ISSUE PROGRAMME* ISSUE OPEN ON LAST DATE FOR ON MARKET RENUNCIATION** ISSUE CLOSE ON*** [●], 2021 [●], 2021 [●], 2021 *Pursuant to the January 22 – Rights Issue Circular, SEBI has introduced the concept of credit of Rights Entitlements into the demat accounts of the Eligible Equity Shareholders, which can be renounced by them by way of On Market Renunciation or Off Market renunciation. Further, the credit of Rights Entitlements and Allotment of Rights Equity Shares shall be made only in dematerialised form. **Eligible Equity Shareholders are requested to ensure that renunciation through off-market transfer is completed in such a manner that the Rights Entitlements are credited to the demat accounts of the Renouncees on or prior to the Issue Closing Date. ***Our Board or a duly authorised committee thereof will have the right to extend the Issue Period as it may determine from time to time, provided that this Issue will not remain open in excess of 30 days from the Issue Opening Date. Further, no withdrawal of Application shall be permitted by any Applicant after the Issue Closing Date. TABLE OF CONTENT PARTICULARS PAGE No. SECTION I: GENERAL Definitions and Abbreviations 1-9 Notice to Investors 10-11 Currency Conventions, Use of Financial Industry and Market Data, and Currency Presentation 12-12 Forward Looking Statements 13-13 SECTION II: SUMMARY OF DRAFT LETTER OF OFFER Summary of Draft Letter of Offer 14-15 SECTION III: RISK FACTORS Risk Factors 16-27 SECTION IV: INTRODUCTION Issue Detail in Brief 28-28 General Information 29-31 Capital Structure 32-33 SECTION V: PARTICULARS OF THE ISSUE Objects of The Issue 34-36 Statement of Possible Tax Benefits 37-37 SECTION VI: ABOUT THE INDUSTRY, COMPANY AND MANAGEMENT Industry Overview 38-40 Our Business 41-44 Our Management 45-48 SECTION VII: FINANCIAL INFORMATION The limited reviewed unaudited December Financial Results for the nine months period ended December 49-57 31, 2020 The Statutory Auditor’s Report and the Audited Financial Statements for the year ended March 31, 2020 58-139 Statement of Accounting Ratios 140-140 Management’s Discussion and Analysis of Financial Conditions and Result of Operations 141-142 SECTION VIII: LEGAL AND OTHER INFORMATION Outstanding Litigation, Defaults and Material Development 143-145 Government and Other Approvals 146-146 Other Regulatory and Statutory Disclosures 147-150 SECTION IX: ISSUE INFORMATION Terms of The Issue 151-181 Restriction of Foreign Ownership of Indian Securities 182-182 SECTION X: STATUTORY AND OTHER INFORMATION Material Contracts and Documents for Inspection 183-183 Declaration 184-184 ASIAN TEA AND EXPORTS LIMITED SECTION I: DEFINITIONS AND ABBREVIATIONS This Draft Letter of Offer uses certain definitions and abbreviations which, unless the context otherwise indicates or implies, shall have the respective meanings given below. References to statutes, regulations, rules, guidelines and policies will be deemed to include all amendments and modifications thereto as amended from time to time. Unless the context otherwise indicates or implies, the following terms shall have the meanings provided below in this Draft Letter of Offer, and references to any statute or regulations or policies will include any amendments or re-enactments thereto, from time to time. General Terms TERMS DESCRIPTIONS “Asian Tea and Exports Unless the context otherwise indicates or implies, “Asian Tea and Exports Limited”, a Limited”, “Asian Tea”, “ATEL” public limited company incorporated under the provision of Companies Act, 1956 and “ASIANTNE”, “The Company”, having its Registered Office at Sikkim Commerce House, 5th Floor, 4/1 Middleton “Our Company”, or “Issuer” Street, Kolkata, West Bengal – 700071, India. Unless the context otherwise indicates or implies, refers to our Company together with “We”, “Our”, or “us” our Subsidiaries and Associates Our Promoters or Promoters of The promoters of our company being (I) Mr. Hariram Garg and (II)