ABC Ltd. wants to make an Initial Public Offer (IPO) and to list its shares on NSE in April 2025. The following information is available: (1) Net Tangible Assets: 2022: ₹4 crore, 2023: ₹3.5 crore, 2024: ₹2.8 crore. (2) A

(i) Eligibility under Regulation 6(1) of SEBI (ICDR) Regulations, 2018 - Track Record Route a) Net Tangible Assets: Condition - at least three crore rupees, calculated on a restated and consolidated basis, in each of the preceding three full years (of twelve months each). Given - 2022: ₹4 Crore, 2023: ₹3.5 crore, 2024: ₹2.8 crore Condition not satisfied. b) Average Operating Profits: Condition - at least ₹15 crore, calculated on a restated and consolidated basis, during the preceding three years (of 12 months each), with operating profit in each of these preceding 3 years. Given - 2022: ₹5 Crore, 2023: ₹6 crore, 2024: ₹4crore Average = (5 cr + ₹6 cr + 4 cr) ÷ 3 = 5 crore. Condition not satisfied. c) Net Worth: Condition - at least ₹1 crore in each of the preceding three full years (of 12 months each), calculated on a restated and consolidated basis. Given - 2022: ₹1.5 Crore, 2023: ₹1.2 crore, 2024: ₹1.3 crore Condition satisfied. d) Condition for Name Change by the Company: If the company has changed its name within the last one year, at least 50% of the revenue, calculated on a restated and consolidated basis, for the preceding one full year has been earned by it from the activity indicated by its new name. In Financial Year 2024, the company earns 55% of total revenue from the new line of business. Hence, the Company satisfies the condition. Since the company fails 2 out of 4 conditions, it is not eligible under Track record route under Regulation 6(1) of SEBI (ICDR) Regulations, 2018.