Soha Ltd. wants to go for initial public offer. Ms. Pia, the Company Secretary of the company, has to advise to the management of the company about the conditions for making initial public offer. What should be Ms. Pia's

To The Board of Directors Soha Ltd. Note: Conditions for making Initial Public Offer A company may make an initial public offer provided it fulfils all the following five conditions laid down under regulation 26 (1) and (2) of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009: it should have net tangible assets of at least three crore rupees in each of the preceding three full years (of twelve months each), of which not more than fifty per cent are held in monetary assets. However, if more than fifty per cent of the net tangible assets are held in monetary assets, the issuer should have made firm commitments to utilise such excess monetary assets in its business or project; Provided further that the limit of fifty per cent on monetary assets shall not be applicable in case the public offer is made entirely through an offer for sale. it should have a minimum average pre-tax operating profit of rupees fifteen crore, calculated on a restated and consolidated basis, during the three most profitable years out of the immediately preceding five years. it should have a net worth of at least one crore rupees in each of the preceding three full years (of twelve months each); the aggregate of the proposed issue and all previous issues made in the same financial year in terms of issue size does not exceed five times its pre-issue net worth as per the audited balance sheet of the preceding financial year; if it has changed its name within the last one year, at least fifty per cent. of the revenue for the preceding one full year has been earned by it from the activity indicated by the new name. An issuer not satisfying any of the above conditions stipulated in sub-regulation (1) may make an initial public offer if the issue is made through the book-building process and the issuer undertakes to allot, at least seventy five percent of the net offer to public, to qualified institutional buyers and to refund full subscription money if it fails to make the said minimum allotment to qualified institutional buyers. Ms. Pia Company Secretary Soha Ltd.