The company has net tangible assets of at least Rs. 3 crores in each of the preceding 3 full
years (of 12 months each), of which not more than 50% is held in monetary assets: The
company has a track record of distributable profits in terms of Section 205 of the Companies Act, 1956, for at least three (3) out of immediately preceding five (5) years.
The company has a net worth of at least Rs. 1 crore in each of the preceding 3 full years
(of 12 months each). In case the company has changed its name within the last one year at least 50% of the revenue for the preceding 1 full year is earned by the company from the activity
suggested by the new name.
The aggregate of the proposed issue and all previous issues made in the same financial
year in terms of size (i.e., offer through offer document + firm allotment + promoters’
contribution through the offer document), does not exceed five (5) times its pre-issue net
worth as per the audited balance sheet of the last financial year.)