After analyzing the information provided my observations are as follows:

1. What about taxes since issuing preferred stock you cant show interest/profit
payment as tax deductible expenses which will increase your borrowing cost.
2. Im not getting any Idea about Definitive Agreements
3. As per clause Cash Dividend: 11% per annum on principal amount
outstanding beginning on the first anniversary of the Closing Date
Company always has to pay on principal amount

4. As per clause Accumulated Dividend: If the Company is unable to declare a

dividend on a given year, the dividend shall accumulate at 13% per
annum with prior written permission from the Investor and must be
declared on a subsequent year, prior to the declaration or payment of any
dividends to Ordinary Shareholders
Company always has to pay 13% per annum and must pay on subsequent
year.

5. As per clause Up-Front Revenue:

disbursement

At the time of Closing, 1% of the

Refers to which closing. Is it one time?

6. As per clause (Monitoring) Revenue: 4% per annum, on the total
investment amount, to be paid monthly in equal installments
Since Principal amount/investment amount is always same payment has to
be made at same rate.

7. As per clause Voting Rights Investor is claiming for certain percentage of voting rights but in
case preferred stock usually they do not have any voting rights.
8. As per clause Company Obligations:
Sub clause (i)
How redemption Reserve account will be maintained and where. It seems that it is like yearly
payment of 77.00 lac per annum but since it will be kept in a reserve account principal amount
will not reduce.
Sub clause (iii)
Company has to include investors as owner in RJSC