BEEYU OVERSEAS Share price

Beeyu Overseas Limited (BOL) promoted by Mr.B.P.Singh wasincorporated on 4th March 1993 under the Companies Act 1956 inthe State of West Bengal with the objective of exporting Indianproducts such as Tea Coffee and Machinery. The company hasbeen exporting tea coffee and machinery as agents for majormanufacturers of these products and has from the financial year1998-99 commenced exports of tea in its own name.The company has its registered office at Calcutta. It also hasoffices at Tea Auction Centres in Coimbatore Conoor and Cochinfrom where it sources its requirements of Tea for exports underits own name. The Company has its representative office inMoscow headed by a Director Mr.Ravi Singh from where it sourcesits export orders.In the Financial Year 1998-99 BOL exported goods worth Rs. 10.80crores in its own name and also exported goods over Rs. 119crores on behalf of other parties for which it earned acommission of approximately Rs.2.64 crores. The company hasdeclared dividends of 20% 30% 35% 40% and 50% in the years1994-95 1995-96 1996-97 1997-98 and 1998-99 respectively.Further the company has declared an interim dividend of 15% forthe year 1999-2000.As a step towards backward integration M/s Beeyu ExportsLimited (BEL) was incorporated under the Companies Act 1956 on15th March 1999 in the State of West Bengal with the objectiveof setting up a blending and packing unit at Coimbatore.Further in order to ensure quality supplies and reduce cost ofTea purchases III/s Beeyu Plantations Limited (BPL) wasincorporated under the Companies Act 1956 on 19th July 1999 inthe State of West Bengal with the object of setting up a TeaPlantation & Tea Processing unit at Udhagamandalam (Ooty) inTamil Nadu. BPL has become a wholly owned subsidiary of BOLw.e.f. 21st September 1999. BPL had applied to the relevantauthorities for registration as a 100% Export Oriented Unit(EOU) vide their letter dated 30th November 1999 and would thenbe entitled to avail the various tax benefits. The company hasobtained the status of a 100% EOU from Madras Export ProcessingZone. vide their letter no. A/1999/047/EOU-TN dated 30/11/99for manufacturing and export of CTC Black Tea with an annualcapacity of 1500 MT under the following main terms andconditions :1. Export obligation of its entire production excluding rejectsand sales in the Domestic Tariff Area for a period of fiveyears.2. The Unit has to achieve the minimum stipulated level of NetForeign Exchange as a Percentage of Export (NFEP) as prescribedin the EXIM Policy failing which the unit may be liable forpenal action.3. The NFEP calculated as per the formula given under the EOUscheme has been projected as 100% during the period of fiveyears from the date of commencement of production.4. The letter of permission is valid for a period of three yearsfrom the date of issue within which implementation of theproject should be completed and commercial production shouldcommence and would automatically lapse if an application forextension of validity is not made before the end of the saidperiod. MEPZ and Ministry of Commerce (EP section) to beintimated on commencement of commercial production.5. BPL to confirm acceptance to MEPZ within 45 days of the dateof the letter.BPL has conveyed its acceptance of the terms and conditions toMEPZ vide its letter dated 12.1.2000 which is well withinstipulated time period of 45 days.Further BOL entered into an MOU on 11th November 1999 toacquire Singapore Amusement Park Pvt. Limited (SAPPL) a companyincorporated in Chennai SAPPL initially incorporated with theobject of setting up an amusement park at Udhagamandalam is theowner of about 48.15 acres of land at Udhagamandalam part ofwhich is proposed to be leased to BPL for implementation of itsproject. As per legal opinion obtained SAPPL does not have aclear title to 23 acres of land. SAPPL is taking steps torectify the discrepancy in the land documents.