CREST VENTURES Share price

Sharyans Resources Ltd. (SRL) was incorporated on 16thOctober 1982 It was promoted to carry on the business ofleasing hire-purchase and investment in securities as itsprimary objectives. However the Company since inceptionwas carrying on the activity of trading in synthetic yarnsand fabrics till March 1993.In 1993 SRL commenced operations in trading in securities.SRL made its maiden Public Issue in February 1983 and theequity shares of the Company were listed on the CalcuttaStock Exchange. The Company subsequently made a PublicIssue in December 1993 to finance its fund basedactivities. The shares of the company were subsequentlylisted at Bombay Jaipur and Ahmedabad Stock Exchanges.In the year 1994-95 the Company diversified its operationswith emphasis on Real Estate Finance and DevelopmentProject Management & Investment and Lease Finance.The Company is not a Non Banking Finance Company (NBFC) andhence is not registered with RBI under the said law. Byvirtue of being a Non NBFC the Company would not be ableto borrow upto two/ten times the net owned funds as allowedfor NBFC''s. The amount of deposits that can be raised bythe Company will be as per the limits laid down underSection 58A of the Companies Act 1956.PRESENT BUSINESSReal Estate Finance and Development is a fund basedactivity. This involves purchase of property/developmentrights for residential and/or commercial purposes eithersolely or jointly in partnership with theOwners/builders/investors. The property is then developedin accordance with the approved plan from the statutoryauthorities viz. local municipal bodies etc. The developedproperty is then sold at various stages of completion inwhole or in parts at the then prevailing market rates. Thecompany also finances builders for their projects andcharges interest according to type of construction and riskinvolved in the venture. These loans are sometimes securedby lien/option to purchase the property.The Company would be carrying on the business of HousingFinance and would be lending to Corporates for providinghousing to its employees. The Company would not be involvedin retail housing finance and hence is not registered withNational Housing Bank (NHB). It won''t be entitled forrefinance from NHB.The Company has already entered into some such contractsthe details of which are stated elsewhere in the offerdocument.Project Management and Investments is also a fund basedactivity. Project Management involves identifying propertyfor development/restructuring syndicating all resourcesrequired for executing the project and finally makingarrangements for sale/disposal of the same. All the aboveactivities are done on behalf of the property owners. TheCompany does not enjoy any ownership rights on suchproperty. The project may involve both residential and/orcommercial properties. For the above services Companycharges management fees in addition to cost of providingresources if any for the same. In the year 1994-95 theCompany successfully managed a property development projectat Worli belonging to S. Kumars group. In this project theCompany provided finance aggregating to Rs.210.00 lacs andsyndicated additional funds to the extent of Rs.140.00lacs for restructuring and development. The Company also invests in real estate and securities bothfor long term purposes as well as parking its funds forshort term. In 1994-95 the Company earned a sum ofRs. 213.56 lacs through the above activities.The Company has also tied up three properties under thisactivity details of which are mentioned under the headBusiness Prospects and Profitability. Besides real estate activities the Company has alsodeployed Rs. 91.29 Lacs towards lease of plant andmachinery and earned Rs.10.81 Lacs as Lease income inaddition to tax benefits accruing from depreciationshelter. The assets have been leased to M/s. Pradeep MetalsLtd. Bombay. It is in the process of widening its clientbase for lease operations.The Company has been providing Corporate Advisory Servicesin the areas of Corporate Finance Loan Syndication etc. Inthe year 1994-95 the Company earned a sum of Rs. 8.15 Lacsfrom this activity. SRL has promoted Oracle Stocks &Shares Ltd (OSSL). OSSL is a Trading Member of the NationalStock Exchange (NSE) for both the Wholesale Debt Market andCapital Market Segment. OSSL was incorporated on 28thApril 1994 with SRL as a dominant shareholder. This hasenabled SRL to have an access to dealing on the NSE for itsInvestment trading activity.