CCL INTERNATIONAL Share price

Chirawa Cements Ltd. was incorporated on June 4 1991 as a Private Limited Company under the name "Gupta Cements Private Limited". The company was converted into a Public Limited Company "Gupta Cements Ltd." consequent to passing of Special Resolution on 30th January 1995 and a fresh Certificate of Incorporation dated 15th March 1995 was issued by the Registrar of Companies. The name of the company was changed to Chirawa Cements Ltd. with effect from 22nd May 1995. The Company has set up a project at Plot Nos. F-9-14 Chirawa District Jhunjhunu Rajasthan for manufacture of Portland Cement with an installed capacity of 15000 TPA which has been part financed by a Term Loan of Rs 74.12 Lacs and subsidy of Rs 17.79 Lacs by RIICO.During the period 31st March 1993-14th November 1993 the Company was purchasing clinker from large cement plants and after processing the same in its Cement Mill Section was selling cement in the open market. The Company commenced commercial production on 15th Nov. 1993 and achieved capacity utilisation of 80% in 1993-94. However due torecessionary conditions prevailing in the Cement Industry the company recorded a loss of Rs 9.99 lacs in 1993-94. In 1994-95 the capacity utilisation was 80.47% and the company turned around to record a net profit of Rs 12.79 lacs. If however other income is excluded theCompany would have recorded a net loss of Rs. 7.76 for 1994-95. The Company''s performance for the nine months ended 31st December 1995 has been much better and it has posted a net profit of Rs.20.35 lacs. If however other income is excluded the net profit for the nine months ended 31st December 1995 would be Rs. 9.15 lacs. The Company has also been engaged in trading of Cement since April 1994. The Company often receives orders from its clients for supply of cement which it is not able to meet from its own production sources. Consequently it purchases cement of reputed brands like Lakshmi Cement Raymond Cement Birla Cement etc. for meeting therequirements of its clients. There was a delay of 11 months in installing the existing capacity of 15000 TPA and also cost over-run to the extent of Rs. 59.75 lacs. The total cost of the project wasestimated at Rs. 149.10 lacs and was proposed to be funded by Promoter''s Contribution of Rs. 45 lacs (Equity) unsecured interest free loan of Rs. 7.10 lacs from thePromoters state subsidy of Rs 20 lacs and term loan of Rs. 77 lacs from RIICO. Commercial production was expected to commence in December 1992. RIICO sanctioned term loan of Rs. 77 lacs on 2nd August 1991 subject to it being refinanced. SIDBI granted its approval to refinance of term loan only in December vide its letter dated 17th December 1991. The loan documents were executed on 20th December 1991 and the first tranche of the term loan was disbursed on 3rd April 1992. Commercial production commenced in November 1993 and the actual cost of implementing the project worked out to Rs. 208.85 lacs resulting in cost-overrun of Rs. 59.75 lacs. RIICO''ssanction letter for term loan of Rs. 77 lacs vide letter dated 2.8.91 stipulated that interest @ 13.5% p.a would be payable quarterly. However the interest rates were revised and the Company is paying interest @ 19.75% p.a. The Company had requested RIICO for rescheduling repayment of term loan and the same had been agreed to by RIICO. The reschedulement was under: "The Principal outstanding amount of Rs. 74.12 lacs to be repaid in 22 quarterly instalments of Rs. 3.37 lacs (except the last instalment which would be of Rs. 3.35 lacs commencing from 15th May 1995." Howerver the Company is adhering to the original repayment schedule as detailed under the head "Principal Terms of Loan & Assets Charged asSecurity".There have been no labour problems/closures in the past. The Company is now expanding its capacity for manufacture of Portland Cement from 15000TPA to 66000 TPA. The expansion project is coming up on plot nos. F-15-17 adjoining to th existing project site (F-9-14)