CEENIK EXPORTS (INDIA) Share price

Ceenik Exports having its Registered Office in Bombay wasset up as a proprietorship firm in the year 1982 by Mr.Nanikdas Hingorani alongwith his son Mr. Lachman N.Hingorani. The firm with an initial capital base ofRs.1.50 lacs was started with the object of undertakingexport of readymade garments to United States of America.Since inception export was identified as the thrust areawith special emphasis on women 5 garments as this segmentof the business had huge growth potential. In the export ofreadymade garments quality and adherence to deliveryschedules are of prime essence. With this as its businessmission the promoters identified a core group to workexclusively for the firm on contract basis. This aided thecompany to ensure international quality standards andadhere to strict delivery schedules. This went a long wayin assisting the company to build up its reputation withits overseas customers and consolidate its position in theinternational market.By 1986 export of ready made garments from India gainedmomentum with the entry of new players. This led tocompetition where survival was entirely dependent on timelyexecution and adherence to standards. With a view toexercise control over these factors the Company acquiredpremises admeasuring 2850 sq. feet. Activities likecutting pressing finishing and packing were transferredunder its fold. This was financed out of the internalaccruals of the Company. This shift in activity not onlyhelped it to improve quality but also increased its profitmargins. Thus in a decade of its existence the firm wasable to firmly establish its position in the overseasmarket by having its own list of committed overseascustomers in United States of America and United ArabEmirates. For the accounting year 1993-94 the Companyachieved an export turnover of around Rs.600 lakhs.Subsequently the proprietorship firm was converted into apartnership firm in July 1994 by inducting three newpartners namely Mr. Lachman N Hingorani (S/o. NanikdasHingorani) Mrs. Renu Hingorani (W/o. Lachman N Hingorani)and Mrs. Chandra Hingorani (W/o. Nanikdas Hingorani). Theexisting capital of sole proprietorship firm wasdistributed among the new partners in the ratio of 20:20:60respectively. In September 1994 four new partners joinedthe firm by inducting a sum of Rs. 0.20 lacs as theircontribution towards the capital of the firm.The new partners were Mrs. Kavita Hingorani (W/o. NarainHingorani) Mr H. R. Teckchandani Mrs. Vidya R.Teckchandani and Mr. Anil Mishra and the profit sharingratio reworked in proportion to the revised capitalcontribution. Subsequently the partnership firm wasconverted into a Limited Company under the name and style"Ceenik Exports (India) Limited" vide Part IX of theCompanies Act 1956 on January 27 1995. Thus the existingassets and liabilities of the partnership firm on bookvalue were transferred to the Company.In the last five years of operation the turnover of thefirm has increased from Rs.325.77 lacs in 1989-90 toRs.1129.84 lacs in the year 1994-95 (upto 26.01.95) thusregistering a growth of 246%. Similarly the net profits ofthe firm have registered a growth rate of 1244% increasingfrom Rs.11.39 lacs in 1989-90 to Rs.153.12 lacs in the year1994-95 (upto 26.01.95)Since the firm''s conversion into a Company on January 271995 Ceenik Exports (India) Limited has posted a turnoverof Rs.15.63 lacs and a net Profit of Rs.2.24 lac for theperiod commencing from 27.01.95 to 31.03.95.