GOKALDAS EXPORTS Share price

Our group the Gokaldas Exports group was set up 25 years ago by thelate Shri Jhamandas H.Hinduja.At that time our group expanded through partnership firms. Theprevailing regulatory environment labour laws and reservation forsmall scale industries made it conducive for growth through formingpartnership firms. As a result starting from 80's till the second halfof 90's we set up the following partnership firms in order to expandourselves.Sr. No. Name of the partnership firm Date of Incorporation1. Gokaldas Exports* November 8 19782. Global Garments October 30 19863. The Unique Creations** August 26 19874. The Central Wearhouse April 1 19925. Hinduja Fashions April 1 19926. Hinduja Trading Company April 1 19927. Asiatic Exports August 1 19928. The Intex August 1 19929. New Generation Apparels February 16 199410. J D Clothing Company April 25 199411. Euro Clothing Company September 5 199412. Sunshine Enterprises April 1 199613. Carnival Clothing Company April 13 199614. Hinduja Sports Wear April 13 199615. International Clothing Company April 13 199616. Wear Craft Apparels April 13 199617. Gokaldas India February 1 2000 * Subsequently The partnership firm Gokaldas Exports was convertedinto a private limited company on April 3 1995** The partnership firm `The Unique Creations' was converted into aprivate limited company The Unique Creations (Bangalore) PrivateLimited on April 3 1995During 2003-04 we could forsee an opportunity for us with theimpending removal of quota restriction from January 1 2005. In orderto capitalize on this opportunity we initiated corporatising our group.The process got momentum in 2004 and today we have corporatised ourentire apparel manufacturing business and brought under one companyGokaldas Exports Limited either directly or through its subsidiaries.The above-mentioned transformation happened in three phases:Phase 1a. The Partnership firm `Gokaldas India' was converted into a privatelimited company Gokaldas Indian (Private) Limited on March 1 2004.b. Gokaldas Exports (Private) Limited and The Unique Creations(Private) Limited were merged with Gokaldas India (Private) Limitedvide an order dated November 20 2004 by the honourable Highcourt ofKarnataka. As per the said order the merger came into effect fromApril 1 2004. Subsequently the name of Gokaldas India (Private)Limited was changed to Gokaldas Exports (Private) Limited with effectfrom December 142004. Subsequently our company i.e Gokaldas Exports(Private) Limited was changed to a Public Limited Company with effectfrom January 7 2005.Phase 2When the above-mentioned process of merger was going on we were alsotaking steps parallely in order to transfer the entire apparelmanufacturing business of our other partnership firms to variouscorporate entities owned by our promoters in the following way:a. Our promoters first incorporated twelve new companies as given inthe following table:Sr No. Name of the subsidiary Date of Incorporation1 Deejay Trading (P) Ltd February 2120032 Magenta Trading (P) Ltd February 2720033 Reflexion Trading (P) Ltd March 720034 Rafter Trading (P) Ltd March 720035 Madhin Trading (P) Ltd February 2720036 Rishikesh Apparels (P) Ltd April 1520047 Vignesh Apparels (P) Ltd April 1520048 Rajdin Apparels (P) Ltd May 720049 All Colour Garments (P) Ltd June 1200410 Glamourwear Apparels (P) Ltd June 17200411 Seven Hills Clothing (P) Ltd June 18200412 SNS Clothing (P) Ltd August 92004b. Subsequently the business of the various partnership firms weretransferred to the above-mentioned companies. Brief details of thetransfer are given in the following table:Sr. Transferee Company TransferorNo. Partnership firm1 Deejay Trading (P) Wearcraft Limited Apparels 2 Magenta Trading International (P) Ltd Clothing Company 3 Rafter Trading (P) Ltd Hinduja Sportswear4 Madhin Trading (P) Carnival Clothing Ltd Company 5 Rishikesh Apparels Global Garments (P) Ltd 6 Vignesh New/Generation (P) Ltd Apparels Asiatic Exports7 Rajdin Apparels Hinduja Trading (P) Ltd Company8 All Colour Garments Hinduja Fashions (P) Ltd 9 Glamourwear JD Clothing Co. Apparels (P) Ltd The Intex10 Seven Hills Clothing Sunshine (P) Ltd Enterprises Euro Clothing Company11 SNS Clothing (P) Ltd The Central WearhouseSr. Date of No. of Details of the factoriesNo. Business Factories transferred Transfer tranferred Agreement1. September 30 3 Wearcraft Apparels unit I II & 111 2004 2. September 30 3 International Clothing Company 2004 Unit I II & III3. September 30 2 Hinduja Sportswear unit 16 II 2004 4. September 30 3 Carnival Clothing Company unit I II 2004 & III 5. September 30 2 Global Garments II & III 2004 6. September 30 2 New Generation Apparels 2004 unit I & II September 30 1 Asiatic Exports 20047. September 30 3 Venkateshwara Clothing Company 2004 Lucky Tex Unit I & III8. September 30 3 Hinduja Fashions & Balaji Finishing 2004 House unit I & II9. September 30 3 J.D.Clothing Company Unit I II & III 2004 September 30 4 The Intex Unit I I III & IV 200410. September 30 3 Triangle Apparels 2004 Unit I II & III) September 30 3 Euro Clothing Company unit I II & III 200411. September 30 3 Wear Wel unit I II & III 2004Total 38Phase 3Subsequently we Gokaldas Exports Limited acquired all of theabove-mentioned tweleve (12) companies from our promoters by payingconsideration in cash and thus made those tweleve companies oursubsidiaries.As on today we have licenses for 5 factories in our own name andlicense of 38 factories in the name of our subsidiaries.