PONDY OXIDES & CHEM Share price

Pondy Oxides and Chemicals Ltd [POCL] was incorporated on21st March 1995 and obtained certificate of commencement ofbusiness on 31.03.1995.Mr R D Bansal promoted Pondy Oxides and Chemicals apartnership firm which was constituted on 27th November1992 and commenced commercial operations in July 1993. Thefirm started its activities in trading of zinc oxide andlead sub-oxide. Subsequently it started the manufacture ofzinc oxide by putting up a manufacturing facility inPondicherry.The financials of the partnership firm from the first yearof commercial operations is given belowParticulars Year ended Year ended For the 31.03.94 31.03.95 period ended 31.7.95 (Audited) (Audited) (Audited)Installed Capacity (Tonnes)Zinc Oxide 480 600 720Lead Oxide 600 1200 1200Litharge - - -Zinc - - -Sales 90.64 454.07 205.99Interest 4.16 15.39 7.32Depreciation 2.96 6.28 -Profit Before Tax 0.26 11.52 9.45Tax 0.09 - -Profit After Tax 0.17 11.52 9.45Partner''s Capital 16.81 43.12 95.30Loan Funds 16.84 28.82 15.97Fixed Assets 24.52 39.28 77.31The partnership Company acquired the Land Building andMachinery from PIPDIC through an Open Tender Offer at atotal cost of Rs.2144575/-. To finance this acquisitionPIPDIC has sanctioned a term loan of Rs.1608431/- at aninterest of 19% per annum and repayable in 10 equalquarterly instalments. This loan has been completely repaidand settled by the partnership firm before the acquisitionby the company.The partnership firm is now taken over by Pondy Oxides andChemicals Ltd for a consideration of Rs.75 lacs. Thispurchase consideration is based on valuation of the assetsby the approved valuers. The salient features of thetakeover of the partnership concern are :-1) The agreement was entered into on 1st August 1995.2) All the assets including the lease hold right will betransferred to the Limited Company for a consideration ofRs.75.00 lacs and in lieu of this shares of Pondy Oxidesand Chemicals Ltd have been allotted to the partners of thefirm.3) Mr. Anil Kumar Bansal one of the partners will beappointed as the Managing Director of the Limited Company.4) The limited company shall duly discharge all theliabilities of pondy oxides.Valuation of assets has been carried out during the tenureof the partnership firm. The assets were valued by M/s. N Ramakrishnan B.E. MIE. FIV vide his letter dated07.07.1995 and Mr. Arul Jothi Sivasubramaniam B.E. MIEvide his letter dated 10.05.1995. approved valuers andchartered engineers. The valuation of the assets as perthis report exceeds the book value by Rs.36.79 lacs. Theassets and liabilities excluding partners capital of thepartnership company is given below:SCHEDULE OF ASSETS [Rupees in Lacs]Fixed Assets 77.31Investments NilCurrent Assets 200.55Less : Current Liabilities & Provisions 126.56Net current Assets 73.99Misc. expenses not written off 0.06 151.36SCHEDULE OF LIABILITIESCapital A/c of Partners 95.30Loan Funds - working capital 40.53 - unsecured loans 15.36 - others 0.17 56.06 151.36The purchase consideration has been settled by issuing750000 Equity Shares of Rs.10/- each at par.Pondicherry Industrial Promotion Development and InvestmentCorporation Ltd (PIPDIC) vide their letter F-45-22/FB/93dated 30th June 1995 has accorded its approval for changein constitution from partnership company to public limitedcompany.It is also proposed to acquire additional machineries andequipments to be installed in the Industrial Estate atPondicherry. The original life of the plant and machineryproposed to be taken over is 10 years. It is estimated thatthese machineries will have a residual value of 5 years.These estimates are management''s own estimates. Since thepartnership firm is already carrying on productionactivities this will give the Company immediatemanufacturing facility.SUBSIDIARIES OF THE COMPANYThe Company does not have any subsidiaries.MAIN OBJECTS OF THE COMPANY1. To takeover the existing business of "Pondy Oxides andChemicals" a partnership firm as a running concern with allassets and liabilities including tenancy rights patentrights brand rights and bank liabilities.2. To carry on the business of manufacturing distributingbuying selling supplying converting importingexporting storing stocking zinc metal lead metal zincingots zinc dross zinc oxide lead sub-oxide lithargered lead zinc lead salt and oxide salts and oxides ofother metals.3. To carry on the business of manufacturing importingexporters dealers in heavy chemicals acids alkaliespetrochemicals petrochemicals derivatives refrigerantscarbon black cresols chemical compounds ad chemicals ofall kinds (solid flakes liquid and gaseous) analyticalchemists antibiotics tannis chemical auxiliariesdisinfectants insecticides fungicides deodorants anddealers in chemical products of any kind whatsoever and aswholesale and retail chemicals and druggists and aschemical engineers and analytical chemists.4. To manufacture prepare import export buy sellsupply distribute store. stock maintain and or otherwisehandle deal in and carry on business in therapeuticchemotherapeutic pharmaceutical bacteriologicalparasitological virological immunologicalmendocrinological biological microbiological chemicaland biochemical electrlytic homeopathic ayurvedic andother tropical and or Indian theropathic nutritionalherbal vegetable vertinary botinal chemicals drugsingredients products compounds mixtures tablets pillscapsules powders preparations and materials injectionsvaccines and such other substances as may be put to medicaland or biomedical use.5. To carry on the business of manufacturing preparingimporting exporting buying selling supplyingdistributing storing stocking maintaining and ofotherwise dealing in all kinds and varieties of medicalbio-medical and surgical apparatus instruments equipmentdressings.