SBEC SUGAR Share price

SBEC Sugar Limited (hereinafter referred to as SSL or the Company) was incorporated on May 3 1991 in the name and style of Modi Sugar Limited under the Companies Act 1956. It was originally promoted by Mr. U.K. Modi and Associates to set up a sugar project of 2500 TCD. On 15 January 1994 the company entered into a "Shareholders Establishment Agreement" with SBEC Systems (India) Ltd. (hereinafter referred to as SBEC) in terms of which SBEC agreed to promote the sugar project and also to participate in the equity capital of the Company. The salient features of this agreement are as given below:a. SBEC agrees to collaborate for the realisation of the PROJECT and to participate in equity of SSL.b. The total tentative financial requirements for establishing the PROJECT including the margin on current assets required for the operations is estimated to be an amount of around Rs.50 crores.c. The above funds requirements is proposed to be met by way of Public Issue and/or raising funds through leasing foreign currency loan term loan from Banks/Financial Institutions etc. For the determination of the project feasibility and the scheme of finance it is agreed that the parties shall appoint a reputed Bank/Merchant Banker.d. SBEC along with its associates shall bring the entire promoters'' contribution required under the scheme of financing suggested by the merchant bankers during the appraisal in consultation with SBEC and any amendments thereafter.e. The timing of Public Issue of SSL if any will be decided in consultation with SBEC.f. SSL shall be responsible for obtaining all necessary approvals/clearances for the PROJECT.g. In case of an over run in the cost of the Project SBEC will be responsible for arranging such additional funds.h. The Board of Directors of the Company shall not take any action in any of the matters specified in the agreement except upon the affirmative vote of a majority of Directors present and voting which majority shall include at least one director nominated or appointed or designated by SBEC.i. SBEC shall always be entitled to nominate one half of the total number of directors of the Company.Subsequently the name of the company has changed to "SBEC Sugar Limited" under section 21 of the Companies Act 1956 vide Certificate No. 55-44202 dated May 17 1994 since it was considered to be the most appropriate name as SBEC is its sole promoter.SBEC Sugar Limited is presently in the process of implementing the sugar project.Assets and Liabilities Position as on 31.01.1996------------------------------------------------------------APPLICATION OF FUNDS Rupees Lacs------------------------------------------------------------1. Fixed Assets 1806.152. Pre-operative expenses (Pending Capitalisation/Allocation) 442.603. Net Current Assets (378.22)4. Misc Expenditure not written off 34.29------------------------------------------------------------ Total 1904.82------------------------------------------------------------SOURCES OF FUNDS1. Share Capital 0.042. Advance against Share Capital (Pending Allotment) 1827.293. Unsecured Loans 77.49------------------------------------------------------------ Total 1904.82------------------------------------------------------------(The Company has not revalued its fixed assets)Significant Notes to Accounts:1. Estimated amount of contracts remaining to be executed on Capital Account and not provided for as on 31.01.1996 (net of advances) is Rs.2277.59 lacs.2. Land valuing Rs.3.25 lacs is purchased in the name of Sadhu Ram Gupta and Rs.1.58 lacs in the name of SBEC Systems (India) Ltd. as nominees.3. Advance against share capital includes Rs.1456.70 lacs being amount advanced and/or expenses incurred on behalf of the company by a Body Corporate being the Promoter Company to be adjusted against share capital to be subscribed by the said Body Corporate.The Advances received against PCDs amounting to Rs.1827.29 lacs have been treated as advance against Equity Shares. Although the promoters contribution brought in till 31.01.1996 was in excess of Rs.1690 lacs as per the Means of Financing the allotment shall be restricted to Rs.1690 lacs.Fresh applications for Equity Shares in lieu of PCDs for Rs.1546.70 lacs have already been received and for the balance amount application are under receipt.There is no business interest/financial benefits accruing to the promoters on account of advance against share capital to the extent of Rs.1827.29 lacs. It is confirmed that there is no material benefit/interest accruing on account of remaining advances of Rs.370.59 lacs (Rs.1827.29 - 1456.70).The land was acquired in the name of Mr.Sadhu Ram Gupta a nominee of SBEC Sugar Limited for the project for easier availability of the land for which the payment was made by the Company.