SHREE KARTHIK PAPERS Share price

Shree Karthik Papers Limited (SKPL) was originally incorporatedon December 181991 as a Private limited Company under the nameof Sree Karthik Papers Private limited. Subsequentiy the name ofthe company was changed to Shree Karthik papers Private Limitedon April 11 1994. It became a Public limited company on April13 1994.SKPL was established to manufacture writing and printing paperat village Kottur Poliachi Taluk District Coimbatore in the Stateof Tamilnadu. The project was originally envisaged for settingup a paper mill to manufacture 8480 tpa of writing and printingpaper. The project cost as appraised by IDBl in May 1992 wasRs. 799 lacs. However after the discussions with the machinesuppliers and consultants SlCPL has decided to set up a 13350tpa paper project to achieve economies of higher scale ofoperations. IDBI had appraised the earlier project and has alsoappraised the project with increased capacity. IDBI revised costof the project to Rs. 1276 lacs and indicated that the trial runswould commence by Sept ''94 in their appraisal. However theproject could not be completed by Sept ''94 due to delay of 2months is tying up the term loans to the extent of Rs. 200 lacsfrom Banks. The Company has since tied up the term loans withCatholic Syrian Bank (ReL RAJ/CD/94 dtd. 12/8/94) and SouthIndian Bank (ReL letter dtd. 10/6/94) for Rs. 100 lacs each. Theoriginal project cost for 8480 tpa as appraised by IDBI is givenunder:(Rs.in lacs)Land & Site Development 19.00 Buildings 60.00Plant & Machinery 342.00Misc. Fixed Assets 196.00Preliminary & Preoperative Exp. 68.00Contingencies 68.00Margin Money for WC 46.00 799.00