SUMERU INDUSTRIES Share price

The company was Incorporated on 3rd March 1994 as SumeruLeasing and Finance Limited with the Registrar ofCompanies Gujarat at Ahmedabad and obtained Certificatefor Commencement of Business on 7th March 1994.PRESENT BUSINESS OF THE COMPANYThe company was incorporated on 3rd March 1994 to carry onthe business in the bright and expanding field of finance.The company is presently engaged in the financial servicesactivities viz. Leasing investment and securitiestrading inter-corporate advances & Bills Discountingbrief details of the present activities of the company arefurnished hereunder:-LEASING:-The company commenced leasing activities in the yearcurrent. Indicators of the lease business of the companyare furnished as above. As on 26th December 1994 thecompany has total leased advance of Rs.30.00 Lacs forbooking 100 Maruti Exteem Cars which when allotted willhave an asset base of above Rs.500.00 Lacs against leasingbusiness. STOCK MARKET OPERATIONS:-The major activity of the company upto the year 1993-94 hasbeen investment and trading in stock market operations.Funds were used for investment in shares and securities ofblue chip listed companies.INTER CORPORATE ADVANCES:-Sumeru Leasing & Finance Limited also provides the shortterm inter corporate advances to the corporate bodies. Theadvances proposals are evaluated by professionals of thecompany and are considered on merit.BILL DISCOUNTING:-Sumeru Leasing and Finance Limited proposes to go fordiscounting of bills only in respect of certain reputedcompanies with whom it has very good relations. The companyhas already started business of the bills discounting for areputed cement manufacturing company M/s. Shri DigvijayCement Company Limited Sikka Jamnagar in Gujarat who hasappointed this company to discount their bills to theextent of almost 50% of proposed funds of Rs.10.00 Lacs. For the period 03.03.94 to 26.12.94Particulars (Rs. in Lacs) I INCOME Security trading income 12.54 Financial Charges 2.04 Shares Dividend 0.11 ----- 14.69 ----- II EXPENDITURE Travelling Expns. 0.16 Salaries Exps. 0.40 Interest 0.56 Administrative Exps. 1.26 ----- Total Rs.-----------------> 2.38 -----III Net Profit/(Loss) Rs. 12.31 ----- LIABILITIES Share Capital 101.41 Reserve & Surplus 12.31 Secured Loans 26.85 ------ 140.57 ------ ASSETS Fixed Assets 35.17 Investments 6.62 Current Assets Loans & Advances: 97.78 Less: Current Liabilities 0.35 ------ 97.43 Preliminary & Pre-op. Exps. 1.35 ------ 140.57 ------NOTES:-1. The authorised Share capital of the Company is Rs.300lacs divided into 30 lacs equity shares of Rs.10/- each.2. Investment in Shares are taken on Cost Basis.3. Miscellaneous Expenditure (to the extent not written offor adjusted) comprise of Preliminary Exp. and RegistrationFee etc.4. The company has not made any provision for Income Taxliabilities on Income.5. The company has not provided for depreciation.6. In the opinion of the Board of the Current assets Loans& Advances receivable have the value on realisation inthe ordinary course of business atleast equal to the amountat which they are stated in the Balance Sheet.1. CREDIT APPRAISAL AND MONITORINGThe credit appraisal of prospective clients takes intoconsideration the following two factors:-a. Sound Fundamentals:-The company must have strong financials and the prospectsof the industry must be good.b. Market Reputation.The repayment record of the client is ascertained throughenquiries with institutions/banks/Non-banking FinancialCompanies and other financial Intermediaries which havegranted short term limits to the prospective clients.As a measure of abundant caution the company may also takethe personal guarantees of the Chief Executive Officer ofthe prospective clients.2. CREDIT MONITORING AND REVIEWThe company monitors and reviews its clients on periodicalbasis depending on the amount of exposure security of thetransaction payment record of the client marketreputation of client and other relevant factors.Further the company is deploying its own funds from time totime to achieve the targeted projections and plans todeploy entire funds by the second week of April 1995.MAIN OBJECTS OF THE COMPANYTHE MAIN OBJECTS OF THE COMPANY TO BE PURSUED BY THECOMPANY ON ITS INCORPORATION ARE:-1. To provide all kinds of financial services to tradeindustry merchants traders customers consumers by wayof loan deposit by discounting the financial instrumentslike bills of exchanges cheques promissory notes of othernegotiable instruments ob hypothecation or pledge offinancial instruments like shares stocks debenturesgovernment securities or all kinds of financial instrumentsand in particular to finance the trade industry merchantstrade for business or industrial purposes by way of loanAdvances deposits or for subscribing to the capital ofprivate industrial enterprises.2. To carry on the business of leasing and hire purchasefinance and to provide on lease or hire purchase all typesof industrial and office plant equipments machineryvehicles land and buildings real estates movable andimmovable properties and director to consumers for purchaseof house hold and other durable articles used for privateand personal purposes.3. To carry on the business of leasing and financingservices. SUBSIDIARY COMPANYThe Company does not have any subsidiary Company.