KG PETROCHEM Share price

M/s. KG Petrochem Limited was incorporated as a PrivateLimited Company on 29.02.1980 with the Registrar ofCompanies Rajasthan at Jaipur under the name and style ofKG Petrochem Private Limited. The status of the Companywas changed to Public Limited Company vide the specialresolution passed at the Extraordinary General Meeting ofthe shareholders of the Company held on July 24 1995 andthe Company received fresh Certificate of Registration fromthe Registrar of Companies Rajasthan at Jaipur on24.08.95. In March 1980 the Company became a partner withJai Hanuman Industries engaged in manufacturing of wax andsubsequently the sole proprietor of the concern in April1982. In September 1981 the Company undertook productionof paraffin wax from slack wax. However in January 1995the Company implemented the project for manufacturing ofHDPE/PP Woven Sacks with installed capacity of 1600 MTPA ata cost of Rs.400 lacs with financial assistance by way ofterm loans from RIICO and RFC amounting to Rs. 150 lacs andRs. 90 lacs respectively State Investment Subsidy of Rs.35lacs and balance was contributed by promoters.The Company is selling HDPE/PP bags directly to cementunits who place bulk orders every month in advance. Thepresent capacity utilisation is over 90% and in order tocapitalise the growing demand in the region the Companyenvisages to expand the capacity by 1800 MTPA raising theinstalled capacity to 3400 MTPA.The Company made a recordachievement in Viswakarma Industrial Area in northwest ofJaipur by implementing the existing project within 6months of sanction of loan by RIICO and RFC. (Source: RIICONewsletter January 1995)The Company shifted the WAX division in July 1995 to a newrented site to save the woven sacks plant from corrosionwith the permission of District Industries Centre Jaipurand the name of the wax division was changed to PulkitRefinery and the Company was its sole proprietor. Theshortage in the supply of its main raw material viz.slack wax was resulting in uneconomic operations. TheCompany was planning to hive off this division and hadinvited offers for this purpose. Mr. Umesh Nemani who hasan experience of about 10 years in the wax business and isnot related to the Promoters joined as a partner 1.08.95.The partnership was formed on the basis of audited BalanceSheet drawn on 1.08.95. Later the Company retired from thepartnership of Pulkit Refinery. The consideration wasdetermined on the basis of an audited balance sheet as on22.08.95 in which fixed assets were revalued at Book Valueraw material at landed cost and other current assets werevalued at net realisable value. The total consideration wasRs. 5.34 lacs. After this M/s Pulkit Refinery does nothave any connection with the Company.Notes:1. The production of wax was low since Indian OilCorporation Baruni was the only supplier of the rawmaterial namely Slack Wax and the supply was subject toquota allotment.2. Equity shares were originally issued with Face Value ofRs. 100/- each converted into shares of face value of Rs.10/- each on 24.07.95. The face value of shares has beentaken as Rs.10/- for calculation of EPS and Book Value.Further Share Application Money has also been consideredfor these purposes.SIGNIFICANT ACCOUNTING POLICIES & MATERIAL NOTES TOACCOUNTS1. SIGNIFICANT ACCOUNTING POLICIESa) Basis of Preparation of Financial Statement.The financial statement have been prepared under historicalcost convention and on the basis of going concern and arein accordance with the generally accepted accountingprinciples.b) Fixed assets & Depreciation.i. Fixed assets are stated at cost and the cost compriseits purchase price and all attributes of cost includingfinancial cost of bringing. The assets o its workingcondition for its intended use and reduced by Excise dutyii. Depreciation has been provided on straight line methodat the rates and in the manner as specified in Schedule XIVof the Companies Act 1956.iii. No write off has been made in respect of lease holdland.(C) Valuation of Inventoriesi. Raw material is valued at cost.ii. finished goods are valued at cost or market pricewhichever is lower.(d) Recognition of Income & ExpenditureAll items of income and expenditure are recognised onaccrual basis.(e) SalesSales is accounted for including excise duty(f) Excise duty is accounted at the time of removal ofgoods.2. The company was originally incorporated as KG PetrochemPrivate Limited on 29/02/80 and subsequently the status ofthe Company was changed from Private Limited to PublicLimited u/s 21 of Companies Act 1956 w.e.f. 24/08/95.3. Issued subscribed and paid up capital of Rs.10275000/-divided into 102750 equity shares of Rs.100/- each weresub-divided into 1027500 equity shares of Rs.10/- each.4. The HDPE/PP Woven Sacks project was commissioned on1.1.955. During the year the was division has been transferred inthe name of M/s Pulkit refinery. The company has enteredinto partnership with Sh. Umesh Namani w.e.f. 1.8.95 inM/s. Pulkit Refinery and the Company has retired from M/sPulkit refinery w.e.f. 22.08.95 M/s. Pulkit Refinery hasnow no longer any connection with the company and the totalconsideration amounts to Rs.5.34 lacs and Company hasreceived Rs.4.00 lacs.6. No dividend has been declared or paid by the Companysince its incorporation.MAIN OBJECTS OF THE COMPANYThe main objects of the Company as set out in theMemorandum of Association are as follows :-1. To carry on business as manufacturersprocessors/re-processors refiners extractors buyerssellers importers exporters stockists distributorsorganic and inorganic pharmaceuticals oils lubricantsand waxes wax products candles natural and syntheticpolymers and all type of plasticisers dyes and pigmentsdye intermediates paints varnishes fine chemicals ofevery description.The Existing operations as well as the expansion projectbeing undertaken by the Company are covered by the MainObjects as set out in the Memorandum.SUBSIDIARY COMPANIESThe company does not have any subsidiary.