K&R Rail Engineering Share price

The Company was incorporated as a Private Limited company on 30.8.83 and was subsequently converted into Public Limited w.e.f. 7.7.93. The company at present is mainly engaged in export of hand made carpets and druggets. On its incorporation on 30.8.83 the company took over the running business of M/s. Gupta Carpets International which was a partnership firm engaged in export of hand made carpets and druggets since 1977. Since one of the main objects of the company was to take over the business of previous firm M/s.Gupta Carpets International its assets and liabilities were acquired at book value for a net consideration of Rs.33.42 lacs which was paid by the company in cash to the retiring partner. No revaluation of Asset was done at the time of acquisition or before or after the acquisition. In February 1994 it made its maiden public issue of 2500000 equity shares of Rs. 10/-each for cash at par aggregating to Rs.250 lacs. The issue was over-subscribed by 2.5 times and the shares at present are listed at Delhi Bombay and Ludhiana Stock Exchanges. After the Issue the company expanded its existing carpet export activity by installing 300 additional looms at Amritsar and Agra in April''94. In the year 1995-96 the company diversified its activities by starting trading and export of Readymade Garments and Hoisery.PRESENT BUSINESS OF THE COMPANYThe company at present is mainly engaged in export of hand made/ knotted and tufted carpets druggets Readymade Garment Hoisery and Bath Rugs. It also deals in wool yarn and carpets in the domestic markets. At present it has installed 355 looms. The looms are located in the villages in the house of weavers. The factory premises at Amritsar is used as a packaging unit only. However major part of the sale is in respect of production carried on contract basis by outside contractors. Readymade Garments/hoisery is also procured from contractors and outside suppliers. The Company also has as showroom cum godown in Safdarjung Enclave New Delhi.The major steps taken by the company for setting up the proposed project are :-i). Selection and identification of imported plant and machinery has been made. Ordering for machinery worth Rs.88.30 lacs has been made and payment of advance of Rs. 12.81 lacs to towards the same has been made as on 31/01/96ii) Construction of building has started and expenditure of Rs.21.36 lacs has been made till 31/01/96iii) Share application money of Rs.62.80 lacs has been raised from the promoters.