NEW LIGHT APPARELS LIMTED Share price

The Company was incorporated on 3rd Jan 1995 as a publiclimited company and obtained the certificate ofcommencement of business on 27th Jan 1995. The company hasbeen promoted by Mr.Gurcharan Lal Makkad and Mr. Amrik lalMakkad On 3rd Feb 1995 company took over the runningbusiness of "New light Hosiery manufacturing works "thepartnership concern of Mr. Gurcharan lal Makkad and Mr.Amrik lal Makkad. All the assets and the liabilities ofNew Light Hosiery Manufacturing Works as on 3rd Feb. 1995were taken over by the company except for the land andbuilding at A-47 Wazirpur Industrial Area New Delhi- 110 052 which has been taken on lease from thefirm for a period of 5 years.The said land and building is located in an industrial areahaving an area of 550 sq yards. It is a double storeystructure with A class construction. It has RCC framedstructure with Brickwork cement mortar side cladding cementfloor RCC roof paved court yard and driveway sand facedplaster. It consists of factory hall on the ground floor amezzanine floor office on the ground floor and a coveredshed on the first floor.The total consideration payable was Rs. 2502436 which hasalready been paid in cash by the company to the firm. Atthe time of take over no revaluation of assets orliabilities was done.The company was incorporated to take over the all theassets and liabilities of the firm However at the EGM ofthe company held on 2-2-95 the share holders decided totake over all the assets and liabilities of the firm exceptfor the land and building because the fund position of thecompany was not strong enough to purchase the land andbuilding having an area of 8000 sq. ft. at the market rateof around Rs. 102 lacs approx. Also company had the optionof taking the premises on rent which again was a costlyproposition. Therefore out of the three options ofleasing taking on rent and purchase of property theleasing option was considered to be the best for thecompany. The firm was also liable to heavy capital gainstax had it sold the land and building at its market valueof more than one crores.