PRADHIN Share price

The Company is engaged in the manufacture of rolled productslike CTD bars M S rounds angles and channels with aninstalled capacity of 21000 tons per annum. The factory islocated at Manali an industrial suburb of Madras. The RollingMill was located originally in Pondicherry and owned by one Mr.Govindaraja Mudaliar under the name of a partnership firm styledModern Rerollers. The present promoters of BML took over themanagement of this unit in 1981 and in 1986-87 the factory wasshifted to Manali. In 1987-88 BML took over the assets andliabilities of the firm. The Major Plant & Machinery at the timeof Takeover included an Extra Heavy Duty 16" lathe 1/2"drilling machine with motor & starter Tor Steel machine WolfPortable Blower Arcwelding machines portable grinders GearsOptical Pyrometer etc. amounting to Rs.1977290.96 The TotalFixed Assets at the time of takeover apart from plant &machinery included Electrical Installations Tools &Accessories Weighing Scales etc. amounting to Rs.5158699.64.The Assets of the Partnership Firm were taken over at Book Valueand No Re-Valuation was done. The Total Assets of thePartnership Firm as per Audited Balance Sheet dt: 30.06.1987were Rs.80.07 Lakhs and Total Outside Liabilities (ExcludingPartner''s Capital Accounts) were Rs.72.32 Lakhs. The NetConsideration payable was thus Rs.7.75 Lakhs which was paid byallotment of 77480 shares in Bhagwandas Metals Limited. Theapproximate residual life of the plant and machinery taken overis more than 10 years and the same are in good runningconditions. With financial assistance in the form of 3 termloans of Rs.30.00 lacs each and equipment finance of Rs.2.40lacs from IRBI the present promoters have stabilised theoperations of the Company with improved capacity utilisationand growth in sales. The unit has also shown a consistent growthin profitability during the period 1990-1993. During 1993-94inspite of increased production and sales the profit hasdeclined due to adverse market conditions. However theprofitability has substantially improved in the first half ofthe current financial year 1994-95.