QUANTUM DIGITAL VISION (I Share price

Quantum Industries (India) Limited was originallyincorporated under the name Ceeta Springs & Steels (P)Limited as a private limited company on April 21 1980with its Registered Office at Madras with the objective ofmanufacturing laminated leaf springs. The Companycommenced commercial production in 1984. On August 291983 the Company became a deemed public limited companyunder the provisions of Section 43 A (1) of the CompaniesAct 1956 and was later converted into a public limitedcompany on February 2 1986. In 1994 Ceeta Springs &Steels Ltd. was taken over by Mr. Himalay Dassani. Due tothis takeover and the consequent change in management thename of the Company was changed from Ceeta Springs & SteelsLtd. to Quantum Industries (India) Ltd. A fresh Certificateof Incorporation to this effect was issued by the Registrarof Companies Tamil Nadu at Madras dated March 3 1994.Due to the recession in the automobile industry the salesrevenue and the profits of the Company were depressed in thelast few years. With the automobile industry now havingcome out of the recession the company is now doing well.The Company has capitalised part of its free reserves tothe extent of Rs.44 lacs by way of a bonus issue. Thebonus shares were issued on August 22 1994 in the ratio of11 shares for every 4 shares held. The Company hadrevalued its assets to the extent of Rs. 179.66 lacs toreflect the true value of its assets. The surplus ofRs.151.41 lacs was transfered to the Revaluation ReserveAccount in April 1994. Subsequently the Companycapitalised Rs.11O lacs out of the revaluation reserves inAugust 1994 by issuing bonus shares in the ratio of 11shares for every 6 shares held. The revaluation wascarried out by Mr L V Sudheer a Government approved valuer.The Company currently manufactures leaf springs for theautomotive sector at its Works situated at 43 AttipattuVillage Ponneri Taluk Chengalpet District Tamil Nadu.The unit has an installed capacity of 2400 tones per annumof leaf springs. The automobile leaf springs are marketedunder the brand name "CEETA" carrying ISI Licence issued bythe Bureau of Indian Standards Southern Region. TheCompany is planning to install an additional furnace toimprove the capacity utilisation and hence profitability ofthe Company. After the installation of the unit in 1984there has been no major remodelling of the unit till date.The funds raised now will not be utilised for installingthe additional furnace/increasing the installed capacity ofthe leaf spring unit.Recently the promoters have decided to add one morefurnace to achieve better capacity utilisation. Presentlythe capacity of the plant is 2400 TPA based on the capacityof the furnace. With the addition of the new furnace thecapacity of the plant will reach 3000 TPA. Presently theunit has achieved more than 100% capacity utilisation inthe past 3 months due to better utilisation of the furnaceand other sections in the plant. The reason why theCompany has not been able to achieve 100% capacityutilisation in the earlier years was mainly because thefurnace did not match the capacity of the other sections.