RODIUM REALTY Share price

The company was incorporated as public limited company atBangalore on 17.05.1993. The certificate of commencement ofbusiness was obtained on 24.05.1993. The approval fromMinistry of Industry was received in September 1993 and thecivil construction commenced thereafter. The machinery wasreceived only in August 1994 and the commercial productioncommenced in January 1995. The company was set up to produce warp and hosiery cottonyarn with an installed capacity of 8064 spindles at aproject cost of Rs.533.85 lacs under phase I which wasfunded by way of term loans from State Bank of HyderabadCanara Bank and promoters equity.Under the Single Window Agency the department ofIndustries and Commerce Government of Karnataka allotted10 acres of land for the project in Raichur Growth Centreon 06.05.1993. It also cleared power supply of 650 KVA fromKEB. The water is being supplied to the extent of 1000gallons per day from KIADB sources. During the implementation of phase I of the project therewas cost over-run and the project cost was revised toRs.674.12 lacs. The cost overrun to the extent of Rs.140.27lacs was on account of the following reasons:(i) The area of factory building was increased to 58000sft. from the projected 48500 sft to accommodate theproposed expansion. The cost over run due this was Rs.31.92lacs. (ii) The revised configuration of the machinery andaddition of other equipments entailed a cost overrun to theextent of Rs.44.31 lacs.(iii) The increase in preliminary and preoperative expenseswere to the tune of Rs.22.02 lacs.(iv) The increase in working capital margins were to theextent of Rs.40.47 lacs.(v) The increase in miscellaneous fixed assets is to theextent of Rs.1.55 lacs.The above cost over-run has been financed by both StateBank of Hyderabad and Canara Bank to the extent of Rs.55.00lacs and the balance has been funded by the promoters. Thecommercial production commenced in January 1995 withcaptive power generation.To take advantage of the incentives extended to exports bythe Government the company has proposed to increase thecapacity from 8064 spindles to 12096 spindles in the secondphase.