SHREE KRISHNA PAPER MILLS Share price

Shree Krishna Paper Mills & Industries Limited (SKPMIL) isan existing profit making and dividend paying companyhaving its Registered Office at 16 India Exchange PlaceCalcutta-700 001. The Company was incorporated on 14thSeptember 1972 as a Private Limited Company having its nameas Shree Krishna Paper Products (P) Ltd. The status of thecompany was changed to Public Limited Company on 2nd July1986. The name of the company was changed to Shree KrishnaPaper Mills & Industries Ltd. w.e.f. 22nd October 1986.The Company had taken over a paper unit located atBahadurgarh from M/s. Bansal Paper Mills in 1974. SKPMILthere after undertook a major modernisation programme.During the eighties the coated paper was in the negativelist and the Government policies were not very favourablefor the import of Coated Paper technology and plant &equipments. The company then decided to undertake in-houseR&D for modification & upgradation of existing machines toincrease speed capacity and efficiency. These effortsyielded very good results and over the years the companywas able to increase its Capacity to 12000 T.P.A. This isthe main operating manufacturing unit of the company. In1989 the Company acquired the complete manufacturingfacilities including land factory buildings and otherassets liabilities of M/s. Bhargava Papers (P) Ltd.Dadri Ghaziabad Uttar Pradesh from UPFC and PICUP videSale Deed DT. 18th Feb 1989. The assets and liabilities ofthis unit were merged in the company. This manufacturingfacility at Dadri. Ghaziabad is non-operational atpresent. The Company decided to acquire this unit tofacilitate the significant synergical expansion of existingactivities but at a later date an additional plot of landadjacent to the existing plant at Bahadurgarh Haryana waspurchased by the company. Since it was not logical to havetwo sets of similar organisations and manufacturingfacilities in two different places the management hasdecided to profitably dispose off this unit and toconcentrate on the diversification and expansion plans atthe Bahadurgarh unit.The Company further paid off the following liabilities ofBhargava paper: (Rs. in lacs)a. UPFC 21.40b. PICUP 10.85 32.25There are no other liabilities pending on account ofBhargava Papers as on date.The Company further proposes to dispose of the landbuilding and some of the equipments lying at DadriGhaziabad UP in view of significant appreciation in landprice.The Company would float the bidding at an appropriate stageand it would not be prudent at this moment to assess thequantum of possible gain. As per the assessment of theGovernment approved valuer the value of land buildingplant & machinery has increased as against the acquisitionprice. The details are as under:-Name of valuer Date of report Item valued Values (Rs.in lacs) as at 31.3.93Anil Kumar Goel 13.4.93 Land & Building 100.97BE (Civil) F.I.V.Dr. P.C. GuptaB.Sc (Engg.) PHD Mech.Eng. USA F.I.V. 15.5.93 Plant & Machinery 199.97