STYLAM INDUSTRIES Share price

Golden Laminates Limited (hereinafter referred to as the''Company'') was incorporated on 28th October 1991 as aPrivate Limited Company under the Companies Act 1956 and wasconverted into a Public Limited Company in terms of SpecialResolution passed on 12.10.1992 and obtained freshcertificate of incorporation consequent on change of nameissued by the Registrar of Companies Jalandhar on 22ndOctober 1992 to carry on the activities as detailed inthe main objects of the Memorandum of Association of theCompany under the caption ''Main Objects of the Company''.MAIN OBJECTS OF THE COMPANYThe main objects of the company as set out in theMemorandum and Articles of Association of the company are asfollows :1. To manufacture buy or sell Import export or sell andcarry on the business of all kinds Decorative andIndustrial Boards Sheets Sunmica wood pannels vaneeredand unvenered adhisives straw products flush doors andfurniture and all kinds of timber glas and other articlesthings and other ingredients which can conveniently be usedfurther for manufacture of or in connection with all otherarticles and things as aforesaid.2. To carry the business of manufacturers processorsrefiners makers convertors importers exportersmerchants buyers sellers and dealers in all kinds andforms of Board Sheets Paper Sunmica Paper mouldedproducts plastic moulded products including sheetsboxes trays containers.3. To carry on the business of manufacturers moulderssellers repairers importers exporters of sunmicaLaminates Board Trays P.V.C. bakelite fibre glass etc.4. To carry on the business of all types of contractorsengineers planners designers & moulders.PRESENT BUSINESS OF THE COMPANYThe laminate industry started in India by CaprihansLimited Bakelite Hylam and Formica. These companiesintroduced the laminated sheets with brand names such asSunglass Decolam/Decolite and Formica. The laminatedsheets have applications in the Furniture office andhomes. Over a period of 50 years the decorative laminatesindustry has grown from these three main manufacturers toabout 30 manufacturers all over the country. There are aboutseven to nine manufacturers in the industry who arecatering to the needs of the higher segments withthicknesses of 1.0 m.m. and above. The profitability incase of higher thickness laminates is excellent as comparedto lower thicknesses. The critical area of the industry isthe product designs and thicknesses offered by thecompanies.The Company implemented the Phase I with a limited capacityto manufacture mixed laminated sheets with size rangingfrom 0.6 mm to 1.0 mm. After utilising the capacity of53.7% of Phase I the company plans to enter into thehigher segment market with a large product mix and tolaunch its product on all India basis. The Company hasalready established its brand name of STYLAM in the statesof Punjab Haryana U.P. J & K and Delhi and are expandingcapacity to meet the growing domestic demand on All Indiabasis and the export needs. The Company is importing thelatest sophisticated moulds with state of art technologyfrom France and West Germany to launch its premium productmix in the market and to cater to the growing export needs.Hence to complete and to launch its product on all Indiabasis the Company has good growing potential in theIndustry.The Company estimated to complete the implementation ofPhase I by December 1992. The total expenditure for theimplementation of Phase I was estimated at Rs.326.26 lacs.The Company completed Phase I and commenced commercialproduction on 5th December 1992. The Company actuallyincurred Rs. 368.07 lacs against the original estimates ofRs. 326.26 lacs and thus incurred a cost overrun of Rs. 41.81lacs which was met by raising term loan of Rs.26.55 lacsfrom State Bank of Patiala and additional equity ofRs.15.26 lacs. However there was no time overrun.The Company in its present Phase-I of operation is engagedin manufacture of decorative and industrial laminateswith capacity of 302400 sheets per annum in its Factorywhich is situated at Industrial Area Phase I PanchkulaDistrict Ambala Haryana. Now the Company proposes toenhance the capacity by adding Phase II with installedcapacity of 714000 sheets of Industrial/DecorativeLaminates per annum. The total installed capacity of Plantwill be 1016400 sheets per annum after implementation ofPhase II