ASHUTOSH PAPER MILLS Share price

KAILASHPATI PAPER MILLS LTD. was incorporated on 7th November 1988 as a Public Limited company and obtained the certificate of commencement of business on 11th November 1988. The company has been promoted by Shri Rajendra Kumar Agarwal Rakesh Kumar Agarwal Sanjay Kumar and Babu Ram Agarwal.The company purchased a sick unit of Mill Board at B-9 Industrial Area Sikandrabad Distt. Bulandshahar (U.P.) from UPFC for a consideration of Rs. 10.85 lacs along with liabilities of UPSIDC dues rent rates taxes and dues of UPSEB Municipality and other Local Authorities etc. and set up the facilities for the manufacture of Media Kraft Paper with a total cost of Rs. 217.41 lacs which was financed through assistance from PICUP and UPFC amounting to Rs. 130.50 lakhs and the balance was contributed by promoters.The company was earlier not doing well and had incurred losses during the period 1992-93 and 1993-94. The company approached UPFC and PICUP for certain relief in repayment schedule of loan and overdue interest. The principal dues of UPFC and PICUP amounting to Rs. 87.97 lakhs and Rs. 61.50 lakhs respectively were rescheduled by both the institutions vide their letters dated 6/12/94 and 12/12/94. Apart from these Rs. 26.50 lakhs due for simple compound and penal interest were also rescheduled through aforesaid letters . The details of repayment of loan and other terms and conditions have been given under the head of "Details of Term Loans" in Part II of the prospectus.The Company had also been carrying on business of trading of various varieties of paper and related products. Besides it was also engaged in negotiating advance licenses and machinery equipment on commission basis. The major part of the income from these activities related to paper trading which the Company had undertaken to earn profits as well as to gain experience of marketing various types of paper & paper products.It proposed to enhance its MG Kraft Paper manufacturing capacity from 3900 TPA to 9000 TPA. Both the institutions accepted the proposal of the company and sanctioned additional term loan ( UPFC: Rs. 54.25 lakhs and PICUP: Rs. 35.25 lakhs ) alongwith relief in repayment of term loan overdue compounded & penal interest. The Company turned around the corner in the year 1994-95 and earned substantial profit at the net level also.The unit of the company remained closed from 20.10.94 to 21.02.95 pursuant to Supreme Court Order for not achieving proper standards for effluent emitted by it. The Company resumed its business activities on suspension of the order. It has also installed certain equipment in this regard. The Central Pollution Control Board had categorized the Company as compliant unit. The Supreme Court on the basis of the satisfactory report of the Central Pollution Control Board has extended the suspension of closure order till further orders.There had been no labour problem or delay in commencement of commercial production in the past.The Company had achieved a capacity utilisation of 57.60 % in the year 1991-92. The capacity utilisation was respectively 41.88% and 35.32% in the years 1992-93 & 1993-94. This low capacity utilisation was mainly due to general recession in the paper industry . However the capacity utilisation improved substantially in the year 1994- 95 to 60.93 % and the present capacity utilisation is over 80% . A substantial improvement in the health of paper industry called for production facilities of new varieties of paper which led the Company to expand and diversify. Accordingly the Company now proposes to increase the capacity from 3900 TPA to 12000 TPA to facilitate manufacture of various varieties of papers like Duplex board Grey board Writing and Printing Paper Newsprint etc. The project has been freshly appraised by PICUP and the additional requirement of funds for this project are to be met out of the public issue term loans internal cash accruals and promoters'' contribution.The Company had revalued its land building and plant & machinery based on the Valuation Report of Mr. K. K. Aggarwal Chartered Engineer & Govt. Approved Valuer dated 31.12.94. The book values of land building and plant & machinery as on 31.03.94 were Rs.4.37 lacs 36.87 lacs and 149.60 respectively and the same had been revalued to Rs. 23.29 lacs 45.85 lacs and 260.35 lacs respectively. 7. The Company does not have any subsidiary company.