UDAIPUR CEMENT WORKS Share price

J.K. Udaipur Udyog Limited (JKUUL) was incorporated on March 15 1993 and obtained Certificate of Commencement of Business on March 24 1993 from the Registrar of Companies Rajasthan at Jaipur. The Company does not have any subsidiaryJKUUL acquired UCW as a going concern from BHL w.e.f. December 2 1993 with an installed capacity to manufacture 8 lac tonnes per annum (tpa) of portland cementThe assets of UCW consistedof land (freehold land and leasehold land) buildings plant and machinery equipments furniture and fixtures and vehicles which have been detailed elsewhere in the prospectus. The total purchase consideration paid for the aquisition of UCW was Rs 137.50 crores. The acquisition was made on the basis of a bid process on evaluation of the business. The landand building acquired have been valued by the Government approved Chartered Engineers. The balance purchase consideration has been allocated to other assets of the Company which include plant and machineryAccording to the management estimates the present value of the assets acquired are much higher than the purchase consideration paid. The purchase consideration (net of loans of Rs 42.60 crores) amounting to Rs 94.90 crores is being paid as agreed between the company and BHL. As on date JKUUL has paid Rs 50 crores to BHL. Of the balance of fls 44.90 crores Rs 19.90 crores would be payable on March 1 1995 and the balance as is agreed between the Company BHL and the Promoter (JKCL)The sale of UCW to the Company has been approved by the shareholders of BHL vide resolution passed at the Annual General Meeting of the company held on 24.09.92. The details of the execution of sale registration of the properties etc. has been discussed elsewhere in the prospectusThe land admeasuring 400 acres situated at Village Nagarmahra Tehsil Mavli District Udaipur on which UCW is located was assigned in favour of the Company on December 1 1993 by way of an endorsementon the existing Lease Deed in accordance with the Orders of the State Government of Rajasthan and the same was lodged for registration on December 1 1993The Indenture of Conveyance in respect of the factory office colony and other buildings standing on the said land was executed between BHL and JKUUL and lodged for registration on December 1 1993. The two Limestone Mining Lease Deeds (Lease I covering Daroli and a part of Manderiya block and Lease II covering the other part of Mandetiya block) admeasuring approximately 704.944 hectares and 213.330 hectares respectively in Vallabhnagar District Udaipur assigning the said mining leases in favour of JKUUL were executed between Mining Engineer Mines & Geology Department State Government of Rajasthan Udaipur BHL and JKUUL and lodged for registration on December 3 1993Plant & Machinery of the value of Rs 10 crores has been acquired on Lease from BHL All other moveables i.e. the plant and machinery turniture fixtures office equipments and vehicles were acquired on December 1 1993 by simple delivery under receipts passed by the Company in favour of BHLJKUUL has drawn up a modemisation and debottlenecking programme at a total outlay of Rs 49.97 crores as described elsewhere in this Prospectus. As per the ICICI appraisal the capacity for the year ending March 311995 will reach a level of 10 lac tpa