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PASUPATI HARYANA WOOLLENS LTD.
OBJECTS & ACTIVITIES: Manufacture of wool and wool blended yarns.
INCORPORATION & PROMOTION: The Company was incorporated on 14th October, 1986, as a public limited company and obtained the Certificate for Commencement of Business on 15th November, 1986. It was promoted jointly by HSIDC and pasupati Spinning & Weaving Mills, Ltd., and Rakesh Jain.
THE PROJECT: The Company undertook to set un a worsted spinning mill with an initial installed capacity of 6,000 worsted spindles at Rawal village in Rewali district of Haryana State. The Company imported proparatory and recombing machinery from N.Schlumberger, Francer and drying machine from Strayfield Company Ltd., U.K. Commercial production commanced in March 1990.
COST OF THE PROJECT: The total cost of the project was Rs.1405 lakhs of which a sum of Rs.127 lakhs was for land & buildings, Rs.895 lakhs for plant 8 machinery and Rs.74 lakhs as margin money for working capital. This was met through equity capital of Rs.551 lakhs, rupee term loans of Rs.610 lakhs, foreign currency term loans equivalent to Rs.229 lakhs and Central subsidy of Rs.15 lakhs.
FINANCE: The following rupee term loans were sanctioned by financial insitutions: (i) Rs.160 lakhs by IFCI : (ii) Rs.300 lakhs by IDBI: and (iii) Rs.150 lakhs by ICICI. Foreign currency loan equivient Rs.77 lakhs by IFCI, Rs.76 lakhs by IDBI nd Rs.76 lakhs by ICICI were also sanctioned.
The financial institutions have the right to exercise the option to conver at their option a part of their loans not exceeding Rs.22 lakhs in the aggregate into equity capital of the Company during period between 1.1.92 to 31.12.1994. Upon exercise of option, the following equity shares were to be allotted at par: (i) 57.700 shares to IFCI: (II) 1,008,200 shares to IDBI and (iii) 54,100 shares to ICICI.
RIGHTS ISSUE: The Company proposed in issue 29,50,000 equity shares of Rs.10 each at par on rights basis in the proportion of 50:100..
During 1996-97, company submitted a One Time Settlements (OTS) proposal to the financial institution, wherein various relief and concessions were sought to restructure the liability of the company.
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