saharanpur electric supply company ltd Management discussions


THE SAHARANPUR ELECTRIC SUPPLY COMPANY LIMITED ANNUAL REPORT 2007-2008 MANAGEMENT DISCUSSION AND ANALYSIS ALLOTMENT OF EQUITY SHARES: During the last year, the Company allotted 40000 equity shares of Rs.10% each for Rs. 4,00,000% (Rupees Four Lacks only) to one of the director as per your approval in AGM held on 13th August, 2005 under section 81(1 A) of the Companies Act, 1956, Thus Directors have Contributed Rs.10,00,000 (Rupees Ten Lakhs only) towards augmenting the capital base and for revival of company. AUTHORISED SHARE CAPITAL: Authorised share capital of Company, increased from Rs. 20,00,000 (2,00,000 ordinary shares of Rs.10/- each) to Rs. 50,00,000 (5,00,000 ordinary shares of Rs.10% each) RIGHT ISSUE: As Company has very low capital base, to increase capital base, Company, seek shareholders permission to bring right issue of amount upto Rs.32,00,000. Upto Rs. 16,00,000 will be on 1:1 basis (1 Right share for 1 share held.) In case of over subscription, at Board of Directors discretion, further shares upto Rs. 16,00,000 can be allotted to shareholders. Board request shareholders to approve the resolution. Board will formulate the scheme and intimate the same after approval from shareholders. FUTURE PLANS: Company is contemplating to develop business. Preference is given to utility sector (Power, water & Gas).