Karma Industries Ltd Company Summary

Karma Industries Ltd Summary

Incorporated as Laxman Kumar Birla pvt Ltd on 13 Aug.77, with the object of trading and dealing in synthetic fabrics and yarn, the company was later on converted into a public limited company and renamed as Scana (India) [SCIL]. It was promoted by Sushiladevi Birla and Nandita S Damani. Till 1982 it was engaged in trading activity on a small scale. In 1982 the company established its colour re-production unit at Worli, Bombay, to cater services to the printing industry. SCIL is basically doing colour separation and making negatives for different colours which are in turn used by the printing industry. Under its expansion-cum-modernisation project it is fully expanding its existing studio with the latest state of the art equipments imported from cross field Electronics, U.K. for improving the quality of the output and also to reduce time taken in execution of jobs. The products of Scana Colour are positive and can be classified as accessories or consumables in sophisticated colour printing which is very substantial and includes posters, calenders, brochures etc.COST OF THE PROJECT & FINANCE :The total cost of the project estimated at Rs. 330 lakhs was to be met by equity capital.SCHEDULE OF IMPLEMENTATION : Commercial production expected to commence by June 1994.RISKS AS PERECEIVED BY THE MANAGEMENT :(i) The Company may face competition from existing as well as new entrants. (ii) In the absence of stake by any Financial Institutions/Bank, deployment of funds is entirely left to the management. (iii) As depending on media and consumer industry, any set-back in any of these industries affect the industry.DETAILS OF THE ISSUE :Authorised capital of Rs. 325 lakhs coprises 32,50,000 equity shares of Rs. 10 each. 8,00,000 equity shares of Rs. 10 each issued, subscribed, and paid-up. 22,00,000 equity shares of Rs. 10 each at a premium of Rs. 5 per share now being issued, of which 7,50,000 equity shares are reserved for firm allotment to the promoters, Directors etc, and the balance to the public.