Rajasthan Cylinders & Containers Ltd Company Summary

Rajasthan Cylinders & Containers Ltd Summary

Rajasthan Cylinders & Containers Limited is an integrated manufacturing unit which is indulged in manufacturing of LPG Cylinders and marketing of LPG. The Company was incorporated on 24th December, 1980 as a Limited Company and Certificate of commencement of Business was obtained on 10.03.1981 from the Registrar of Companies, Jaipur, Rajasthan and it was promoted by Shri S.G. Bajoria, Shri G.G. Bajoria and Associates. The Company was mainly engaged in the business of manufacturing and selling LPG Cylinders, Valves & Regulators and rendering refilling services of LPG Gas. It also provides the bottling facilities to fill the LPG in the Cylinders. The Companys manufacturing unit is situated at VKI Area, Jaipur. In order to comply with the clause 40A of Listing Agreement which states that the Minimum Public Shareholding in listed companyshould be at least 25 % of the total share capital, Mr. Avinash Bajoria, Mr.Ashutosh Bajoria and Mr. Krishna Gopal Bajoria ajoria (promoter/promoter group) divested their shareholding in the company by way of Offer for Sale (OFS) through BSE Ltd on July 23, 2014. Consequently, the public shareholding in the company increased from 11.55% to 26.37% and the shareholding of promoters/promoter group decreased from 88.45% to 73.63% during the fiscal year 2014-15.During the year 2014-15, the Companys equity shares got listed with BSE Ltd., with effect from October 16, 2014 under the direct listing norms. The equity shares of the company are already listed with Jaipur Stock Exchange Ltd and Calcutta Stock Exchange Ltd. However, the Jaipur Stock Exchange Ltd has been closed.During the Financial Year 2014-15, the company had given loan to its associate company worth Rs 128 lakhs, Rs 15.52 lakhs to a Group Company, Goyal Complex Pvt Ltd., and Rs 25 lakhs to other body corporate named, Okay Plus JKD BuildMart Pvt. Ltd. for business purpose respectively.During FY 2014-15, the company had 3 associate companies, viz. Agribiotech Industries Limited, Shipra Towers Private Limited and Beetle Tie - Up Private Limited.The Company sold the investment held as equity Shares of Agribiotech Industries Limited (ABIL) and ABIL ceased to be an associate Company of the Company with effect from 31st March, 2022.The Business was operating under challenging environment during FY 2022-23 due to various factors apart from that the high cost of raw material /supplies and the higher Interest Cost, which lead reduction in borrowing powers of the Company and Banks reduced the working capital limit of the Company due to recent negative performance of the Company. Considering this challenging phase and unsatisfactory production performance of the Cylinder, Valves and Regulators Unit with continued operational losses in spite of attempts to turn it around, the Company closed its operations at Jaipur. The LPG Gas Filling Plant which was non-core additional activity of the Company given on Job work Basis to third party was also disposed during FY 2020-21. The Companys manufacturing unit closed effective from 09th December, 2022. Hence it was not yielding any benefit to Company. To reduce interest cost and to pay off its creditors, the substantial Plant and Machinery of the Factory situated at Jaipur was disposed off.The Company sells its products i.e. LPG Cylinders, Valves and Domestic Pressure Regulators to the Oil Marketing Companies of Government Sectors. It also manufactures the Cylinders, Valves and regulators for its customers at Nepal. The Companys operations are mainly depends upon the order released by the Oil Marketing Companies which are influenced by Government Policies.