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| KEY
EVENTS |
| The
key events in respect of the Jaykay Enterprises Ltd. (Formerly J.K. Synthetics Ltd.), Ltd. are set forth
below: |
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The
Company was incorporated under the name ‘J.K. Investment
Trust Limited’, and functioned primarily as an investment
Company. It ceased to be recognized as investment trust Company
in 1959. |
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The
Company changed its name to J. K. Synthetics Ltd.
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The
Company established a Research Center at its factory at Kota
for the manufacture of nylon yarn and also for developing
various types of other synthetic yarns and fibers. Subsequently,
a Research Center was put up under the name and style of "Sir
Padampat Research Center". |
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The
plant for manufacturing synthetic fibre making machinery in
collaboration with Harsh Fisher of West Berlin was inaugurated
in November. |
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A
Cement factory manufacturing 750 tons of Portland / pozzolana
Cement per day was set up at Nimbahera in Chittorgarh district
of Rajasthan and was commissioned on 4th May, 1975. |
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The
Company received an industrial license for the manufacture
of D.M.T. from polyester waste and moon-ethylene glycol (by-product)
with an annual capacity of 4,000 tons and 1,000 tons respectively.
A commercial plant for the manufacture of D.M.T. from polyester
waste was installed |
With
effect from 1st July, J.K. Steel & Industries Ltd. was
amalgamated with the Company. |
| 25,000
Pref. shares redeemed on 31.3.1977 and 60,00,000 Bonus equity
shares issued in prop. 2:3 on 10.5.1977. |
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An
Acrylic Fibre project set up in collaboration with Technimont,
Italy. The Company also set up a White Cement plant at Gotan
in Rajasthan with a capacity of 50,000 tons per annum. This
plant was commissioned in August, 1984. |
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6,000
No. of Equity Shares allotted to ICICI at par on conversion
of loan. 3,39,286 No. of Equity Shares allotted to UTI, IFCI
and GIC and its subsidiaries (prem. Rs.18/- per share) on
conversion of loans/debentures. |
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During
January-February, the Company issued 15,62,500-13 1/2% (3rd
series) secured convertible debentures of Rs.160/- each for
a total amount of Rs.25 crores |
| 25%
of the face value of each debenture is convertible into two
equity shares of Rs.10/- each of the Company at a premium
of Rs.10/- per share on 1st January, 1983. |
In
the event of any bonus issue of equity shares before conversion,
the entitlement for equity shares on conversion stands augmented
in the same proportion as bonus issue and the premium on new
equity shares also stand reduced pro tanto. The balance of
Rs.120/- per debenture shall be redeemed between 2nd April,
1989 and 2nd April, 1992. |
| 31,25,000
No. of equity shares allotted in conversion of 13.5% debs.
(I series) 63,13,666 bonus equity shares then issued in prop.
1:3. In July 1983, 1,00,000-13.5% Pref. shares issued as rights
to equity shareholders in prop. 1:161 (fractions ignored and
subject to a minimum of 1 share). |
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To
augment the long-term working capital resources the Company
issued 12,00,000-15% secured (6th series) non-convertible
debentures of Rs100 each on a rights basis to the equity and
preference shareholders. |
| The
Company also issued 15% secured (7th Series) non-convertible
debentures of Rs 100 each aggregating Rs 48.07 lakhs to those
9.1% and 9.5% preference shareholders who opted for debentures
in lieu of the redemption amount of their shares. |
| The
balance debentures aggregating Rs 36.93 lakhs were subscribed
by UTI in 1985-86. These are redeemable in one installment
at a premium of 5% on 1st April, 1992. The date was extended
by another 7 years. |
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J.K
Satoh Agricultural Machine Limited became a subsidiary of
the company . |
| Four
investment companies (J.K. Investment Limited, Kanpur Investments
Limited, Jaykaylon Investment Limited and Juggilal Kamlapat
Holding Limited) became subsidiaries of the company. |
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The
Company received a licence to manufacture 2,000 Fascimile
systems and allied equipment. The licence was also received
for Rs 30 crore computer software project.
The Company signed an agreement with the Bihar State Industrial
Development Corporation on 15th May, to set up a plant in
the joint sector for the manufacture of nylon `6' yarn with
an annual installed capacity of 6,000 tons. It was deferred
due to rigid approach with regard to selection of appropriate
site and un- favorable response from Government.
J.K. Leasing Company Limited and Risha Steel Limited also
became subsidiary of the company.
The Company issued 12,00,000-15% secured (8th series) redeemable
debentures aggregating Rs 12 crores by private placement to
UTI to meet part of the capital cost of installing waste recovery,
energy conservation and balancing equipment at its synthetic
fibre and yarn plants at Kota.
15% debentures of Rs 100 each aggregating Rs 10 crores were
also privately placed with UTI to part finance the cost of
the thermal power project being put up at Bamania village
in Chittorgarh district. These debentures are redeemable on
9th April, 1993 and 18th June 1993 at a premium of Rs 5 per
debentures.
75,000-9.5% and 10,000-9.1% preference shares were to be redeemed
on 31st March, 1985 and 30th June, 1985 respectively. The
Company gave these shareholders the option to subscribe to
15% secured (7th series) non-convertible debentures of Rs
100 each in lieu of these shares in the ratio 1:1 and debentures
aggregating Rs 48.07 lakhs were allotted. The balance preference
shares were redeemed on due dates. |
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J.K.
Industrial and Mineral Products Limited became a subsidiary
of the company. With a view to earn valuable foreign exchange,
the Company set up international trading division in November.
The centre developed technology for production of mass colored
nylon yarn and polyester fibre on commercial scale. It also
developed technology for production of carries free dyeable
polyester on pilot scale.
The Company issued 15% secured redeemable debentures aggregating
Rs 65 crores for financing part of the capital cost of the
new acrylic staple fibre and nylon tyre cord project at Jhalawar
in Rajasthan. These are redeemable at a premium of Rs 5 per
debentures in one instalment on 10th November, 1993 or in
five equal instalments of Rs 20 per debenture at the expiry
of 5th, 6th, 7th, 8th and 9th year respectively.
The Company privately placed with UTI and LIC, secured non-convertible
debentures worth Rs 22 crores.
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The
fibretech division and syntex tube works suffered a set back
on account of go-slow resorted to by workmen and recession
in demand respectively.
The Company proposed to incorporate specialized and precision
lines of production in the fibretech division and resort to
diversification in the syntex tube division.
The Company installed the indonet terminal for personnel training.
A team of professionals responsible for implementation of
the Company's projects were grouped under Jaykay Tech Division.
A Memorandum of Understanding was signed with M/s. SNC/FW
Ltd. of Canada.
The Company proposed to participate in the new company Jaykay
Tech. Ltd. During June-July, 132,58,700 No. of equity shares
(prem. of Rs 20 per share) were offered as rights in prop.
1:2. The remaining 6,31,367 shares offered to employees/workers
of the Company (only 5,51,750 shares taken up). The remaining
79,617 shares were allowed to lapse. 3,00,000-14% Pref.
CR shares issued. |
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The
J.K. Technosoft division undertook a project each in US and
UK and carried out in-house development of software packages.
Endorsement letter dated 29th August, was received for substantial
expansion of nylon industrial yarn/tyre cord capacity to 2000
TPA with a change of location from Kota to Jhalawar in Rajasthan.
Licensed capacity of acrylic fibre plant at Kota was re-endorsed
from 4000 TPA to 12,000 TPA vide letter dated 27th September.
In addition, licensed capacity of polyester filament yarn
plant at Kota was re-endorsed to 10,700 TPA from 6,960 TPA.
A letter of intent was received for the setting up of a petro
chemical complex at Salempur in U.P. for the manufacture of
automatic and purified terephthalic acid (PTA).
The Company signed a co-promoter agreement with PICUP for
setting up a joint sector unit for the manufacture of photo
sensitized goods with a capacity of 13 million sq. mtrs in
U.P.
Government approvals were awaited for the following:
(i) Propylene and Acryionitrile project;
(ii) Monoethylene glycol, ethylene oxide,
diethylene glycol and tiethylene glycol projects.
M/s. Risha Steel Limited ceased to be the subsidiary of the
company |
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A
letter dated 16th February, was received endorsing change
of description of nylon filament yarn to synthetic filament
yarn including industrial yarn/tyre cord in respect of industrial
license and a letter of intent for a capacity of 15,000 TPA.
The Company made an application to Govt. for Letter of Intent
for expansion of installed capacity of nylon tyre yarn from
1,700 tonnes to 10,200 tonnes per annum.
Applications were also made for expansion of PSF capacity
from 12,000 tonnes to 30,000 tonnes per annum and of PFY capacity
to 11,730 tonnes per annum through a newly incorporated Company
under the name of India Synthetics, Ltd.
In May, Letter of Intent was received for the manufacture
of 30,000 tonnes per annum of O-xylene 1,03,000 tonnes per
annum of P-xylene and 1,50,000 tonnes per annum of purified
terephthatic acid. The installed capacity for purified terephthatic
acid was subsequently enhanced to 20,000 tonnes per annum.
Letter of Intent were also obtained approving enhancement
in capacity of acrylic fibre from 12,000 to 20,000 tonnes
per annum and of nylon tyre yarn fabric from 1,700 tonnes
to 10,200 tonnes per annum.
The activities of Jaykay Tech Division were transferred to
Jaykay Tech, Ltd., a subsidiary of the Company.
It was proposed to form a new company under the name of Bharat
Photo Products Ltd. to implement this project.
A new company under the name of J.K. Petrochemical Limited
was incorporated to implement the aromatic and PTA project.
Memorandum of understanding for technical know-how and licence
were signed with UOP for the aromatics and PTA projects respectively.
During January-February, the Company offered 20,00,000-14%
secured redeemable non-convertible debentures of Rs 100 each
for cash at par on rights basis in the proportion one debenture:
20 equity shares. Additional 3,00,000 debentures were allotted
to retain over subscription.
These debentures offered under both cumulative interest scheme
and non-cumulative interest scheme, were to be redeemed in
three instalments at the end of 6th, 7th and 8th year from
the date of allotment at a premium of Rs 5 per debenture.
During October-November, the Company offered 19,21,688-12.5%
secured redeemable partly convertible debentures of Rs 300
each for cash at par on rights basis in the proportion 1 debenture:
12 equity shares.
Simultaneously another 96,082 debentures were offered to employees
(including Indian working directors)/workers of the Company
on an equitable basis. Un-subscribed portion, if any, of the
employees quota was to be allowed to lapse.
The convertible portion of Rs 120 of each debenture was automatically
and compulsorily converted on 31st March, 1990 into 3 equity
shares of Rs 10 each at a premium of Rs 30 per share. Accordingly
66,30,219 shares were allotted.
The non-convertible portion of Rs 180 of each debenture was
to be redeemed at par in 3 equal instalments of Rs 60 each
after the expiry of 6th, 7th and 8th years from the date of
allotment of debentures.
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The
fibretech division was under lockout since 9th April.
The Overall performance of the Company in terms of production
of nylon and polyester filament yarns, polyester staple fibre,
acrylic staple fibre and nylon tyrecord yarn was poor due
to substantial hike in prices of basic raw materials, customs
and excise duty etc. Further, political instability in the
Northern and Western India, the Gulf war the foreign exchange
crunch etc. added to the problems.
Necessary Government approvals had not been received, the
Company decided to abandon the Fascimile system and allied
equipment project.
In view of the prevalent sluggish market conditions, the Company
proposed to defer implementation of the polyester filament
yarn project. In addition, in view of the escalation in the
project cost of the cement project at Sidhi, the Company proposed
to review the project.
A memorandum of understanding was signed with the Indian Oil
Corporation, for supply of naphtha for the aromatics and PTA
project. However, requisite Govt. permission was awaited.
The Company allotted 7,00,000-14% secured (C-series) redeemable
debentures of Rs 100 each on private placement basis with,
UTI, LIC, GIC and its four subsidiaries.
CCI approval was received to issue 20,00,000-14% secured redeemable
non-convertible debentures of Rs 100 each on private placement
basis.
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The
Lock-out at the Dadri work was lifted consequent to signing
of an agreement with the workers' union on 29th May. The Company
undertook to produce value added and special varieties of
yarn.
Approvals, for technical collaboration agreement with UOP
Inter American of USA for aromatic process units and with
Amoco Corporation of USA for PTA plant were received. Also,
MOUs, were signed with Krupp Koppers of Germany and Uhde India,
Ltd., for engineering services. |
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223,78,950
No. of equity shares prem. Rs 10 allotted on right basis
in the ratio of 1:2. 1,66,774 shares kept in abeyance. |
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The Company decided to close down J.K. Technosoft division
due to continued poor performance. 69,64,000 No. of equity
shares allotted at par to the Financial Institution on conversion
of loan. 17,582 Right equity shares kept in abeyance were
allotted. |
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The Company was exploring the possibility to set up Sidhi
Project in a joint venture. The implementation of Shambhupura
Project shall be reviewed only after the proposal of the company
was approved by the financial institution/banks. |
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