ATV GROUP - WILL THEY REWARD THE INVESTORS?

Article Abstract:

The flagship of the ATV group, ATV Projects India Ltd (APIL), manufactures equipment for sugar and chemical plants. It floated a public issue in 1994 under the banner of ATV Petrochem for producing purified terephthalic acid (PTA). ATV Petrochem was renamed as SVC Superchem (SSL). SSL is involved in trading of chemicals and hiring out tank farms for storing chemicals. The public issue offered 21.60 million fully- convertible debentures (FCDs) of Rs100 each for part-financing the 1.20 PTA project, worth Rs3,826.5 million. The issue netted Rs2,160 million only. The issue paper had projected starting of commercial production of PTA by July 1995. It had also projected a net profit of Rs434.6 million on a turnover of Rs2,014.5 million by March 1996. Based on these projections, SSL sought a premium of Rs1,674 million. The PTA project started trial runs 3 years behind schedule. It started commercial production in April 1998. Now, it holds investors' capital of Rs3,460.3 million. In the 9 months ended June 30, 1998, SSL made a net profit of Rs13 million on a turnover of Rs1,439.8 million. Its equity was Rs525.6 million. (gsh) for producing purified terephthalic acid (PTA). ATV Petrochem was renamed as SVC Superchem (SSL). SSL is involved in trading of chemicals and hiring out tank farms for storing chemicals. The public issue offered 21.60 million fully- convertible debentures (FCDs) of Rs100 each for part-financing the 1.20 PTA project, worth Rs3,826.5 million. The issue netted Rs2,160 million only. The issue paper had projected starting of commercial production of PTA by July 1995. It had also projected a net profit of Rs434.6 million on a turnover of Rs2,014.5 million by March 1996. Based on these projections, SSL sought a premium of Rs1,674 million. The PTA project started trial runs 3 years behind schedule. It started commercial production in April 1998. Now, it holds investors' capital of Rs3,460.3 million. In the 9 months ended June 30, 1998, SSL made a net profit of Rs13 million on a turnover of R

Machinery Manufacturing, Special Industry Machinery, Industrial equipment, Industrial equipment industry, ATV Projects India Ltd.

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SAJJAN GROUP: ANYTHING BUT 'SAJJAN' FOR INVESTORS

Article Abstract:

Sajjan group of Mumbai has failed to meet the financial projections made since 1994-95. It has failed to fulfil promises made to investors. The group set up Sajjan Textiles Mills Ltd (STML) and floated a public issue in 1993. It has failed to meet the projections made at the time of its public issue. Sree Meenakshi Mills has initiated liquidation proceedings against its flagship company, Sajjan Udyog Export Ltd (SUEL) for failure to pay dues of Rs2.4 million. STML posted losses of Rs57.6 million on sales of Rs51 million for 1997-98. SUEL posted losses of Rs132.5 million on a turnover of Rs38.3 million. Currently, the scrips of both STML and SUEL are not traded. STML is under the purview of the Board for Industrial and Financial Reconstruction. STML owes Rs202.23 million to banks and financial institutions. SUEL's investments worth Rs10.43 million comprise of untraded shares of STML and are currently worth less than Rs1 million. Its outstanding working capital dues to banks amount to Rs157.55 million at the end of 1997-98.Both STML and SUEL have closed down their manufacturing operations and are currently involved in trading activities only. (rk)(vr)

Textile Mill Products, Textile Mills

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