TATIA INTIMATE EXPORTS LTD.
Incorporated as a public limited company on 13th January, 1994. Promoted by
the Madras based Tatia Group headed by S. Pannalal Tatia, Kamal Chand Parekh
and Smt. Sangita Tatia.
The Company is settng up a Export Oriented Unit for manuacture of ladies
intimate garments such as brassiers, bodies and panites usin imported
stectchable polyamide lace fabrics. The installed capacity of the project is
75 lakhs pieces. The unit is located at plot no. 3IB in the Ambattur
Industrial Estate, near Madras. Proposes to export 75% of its production and
the remaining 25% is to be sold in the domestic market through the exclusive
retail outlets. This project also includes setting up hosiery knitting unit
for captive consumption and five exclusive retail outlets in India.
COST OF THE PROJECT & FINANCE:
The total cost of the project estimated at Rs. 960 lakhs was to be met by the
SCHEDULE OF IMPLEMENTATION:
Commercial production expected to commence by April 1995.
RISKS AS PERCEIVED BY THE MANAGEMENT:
(i) The Company has entered into a license agreement with Tatia Investments
(P) Ltd. a group company for lease of land and building, for which it has
paid a License Rental Deposit of Rs. 40 lakhs and a License Rental Advance of
Rs. 50 lakhs. However, Tatia Investments (P) Ltd. has paid Rs. 20 lakhs only
as Licence Rental Deposit for the Leave and licence Agreement entered by it
with Opti Products Pvt. Ltd., the owner of the property. Investors are
advised to read the para under 'Land and Building for further details; (ii)
There has been a delay of 15 months in the project implementation of Tatia
Skyline and Health Farms Lted., a Group Company (iii) Tatia Intimo Italiano
(P) Ltd. a Group company is engaged in similar line of activity. It has a
rental arrears of Rs. 6,20,000 due to Madras Export Processing Zone; (iv)
Yet to obtain the No Objection Certificate from Tamil Nadu Pollution Control
Board; (v) Yet to tie up its working capital requirements. purchase orders
for part of the plant and machinery and miscellaneous fixed assets are yet to
be placed; (vi) The Company has not yet taken steps for setting up 5 retail
shops proposed as a part of the project; (vii) The Company is yet to obtain
RBI approval for import of capital goods; (viii) Changes in Import-Export
Policy of the Government may affect profitability of the company.
DETAILS OF THE ISSUE:
Authorised capital of Rs. 1000 lakh comprise 100 lakh equity shares of Rs. 10
each. 28,17,800 shares of Rs. 10 each issued, subscribed and paid up.
67,82,200 shares of Rs. 10 each now being issued of which 11,82,200 shares of
Rs. 10 each now being issued, of which 11,82,200 shares and 10,00,000 shares are reserved for firm allotment to promoters, directors, etc. and NRI/OCBs
respectively. Of the ramaining, 5,00,000 shares and 3,44,00 shares are
reserved for preferential allotment to Indian Matual Funds and NRIs/OCBs
respectively with a provision to add back the unsubscribed protion, if any,
to the public issu or 37,56,000 shares.