UNITED LEASING LTD.
OBJECTS & ACTIVITIES: To carry on the business of leasing of all types of industrial and office use plant, equipment, machinery, vehicles and hire purchase finance business.
PROMOTION OF THE COMPANY: The company was incorporated on 13th January, 1983. It was promoted by Shri R.K. Khanna, Shri Anoop Kumar Khanna and Shri Anil Kumar Khanna.
OPERATIONS: In 1983 (for one month), the company entered into contracts worth Rs. 30 lakhs. In 1984, leasing business worth Rs. 200 lakhs was done. The company entered into specialised vendor leasing business. During 1985, lease and hire purchase business worth Rs. 62.39 lakhs was executed. At the close of the year, stock under hire purchase finance was Rs. 24.12 lakhs the value of leases was Rs. 300 lakhs. In the first quarter of 1986, leasing and hire purchase business of over Rs. 150 lakhs was executed. During 1986-88 (15 months), income from leasing and hire purchase business amounted to Rs. 169.62 lakhs. During 1988-89, leasing and hire purchase business worth Rs. worth Rs. 189.62 lakhs was executed.
During 1990-91, income from leasing and hire purchase business amounted to Rs. 299.04 lakhs. During 1991-82, income from leasing and hire purchase business increased to Rs. 356.40 lakhs.
DIVERSIFICATION: The company proposed to diversify into the fields of Merchant Banking and Bill Discounting etc.
EQUITY-LINKED DEBENTURE ISSUE: In Sepetmber 1985, in order to augment logn-term resources, the company issued 5,00,000 equity shares of Rs. 10 each at par linked to 1,00,000 - 15% secured non-convertible debentures of Rs. 100 each at par. Of these, 30,000 debentures and 1,50,000 equity shares were reserved and alotted on rights basis to equity shareholders in the ratio 3 debentures and 15 euqity shares for every 50 shares held. The reamining 70,000 debentures and 3,50,000 equity shares were offered to the public on the basis of 50 equity shares linked to 10 debentures. The Company additioelly allotted 7,500 debentures and 37,500 equity shares to existing shareholders and 17,500 equity shares to the public in order to retain oversubcription.
These non-convertible debentures were to be redeemed on 27th November, 1992. During 1991-92, the company proposed to extend the date of redemption for a period of 5 years to 27th November, 1997 with an increased interest rate of 18% payable annually on 31st December. The interest accrued upto and inclusive of 27th Novemmberr, 1992 and 5% premium will be paid on the original due date of maturity i.e on 27th November, 1992, whether the holder agree or not to the extension of the date of redemption of the said debentures.
During April 1992, the company issued 11,25,000 equity shares of Rs.10 each at par on rights basis in the proportion of 1:1. All were taken up. Additional 1,36,600 shares were allotted to retain oversubscription.
Another 56,250 equity shares of Rs. 10 each at par werre offered to the employees. Only 26,350 shares were allowed to lapse.
Simultaneously, the company issued 5,10,000 equity shares of Rs. 10 each at par to the public of which 25,500 shares were reserved for preferential allotment to employees. Only 13,750 shares taken up. The remaining 4,84,500 shares, along with 11,750 shares not taken by employees, were offered to the public. Additional 62,750 shares were allotted to retain oversubscription.
The Company has entered into a 50:50 Joint Venture with M/s Saurer Embroidery Systems Limited, Switzerland. A new Company Saurer Embroidery Systems Pvt. Ltd has been incorporated to implement the objective of the Joint Venture. The Company's share of 50% is Rs. 80 lakhs in the total Capital of Rs. 160 Lakhs, in the Joint Venture Company.