Shree Karthik Papers Ltd

Shree Karthik Papers Ltd

Shree Karthik Papers Limited (SKPL) was originally incorporated on December 18 1991 as a Private Limited Company under the name of Sree Karthik Papers Private Limited. Subsequently the name of the company was changed to Shree Karthik Papers Private Limited on April 11 1994. It become a Public limited company on April 13 1994. The Company is primarily engaged in the business of manufacturing of Papers.SKPL was established to manufacture writing and printing paper at Village Kottur Pollachi Taluk District Coimbatore in the State of Tamilnadu. The project was originally envisaged for setting up a paper mill to manufacture 8480 tpa of writing and printing paper. After discussions with suppliers and consultants the company revised the capacities to 13350 TPA and the same was appraised by IDBI in May1992 and the cost was Rs.1276 lacs. The company commenced its commercial production on February1995.The company came out with a public issue in December1994 and the issue was oversubscribed by more than 10 times.As a value addition the company is planning to go in for manufacture of Newsprint.The company has been declared as a Sick Company by BIFR during the year 1999 and has appointed IDBI as the operating agency to formulate a Rehabilitation Scheme.The Company had made a reference to the Board for Industrial and Financial Reconstruction (BIFR) and IDBI was appointed as Operating Agency (OA). The BIFR after hearing sanctioned the Rehabilitation Scheme vide its order dated 07 February 2007 which envisaged writing down of paid up capital by 50% induction of fresh capital of Rs.600 Lakhs by Promoters group and conversion of interest due to the extent of Rs.50 Lakhs to IDBI as equity. After implementation of these directions of Hon'ble BIFR the paid up capital of the company stood as 955.50 Lakhs divided into 19110000 Equity Shares of Rs.5/- each.