.rm70_x000D_ JOLLY TEA (INDIA),LTD_x000D_ _x000D_ _x000D_ INCORPORATION & PROMOTION : Incorporated on 26th September. 1990 and _x000D_ obtained the Certificate of Commencement of Busines on 27th September _x000D_ 1990, The Company was promoted by A.R Choksi S.A Choksi H.A Choksi _x000D_ and R.R Patel._x000D_ _x000D_ THE PROJECT: The Company undertook to set up a project on a piece of _x000D_ land admeasuring 5,254 sq mtrs. at Halol Harni Road Baroda at Gujarat _x000D_ fo rpreparing a blend of various grades of tea available from _x000D_ different tea gardens and pack it in samll pouchs of 2.5 gms, 5gms 10 _x000D_ gms an upto 500 gms fo rconsumers and bulk packed in 5kgs packs for _x000D_ canteens/restaurants. The products of the Company ae marketed under _x000D_ the brand name "Kakaji" Tea The Company already has 6 automatic _x000D_ pouch-packing machines and it was proposed t install additional 54 _x000D_ pouch packing machines._x000D_ _x000D_ OPERATIONS: During 1990-91 sales amounted to Rs74.29 lakhs while _x000D_ during 1991-92 it improved to Rs207.46 lakhs._x000D_ _x000D_ COST OF PROJECT & FINANCE: The total cost of the project wa estimated _x000D_ at Rs 470 lakhs of which a sum of Rs 55 lakhs was for land an _x000D_ buildings, Rs75 lakhs for plant and machinery and Rs252.50 lakhs as _x000D_ margin money for working capital requirements._x000D_ _x000D_ JOINT ENTURE: The Company joined as Co-promoter of M/s jolly packwell _x000D_ limited for its backward integration project of packing materials. _x000D_ The cost of the project was estimated at Rs8 crores. The project _x000D_ expected to be commissioned by December 1993._x000D_ _x000D_ RIGHTS ISSUE: Subject to the necessary approvals, the Company proposed _x000D_ to issue 1,93,20,000 equity shares of Rs10 each for cash at par on _x000D_ rights basis in the prop 4:1 Another 8,50,000 shares were to be _x000D_ offered at par to the emplyees of the Company on an equitable basis._x000D_ _x000D_ The authorised capital was increased from Rs50 lakhs equity shares to _x000D_ 250 lakhs equity shares._x000D_ to _x000D_ _x000D_ _x000D_