.rm70 JOLLY TEA (INDIA),LTD INCORPORATION & PROMOTION : Incorporated on 26th September. 1990 and obtained the Certificate of Commencement of Busines on 27th September 1990, The Company was promoted by A.R Choksi S.A Choksi H.A Choksi and R.R Patel. THE PROJECT: The Company undertook to set up a project on a piece of land admeasuring 5,254 sq mtrs. at Halol Harni Road Baroda at Gujarat fo rpreparing a blend of various grades of tea available from different tea gardens and pack it in samll pouchs of 2.5 gms, 5gms 10 gms an upto 500 gms fo rconsumers and bulk packed in 5kgs packs for canteens/restaurants. The products of the Company ae marketed under the brand name "Kakaji" Tea The Company already has 6 automatic pouch-packing machines and it was proposed t install additional 54 pouch packing machines. OPERATIONS: During 1990-91 sales amounted to Rs74.29 lakhs while during 1991-92 it improved to Rs207.46 lakhs. COST OF PROJECT & FINANCE: The total cost of the project wa estimated at Rs 470 lakhs of which a sum of Rs 55 lakhs was for land an buildings, Rs75 lakhs for plant and machinery and Rs252.50 lakhs as margin money for working capital requirements. JOINT ENTURE: The Company joined as Co-promoter of M/s jolly packwell limited for its backward integration project of packing materials. The cost of the project was estimated at Rs8 crores. The project expected to be commissioned by December 1993. RIGHTS ISSUE: Subject to the necessary approvals, the Company proposed to issue 1,93,20,000 equity shares of Rs10 each for cash at par on rights basis in the prop 4:1 Another 8,50,000 shares were to be offered at par to the emplyees of the Company on an equitable basis. The authorised capital was increased from Rs50 lakhs equity shares to 250 lakhs equity shares. to