.RM77_x000D_ TATIA INTIMATE EXPORTS LTD._x000D_ _x000D_ BRIEF HISTORY:_x000D_ _x000D_ Incorporated as a public limited company on 13th January, 1994. Promoted by _x000D_ the Madras based Tatia Group headed by S. Pannalal Tatia, Kamal Chand Parekh _x000D_ and Smt. Sangita Tatia._x000D_ _x000D_ THE PROJECT:_x000D_ _x000D_ The Company is settng up a Export Oriented Unit for manuacture of ladies _x000D_ intimate garments such as brassiers, bodies and panites usin imported _x000D_ stectchable polyamide lace fabrics. The installed capacity of the project is _x000D_ 75 lakhs pieces. The unit is located at plot no. 3IB in the Ambattur _x000D_ Industrial Estate, near Madras. Proposes to export 75% of its production and _x000D_ the remaining 25% is to be sold in the domestic market through the exclusive _x000D_ retail outlets. This project also includes setting up hosiery knitting unit _x000D_ for captive consumption and five exclusive retail outlets in India._x000D_ _x000D_ COST OF THE PROJECT & FINANCE:_x000D_ _x000D_ The total cost of the project estimated at Rs. 960 lakhs was to be met by the _x000D_ capital._x000D_ _x000D_ SCHEDULE OF IMPLEMENTATION:_x000D_ _x000D_ Commercial production expected to commence by April 1995._x000D_ _x000D_ RISKS AS PERCEIVED BY THE MANAGEMENT:_x000D_ _x000D_ (i) The Company has entered into a license agreement with Tatia Investments _x000D_ (P) Ltd. a group company for lease of land and building, for which it has _x000D_ paid a License Rental Deposit of Rs. 40 lakhs and a License Rental Advance of _x000D_ Rs. 50 lakhs. However, Tatia Investments (P) Ltd. has paid Rs. 20 lakhs only _x000D_ as Licence Rental Deposit for the Leave and licence Agreement entered by it _x000D_ with Opti Products Pvt. Ltd., the owner of the property. Investors are _x000D_ advised to read the para under 'Land and Building for further details; (ii) _x000D_ There has been a delay of 15 months in the project implementation of Tatia _x000D_ Skyline and Health Farms Lted., a Group Company (iii) Tatia Intimo Italiano _x000D_ (P) Ltd. a Group company is engaged in similar line of activity. It has a _x000D_ rental arrears of Rs. 6,20,000 due to Madras Export Processing Zone; (iv) _x000D_ Yet to obtain the No Objection Certificate from Tamil Nadu Pollution Control _x000D_ Board; (v) Yet to tie up its working capital requirements. purchase orders _x000D_ for part of the plant and machinery and miscellaneous fixed assets are yet to _x000D_ be placed; (vi) The Company has not yet taken steps for setting up 5 retail _x000D_ shops proposed as a part of the project; (vii) The Company is yet to obtain _x000D_ RBI approval for import of capital goods; (viii) Changes in Import-Export _x000D_ Policy of the Government may affect profitability of the company._x000D_ _x000D_ DETAILS OF THE ISSUE:_x000D_ _x000D_ Authorised capital of Rs. 1000 lakh comprise 100 lakh equity shares of Rs. 10 _x000D_ each. 28,17,800 shares of Rs. 10 each issued, subscribed and paid up. _x000D_ 67,82,200 shares of Rs. 10 each now being issued of which 11,82,200 shares of _x000D_ 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 _x000D_ respectively. Of the ramaining, 5,00,000 shares and 3,44,00 shares are _x000D_ reserved for preferential allotment to Indian Matual Funds and NRIs/OCBs _x000D_ respectively with a provision to add back the unsubscribed protion, if any, _x000D_ to the public issu or 37,56,000 shares._x000D_ _x000D_ _x000D_