V COMPANY, MANAGEMENT & PROJECT
ASHOK MAGNETICS LIMITED was incorporated as a public
limited Company on 16th April, 1993 with the Registrar of
Companies, Tamilnadu, at Madras and obtained the
certificate of Commencement of Business on 24th May 1993.
Manufacture of Video Cassettes was commenced on 31.10.92 by
Trans Asia Exports which was acquired by Ashok Magnetics
Limited by an agreement dated 14.08.93. The Company
commenced audio Cassettes with effect from 31.10.94 and the
first phase of Rigid PVC pipes with effect from 04.02.95.
THE PRODUCT & PRESENT ACTIVITIES
The Company is manufacturing Rigid PVC Pipes, Video and
RIGID PVC PIPES
Rigid PVC Pipes are commonly used for the following
The excellent corrosion resistance of PVC makes it highly
ideal for usage in chemical processes for handling acids,
alkalis, abrasives, slurries and many other fluids. It is
also used for furnevent piping, reactor blow-off line etc.
Distribution and Drainage Systems
As it is unaffected by salt water, acid mine water or
chlorinated water, sludge, crude oil, it is used in water
cooling systems, filter and sewerage plants, irrigation
purposes, distribution lines for crude oil and natural gas
etc. Rigid PVC pipes are also used as piping and
electrical conduits in pulp and paper industry, ships,
constructions of all kinds etc.
AUDIO AND VIDEO CASSETTES
Audio and Video Cassettes are popular and extensively used
for entertainment and educational purposes by young and old
The manufacture of audio and video cassettes is an assembly
The Company is engaged mostly in the assembling of
cassettes. Major raw material required is magnetised film,
most of which is imported. The major activity is assembly
of components. The process is standardised and automatic
involving use of sophisticated machinery and is not labour
Audio, video cassettes are used for magnetically recording
audio, visual data for educational and entertainment
purposes, scientific processes and documentation.
The Company is manufacturing Rigid PVC Pipes and Audio &
Video Cassettes. The Company has factories at Gummidipoondi
in Tamil Nadu, Sulurpet in Andhra Pradhesh and Pondicherry.
The unit at Gummidipoondi is for manufacture of Rigid PVC
Pipes. The Company now proposes to expand the production
capacity of Rigid PVC Pipes. ISI Certification for PVC
Pipes has been obtained from Bureau of Indian Standards,
Madras (Licence No. CM/L6083868 valid from 28.07.95 to
27.07.96) vide their letter dated 28;07.95.
The unit at Sulurpet where manufacture of video cassettes
is carried on has been acquired by the Company from Trans
Asia Exports vide the agreement dated 14th August, 1993 for
a consideration of Rs.25,28,501/-. The consideration of the
said amount has been paid by allotment of 1,50,000 Equity
Shares of the Company of Rs. 10/- each at par and the
balance amount of Rs.10,28,501/- was treated as an interest
free unsecured short term loan to be repaid within one
year. Trans Asia Exports was a sole proprietorship concern
with Mr.Ashok Agarwal as the sole proprietor. The short term
loan of Rs.10,28,501/- was repaid by the Company by 31.01.94
(i.e.) within 1 year as per the agreement. The product
manufactured in this unit is Video Cassettes.
The abovesaid takeover of business from Trans Asia Exports
was approved by the Board of Directors of the Company vide
resolution passed on 14.08.93.
The basis of valuation of assets relating to the take over
being the networth, as detailed and arrived at from the
audited statement of accounts of Trans Asia Exports for the
period ended 31.03.93.
There was no revaluation of the assets of Trans Asia
Exports. The unit at Pondicherry is for the manufacture
of Audio Cassettes. This unit was acquired from M/s. Indo
Pacific Electronics a proprietorship firm (in which the
promoter of this Company was not interested) under an
agreement dated 30th November, 1994 for a purchase
consideration of Rs.89,611/- paid by cheque No.520279 drawn
on Central Bank of India on 14.08.95.
The abovesaid take over of business of Indo Pacific
Electronics was approved by the Board of Directors of the
Company on 30.11.94.
The amount of Rs.89,611/- paid as purchase consideration
to indo Pacific Electronics as mentioned above was arrived
at on the basis of its networth as an 30.06.94
There was no revaluation of assets of indo Pacific
6. To undertake and execute any contracts, supply,
erection, designing, fabrication of any kinds of pump,
pipes, pipe work, fittings, tubular structures, pipe work
PAST FINANCIAL HIGHLIGHTS
The past audited working results of the Company are as
The Company has no subsidiary Companies.
-Company has changed its name from Ashok Magnetics Ltd. to AML Steel