M/s.  Indo Vanillon Chemicals Ltd.  was incorporated on
 26th June, 1992 under the name Sakhi Chemicals Ltd.  (SCL)
 by Shri.  Prem Prakash Khanna and Shri L. T.  Bhojwani.
 The company was incorporated with the objective of setting
 up project to manufacture Ethyl/Methyl Vanillin with an
 installed capacity of 120 TPA.  Accordingly, the company
 identified M/s. Arovanilon Ltd. of the Czech Republic for
 the acquisition of necessary technical know-how for the
 said project A collaboration agreement to this effect was
 signed with M/s Arovanilon Ltd. , on September 17, 1992.
 Subsequently, the promoters entered into a Memorandum of
 understanding on November 11, 1992 with Haryana State
 Industrial Development Corporation ltd.  (HSlDC) for
 setting up of the aforesaid project in the assisted sector.
 This Memorandum of understanding was converted into an
 assisted sector agreement on April 2, 1993.  According to
 this agreement, HSlDC consented to participate in equity to
 an extent of Rs. 41 Lakhs.  In order to part finance the
 conceived project of Rs. 846 lakhs the company approached
 Industrial Development Bank of India (lDBl) for a Term Loan
 assistance of Rs. 225 lakhs.  The latter sanctioned the
 desired term loan vide their letter no. 4006/IV/PFD/687
 dated April 7, 1993.  Afterwards the loan agreement was
 also signed between the company and lDBI on May 26, 1993.
 
 Meanwhile, in a subsequent development, Shri L. T.
 Bhojwani, left the Company due to his personal reasons.  At
 a meeting conducted by HSIDC on 11.4.94 at Chandigarh, he
 expressed his inability to participate in wnning the
 Company sitting at Bombay.  This decision of Shri. Bhojwani
 affected the progress of the project adversely.  However,
 Shri. Prem Prakash Khanna, the other promoter succeeded in
 persuading Shri. Subhash Chander Wadhwa to join the company
 as one of the main promoters.  Accordingly, Shri.
 Bhojwani's equity stake in the company was purchased by
 Shri. Wadhwa on June 11, 1994.  He joined the Board on May
 25, 1994.  A supplementary assisted sector agreement in
 this regard was signed on July 13,1994 with HSIDC.  IDBI
 too vide their letter no. 394/lV/PFD-687 dated August 12,
 1994 gave its consent to the introduction of Shri. Wadhwa
 in the company as one of the promoters.  Along with the
 above developments, the name of the company was also
 changed from Sakhi Chemicals Limited to Indo Vanillon
 Chemicals Limited.  This was done to identify the company
 more with the product of the company namely ethyl vanillin.
 A new certificate of incorporation was issued on July 21,
 1994 by the Registrar of Companies, NCT of Delhi and
 Haryana.  lDBl disbursed Rs. 150 Lacs out of its sanctioned
 term loan of Rs. 225 Lacs and held Rs. 75 Lacs which was
 margin money in the project as per the terms and conditions
 of Loan agreement.  In order to avoid any delay and to use
 this money for completion of project, the Company
 approached State Bank of Patiala (SBOP) who subsequently
 sanctioned the loan on lower rate of interest than lDBI.
 SBOP had also disbursed an amount of Rs. 22,00,591/-.
 However, the bank had marked a lien on the current account
 of the Company at the advise of their Head Office, vide
 letter no. 4058 dated 23.03.95.  As a consequence of which
 the management of the Company had given back the money to
 the bank and the promoters of the Company has given an
 unsecured loan to substitute the loan from SBOP to avoid
 delays and over-runs.  The Company has already got the
 sanction from the Haryana Financial Corporation vide their
 letter no.  HFC/App/288, dated 17.07.95 for a term loan of
 Rs. 75 Lacs which will in turn replace the unsecured loan
 from the promoters.
 
 As per the initial schedule, the company was slated to
 start commercial operations from April 1, 1994.  However,
 the developments as stated above hampered the physical
 progress of the project considerably and now the
 commencement of commercial operations is scheduled for
 August, 1995.  Despite this delay in implementation
 schedule, the company is expecting to implement the project
 without any cost overrun.
 
 MAIN OBJECTS OF THE COMPANY
 
 The main objects of the company as contained in Memorandum
 of Association are:
 
 To carry on the business as manufacturers, importers,
 exporters, dealers, producers, miners, refiners, stockists,
 agents, brokers, traders of all kinds of organic and
 inorganic chemicals, fine chemicals, dyes, petrochemicals,
 alkalies, gases, acids, salts, compounds, fertilizers,
 chemicals and chemicals products of every nature and
 description and compounds, intermediates, derivatives and
 bye-products thereof and products to be made there from
 including but not limiting generality to the foregoing,
 paints, pigments and varnishes, plastic and resins, dyes
 and dyestuffs, reagents, wetting agents, insecticides,
 fumingents, catalytic agents, direct colours, basic and
 rapid fast colours, phosphates, nitrates, sulphates,
 caustic soda, chlorine products, iodine salts and minerals,
 heavy and fine chemicals, industrial chemicals,
 petrochemicals, aeromatics products derived from phosphat
 and other mineral mines, lime stone, bauxite mines,
 petroleum, natural gas and other natural products useful or
 suitable in the manufacture of chemicals and chemicals
 products.
 
 2.  To purchase, manufacture, produce, refine, own hold
 use, sell, transfer or otherwise dispose of trade, deal in
 all kinds of petro-chemicals and scarce materials,
 ingredients, mixtures, derivatives and compounds thereof
 and any and all kinds of products in which any of the
 foregoing is used including medicines, parmaceuticals,
 fertilizers and chemicals of all kinds.
 
 SUBSIDIARIES OF THE COMPANY
 
 The Company does not have any subsidiary company.