1948 - Equity shares were split. 14,850 bonus shares of Rs. 100
issued in prop. 1:3. 5,000 Pref. shares issued at par.
1956 - 5,000 Secured Pref. shares issued at par during 1957.
1959 - The company was incorporated on 14th November, at Kanpur. The
main objective of the company is to manufacture of textile
rayon yarn and electronic equipments.
- The Company runs a textile mill, a rayon unit including a
sulphuric acid plant, a carbon-di-sulphide plant, a sodium
sulphate plant and an electronics factory.
- The factory under the name and style of J.K. Rayon having a
rayon plant with a capacity of 5 tonnes viscose rayon yarn
day based on continuous process, together with capacity of 25
tonnes and 5 tonnes per day respectively, was put into
operation in August.
1960 - In 1959, equity shares sub-divided. 39,000-6.5% Pref. and
6,20,000 No. of equity shares of Rs. 10 each offered at par
1967 - The Company undertook the implementation of a television
in the name of J.K. Electronics at Kanpur.
1969 - It was found that J.K. Electronics unit had lost its
It was, therefore, decided to close down the unit.
- 25,000-10% shares offered through a prospectus.
1973 - 6,868-8.5% cumulative redeemable Pref. shares were redeemed.
1979 - 5,000-10% Pref. shares each redeemed on 21.5.1979, 30.9.1980,
30.9.1981 and 30.9.1982.
1982 - The balance, 5,000-10% Pref. shares were redeemed on
1983 - In order to make Rayon unit an economic and viable
it was given on licence to J.K. Synthetics, Ltd. J.K.
Ltd., terminated the licence agreement with effect from 16th
Hence, the Company closed down its rayon unit.
1985 - The Company issued 1,25,000-15% non-convertible debentures of
Rs. 100 each for Rs. 125 lakhs. These debentures were due
redemption on 1st February, 1993 at a premium of 5%.
- On account of financial constraints, the Company could not
interest on these debentures under the non-cumulative scheme
the half year ended 31st January, and onwards. The Company
also not in a position to redeem the debentures on due date.
These matters would be considered in the rehabilitation plan
which was under consideration of the BIFR.
- Matter pertaining to 15% secured non-Convertible Debentures
Rs. 100 each of the face value of Rs. 125 lakhs with a premium
Rs. 5 per debenture and interest thereon would be considered
BIFR in Rehabilitation package and necessary action would be
taken by the Company as per their decision.
1986 - The J.K. Electronics Unit was closed and the licence was
1987 - The company took up the IIIrd phase of modernisation
under which 24 Nos. of Sulzer Airjet weaving machines were
imported and commissioned.
- Most of the plant and machinery was disposed of during the
from 1st January, to 31st March, 1989.
- 12,50,000 Rights equity shares issued (prem. Rs 15 per share;
prop. 1:1) 1,48,610 additional shares allotted to retain
oversubscription. Another 1,300 No. of equity shares (prem.
15 per share) allotted to employees, etc.
1988 - The working was adversely affected due to liquidity
rise in the prices of inputs and stiff competition from
unorganised sector. Concellation of the much awaited Pandey
award by the Industrial Tribunals led to labour indicipline,
forcing the Company to declare a lock-out in the mills with
effect from 15th May, 1989.
- The Government of Uttar Pradesh banned the lock-out by a
notification. A writ petition filed by the Company
the ban orders was pending before the High Court at
However, the matter was referred to informal arbitration of
chief minister of Uttar Pradesh.
- The High Court of Allahabad by its orders dated 19th May,
sanctioned amalgamation of J.K. Manufacturers, Ltd., with the
Company with effect from 1st January, 1986. In terms of the
scheme of amalgamation, shareholders of J.K. Manufacturers,
were allotted the following shares of the Company:
- (i) 4,720-8.5% cumulative redeemable preference shares of Rs.
each to the holders 6% cumulative preference shares in
- (ii) 7,840 equity shares of Rs. 10 each to the equity
shareholders in the proportion 1:25.
- 5,000-6% preference shares and 6,000-8.5% preference shares
redeemable at par within a period of 5 years from 15.6.1988
per the Companies (Amendment) Act, 1988.
- A petition has been made to the Company Lawboard seeking
permission to issue fresh preference shares in lieu of the
unredeemed shares, for the amount due on redemption including
dividend accrued thereon.
1989 - The Company made a reference to the Board for Industrial and
Financial Reconstruction (BIFR) under section 15(1) of the
Irredeemable Cumulative Reference Shares (ICPS).
1990 - BIFR declared the Company a sick industrial company and
appointed Industrial Finance Corporation of India (IFCI) as
operating agency to prepare a scheme for rehabilitation of
Company. This scheme was expected to be finalised soon.
Meanwhile, the proceedings before the BIFR were stayed by the
High Court at Allahabad on a write petition filed by some
1991 - The lockout of the Cotton Textile Mills continued and the
operations remained suspended. As a result, the financial
position of the Company deteriorated due to heavy incidence
interest charge and other fixed overheads. Till date, no
acceptable package of rehabilitation could be evolved for the
- 4,720-8.5% preference shares are redeemable at par at any
after 31.12.1991 but before 31.12.1995 at 3 months' notice.
1993 - As per provisions of the Company Act, 1956 the Company was
required to redeem 5,000-6% CPS of Rs. 100 each for Rs.
a and 6000-8.5% CPS of Rs. 100 each for Rs. 6,00,000 by 15th
June, by issue of redeemable preference shares in lieu
including amount of dividends due thereon. The Company's
petition was still pending before Company Law Board.
1994 - The Government did not take any decision regarding sale of
surplus land. Also, rehabilitation package prepared by
Textile Industry's Research Association (ATIRA) were sent to
1995 - Financial conditions of the Company further deteriorated due
heavy burden of interest and other fixed over heads. The
operations of the mill remained suspended due to continued
- On the 4th July, the Hon'ble Bench of Company Law Board
that since BIFR is seized of the matter, the petition had
consigned to records with liberty to the petitioner to revice
the same in future. As and where the Company's case if
decided by BIFR, the Company would inform the Company Law
for doing the needful.
1997 - The financial position deteriorated further and the operations
the mill continued to remain suspended.
- The company was required to submit a revised proposal to the
operating agency. The matter was taken afresh by the company
with the state government for extending the required reliefs
for early opening of the company's mill.