Quantum Industries (India) Limited was originally incorporated under
the name Ceeta Springs & Steels (P) Limited as a private limited
company on April 21, 1980, with its Registered Office at Madras, with
the objective of manufacturing laminated leaf springs. The Company
commenced commercial production in 1984. On August 29, 1983, the
Company became a deemed public limited company under the provisions
of Section 43 A (1) of the Companies Act, 1956 and was later
converted into a public limited
company on February 2, 1986. In 1994, Ceeta Springs & Steels Ltd.
was taken over by Mr. Himalay Dassani. Due to this takeover and the
consequent change in management, the name of the Company was changed
from Ceeta Springs & Steels Ltd. to Quantum Industries (India) Ltd. A
fresh Certificate of Incorporation to this effect was issued by the
Registrar of Companies, Tamil Nadu at Madras, dated March 3, 1994.
Due to the recession in the automobile industry, the sales revenue
and the profits of the Company were depressed in the last few years.
With the automobile industry now having come out of the recession the
company is now doing well.
The Company has capitalised part of its free reserves to the extent
of Rs.44 lacs by way of a bonus issue. The bonus shares were issued
on August 22, 1994 in the ratio of 11 shares for every 4 shares held.
The Company had revalued its assets to the extent of Rs. 179.66 lacs
reflect the true value of its assets. The surplus of Rs.151.41 lacs
was transfered to the Revaluation Reserve Account in April 1994.
Subsequently the Company capitalised Rs.11O lacs out of the
revaluation reserves in August 1994 by issuing bonus shares in the
ratio of 11
shares for every 6 shares held. The revaluation was carried out by
Mr L V Sudheer a Government approved valuer.
The Company currently manufactures leaf springs for the automotive
sector, at its Works situated at 43, Attipattu Village, Ponneri
Taluk, Chengalpet District, Tamil Nadu. The unit has an installed
capacity of 2400 tones per annum of leaf springs. The automobile
leaf springs are marketed under the brand name CEETA carrying ISI
Licence issued by
the Bureau of Indian Standards, Southern Region. The Company s
planning to install an additional furnace to improve the capacity
utilisation and hence profitability of the Company. After the
installation of the unit in 1984, there has been no major remodelling
of the unit till date.
The funds raised now will not be utilised for installing the
additional furnace/increasing the installed capacity of the leaf
Recently, the promoters have decided to add one more furnace to
achieve better capacity utilisation. Presently the capacity of the
plant is 2400 TPA based on the capacity of the furnace. With the
addition of the new furnace, the capacity of the plant will reach
3000 TPA. Presently the unit has achieved more than 100% capacity
utilisation in the past 3 months due to better utilisation of the
furnace and other sections in the plant. The reason why the Company
has not been able to achieve 100% capacity utilisation in the earlier
years was mainly because the furnace did not match the capacity of the