Regaul Blue (India) Ltd.

 
 Regaul Blue (India) Ltd was incorporated on 3rd January
 1995 and obtained Certificate of Commencement of Business
 on 6th January 1995. Started by Mr. S. Murugesan as a self
 employment scheme in 1959 with an initial capital of
 Rs.100/- Regaul has grown in these years to be a market
 leader in South India. From procuring blue powder in bulk
 and repacking it into small quantities, Mr. Murugesan found
 in 1979, that blue powder can be mixed with certain
 chemicals and formed into Liquid Blue. After four years
 of experimenting, he achieved the right combination of
 liquid blue of quality which proved highly popular in the
 market.
 
 Today the advertisement jingle Regaul Chottu Neelam doi!
 is in the lips of almost every household and has put the
 Regaul Whitener on top of the regional market for whiteners
 in South India.
 
 What started as a single-man venture in 1959, slowly
 expanded; it became a family venture in 1979 when his two
 sons and sons-in-law joined him. Many more small scale
 manufacturing and distributing outfits were formed.
 Diversifying from traditional liquid blue, the Company also
 introduced Herbal Turmeric Powder. Today it is on the
 threshold of diversifying into various products which have
 impact on the middle class family.
 
 PRESENT BUSINESS
 
 Mr. Murugesan who pioneered the Liquid Blue concept in
 South India also introduced herbal turmeric powder. Till now
 these products have been manufactured and marketed by the
 following proprietory/partnership/private limited
 companies.
 
 (i) Southern India Marketing Agencies Private Limited
 
 (ii) Southern India Trading Agencies (Proprietory Concern)
 
 (iii) Regaul Chemical Industries (Proprietory Concern)
 
 (iv) Anil Chemicals (Proprietory Concern)
 
 (v) Regaul Ultramarine Tint Exports (P) Ltd
 
 The copy right REGAUL is registered by Southern India
 Trading Agencies, a proprietory concern of Mr. Murugesan.
 An agreement has been entered into by the Company with Mr.
 Murugesan which gives the right to use of this brand name
 for the next 10 years. When the Company starts the
 manufacture and marketing of various products under these
 brand names, the above mentioned firms/companies will cease
 to use this brand name for such products. Regaul Blue
 (India) Ltd has applied for copy right of the brand name
 Menaka.
 
 Regaul Blue (India) Ltd was incorporated on 3rd January
 1995.  The Company has already acquired the land along with
 factory shed. Certain machinery have been acquired and
 orders for the rest have been placed. The project is
 expected to be completed by April 1995 and commercial
 production expected in May 1995.
 
 PAST FINANCIAL RESULTS
 
 The Company has been incorporated only on 3rd January 1995
 and has not commenced commercial operations till date.
 Hence no financial results are available for the Company.
 
 ACCOUNTING POLICY
 
 The Company proposes to adopt the following accounting
 policies:
 
 (a) The accounts will be prepaid under historical cost
 convention basis.
 
 (b) The fixed assets will be stated at Cost Price less
 accumulated depreciation.
 
 Depreciation will be provided on Straight Line Method in
 accordance with and at the rates specified in Schedule XIV
 of the Companies Act, 1956. Depreciation will be provided
 on pro-rata basis with reference to the month of
 addition/disposal.
 
 (c) Inventories will be valued as follows:
 
 - Finished goods at the lower of cost or net realisable
 value
 
 - Consumable stores, packing materials and raw materials at
 cost
 
 - Work in Progress at estimated cost
 
 (d) Sales will be accounted for on despatch of goods from
 the factory/godowns and will be net of return and will
 include Excise Duty but will exclude Sales Tax.
 
 (e) Excise Duty, where ever applicable, will be accounted
 for on the clearance of goods from the factory premises.
 
 (f) Royalty payable will be accounted on accrual basis.