Company History - Shree Vallabh Glass Works
YEAR EVENTS
1957 - The company was incorporated on 24th December, at Mumbai as a
private company and converted into a public company on 8th
June,
1961. The company manufacture and deals in sheet glass,
plate
glass, wired glass, safety glass, and mirror and all sort of
glassware. The company uses the trade name TUFEX
1961 - Issued 27,745 shares to directors, etc. 7,000 shares to ICICI
and
37,255 shares to the public.
1972 - 25,193 Right Equity shares issued (prop. 1:3), 15,000 Pref.
shares issued to the public. Pref. shares redeemable during
31-3-1985/88. Arrears: Rs 3,350.
1974 - A licence was received for the manufacture of superior quality
sheet glass in Maharashtra. The plant was commissioned
during
1981-82.
1976 - 10,000 No. of equity shares allotted at par to ICICI to
conversion of a part of their loan. Arrears Rs 3,300.
1977 - 54 No. of equity shares forfeited out of which forfeiture on
33
Equity shares annulled subsequently.
1979 - 55,002 Bonus Equity shares issued in prop. 1:2.
1981 - 28,957 No. of equity shares issued (prem. Rs 110 par share)
to
financial institutions (7,524 shares to IDBI, 7,145 shares to
UTI, 7,143 shares to LIC and 7,145 shares to GIC and its
subsidiaries).
1985 - The Govt. of Gujarat declared the Company as a Relief
Undertaking under the provisions of Mumbai Relief Undertaking
(Special Provisions) Act, 1958. As a result, all rights,
privileges, obligations and liabilities incurred and all
remedies
for enforcement thereof has been suspended. The Relief
Undertaking protection was granted upto 17th December.
- 80,000 No. of equity shares issued at a prem. of Rs 100 per
share
on conversion of 15.5% Con. debentures.
1987 - The overall working was affected due to paucity of funds. One
of
the figures glassfurnace (R-80) was closed down in August
1988.
Another figured glass furnace (R-20) closed down in November
1986
and restarted in February 1988. The figured glass furnace
(R-80)
was restarted in May 1989.
- The furnace at the Boisar plant which was closed down for
repair
in September could not be restarted due to employee's
strike and for want of funds.
- The Company supplied to Vallabh Glass Singapore Pvt. Ltd.,
technical know-how, engineering and management services. The
Company was also supplying technical know-how for setting up a
glass project in Kenya.
- In order to meet a part of the overrun in the cost of Boisar
project, the Company issued 40,000-13.5% secured convertible
debentures of Rs 500 each for a total amount of Rs 2 crores on
rights basis to the existing equity shareholders.
- The delay in the commencement of commercial production of
Boisar
plant led to heavy escalation in the pre-operative and
start-up
expenses.
- The Company had also applied to the Reserve Bank of India for
increased working capital limits. On account of stringent
liquidity position, the Company could not honour its
commitments
towards the intercorporate depositors.
- The Company came under the provisions of the Sick Industrial
Companies (Special Provisions) Act, 1985.
- BIFR appointed ICICI as an operating agent. The work of
preparing viability report was submitted to Tata Economic
Consultancy Services and Innovative Consultancy Pvt. Ltd.
Both
the consultants recommended a rehabilitation package of
rescheduling repayment to all creditors.
1988 - The Tata Economic Consultancy Services and Innovative
Consultancy
Pvt. Ltd., found the Company viable and proposed a
rehabilitation
package for the Company.
- To part finance the scheme, the BIFR directed that the
Company
should sell its Andheri godown situated at S. No. 78, Hisa No.
3
at Andheri-Kurla Road, Marol, Mumbai which would fetch
considerable amount to be utilised in the modernisation of
Boisar
plant.
1990 - Another figured glass plant (R-20 furnace), which was closed
down
in April 1990 for repairs, was restarted in November 1990.
1991 - Turnover declined due to a strike by workers from 5th July,
1991
to 9th September, 1991. The forcault sheet glass plant (R-100
furnace) was commissioned in January 1992.
1992 - The turnover declined due to go slow strike by the employees.
- The rehabilitation scheme of the Company under the Sick
Industries (Special Provisions) Act, 1985 was sanctioned by
BIFR
on 21st January.
- The Scheme envisages restarting of the Boisar Plant for the
manufacture of sheet glass and cold repairs by modernisation
of
the batch house and reconstruction of furnace.
- As a part of the package, the Company was declared as a
Relief
Undertaking under section 3 of the Mumbai Relief Undertaking
(Special Provisions) Act, 1958 in May.
- As on 31st March, the Company revalued its land, buildings
and
plants and machinery.
- Under the scheme approved by BIFR, 4,50,000-1% non-cumulative
compulsorily convertible preference shares of Rs 100 each were
subscribed by promoters and their associates.
- Preference dividends amounting to Rs 16.34 lakhs were in
arrears
for the period from 1st July, 1983 to 31st March, 1996.
1993 - Authorised capital reclassified and increased. Equity shares
subdivided on 21.3.1992. 30,00,000 No. of equity shares
allotted
to promoters, etc. on 20.4.1992. 4,50,000 Pref. shares of Rs
100
each issued as per BIFR Scheme.
1994 - Turnover amounted to Rs 1.95 crores due to continued illegal
strike and go-slow tactics of the workmen. And due to heavy
expenses involved in repairs and no funds coming forth from
financial institutions or banks, the Boisar plant could not
be
put back into operation.
1995 - The performance of the company could not improve due to the
illegal strike and collapse of three machineries in 1993.
Only
one plant was working most part of the year. Moreover larger
plants required heavy repairs and huge expenses.
1996 - 30,00,000 No. of equity shares were allotted in conversion of
funded interest of banks/financial institutions as per
directive
from BIFR.
