V. COMPANY MANAGEMENT AND PROJECT

HISTORY AND PRESENT BUSINESS OF THE COMPANY

The Company was incorporated on May 15 1990 as a PrivateLimited Company vide certificate No.04-13771 issued by theRegistrar of Companies Gujarat in the name and style ofFairdeal Filaments Pvt. Ltd. It became a Public LimitedCompany vide a special resolution passed on February 15 1994and obtained a fresh certificate of Incorporation on 1st March 1994.

The Company is presently engaged in the business of syntheticyarn processing namely in the manufacture of sized yarn. Theplant is located in village Mota Borasara in Taluka Mangrol Dist. Surat in Gujarat. The plant has an installed capacity of980 MTPA. The cost of the project was part financed by GIIC byway of two term loans aggregating Rs.120 lacs. The Company hasbeen regular in its payments of its dues to GIIC. As on30.09.94 the Gompany's outstanding amount of term loan to GIICstands at Rs.75.20 lacs and the fixed assets of the Company arecovered under first charge by way of equitable mortgage /hypothecation to GIIC.

The unit started commercial production from 16th February 1991with two sizing machines. The third sizing machine was addedand made operatonal in July 1993. The plant achieved acapacity utilization of around 85% in the year 1993-94.

To strengthen and consolidate its position In the market theCompany has now undertaken a project to expand its range ofproducts to Include texturising-cum-twisting facilities. Theproposed plant would be located in village Karanj Tal. Mandviof Dist. Surat. The pliant shall have an installed productioncapacity of MTPA of lexturisad yarn and 200 MTPA of twistedyarn.Company does not have any subsidiaries.