Regaul Blue (India) Ltd was incorporated on 3rd January1995 and obtained Certificate of Commencement of Businesson 6th January 1995. Started by Mr. S. Murugesan as a selfemployment scheme in 1959 with an initial capital ofRs.100/- Regaul has grown in these years to be a marketleader in South India. From procuring blue powder in bulkand repacking it into small quantities Mr. Murugesan foundin 1979 that blue powder can be mixed with certainchemicals and formed into "Liquid Blue". After four yearsof experimenting he achieved the right combination ofliquid blue of quality which proved highly popular in themarket.

Today the advertisement jingle "Regaul Chottu Neelam doi!"is in the lips of almost every household and has put theRegaul Whitener on top of the regional market for whitenersin South India.

What started as a single-man venture in 1959 slowlyexpanded; it became a family venture in 1979 when his twosons and sons-in-law joined him. Many more small scalemanufacturing and distributing outfits were formed.Diversifying from traditional liquid blue the Company alsointroduced "Herbal Turmeric Powder". Today it is on thethreshold of diversifying into various products which haveimpact on the middle class family.

PRESENT BUSINESS

Mr. Murugesan who pioneered the "Liquid Blue" concept inSouth India also introduced herbal turmeric powder. Till nowthese products have been manufactured and marketed by thefollowing proprietory/partnership/private limitedcompanies.

(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 IndiaTrading 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 namefor the next 10 years. When the Company starts themanufacture and marketing of various products under thesebrand names the above mentioned firms/companies will ceaseto 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 January1995. The Company has already acquired the land along withfactory shed. Certain machinery have been acquired andorders for the rest have been placed. The project isexpected to be completed by April 1995 and commercialproduction expected in May 1995.

PAST FINANCIAL RESULTS

The Company has been incorporated only on 3rd January 1995and 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 accountingpolicies:

(a) The accounts will be prepaid under historical costconvention basis.

(b) The fixed assets will be stated at Cost Price lessaccumulated depreciation.

Depreciation will be provided on Straight Line Method inaccordance with and at the rates specified in Schedule XIVof the Companies Act 1956. Depreciation will be providedon pro-rata basis with reference to the month ofaddition/disposal.

(c) Inventories will be valued as follows:

- Finished goods at the lower of cost or net realisablevalue

- Consumable stores packing materials and raw materials atcost

- Work in Progress at estimated cost

(d) Sales will be accounted for on despatch of goods fromthe factory/godowns and will be net of return and willinclude Excise Duty but will exclude Sales Tax.

(e) Excise Duty where ever applicable will be accountedfor on the clearance of goods from the factory premises.

(f) Royalty payable will be accounted on accrual basis.