Suvarna to hike authorised share capital

Hyderabad-based Suvarna Cements, a mini-cement plant, is planning to seek shareholder approval to hike the authorised share capital of the company from the present Rs 18 crore to Rs 20 crore. The company, which came into the black in the last fiscal, has just completed an expansion programme that has seen capacity go up from 300 tpd (tonnes per day) to 900 tpd.

Suvarna, which reported a net loss of Rs 2.38 crore in 2002-03, reported a modest net profit of Rs 11.05 lakh. The state government granting it a seven-year sales tax holiday aided the company's ride into the black. According to the annual report of the company, Suvarna had been able to considerably reduce the power consumption at its plant and also optimise utilisation of men and material.

The state government has granted the company a seven-year sales tax holiday/exemption up to 135 per cent of the additional investment in plant and machinery for the expanded capacity with effect from April 1, 2003.

The company in its annual report has noted that the accumulated losses of Rs 12.54 crore will be wiped off in the next couple of years.

For the year ended March 31, 2004, the company has reported a turnover of Rs 30.81 crore while there was no provision for taxation. The auditors in their report have noted that the accumulated losses of the company is more than 50 per cent of its net worth.