ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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In Full Control

In Full Control Hansavivek NATIONAL RAYONS shareholders had passed a special resolution in November last that 20,000 out of the one lakh equity shares proposed to be issued as 'rights' shares be offered to the financial institutions or the general pub- lic by prospectus. The directors now say that the financial institutions are not interested in subscribing to these shares, that there would be disproportionate expenses on the issue by prospectus and that it would be in the interest of the company to offer the entire issue of one lakh shares of Rs 100 each at a premium of Rs 125 per share to the holders of equity shares as 'rights' shares. An application has been made to the Controlled of Capital Issues to waive the condition that 20,000 shares be offered to the financial in- stitutions or the general public. Obviously, the Kapadia group which now holds complete control of the company's management after wresting it from the Chinais and particularly after the exit of the two, directors appointed by the Company ., Law Board on expiry of their term on June 29 last which has not been extended, do not wish to let any shares go to any outsider or the financial institutions. Naval H Tata, who had been a director from December 1965 and chairman from May 11, 1972 has resigned from the board with effect from August 8 last His place has been taken over by Shantanu N Desai. Sanat P Mehta, who had been a director from March 1972 also resigned from August 9 last. NRCs nylon-6 tyrecord project is going apace. About two-thirds of the civil engineering work has been completed. Considerable quantity of imported and indigenous equipment has been received at the site, and erection work is also in progress. The plant is expected to be commissioned by September this year. The company has also applied for an industrial licence for a project for the manufacture of rayon grade wood pulp and staple fibre to be located' in a 'backward' area of Maharashtra. The 'company's research and development department has developed the process for the manufacture of this raw material, which is in short supply. The government of India has not extended the validity of the period of the letter of intent' for increase in the capacity of caustic soda production in the absence of an assurance for power for this project from the state government. The company is pursuing the matter with the government of Maharashtra to obtain the necessary assurance and intends to make a fresh application to the Central government.

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