A letter dated 16th February, was received endorsing change of description of nylon filament yarn to synthetic filament yarn including industrial yarn/tyre cord in respect of industrial license and a letter of intent for a capacity of 15,000 TPA.
The Company made an application to Govt. for Letter of Intent for expansion of installed capacity of nylon tyre yarn from 1,700 tonnes to 10,200 tonnes per annum.
Applications were also made for expansion of PSF capacity from 12,000 tonnes to 30,000 tonnes per annum and of PFY capacity to 11,730 tonnes per annum through a newly incorporated Company under the name of India Synthetics, Ltd.
In May, Letter of Intent was received for the manufacture of 30,000 tonnes per annum of O-xylene 1,03,000 tonnes per annum of P-xylene and 1,50,000 tonnes per annum of purified terephthatic acid.
The installed capacity for purified terephthatic acid was subsequently enhanced to 20,000 tonnes per annum.
Letter of Intent were also obtained approving enhancement in capacity of acrylic fibre from 12,000 to 20,000 tonnes per annum and of nylon tyre yarn fabric from 1,700 tonnes to 10,200 tonnes per annum.
The activities of Jaykay Tech Division were transferred to Jaykay Tech, Ltd., a subsidiary of the Company.
It was proposed to form a new company under the name of Bharat Photo Products Ltd. to implement this project.
A new company under the name of J.K. Petrochemical Limited was incorporated to implement the aromatic and PTA project.
Memorandum of understanding for technical know-how and licence were signed with UOP for the aromatics and PTA projects respectively.
During January-February, the Company offered 20,00,000-14% secured redeemable non-convertible debentures of Rs 100 each for cash at par on rights basis in the proportion one debenture: 20 equity shares.
Additional 3,00,000 debentures were allotted to retain over subscription.
These debentures offered under both cumulative interest scheme and non-cumulative interest scheme, were to be redeemed in three instalments at the end of 6th, 7th and 8th year from the date of allotment at a premium of Rs 5 per debenture.
During October-November, the Company offered 19,21,688-12.5% secured redeemable partly convertible debentures of Rs 300 each for cash at par on rights basis in the proportion 1 debenture: 12 equity shares.
Simultaneously another 96,082 debentures were offered to employees (including Indian working directors)/workers of the Company on an equitable basis. Un-subscribed portion, if any, of the employees quota was to be allowed to lapse.
The convertible portion of Rs 120 of each debenture was automatically and compulsorily converted on 31st March, 1990 into 3 equity shares of Rs 10 each at a premium of Rs 30 per share.
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Accordingly 66,30,219 shares were allotted.
The non-convertible portion of Rs 180 of each debenture was to be redeemed at par in 3 equal instalments of Rs 60 each after the expiry of 6th, 7th and 8th years from the date of allotment of debentures.