Out of the total long-term debts of Rs 368.31 crore on March 31, 1999, the company has to repay/redeem within the current year debts worth Rs 42.30 crore with another Rs 26 crore falling due in 2000-01.

The principal repayment schedule worked out by the company shows that it has to pay Rs 20.24 crore between October 1999 and March 2000, Rs 22.46 crore between April 2000 and September 2000 and Rs 26.12 crore between October 2000 and March 2001.

The proposed rights issue of equity shares in the ratio of four shares for every five held, lead managed by Lodha Capital Markets, is primarily intended to repay long-term debts, finance normal capital expenditure and margin money for additional working capital requirements.

The total funds required by thecompany is Rs 107.40 crore, out of which Rs 68.80 crore is earmarked for repayment of long-term debts, Rs 30 crore for normal capital expenditure and Rs 8 crore towards margin money for additional working capital requirements.

As the issue will be priced between the indicative band of Rs 27 and Rs 22, the company's realisation from the rights issue will vary from Rs 66 crore (issue priced at Rs 27) and Rs 78.23 crore (issue priced at Rs 32). Borrowings required at the lower end of the band will be Rs 41.39 crore while at the upper end, it will be Rs 29.17 crore.

Since part of the issue proceeds is proposed to be utilised in 2000-01, the company has indicated in its draft offer document that money is going to be deployed in current assets to maintain liquidity.

According to the projections made by the company, increased working capital requirements are mainly the result of higher production levels targeted in 1999-2000 for almost all its main products. Net working capital required has been estimated atRs 159.95 crore for the year ending March 31, 2000, against Rs 124.69 crore in 1998-99.

The company has estimated that production of cement will rise in the current year to 3.85 million tonnes from 3.12 million tonnes in 1998-99; jute goods to 46,782 tonnes from 39,681 tonnes; synthetic, viscose and cotton yarn to 5,436 tonnes from 3,481 tonnes; calcium carbide to 15,102 tonnes from 14,915 tonnes, PVC goods to 13.10 lakh sq metres from 7.39 lakh sq metres and auto trim parts to 2.85 lakh pieces from 2.26 lakh pieces.

It has estimated 30 per cent growth in sales to Rs 1,143.28 crore for the year ending March 31, 1998, against Rs 873.25 crore in 1998-99. Its net loss is projected to come down to Rs 14.91 crore against a loss of Rs 53.62 crore in the previous year.