History of Hitek Industries[Bihars] Ltd.

YEAR EVENTS 1983 - The Comp. was originally incorporated on 15th March, as Pvt. Ltd., Comp. and was subsequently converted into a Public Limited Comp. on 12th August. The Comp. was promoted by Mr. P.P. Verma.

- The main objective of Comp. is to manufacture cold formed metal section & profiles, both ferrous & non-ferrous.

- The Comp. undertook to set up a plant with a capacity of 8,000 tonnes per annum for manufacture of cold formed section of different sizes.

- The main plant viz., cold forming mill was supplied by Brockhouse Group, U.K. & they also agreed to erect the plant. It was to be commissioned by original manufacturers, Metform, U.K.

1984 - 4,70,000 shares taken up by promoters, directors etc. 5,30,000 shares offered at par to the public during July.

1985 - Shortage of indigenous hot rolled & cold rolled coils & the delay experienced in the import of these items led to lower production & subsequent paucity in working capital.

- Also, non financing of tools/dies that comprised 30% of raw materials, by concerned institutions added to the problem.

1986 - 8,00,000 No. of equity shares issued at par as rights to resident Indian equity shareholders in prop. 1:2 in February. Only 4,22,923 shares taken up. The balance 77,077 shares were offered to person other than directors, their friends & relatives out of which 4,375 shares were allotted in Oct. 1946 & 3,350 shares allotted on 3rd January 1947 [including 3,000 shares to Govt. of Bihars].

1988 - The Comp. became a sick Comp. under the provisions of the Sick Industrial Companies [Sp. Provisionss] Act, 1985.

1989 - All attempts were made with the banks & financial institutions to finalise a rehabilitation package for revival of the Comp. & the discussions were in the final stage.

1990 - Production declined to 504 tonnes due to low level of operations due to severe working capital shortage.

- The rehabilitation package for revival of Comp. was finalised.