Raghunath International Limited is a new company, incorporated as a public limited company under the companies act, 1956, on October 3, 1994. The certificate of commencement of business was obtained on October 11, 1994. The company has been promoted by Mr. Om Prakash Agarwal, Mr. Jai Prakash Agarwal, Mr. Sri Prakash Agarwal and Mr. Gopal Chand Gupta. The promoters except Mr. Gopal Chand Gupta are related to each other and are in business since long. On October 11, 1994, the company entered into an agreement with Mr. Gopal Chand Gupta, the proprietor of Messrs. International Impex for taking over his concern at a consideration of Rs.1.54 lakh in terms of one of the main objects of the company. The same was adjusted through the allotment of equity shares equivalent to the consideration amount to Mr. Gopal Chand Gupta. The said allotment was done on October 12, 1994. Messrs. International Impex was engaged in manufacturing pan masala with an installed capacity of 345.60 lakh pouches of 3 grams each per annum under the brand name 'SIR'. Accordingly, after the take over Messrs. Raghunath International Limited, company became operational on October 12, 1994 with the aforesaid installed capacity of pan masala from the premises under the tenancy of Messrs. Raghunath Prasad Agrawal, a partnership firm belonging to the directors. The company now intends not only to continue the existing manufacturing of pan masala but also to increase the capacity of the same besides diversifying into other products like gutka and mouth freshener. Towards this end the company is setting up altogether a new project at Kanpur Dehat. The project is scheduled to be implemented by March 31, 1995 and the commercial production is expected from April 1, 1995. As per the schedule of implementation, the existing operations will be shifted to new premises at Kanpur Dehat. Meanwhile the company has installed three new machines (forming part of this project) in the same premises where the existing operations of manufacturing pan masala under the brand name "SIR" are being carried on from. The total cost of the project has been estimated at Rs.500 lakh which is proposed to be financed fully through equity. The promoters shall contribute Rs.255 lakh and the balance Rs.245 lakh shall be raised through the public issue.