BANKING TRADE AND COMMERCE

JOINT STOCK COMPANIES

Joint-stock companies: Joint-stock companies in Ahmadnagar district appear to have developed out of partnership or proprietary type of concerns. The companies required a large amount of capital which was not easy for a single individual to supply. Credit, too, was not obtainable unless complete security could be provided to the. creditor. The partnership concerns were even the worst form than the individual or the proprietary concerns because they depended on a smooth co-ordination amongst their members. The joint-stock companies as they exist today, therefore, came up as a more suitable form of business organisation through which instability in business could be reduced to a great extent.

In Ahmadnagar district, there are two types of companies — private limited companies and public limited companies. [The Indian Companies Act of 1956 described the former as one which restricts the right to transfer its shares, if any, limits the number of its members to fifty and prohibits any invitation to the public to subscribe for any shares and/or debentures of the company. The Act further lays down that no company, association or partnership consisting of more than twenty persons shall be formed for the purpose of carrying on any other business that has for its object an acquisition of gain by the company, association or partnership, or by the individual members thereof, unless it is registered as a company. Registration, thus, was made compulsory for these companies.]

The Aphali Pharmaceuticals was the first company to be established in the district. Established in October 1933 it had a total of 17 shareholders. At present (1970) there are in all 14 private companies in Ahmadnagar district. The growth of the private limited companies in the district took place after the forties. A classification of these companies according to the nature of their operations shows that of the 14 joint-stock companies, six are working in the field of general trading and eight are manufacturing companies.

Public limited companies engage themselves in various kinds of productive activities with a view to obtaining profits. As a rule, they require large capital due to the extent of their operations. They use it for acquisition and maintenance of plant, equipment, buildings and other fixed assets, for holding current assets in the form of inventories of finished or partly-finished products as well as raw materials and stores required for production. Capital is also required to be used as current assets and accounts receivable. Capital is raised by floating shares and by issuing debentures. The shares are transferable and negotiable by law.

The number of public limited companies in Ahmadnagar district other than the joint-stock banks is small. At present (1970) there are only four public limited companies. The first public limited company, namely, Ahmadnagar Imarat Company, was established on 2nd January 1891 with an authorised capital of Rs. 80,000. The number of its shareholders is 53 and its subscribed as also the paid-up capital is Rs. 80,000.

Table No. 17 gives the information about public and private companies registered up to 1966 in the district.

TABLE No. 17—STATISTICS RELATING TO PUBLIC AND PRIVATE COMPANIES IN AHMADNAGAR DISTRICT

Name of the company

Public or Private

Date of registration

Authorised capital (in Rs.)

Subscribed capital (in Rs.)

Paid-up capital (in Rs.)

Number of share-holders

Ahmadnagar Imarat Company, Ahmadnagar

Public

2nd January 1891.

80,000

80,000

80,000

53

Aphali Pharmaceuticals, Ahmadnagar

Public

16th October 1933.

25,00,000

15,00,000

15,00,000

175

Belapur and Kopargaon Electric Supply Company, Kopargaon.

Public

26th January 1940.

4,00,000

3,94,650

N.A.

76

Satbhai Water Supply Company, Kopargaon

Public

26th February 1941.

2,00,000

87,562

N.A.

291

Aphali Printers Limited, Ahmadnagar

Private

17th March 1947.

2,00,000

60,000

N.A.

4

Jay Bharat Trading Company, Kharda

Private

4th October 1948.

5,00,000

51,700

51,700

12

Borawake Brothers, Rahata

Private

26th December 1937.

5,00,000

18,125

18,125

10

Godavari Industrial Works, Kopargaon

Private

2nd July 1958

2,00,000

90,000

N.A.

9

Samata Sangh, Parner

Private

26th June 1960

1,00,000

66,000

66,000

95

Kopargaon Kirana Trading Company, Kopargaon

Private

April 1966

50,000

14,000

14,000

14

Shri Basaveshwar Lime Works, Ahmadnagar

Private

2nd December 1961.

2,00,000

22,500

22,500

23

C. M. E. Engineers, Ahmadnagar

Private

25th April 1964

3,00,000

88,600

88,600

15

Jawahar Engineers, Shrirampur

Private

20th October 1964.

5,00,000

3,95,000

3,95,000

8

Kopargaon Oil Mills, Kopargaon

Private

31st December 1964.

3,00,000

3,00,000

1,40,000

28

Pohegaon Chemical Laboratories, Pohegaon

Private

21st November 1964.

3,00,000

N.A.

N.A.

3

Sarosh Motors, Ahmadnagar

Private

10th March 1965.

5,00,000

60,000

60,000

3

Cement Pipes and Allied Industries Private Limited, Ahmadnagar.

Private

20th April 1966

2,50,000

2,000

2,000

2

Keshargulab Engineering Private Limited, Ahmadnagar

Private

17th November 1966.

5,00,000

3,00,000

3,00,000

24

N.A. =Not available.

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