Hotline: 1800 102 2007
X
Search Business Opportunities
Jan, 11 2016

USL gets shareholders' nod to issue guarantor for loan

United Spirits said the resolution for consent approval of the shareholders to give guarantee and/or provide security for a bank loan of up to Rs 100 crore to be availed by its subsidiary Pioneer Distillers Ltd from Standard Chartered or such other banks

United Spirits Ltd (USL) said it has received shareholders' nod to issue a guarantee to a bank for loan of up to Rs 100 crore to be a availed by its subsidiary Pioneer Distillers, reported PTI.

United Spirits said the resolution for consent approval of the shareholders to give guarantee and/or provide security for a bank loan of up to Rs 100 crore to be availed by its subsidiary Pioneer Distillers Ltd from Standard Chartered or such other banks and was passed with a majority, in a filing to NSE.

As many as 99.5 per cent of votes polled were in favour of the resolution, said the company.

Last month, Diageo-owned United Spirits sought approval from its shareholders to report sick to BIFR as its accumulated losses as on March 31 touched 86 per cent of peak net worth during the past four fiscal years.

As per the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA), if the accumulated losses of a company, at the end of any financial year have resulted in erosion of 50 per cent or more of its peak net worth during the preceding four financial years, such firm is required to report to the Board for Industrial and Financial Reconstruction (BIFR).

United Spirits said in a notice to the shareholders for an EGM on January 22,  as per the audited annual accounts for the fiscal ended March 31, "the accumulated losses of the company as at March 31, 2015 is 86 per cent of its peak net worth during the four financial years preceding the financial year ended March 31, 2015".

"Accordingly, this extraordinary general meeting (EGM) is being convened to consider and approve the enclosed report of the Board of Directors on such erosion and its causes, and the measures being taken as per the relevant provisions of SICA, and also to approve the reporting of such erosion to BIFR in terms of Section 23 of SICA," it added.

The company said its accumulated losses as on March 31, at Rs 5,045.45 crore is greater than 50 per cent of the peak net worth in the immediately preceding four financial years at Rs 5,849.62 crore.

Comment
Related opportunities
  • Casual dine Restaurants
    About Us Manbhavan means ‘pleasing mind’ and we do it by..
    Locations looking for expansion Maharashtra
    Establishment year 2015
    Franchising Launch Date 2017
    Investment size Rs. 50lac - 1 Cr.
    Space required 1500
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Mumbai City Maharashtra
  • Mr. Bean's Pizza started its operations in Jaipur in 2013...
    Locations looking for expansion Rajasthan
    Establishment year 2013
    Franchising Launch Date 2013
    Investment size Rs. 10lac - 20lac
    Space required 330
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Jaipur Rajasthan
  • Car wash / Ceramic Coating / Detailing
    Start your own express car wash franchise business and be..
    Locations looking for expansion Uttar Pardesh
    Establishment year 1987
    Franchising Launch Date 2010
    Investment size Rs. 10lac - 20lac
    Space required 1000
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Gautam Buddha Nagar Uttar Pardesh
  • Casual dine Restaurants
    About: Established in 2009, Roti Aur Boti is a concept-based QSR..
    Locations looking for expansion Delhi
    Establishment year 2009
    Franchising Launch Date 2018
    Investment size Rs. 50lac - 1 Cr.
    Space required 200
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities

Free Advice - Ask Our Experts