No negative impact on accounts
Gujarat Borosil announced that the Company had filed Legal case against one of its export debtors (including its directors) namely VETRAD B.V. based in Netherlands for recovery of dues, being regularly disclosed in note to the quarterly results. The Company had petitioned the court to lift the Corporate veil and hold the Directors personally liable. The case succeeded in the trail court, but was subsequently overturned on appeal by the higher court, which left recourse to proceed only against the Company, which declared bankruptcy.Considering the very rare chance of recovery of the dues, the entire amount of Rs. 5.69 crore outstanding as per books has been provided for by the Company in the accounts for the year ended 31 March 2015.
Thus, the judgment will have no further negative impact on the accounts of the Company. Necessary approval of Reserve Bank of India (RBI) will be sought to write off the dues in view of these developments.
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