Psi Data Sets A 5-Year Plan For Revamp
The loss-making PSI Data Systems Ltd has framed a five-year plan to put the company back on track.
PSI Data, which reported accumulated losses of Rs 31.36 crore for the year ended March 31, 1996, has posted a net loss of Rs 15.63 lakh for the six month period ended September 1997.
As part of the move, the company has carried out a reduction in capital measure.
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PSI Data has also decided to create a trust called PSI Employees Welfare Trust to implement the employees stock option plan (ESOP).
At its extraordinary general meeting held in Bangalore yesterday, it passed a resolution for issuing equity shares to the PSI Employees Welfare Trust on a preferential allotment basis.
Under the proposal, PSI Data will issue and offer for subscription 3,77,517 equity shares of Rs 10 each for an aggregate nominal value of Rs 37.75 lakh, directly or through the issue of warrants to PSI Employees Welfare Trust.
The company has decided to issue upto five per cent of its equity capital to the trust, which in turn will transfer the shares at cost to those employees chosen to be rewarded for good performance.
The present paid up-capital of the company is Rs 7.17 crore, and five per cent on the expanded capital works out to Rs 37,75,170 lakh.
According to the company, the losses were due to discontinuation of mainframe manufacturing and distribution.
The company has decided to restructure and reorganise its capital.
This was carried out to reintroduce reliability into balance sheet by taking the measure of reduction of capital.
Accordingly, the paid up equity capital of the company has been reduced with effect from December 31, 1997, from Rs 35.86 crore to Rs 7.17 crore by cancelling capital which has been lost or is unrepresented by available assets to the extent of Rs 8 per equity share.
PSI has further decided to consolidate and allot one new equity share of Rs 10 each, fully paid-up, to the shareholder for every 5 equity shares of Rs 2 each.