Shriram Honda Renaming Gets Approval

The annual general meeting of Shriram Honda Power Equipment approved the change of name of the firm to Honda Siel Power Products to reflect the change in the equity holding pattern of the company.

During the year, the shareholding between Honda Motor Company and Siel _ the main promoters of the company _ changed and Honda Motors currently holds 66.66 per cent in the company.

This was following the memorandum of understanding signed between the two partners wherein Siel had transferred 10 per cent shares of Shriram Honda Power Equipment to Honda Motor with an option to buy-back the same within two years.

"Consequently, it was proposed to change the name of the company to Honda Siel Power Products and amend the Articles of Association to reflect the changes.

"In terms of the amended Articles and subject to the provisions of the Companies Act, Honda Motor will be entitled to nominate six directors on the board and Siel will be entitled to recommend four directors, one of whom will be the chairman of the company," states the director's report.

The annual general meeting also adopted the financial results of the company for the year ended March 31, 1998.

The gross profit of the company stood at Rs 28.10 crore against Rs 28.83 crore recorded during the previous fiscal.

However, the company notched up a higher net profit after tax at Rs 19.46 crore compared with Rs 18.89 crore recorded during the previous year.

This is because of a reduction in the income tax provision to Rs 4.5 crore against Rs 6.3 crore the year before.

The directors have recommended a 40 per cent dividend to be paid for the year ended March 31, 1998.

The annual general meeteing also passed other resolutions in the agenda including re-appointment of two directors and appointment of the auditors.