Outcome of board meeting of Balaji Galvanising Industries

Held on 28 February 2018

The Board of Balaji Galvanising Industries at its meeting held on 28 February 2018 took note of the conditional clearance granted by the Telangana PCB to operate the plant of the company for a limited period of 6 months subject to some stringent non-viable conditions which include investment in Pollution Control Equipment and Water Reservoir. The Board is of the opinion that the -

1. Investment in Pollution Control Equipment and Water Reservoir and Concretisation of Roads, which will require a minimum investment of Rs. 50 lakh approximately.

2. There will be a recurring expenditure of Rs 2 lakh per month for payment towards Common Effluent Treatment Plant in the industrial zone and for disposing the water to TPCB's prescribed body.

 

Since the financials of the company does not permit to make these investments due to the continued losses over the years and no financial institution is willing to lend at a reasonable rate of interest, the Board of Directors of the Company unanimously agreed to dispose off of the unit in terms of the shareholders approval accorded in the Shareholders Meetings of the company held on 30 September 2016 with a view of protecting the existing shareholders' wealth. The management has also decided to utilise the sale proceeds to invest in another business venture to enhance shareholders' wealth.

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