Special Shareholder Meets For Ubl, Umitl Today

The Usha Martin Group, conforming to a Calcutta High Court order, will hold separate meetings of equity shareholders of its flagship Usha Beltron Ltd (UBL) and newly formed knowledge-based business company Usha Martin Infotech Ltd (UMITL) today to work out the new corporate structure within the group.

The information technology (knowledge) businesses of UBL, together with the assets and liabilities, will be transferred to UMITL with retrospective effect from January 1, 2000.

On being operative, UMITL will allot to shareholders of UBL one equity share of Rs 5 each in UMITL, credited as fully paid up, for every one equity share held by them in UBL.

 

Also, one cumulative redeemable preference share of Rs 50 each in UMITL, credited as fully paid up, for every one preference share held by them in UBL.

UMITL will engage all the permanent employees of UBL's IT division on the same terms and conditions as engaged by UBL.

UBL will continue to focus on wire, wire ropes, steel, jelly-filled telecom cables etc.

The authorised share capital of UBL is Rs 100 crore which includes five crore equity shares of Rs 10 each and 50 lakh redeemable cumulative preference shares of Rs 100 each. The issued, subscribed and paid up component as on December 31, 1999, stood at Rs 37.98 crore.

Once the scheme comes in operation, UBL's authorised share capital structure will stand altered with 10 crore equity shares of Rs 5 each and 1 crore redeemable preference shares of Rs 50 each.

The share capital of UBL, including share capital on any further equity shares or preference shares which may be issued by Usha Beltron Ltd after the appointed date and prior to sanction of the scheme, shall stand reduced by cancelling a sum of Rs 5 per share on each of the issued, subscribed and fully paid up equity shares of Rs 10 each and a sum of Rs 50 per share on each of the issued, subscribed and fully paid up preference shares of Rs 100 each.

UMITL, is a new company incorporated with the object of carrying on various types of IT and knowledge-based business, has not undertaken any substantial business.

The authorised share capital of UMITL as on December 31, 1999 was Rs 1 crore (divided into 10 lakh equity shares of Rs 10 each) but this has been increased since then to Rs 25 crore subdivided into 4 crore equity shares of Rs 5 each and 10 lakh cumulative redeemable preference shares of Rs 50 each.

The issued, subscribed and paid up share capital of UMITL as on December 31, 1999, was Rs 7000 only divided into 700 equity shares of Rs 10 each fully paid up. This now stands at Rs 7000 divided into 1,400 equity share of Rs 5 each fully paid up.

Usha Beltron Ltd currently has total of Rs 770.61 crore loans of which Rs 659.66 crore are secured loans and Rs 110.95 crore unsecured loans. The reserves and surplus stands at Rs 522 crore.

The assets (including current assets) stands at Rs 1539 crore and the liabilities (including current liabilities and provisions) are at Rs 989 crore.